Shares of Zaggle Prepaid Ocean Services Ltd. are trading more than 17% lower on Thursday, May 14, after the company reported a sequential decline in margins despite posting strong growth in revenue and profit for the March quarter. According to reports from CNBC TV18, with today's decline, the stock fell the most since its listing, highlighting investor concerns over margin compression despite positive financial metrics. The broader market context shows the Indian rupee sliding to an all-time low of 95.80 against the US dollar on the same day, as elevated crude oil prices and sustained foreign portfolio outflows intensified pressure on the country's external balances.
For Q4FY26, the company reported revenue of ₹618 crore, marking a 17.6% increase from ₹526 crore in the previous quarter. As reported by CNBC TV18, profit after tax rose 11.8% sequentially to ₹41 crore from ₹36 crore, while EBITDA increased 12.1% to ₹58 crore compared to ₹52 crore in Q3FY26. The strong top-line growth demonstrates the company's ability to expand its business despite margin pressures.
Despite the strong revenue and profit growth, EBITDA margin contracted by 46 basis points on a quarter-on-quarter basis to 9.4% from 9.9%, which appears to have weighed on investor sentiment. According to CNBC TV18, this margin compression despite overall growth in profitability indicates potential cost pressures or operational challenges that investors are concerned about. The margin contraction comes at a time when the broader market is facing external pressures from currency depreciation and global economic uncertainties.
During the quarter, the company incorporated Zaggle Payments IFSC Ltd in GIFT City as part of its strategy to expand global cross-border payment capabilities. As reported by CNBC TV18, this move is aimed at strengthening the company's international payments infrastructure and supporting overseas transaction solutions. Additionally, Zaggle completed the acquisition of Rivpe in March 2026, through which the company has entered the UPI and consumer credit card segments, expanding its presence in the digital payments ecosystem and broadening its fintech offerings.
