Source : INDIA TODAY NEWS
Shares of Zaggle Prepaid Ocean Services fell 20% on Monday, hitting the lower circuit on the BSE, after the company reported a sharp decline in profit for the June quarter of FY27.
The SaaS fintech company’s consolidated net profit fell 32.9% year-on-year to Rs 17.53 crore in the first quarter ended June 30, 2026. It had reported a profit of Rs 26.11 crore in the same quarter of the previous year.
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At the time of writing, Zaggle shares were down 20% at Rs 160.48.
PROFIT FALLS SHARPLY FROM MARCH QUARTER
The decline in profit was sharper when compared with the previous quarter.
Zaggle’s net profit stood at Rs 40.60 crore in the March quarter of FY26. This means profit fell 56.8% sequentially in the June quarter.
Revenue also declined on a quarter-on-quarter basis. Revenue from operations fell 31.5% from Rs 617.91 crore in the March quarter.
However, revenue was higher compared with the same quarter last year.
REVENUE RISES, BUT MARGINS WEAKEN
Zaggle’s revenue from operations rose 27.5% year-on-year to Rs 423.26 crore in the June quarter. This compares with Rs 331.96 crore in the April-June quarter of the previous financial year.
Despite the rise in revenue, the company’s adjusted EBITDA margin declined to 8.2% from 10.1% in the year-ago period.
WHAT ZAGGLE’S MANAGEMENT SAID
Raj P Narayanam, Founder and Executive Chairman of Zaggle PrepaidOcean Services, said the company is entering a new phase after a decade of profitable growth.
“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,” Narayanam said.
He said the company is now focusing on improving its core operations, increasing the use of artificial intelligence and integrating its recent acquisitions.
“Our focus is now firmly on optimising core operations, scaling AI across our platforms, and integrating our recent acquisitions,” Narayanam said.
The company is also looking to strengthen its cash flow management and make changes to its capitalisation as it works towards improving profitability.
Narayanam said these steps are aimed at positioning Zaggle for stronger margins in the coming years.
“All while calibrating our capitalisation and instilling greater cash flow discipline to position the company for higher-margin growth in the years ahead,” he said.
– Ends
SOURCE :- TIMES OF INDIA
