Zaggle Prepaid Ocean Services shares plunged another 10% on Tuesday, February 11, to close at ₹381.65, following Monday’s 10% decline. The stock’s sell-off came after the release of its December quarter performance, despite the company reporting strong growth in revenue and net profit.
The company reported a 68.6% YoY increase in Q3 FY25 revenue to ₹336 crore, driven by a 54% jump in program fees and an 87% increase in Propel platform revenue due to festive season spending. However, a sharp 72% YoY surge in operating expenses, totaling ₹308 crore, weighed on investor sentiment. The rising employee costs and increased operational expenses contributed to this spike.
Zaggle’s EBITDA rose 45% YoY to ₹29 crore, though its EBITDA margin declined to 9.4%. Net profit saw a 33% YoY increase, reaching ₹20 crore. The company highlighted that higher expenses were due to workforce expansion and ESOP-related costs, projected to reach ₹95-100 million in FY25.
Additionally, Zaggle recently approved the acquisition of a 16.67% stake in Mobileware Technologies, aiming to enhance its technological capabilities.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
