Zaggle Prepaid hits lower circuit after Q1 PAT drops 33% YoY
Adjusted EBITDA increased 4% year on year to Rs 34.74 crore. However, adjusted EBITDA margin narrowed to 8.2% in Q1 FY27 from 10.1% in Q1 FY26.
The company said the margin contraction was primarily due to expenses associated with the acquisition of Dice, including transaction costs, one-time vendor payments and relocation expenses for more than 100 professionals. Revenue from Dice contracts was not recognised in Q1 FY27 and is expected to start contributing from Q2 FY27.
Margin performance was also impacted by a moderated push of expenses into the profit and loss account that were earlier capitalised, employee increments, and additional employee and other expenses following the acquisition of Zagg.Money.
Raj P Narayanam, founder and executive chairman, Zaggle Prepaid Ocean Services, said, ?Q1 FY27 marks an important inflection point for Zaggle as we move from a decade of profitable growth into a phase of transformation through consolidation. Our focus is now firmly on optimizing core operations, scaling AI across our platforms, and integrating our recent acquisitions - all while calibrating our capitalization and instilling greater cash flow discipline to position the company for higher-margin growth in the years ahead
We have completed the investment of Rs 8 crore in Unobanc, a subsidiary of Hop Financial Solutions Limited, which holds an Authorised Dealer Category II licence from RBI. This investment strengthens our capabilities in cross-border payments, forex cards and remittances, enabling us to expand our financial solutions for both corporate and retail customers.
From Dice, we have already brought marquee enterprise clients including Hindalco, Bajel, Trident Group, IDFC First Bank, Lenskart, Nephroplus and XpressBees into our fold. Beyond the client base, Dice's technical expertise is accelerating our AI roadmap across Save and Zoyer, strengthening automated spend analytics, approval workflows and predictive expense management thereby creating a very strong launchpad for our growth overseas. Looking ahead, our various acquisitions along side our card initiatives and international foray all strengthen our platform for the next phase of scale.?
Zaggle Prepaid Ocean Services is a leading spend management company with a differentiated value proposition and diversified user base. The company operates in the business-to-business-to-customer (B2B2C) segment and is one of the largest issuers of prepaid cards in India through partnerships with leading banks. It also offers a diversified portfolio of software-as-a-service (SaaS) products, including tax and payroll software.
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