Shares of Zaggle Prepaid Ocean Services Ltd. were trading 20% lower on Monday, August 17, after the company reported a decline in net profit and EBITDA margins for the June quarter (Q1FY27).Net profit fell 33% year-on-year to ₹17.5 crore from ₹26.1 crore.Revenue increased 27.5% to ₹423 crore from ₹332 crore a year earlier.EBITDA remained broadly unchanged at ₹31 crore, while EBITDA margin declined to 7.3% from 9.2% in the year-ago quarter.The company said Propel margins improved, supported by a strong performance from Greenedge and overriding commissions received during the quarter.The incentive and cashback expense as a percentage of revenue stood at around 66.3%, improving from 69% in Q4FY26.Zaggle said EBITDA margins were impacted by several factors, including expenses related to the acquisition of Dice, such as transaction costs, one-time vendor payments and relocation expenses for more than 100 professionals.Revenue from Dice contracts was not recognised in Q1FY27 and is expected to start reflecting from Q2FY27 onwards, the company said.Margins were also impacted by a greater proportion of expenses being recognised in the profit and loss account that were previously capitalised, employee salary increments and additional employee and other costs following the acquisition of Zagg.Money.
Shares of Zaggle Prepaid Ocean Services Ltd. were trading 20% lower on Monday, August 17, after the company reported a decline in net profit and EBITDA margins for the June quarter (Q1FY27).Net profit fell 33% year-on-year to ₹17.5 crore from ₹26.1 crore.Revenue increased 27.5% to ₹423 crore from ₹332 crore a year earlier.EBITDA remained broadly unchanged at ₹31 crore, while EBITDA margin declined to 7.3% from 9.2% in the year-ago quarter.The company said Propel margins improved, supported by a strong performance from Greenedge and overriding commissions received during the quarter.The incentive and cashback expense as a percentage of revenue stood at around 66.3%, improving from 69% in Q4FY26.Zaggle said EBITDA margins were impacted by several factors, including expenses related to the acquisition of Dice, such as transaction costs, one-time vendor payments and relocation expenses for more than 100 professionals.Revenue from Dice contracts was not recognised in Q1FY27 and is expected to start reflecting from Q2FY27 onwards, the company said.Margins were also impacted by a greater proportion of expenses being recognised in the profit and loss account that were previously capitalised, employee salary increments and additional employee and other costs following the acquisition of Zagg.Money.
