Zaggle Prepaid shares hit 10% lower circuit after Q3 net profit declines QoQ to ₹19.74 crore

The company’s consolidated net profit for Q3FY25 stood at ₹19.74 crore, down 2.7% quarter-on-quarter compared to ₹20.29 crore reported in Q2FY25. However, net profit increased 29.7% from net profit of ₹15.22 crore seen in the year-ago period.

Zaggle Prepaid’s revenue rose 11.2% sequentially to ₹336.4 crore during the December quarter against ₹302.5 crore in the September quarter. Compared to the year-ago quarter, revenue was up 68.9% from ₹199.5 crore seen in Q3 FY24.

The year-on-year growth in the revenue was attributed to a 54% rise in program fees resulting from an expanded portfolio of prepaid and credit cards along with the rise in clients' spending and an 87% growth in the propel revenue platform, fuelled by increased redemptions on account of the festive season.

On Monday, Zaggle Prepaid shares opened 10% lower at ₹424.05 apiece on the National Stock Exchange of India (NSE) and were locked in the lower circuit thereafter. The stock was down in the preceding two sessions as well, declining 14.3% in the past three sessions cumulatively.

Zaggle Prepaid said that the Q3FY25 numbers represented the highest-ever quarterly and nine-month revenue and profit after tax (PAT).

Zaggle Prepaid Ocean Services’ founder and executive chairman Raj P. Narayanam said, “This has been a milestone quarter for us with our highest ever quarterly and nine-monthly performance in terms of revenue, adjusted Ebitda and PAT.”

Adjusted Ebitda stood at ₹31.5 crore during the December quarter, increasing by 38% compared to Q3FY24. Adjusted Ebitda margins stood at 9.4%.

“For FY25, we are confident of achieving 58-63% growth in our top line. We are also evaluating inorganic growth opportunities to expedite this growth and the discussions are at advanced stages,” Narayanam added.

Zaggle also mentioned that it successfully raised funds through qualified institutional placement (QIP) to the tune of ₹595 crore in line with its growth strategy of inorganic expansion.