ZAGGLE - ZAGGLE PREPAID OCEAN SERVICES LIMITED Share Price

IT - Services

₹337.75-2.20(-0.65%)

Market Closed as of May 9, 2025, 15:30 IST

What does ZAGGLE PREPAID OCEAN SERVICES LIMITED do?

IT Enabled Services•Information Technology•Small Cap

Zaggle Prepaid Ocean Services Limited builds financial products and solutions to manage the business expenses of corporates, small and medium-sized enterprises, and startups through automated workflows. It operates Propel, a corporate software-as-a-service (SaaS) platform for channel rewards and incentives, employee rewards, and recognition; and Save, a SaaS-based platform and a mobile application to offer expense management solution for business spend management facilitating digitized employee reimbursements and tax benefits. The company also provides CEMS, a customer engagement management system that enables merchants to manage their customer experiences, including rewarding merchants through gift card and loyalty benefits; and Zaggle Payroll Card, a prepaid payroll card that enables customers to pay contractors, consultants, seasonal and temporary employees, and unbanked wage workers as an alternative to direct deposits to bank accounts or cash payments. In addition, it operates Zoyer, an integrated data driven SaaS based business spend management platform with embedded automated finance capabilities in core invoice to pay workflows. The company was incorporated in 2011 and is based in Mumbai, India.

Industry Group:IT - Services

Employees:301

Website:www.zaggle.in

Valuation
Market Cap	4.56 kCr
Price/Earnings (Trailing)	60.05
Price/Sales (Trailing)	3.85
EV/EBITDA	36.76
Price/Free Cashflow	-39.37
MarketCap/EBT	44.25

Fundamentals
Revenue (TTM)	1.18 kCr
Rev. Growth (Yr)	66.89%
Rev. Growth (Qtr)	10.32%
Earnings (TTM)	75.93 Cr
Earnings Growth (Yr)	29.7%
Earnings Growth (Qtr)	-2.71%

Profitability
Operating Margin	8.71%
EBT Margin	8.71%
Return on Equity	12.24%
Return on Assets	10.07%
Free Cashflow Yield	-2.54%

Summary of Latest Earnings Report from ZAGGLE PREPAID OCEAN SERVICES

Summary of ZAGGLE PREPAID OCEAN SERVICES's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.

Earnings Outlook

Last updated: Feb 25

Management Outlook and Major Points:

Outlook:
Management raised FY25 revenue growth guidance to 58-63%, fueled by organic expansion and strategic acquisitions. They aim to enhance margins (targeting 15-16% EBITDA margins in 3-4 years) through operational efficiency, cross-selling, and inorganic growth. Investments in AI (e.g., RazBot chatbot) and new products (e.g., BROME, health/wellness wallets) are central to scaling platforms. The recent INR 595 crore QIP supports acquisitions in spend management/payment infrastructure, with 5 targets evaluated (2 advanced).

Key Highlights:

Financial Performance: Q3 FY25 revenue grew 69% YoY to Rs.336.4 crore; 9-month revenue up 77% to Rs.891.2 crore. Adjusted EBITDA rose 38% YoY (Q3: Rs.31.5 crore). PAT doubled for 9M FY25 (123% YoY).
Product & Partnerships:
- Launched BROME (store-level expense management) with clients like Blinkit, Zepto, and a large retail conglomerate.
- Strategic alliances with Mastercard (global partnership) and HDFC Bank (bundling software with credit cards).
- Expanded travel partnerships (EaseMyTrip, TBO) and introduced BBPS bill payments, FD bookings.
Tax Reforms Impact: Minimal effect on SAVE business; pivoting to non-tax-dependent wallets (e.g., health, cafeteria).
Client Wins: Added marquee clients (Mumbai Metro, Hitachi, Narayana Hrudayalaya) and deepened enterprise penetration.
Technology: AI-driven solutions (60% query resolution via RazBot) and fleet payment solutions (AGP City Gas tie-up) to drive efficiency.
Margins: Focus on SaaS/Program Fees (higher-margin segments) and volume-driven Propel Points margin recovery.
Acquisitions: Targeting merchant card software/payment infrastructure to bolster margins and market share.

