Zaggle Prepaid stock falls 20% after Q1 FY27 profit slide
Business
Zaggle Prepaid's stock dropped 20% on Monday after its profits slid in the first quarter of FY27.
Even though revenue jumped 27.5% to ₹423 crore, net profit fell 33% to ₹17.5 crore, and margins tightened from 9.2% to 7.3%.
EBITDA stayed flat at ₹31 crore, showing that higher sales didn't translate into better earnings this time.
Dice and Zagg. Money acquisitions squeeze margins
The weaker margins were due to extra spending on recent acquisitions like Dice and Zagg. Money (think relocation costs for more than 100 professionals, transaction costs, and higher salaries).
On the bright side, cash back expenses improved a bit and revenue from Dice contracts is expected to start reflecting from Q2FY27 onwards, so there could be better days ahead for Zaggle.