Zaggle Prepaid Shares Plummet 17% Amid Q4 Margin Contraction; Analyst Forecasts Potential 34% Upside

Zaggle Prepaid Shares Decline 17% as Margins Contract

Fintech firm Zaggle Prepaid's shares plummeted over 17% on May 14 as its margins declined on a sequential basis in the March quarter. Despite a 30.4% increase in consolidated net profit to Rs 40.6 crore in the January-March quarter of FY26, the company's EBITDA margin contracted by 46 basis points on a quarter-on-quarter basis to 9.4% from 9.9%.

The company's consolidated net profit rose to Rs 40.6 crore in Q4FY26, a 30.4% increase from Rs 31.13 crore in the year-ago period. Revenue from operations grew 49.9% to Rs 617.91 crore in Q4FY26, compared to Rs 412.1 crore in the same quarter of FY25. On a quarter-on-quarter basis, profit and revenue rose by 11.6% and 17.5%, respectively.

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At 11:30 am on May 14, Zaggle Prepaid shares were trading 17.8% lower at Rs 233.32 apiece. For the full financial year 2025-26, Zaggle's net profit jumped 57% to Rs 138 crore, while revenue came in 46.3% higher at Rs 1,907.64 crore.

The company projects consolidated revenue growth of around 40% for FY27, driven by AI-first product development, expansion into MENA and US markets, and deeper monetization across the company's core pillars. Furthermore, the company announced the appointment of Venkatesh Ramachandran as Group Chief Financial Officer (CFO), effective May 18, 2026.

JM Financial has given a 'Buy' rating on the stock with a target price of Rs 380, stating that the FY26 momentum is 'intact'. The brokerage firm believes that Zaggle has a long growth runway in an under-penetrated market, with rising cross-sell penetration, new product traction, and recent acquisitions bolstering the ecosystem.