Management remains confident in sustained growth via platform-led offerings, cross-selling, and operational leverage.

Q&A Session

Last updated: Feb 25

1. Question: What is the reason for the lower gross margins in the Propel business, and will they recover to the guided 7"“9% range for FY25?
Answer: The lower margins in Q3 were due to delayed volume-based merchant discounts, which are expected to materialize in Q4. Management anticipates margins to reach "thereabouts" 7"“9% for FY25, driven by slab-based commission structures.

2. Question: Why is the cost base expanding faster than revenue despite being a platform business, and where are investments being prioritized?
Answer: Costs are rising due to investments in new capabilities like BROME (Branch Recurring Operating Monthly Expenses) and scaling solutions for large clients. Management emphasized EBITDA/PAT growth over short-term cost ratios, citing high-margin client acquisitions and product deployment.

3. Question: Why hasn't operating leverage improved margins, and what is the margin trajectory for the next 2"“4 years?
Answer: Revenue mix shifts (lower-margin Propel Points growth) offset operating leverage. Margins are projected to reach 15"“16% in 3"“4 years via SaaS/Program Fees growth, acquisitions, and reduced cashbacks.

4. Question: How will the QIP funds be utilized for inorganic growth?
Answer: Funds will target acquisitions in merchant card software, payment infrastructure, and adjacent sectors. Two deals are at advanced stages, with potential closure in CY2025.

5. Question: Will Program Fees outpace Propel Points revenue growth?
Answer: Program Fees grew 110% YoY for 9M FY25 and is expected to outpace Propel Points due to BROME adoption and enterprise cross-selling. SaaS and Program Fees have higher margins.

6. Question: How will RBI's prepaid card-on-UPI policy impact the business?
Answer: It expands Zaggle's addressable market and interchange revenue (UPI interchange at ~1.1%). A planned UPI-focused acquisition will further enhance margins.

7. Question: Why has Program Fees revenue stagnated despite client additions?
Answer: Seasonality and implementation lags for large clients caused flat growth. Q4 is expected to show stronger traction as signed clients (e.g., conglomerates) ramp up usage.

8. Question: What is the revenue potential per enterprise client (e.g., large retail chains)?
Answer: Large conglomerates could contribute Rs.50"“65 crore annually. Margins from these clients are accretive due to SaaS/Program Fees dominance over Propel Points.

9. Question: Why are software/SaaS revenues growing slowly?
Answer: Enterprise SaaS growth is slower due to implementation cycles. BROME-driven contracts (e.g., Zepto, Blinkit) are expected to accelerate software revenue in upcoming quarters.

10. Question: When will acquisitions be finalized?
Answer: Two deals are in advanced stages (term sheet/due diligence) but unlikely to close in FY25. All three targets (two large, one small) are expected to close in CY2025.

The Good, Bad and Ugly

Growth

Profitability

Size

Dilution Rank

Balance Sheet

Momentum

Technicals

Smart Money

Insider Trading

Sector Comparison: ZAGGLE vs IT - Services

Comprehensive comparison against sector averages

Comparative Metrics

ZAGGLE metrics compared to IT

Category	ZAGGLE	IT
PE	60.05	48.68
PS	3.85	2.96
Growth	NA %	6.4 %

Performance Comparison

ZAGGLE vs IT (2024 - 2025)

Key Insights

1. ZAGGLE is among the Top 10 IT - Services companies but not in Top 5.
2. The company holds a market share of 2.4% in IT - Services.
3. null

Share Holdings

Understand ZAGGLE PREPAID OCEAN SERVICES ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.

