Zaggle Prepaid shares tumble 20% to lower circuit as margins shrink amid rising costs in Q1 earnings

Zaggle Prepaid shares tumbled 20% to hit the lower circuit level during the morning market hours on Monday, August 17, as investors focused on the fintech SaaS company’s shrinking margins in the April to June quarter of FY27 due to elevated overall costs in the period.

NSE data showed that Zaggle Prepaid shares declined 20% to their intraday low and lower circuit level of ₹160.48 apiece on Monday’s market, in comparison to ₹200.59 apiece at the previous equity market close.

As the shares hit their lower circuit during the early market hours, trading has been suspended so far till the company's share recovers from upcoming potential buy orders in the market.

IT solutions and software-as-a-service provider Zaggle Prepaid announced its Q1 results for the financial year 2026-27 after market hours last week, Friday, August 14, 2026.

Why did Zaggle Prepaid shares fall today?

Zaggle Prepaid shares hit their lower circuit level on Monday’s market as investors reacted to the company’s Q1 financial performance, net profit drag, shrinking margins, and rising costs in the June quarter.

With trading volumes crossing over 20 lakh during the morning market hours, the stock was witnessing massive pressure from the high volumes, in turn resulting in the stock price falling on August 17.

NSE filing data showed that the company’s expense in the June quarter for point redemption or gift cards increased by over 39%, dragging down the overall financial performance of the company in the period under review.

This increase in expenses increased the total expenses for the period by over 31% year-on-year (YoY) to ₹407 crore, from ₹310 crore in the corresponding quarter of the previous year.

Zaggle Prepaid recorded a 33% fall in its net profit (attributable to owners) to around ₹18 crore in the first quarter of the financial year 2026-27, in comparison to ₹26 crore in the same period a year earlier.

However, in contrast, the company’s revenue from core operations advanced 27.5% to ₹423 crore in the June quarter, compared YoY with ₹332 crore in the same period a year ago, as per the consolidated financial statements.

Zaggle Prepaid’s operational-level earnings before interest, tax, depreciation, and amortisation (EBITDA) increased marginally to ₹31 crore in the period under review, from ₹30 crore in the same period a year ago.

While the SaaS company’s EBITDA margins contracted to 7.29% in the first quarter of FY27, from 9.18% in the same period a year earlier, as per the data collected from the financial statements.

Key reasons behind EBITDA margin fall

Zaggle Prepaid’s management, in the official release, attributed the fall in the company’s EBITDA margin to several factors which in turn weighed down the financial performance in the period under review.

The company said that the expenses related to the Dice acquisition, including but not limited to transaction costs, one-time vendor payments and relocation expenses for more than 100 professionals, impacted the EBITDA margins.

The margins were also impacted due to the moderated push of expenses into the company’s P&L, which were earlier capitalised.

The company also spent on increments to existing employees, and other employee costs and other expenses from the acquisition of Zagg.Money, as per the official filing.

How have Zaggle Prepaid shares performed?

Zaggle Prepaid shares have lost over 55% in the last one-year period, and have declined more than 52% so far year-to-date (YTD), according to NSE data.

In the last one-month period, the company's shares have declined 21% and were trading 19% lower in the last five sessions, as per the exchange data.

While the 52-week low was at ₹160.48 apiece on Monday’s market, Zaggle Prepaid’s 52-week high level was at ₹417.60 apiece on August 19, 2025.

The company’s market capitalisation (m-cap) was at ₹2,157 crore as of the trading session on Monday, August 17, 2026.