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

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

Shares of Zaggle ended today’s session at ₹160.45 apiece on the BSE, remaining locked at the lower circuit throughout the session after hitting the limit earlier in the day.

Shares of fintech SaaS company Zaggle Prepaid Ocean Services plunged 20% during the intraday trading today to ₹160.45 apiece, hitting their lower circuit and a 52-week low after the company reported a sharp decline in its profit in the June quarter. 

The stock remained locked at the lower circuit, taking Zaggle’s market capitalisation to ₹2,157.3 Cr ($225.6 Mn). 

Today’s decline extended the stock’s recent slide. Shares of Zaggle have fallen 54% so far this year and 21.3% over the past five trading sessions. 

Following the results, brokerage Equirus retained its ‘LONG’ rating on Zaggle but cut its target price to ₹350 from ₹455, citing slower growth in the company’s core business and near-term margin pressure from the integration of DICE Enterprises. It also lowered its FY27 earnings estimate by 21%, expecting the acquisition to weigh on profitability in the near term. 

Zaggle’s consolidated net profit fell 33% to ₹17.5 Cr in the first quarter of FY27 from ₹26.1 Cr a year earlier. Sequentially, profit declined 57%. Operating revenue rose 28% YoY to ₹423.3 Cr but fell 32% from the preceding quarter. 

Profitability also weakened during the quarter. The company’s adjusted EBITDA rose 4% YoY to ₹34.7 Cr, but the corresponding margin narrowed to 8.2% from 10.1%. 

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