Zaggle shares crash 20%, hit lower circuit after Q1 PAT declines 33% YoY

Shares of spend management solutions provider Zaggle Prepaid Ocean Services tanked 20% to Rs 160.45, hitting the lower circuit on the BSE on Monday, after the company reported a 32.9% year-on-year decline in profit after tax to Rs 17.53 crore for the June quarter of FY27, from Rs 26.11 crore in the corresponding quarter of the previous year.

Revenue from operations rose 27.5% year-on-year to Rs 423.27 crore from Rs 331.97 crore in the same quarter last year, according to a regulatory filing. Adjusted EBITDA rose 4% YoY to Rs 34.74 crore from Rs 33.42 crore in the June quarter of FY26.

However, the adjusted EBITDA margin declined to 8.2% in Q1FY27 from 10.1% in the corresponding quarter of FY26. The company attributed the decline to expenses related to the Dice acquisition, including transaction costs, one-time vendor payments and relocation expenses for more than 100 professionals. Revenue from Dice contracts was not captured in Q1FY27 and will start reflecting from Q2FY27 onwards.

Propel margins surged on the back of a strong performance from Greenedge as well as overriding commissions received during the quarter, according to the company.

Commenting on the Q1 performance, Raj P Narayanam, Founder and Executive Chairman of Zaggle Prepaid Ocean Services, said, “Q1 FY27 marks an important inflection point for Zaggle as we move from a decade of profitable growth into a phase of transformation through consolidation.”

He added that the company’s focus is now firmly on optimising core operations, scaling AI across its platforms and integrating its recent acquisitions, while calibrating its capitalisation and instilling greater cash flow discipline to position the company for higher-margin growth in the years ahead.

The company has completed an investment of Rs 8 crore in Unobanc Private Limited, a subsidiary of Hop Financial Solutions Limited, which holds an Authorised Dealer Category II licence from the RBI. The investment strengthens Zaggle’s capabilities in cross-border payments, forex cards and remittances, enabling it to expand its financial solutions for both corporate and retail customers.Following the acquisition of Dice, the company has brought marquee enterprise clients including Hindalco, Bajel, Trident Group, IDFC First Bank, Lenskart, Nephroplus and XpressBees into its fold. Beyond expanding its client base, Dice’s technical expertise is accelerating Zaggle’s AI roadmap across Save and Zoyer, strengthening automated spend analytics, approval workflows and predictive expense management and creating a strong launchpad for its overseas growth.

“Looking ahead, our various acquisitions alongside our card initiatives and international foray all strengthen our platform for the next phase of scale,” the Founder and Executive Chairman said.

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