Zaggle Prepaid falls 19% despite strong Q4; brokerages see up to 60% upside

Zaggle Prepaid Ocean Services share price today

Shares of Zaggle Prepaid Ocean Services fell nearly 19 per cent to hit a low of ₹283.85 on the National Stock Exchange (NSE) despite the company reporting strong growth in the March 2026 quarter (Q4FY26). This is the biggest single-day decline the stock has seen since its listing on September 22, 2023. 

 

At 11:00 AM, the stock was trading at ₹234.5, down 17.4 per cent from its previous session's close of ₹283.85. In comparison, the NSE Nifty50 was trading at 23,438.10 levels, down by 25.50 points or 0.11 per cent. However, the stock has surged around 73 per cent from its listing price of ₹164. The company's market capitalisation stood at ₹3,154.5 crore. 

 

 

On a year-to-date (YTD) basis, the Zaggle share price has declined by over 18 per cent, compared to a 10.4 per cent decline in the Nifty50.  

Zaggle Prepaid Q4 results highlights

In the March 2026 quarter, Zaggle Prepaid reported a 50 per cent year-on-year (Y-o-Y) jump in revenue from operations to ₹618 crore compared to ₹412 crore in the year-ago period. 

 

It reported cash profit after tax (PAT) of ₹41 crore in Q4FY26, up 30.6 per cent from ₹31 crore. 

 

Its adjusted earnings before interest, tax, depreciation, and amortisation (Ebitda) rose 62.4 per cent to ₹58.3 crore as against ₹35.9 crore in the corresponding quarter of the previous fiscal. 

 

Ebitda margins improved to 9.4 per cent from 8.7 per cent in the year-ago period. 

 

For FY26, the company posted revenue of ₹1907.6 crore, up 46.3 per cent Y-o-Y, while adjusted Ebitda rose 51 per cent to ₹191.6 crore. PAT increased 51.8 per cent to ₹138.8 crore.  CHECK Stock Market LIVE Updates

Brokerages on Zaggle Prepaid

According to Equirus Securities, the company's both standalone and consolidated operating cash flows remained weak with standalone OCF at negative ₹63 million and consolidated OCF at negative ₹515 million.

 

The company's management has guided for FY27 revenue growth of 40 per cent on a consolidated basis and 25-30 per cent on a standalone basis. The brokerage noted that Ebitda margin guidance will be provided after completion of the DICE acquisition, which has now been restructured into an asset purchase worth ₹680 million, compared to the earlier share-based deal valued at ₹1.23 billion. Around 100 DICE employees are expected to move to Zaggle’s payroll, while the acquired business is likely to scale through cross-selling opportunities.

 

Amid this, Equirus believes Zaggle is well placed to benefit from rising adoption of enterprise spend-management solutions, with acquisitions expected to improve client stickiness across the platform. The brokerage has maintained a 'Long' rating on the stock, with a March 2027 target price of ₹455.

 

According to JM Financial, Zaggle delivered another strong quarter with continued momentum across segments. Revenue surged 50 per cent, underpinned by new client additions and higher per-client monetisation. Ebitda growth came on the back of operating leverage on employee costs and other expenses, adjusted Ebitda margin expanded by 50 basis points Y-o-Y to 9.5 per cent. Depreciation & Amortisation (D&A) expenses rose to about 2 per cent of revenue as the company continued capitalising technology investments.

 

Additionally, the company's management maintained its long-term standalone adjusted Ebitda margin guidance of 14-15 per cent over four to five years and guided for OCF turning positive by FY27 with a steady-state Ebitda-to-OCF conversion target of 40??'50 per cent. 

 

"With rising cross-sell penetration, new product traction (Zoyer, Zatix, ZIP) and recent acquisitions bolstering the ecosystem, we believe Zaggle has a long growth runway in an under-penetrated market," the brokerage said in its note. 

 

JM Financial maintained its 'Buy' rating on the stock with a March 2027 target price of ₹380, assigning 20x FY28 P/E, conservative considering the robust growth trajectory.  ========================  Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.