Zaggle shares tumble 20% today: Two key reasons behind the stock's sharp fall
Equirus Securities said Zaggle reported a soft Q1 FY27, with consolidated operating revenue rising 27.5 per cent year-on-year (YoY) to Rs 420 crore, which was 8.8 per cent below its estimates.
- Aug 17, 2026,
- Updated Aug 17, 2026 10:53 AM IST
Shares of Zaggle Prepaid Ocean Services Ltd slumped 20 per cent in Monday's trade to hit a 52-week low of Rs 160.45. At this level, the stock has crashed 53.96 per cent on a year-to-date (YTD) basis.
Two key developments were weighing on the stock today. The first was the company's muted June quarter performance, while the second was the dismissal of its appeal against an income tax (I-T) demand for assessment year (AY) 2022-23.
Equirus Securities said Zaggle reported a soft Q1 FY27, with consolidated operating revenue rising 27.5 per cent year-on-year (YoY) to Rs 420 crore, which was 8.8 per cent below its estimates.
"EBITDA stood at Rs 30.9 crore (+1.3 per cent YoY) with margin at 7.3 per cent (-188bps yoy/-214bps QoQ) and PAT fell 32.9 per cent YoY to Rs 17.5 crore, weighed by ~Rs 3 crore of DICE costs incurred without corresponding revenue," it stated.
"Management retained FY27 consol revenue growth guidance of ~40 per cent as DICE revenues commence from Q2 FY27 with full pick-up from Q3 FY27. No FY27 margin guidance was given, with the 14-15 per cent aspiration clarified as a medium-term objective. DICE was restructured as an asset purchase for Rs 68 crore vs Rs 123 crore earlier, with ~100 employees moving to Zaggle's payroll," Equirus added.
"We see Zaggle well positioned to benefit from rising spend-management penetration, while acquisitions strengthen client stickiness. However, core business is seeing growth moderation, and the DICE acquisition will lead to near-term cost pressure. Consequently, we cut our FY27E earnings estimates by 21 per cent and cut Mar'27 TP (target price) to Rs 350 (vs Rs 455 earlier), which translates into 35x Mar'28 EPS," it further stated.
Separately, Zaggle informed stock exchanges that its appeal against an I-T demand for AY23 has been dismissed.
"We would like to inform you that the appeal filed by the Company before the Honourable Commissioner of Income Tax (Appeal), against the demand notice received under Section 156 of the Income Tax Act, 1961, for the assessment year 2022-23, has been dismissed by its order dated August 14, 2026."
Zaggle said it plans to pursue the matter before the appropriate appellate authority. "The Company believes that it has strong grounds to defend these positions and will take the necessary steps to pursue an appeal before the appropriate appellate authority."
The company had earlier informed the exchanges on May 24, 2024, about an additional tax demand of Rs 4,09,15,780 for AY23. At the time, Zaggle said the I-T department had passed an assessment order under Section 143(3), determining additional taxable income of Rs 1,61,69,801 and initiating proceedings for recovery of income tax of Rs 4,09,15,780.
Shares of Zaggle Prepaid Ocean Services Ltd slumped 20 per cent in Monday's trade to hit a 52-week low of Rs 160.45. At this level, the stock has crashed 53.96 per cent on a year-to-date (YTD) basis.
Two key developments were weighing on the stock today. The first was the company's muted June quarter performance, while the second was the dismissal of its appeal against an income tax (I-T) demand for assessment year (AY) 2022-23.
Equirus Securities said Zaggle reported a soft Q1 FY27, with consolidated operating revenue rising 27.5 per cent year-on-year (YoY) to Rs 420 crore, which was 8.8 per cent below its estimates.
"EBITDA stood at Rs 30.9 crore (+1.3 per cent YoY) with margin at 7.3 per cent (-188bps yoy/-214bps QoQ) and PAT fell 32.9 per cent YoY to Rs 17.5 crore, weighed by ~Rs 3 crore of DICE costs incurred without corresponding revenue," it stated.
"Management retained FY27 consol revenue growth guidance of ~40 per cent as DICE revenues commence from Q2 FY27 with full pick-up from Q3 FY27. No FY27 margin guidance was given, with the 14-15 per cent aspiration clarified as a medium-term objective. DICE was restructured as an asset purchase for Rs 68 crore vs Rs 123 crore earlier, with ~100 employees moving to Zaggle's payroll," Equirus added.
"We see Zaggle well positioned to benefit from rising spend-management penetration, while acquisitions strengthen client stickiness. However, core business is seeing growth moderation, and the DICE acquisition will lead to near-term cost pressure. Consequently, we cut our FY27E earnings estimates by 21 per cent and cut Mar'27 TP (target price) to Rs 350 (vs Rs 455 earlier), which translates into 35x Mar'28 EPS," it further stated.
Separately, Zaggle informed stock exchanges that its appeal against an I-T demand for AY23 has been dismissed.
"We would like to inform you that the appeal filed by the Company before the Honourable Commissioner of Income Tax (Appeal), against the demand notice received under Section 156 of the Income Tax Act, 1961, for the assessment year 2022-23, has been dismissed by its order dated August 14, 2026."
Zaggle said it plans to pursue the matter before the appropriate appellate authority. "The Company believes that it has strong grounds to defend these positions and will take the necessary steps to pursue an appeal before the appropriate appellate authority."
The company had earlier informed the exchanges on May 24, 2024, about an additional tax demand of Rs 4,09,15,780 for AY23. At the time, Zaggle said the I-T department had passed an assessment order under Section 143(3), determining additional taxable income of Rs 1,61,69,801 and initiating proceedings for recovery of income tax of Rs 4,09,15,780.