Zaggle Q1 profit falls 33%, shares hit lower circuit

Fintech SaaS company Zaggle Prepaid Ocean Services reported a 33% year-on-year drop in consolidated net profit to Rs 17.5 crore for the June quarter (Q1 FY27). Sequentially, profit plunged 57% from Rs 40.6 crore in Q4 FY26. Operating revenue rose 28% YoY to Rs 423.3 crore but fell 32% from the preceding quarter.

The company attributed the margin pressure to costs from integrating DICE Enterprises, acquired for Rs 68 crore in May, and from Zagg.Money, a consumer credit card business. Equirus retained its 'LONG' rating but cut its target price to Rs 350 from Rs 455, citing slower core business growth. Shares hit a 20% lower circuit at Rs 160.45, a 52-week low, extending a 54% decline this year.

Zaggle retained its 40% revenue-growth target for FY27, expecting DICE revenue to begin from Q2. The company also invested Rs 8 crore for a 20% stake in Unobanc to expand cross-border payments.