Zaggle Prepaid Ocean Services shares plunged 19% to hit a low of ₹236.65 during intraday trading on the National Stock Exchange (NSE) despite reporting strong growth in the March 2026 quarter (Q4FY26). According to latest reports, this represents the biggest single-day decline the stock has seen since its listing on September 22, 2023. The sharp fall marked the stock's biggest single-day decline since its market debut, with investors reacting to concerns over declining EBITDA margins despite otherwise positive earnings numbers. During the quarter, revenue from operations rose 17.6% sequentially to ₹618 crore compared to ₹526 crore in the December quarter, while profit after tax (PAT) climbed 11.8% to ₹41 crore.
Zaggle Prepaid reported a 50% year-on-year jump in revenue from operations to ₹618 crore compared to ₹412 crore in the year-ago period, as reported by Business Standard. The company achieved cash profit after tax (PAT) of ₹41 crore in Q4FY26, up 30.6% from ₹31 crore in the corresponding quarter of the previous fiscal. Adjusted earnings before interest, tax, depreciation, and amortisation (Ebitda) rose 62.4% to ₹58.3 crore as against ₹35.9 crore in the corresponding quarter of the previous fiscal. Ebitda margins improved to 9.4% from 8.7% in the year-ago period, though they declined 46 basis points quarter-on-quarter from 9.9% in the previous quarter.
The EBITDA margin decline of 46 basis points quarter-on-quarter to 9.4% compared to 9.9% in the previous quarter raised significant concerns about profitability sustainability amid aggressive business expansion and higher operational costs. Market participants interpreted this as a sign that rising expenses and investments in technology infrastructure could continue to pressure profitability in the near term. Despite strong revenue growth, investors focused primarily on the margin compression, as transaction volumes remained strong and growth was driven by enterprise payment solutions and expansion in digital payment services. The margin concerns reflect broader challenges faced by the fintech sector globally, where companies are balancing competitive pricing pressures and aggressive investments to gain market share.
During the quarter, Zaggle strengthened its international payment infrastructure by integrating Zaggle Payments IFSC in GIFT City, which aims to improve cross-border payment solutions and enhance global transaction capabilities for enterprise clients. The company also completed a significant acquisition of Rivipe in March 2026, expected to significantly expand its fintech offerings by helping enter retail digital payment solutions and consumer-focused fintech products. According to JM Financial, analysts believe the company's long-term growth story remains intact due to expansion into new fintech verticals, growth in digital payments adoption, increasing enterprise client base, and strategic acquisitions. The brokerage maintains its 'Buy' rating with a March 2027 target price of ₹380, considering the robust growth trajectory despite current margin pressures.
