Shares of Zaggle Prepaid Ocean Services Ltd. slumped over 20% on Monday, Aug. 17, after the SaaS and fintech solutions service company reported a weak set of numbers in the April-June quarter results for fiscal 2026-27 (Q1FY27). Investors are cautious on the counter after Zaggle Prepaid reported a sharp sequential decline during the first quarter of current fiscal with consolidated net profit falling 56.9% to Rs 17.5 crore from Rs 40.6 crore in the preceding March quarter of FY26.
On Monday, shares of Zaggle Prepaid Ocean Services Ltd. opened at Rs 182.40 against a previous close of Rs 200.59 and extended losses by upto 20% to hit an intraday low of Rs 160.48 apiece on the NSE. The smallcap stock is trading at its 52-week low levels. The stock last traded 20% lower at Rs 160.48 apiece on the NSE. This compares to a drop of 0.35% in the Nifty 50 benchmark. The stock has slumped nearly 24% in one month and over 55% on a year-to-date basis.
ALSO READ:
Zaggle Prepaid Share Price Intraday
Zaggle Prepaid Q1 Results
Consolidated revenue declined 31.6% sequentially to Rs 423 crore, compared with Rs 618 crore in the preceding quarter. The drop in revenue was accompanied by a steeper decline in operating profitability, indicating pressure on the company's earnings during the quarter. Earnings before interest, taxes, depreciation and amortisation fell 47.7% quarter-on-quarter to Rs 30.4 crore from Rs 58.1 crore. The Ebitda margin contracted to 7.2% in the June quarter from 9.4% in the previous quarter.
The sequential decline in profit was significantly sharper than the fall in revenue, with net profit dropping by more than half during the quarter. Q1 EBITDA fell sharply reflecting a contraction in operating margins. Zaggle Prepaid's Q1 results come after a stronger March quarter, when the company reported a revenue of Rs 618 crore and net profit of Rs 40.6 crore. The company operates in the spend management and fintech space, offering corporate expense management, employee benefits and rewards solutions. Growth in corporate spending and digital payments influences demand for its services.
What's not working for Zaggle Prepaid?
The EBITDA margin pressure remains a key concern for investors along with high recent acquisition cost.
Dice acquisition revenue absent in Q1; contribution to begin from Q2 FY27 onwards.
Higher expense recognition as previously capitalized costs moved to P&L
Annual employee increments increased staff costs during the quarter
Zagg.Money acquisition added employee and operating expenses, weighing on profitability
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
