Zaggle Prepaid Ocean Services witnessed a 10% drop in its stock price today, hitting the lower circuit at ₹424.05 after announcing its Q3 FY25 financial results. Despite reporting robust revenue and profit growth, investor sentiment appears cautious, driving the stock down by ₹47.10.
Q3 FY25 Financial Highlights:
- Revenue: ₹336.4 crore, a 69% YoY increase
- Net Profit: ₹20.2 crore, up 33% YoY
- EBITDA Growth: 44.1% YoY
The surge in revenue was primarily attributed to a 54% increase in programme fees driven by its expanded prepaid and credit card portfolio and an 86% jump in Propel revenue due to festive season demand.
Key developments:
During the post-earnings call, Founder Raj P Narayanam emphasized the role of AI-driven automation in improving operational efficiency. The company’s AI chatbot, Razbot, managed 60% of customer queries without human intervention, with plans for further AI integration across products.
The company has also revised its guidance for topline growth in FY25, expecting it to be in the range of 58-63%.
CEO’s statement:
CEO and MD Avinash Godkhindi stated that future growth will come from new client additions and higher cross-selling within existing clients.
Founded in 2011, Zaggle offers SaaS-based fintech solutions, covering expense management, payments, and rewards. As of December 31, 2024, the company had issued over 50 million prepaid cards through banking partners and served more than 3.16 million users.
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