Zaggle Plunges 20% To Hit Lower Circuit After Q1 Profit Slump

Fintech SaaS company Zaggle Prepaid Ocean Services saw its stock plunge 20% during trading, hitting a low of ₹160.45 apiece and a 52-week low, following a sharp decline in profit for the June quarter. The company's market capitalization fell to ₹2,157.3 Cr ($225.6 Mn). Share prices have dropped 54% this year and 21.3% in the last five trading sessions.

Equirus, a brokerage firm, maintained a 'LONG' rating on Zaggle but cut its price target to ₹350 from ₹455, citing slower growth in the core business and near-term margin pressure from the integration of DICE Enterprises. The acquisition is expected to have a negative impact on profitability in the short term. The company's net profit fell 33% to ₹17.5 Cr in Q1 FY27 from ₹26.1 Cr a year earlier, with sequential profit down 57%.

Revenue rose 28% YoY to ₹423.3 Cr but fell 32% from the previous quarter. Profitability weakened during the quarter, with adjusted EBITDA rising 4% YoY to ₹34.7 Cr, but margin contracting to 8.2% from 10.1%. The decline was attributed to costs related to DICE Enterprises and Zagg.Money acquisition. Despite the weak results, Zaggle retained its revenue-growth target of about 40% for FY27, expecting growth from DICE acquisition and increased AI deployment.

Founding chairman Raj P Narayanam said this marks an important inflection point for the company as it moves into a phase of transformation through consolidation.