Holding Pattern

Major Shareholders

Share Holding Details

As of 2025-03-31

Shareholder Name	Holding %
RAJ P NARAYANAM	34.39%
AVINASH RAMESH GODKHINDI	5.72%
ZUZU SOFTWARE SERVICES LLP	4.18%
Quadigo Ventures LLP	3.92%
BANK OF INDIA MULTI ASSET ALLOCATION FUND	2.58%
ACM GLOBAL FUND VCC	2.42%
ICICI PRUDENTIAL FLEXICAP FUND	2.4%
ASHISH KACHOLIA	2.24%
BENGAL FINANCE AND INVESTMENT PVT LTD	1.73%
VALUEQUEST S C A L E FUND	1.71%
ITI MULTI CAP FUND	1.49%
AJAY KUMAR AGGARWAL	1.11%
Ran Ventures Private Limited	0.18%

Overall Distribution

Distribution across major stakeholders

Ownership Distribution

Distribution across major institutional holders

Balance Sheet for ZAGGLE PREPAID OCEAN SERVICES

Standalone figures (in Rs. Crores) / View Consolidated Data

Description	(%) Q/Q	Sep-2024	Mar-2024	Sep-2023
Cash and cash equivalents	-8.9%	7.32	7.94	25
Current investments	-108.3%	0	0.52	0
Total current financial assets	-14.9%	389	457	493
Inventories	68.8%	0.8	0.36	0.07
Total current assets	-3.9%	563	586	605
Property, plant and equipment	2252.9%	37	2.53	1.91
Non-current investments	132%	59	26	0.6
Total non-current financial assets	110%	64	31	5.16
Total non-current assets	67.9%	184	110	47
Total assets	7.2%	746	696	652
Borrowings, non-current	-77.6%	4.14	15	28
Total non-current financial liabilities	-52.2%	12	24	38
Provisions, non-current	31.3%	1.84	1.64	1.49
Total non-current liabilities	-52%	13	26	40
Borrowings, current	-12.3%	51	58	39
Total current financial liabilities	-12.1%	59	67	46
Provisions, current	-	0.09	0	0.03
Current tax liabilities	281.4%	2.56	0.14	5.88
Total current liabilities	21.3%	115	95	81
Total liabilities	6.7%	129	121	121
Equity share capital	0%	12	12	12
Total equity	7.5%	618	575	531
Total equity and liabilities	7.2%	746	696	652

Consolidated figures (in Rs. Crores) / View Standalone Data

Description	(%) Q/Q	Sep-2024	Mar-2024	Sep-2023
Cash and cash equivalents	-8.6%	7.34	7.94	25
Current investments	-108.3%	0	0.52	0
Total current financial assets	-14.9%	389	457	493
Inventories	68.8%	0.8	0.36	0.07
Total current assets	-3.9%	563	586	605
Property, plant and equipment	2252.9%	37	2.53	1.91
Goodwill	-	58	0	0
Non-current investments	-	2.21	0	0.6
Total non-current financial assets	70.6%	7.16	4.61	5.16
Total non-current assets	73.4%	190	110	47
Total assets	8.3%	754	696	652
Borrowings, non-current	-53%	7.58	15	28
Total non-current financial liabilities	-39.1%	15	24	38
Provisions, non-current	31.3%	1.84	1.64	1.49
Total non-current liabilities	-36%	17	26	40
Borrowings, current	-12.3%	51	58	39
Total current financial liabilities	-10.6%	60	67	46
Provisions, current	-	0.09	0	0.03
Current tax liabilities	281.4%	2.56	0.14	5.88
Total current liabilities	22.3%	116	95	81
Total liabilities	10%	133	121	121
Equity share capital	0%	12	12	12
Non controlling interest	-	1.01	-	-
Total equity	7.8%	620	575	531
Total equity and liabilities	8.3%	754	696	652

Investor Care
Shares Dilution (1Y)	9.92%
Diluted EPS (TTM)	6.17

Financial Health
Current Ratio	4.84
Debt/Equity	0.1

Cash Flow for ZAGGLE PREPAID OCEAN SERVICES

Consolidated figures (in Rs. Crores) / View Standalone Data

Finance costs	-
Change in inventories	-
Depreciation	-
Adjustments for interest income	-
Net Cashflows from Operations	-
Income taxes paid (refund)	-
Net Cashflows From Operating Activities	-
Purchase of property, plant and equipment	-
Purchase of intangible assets	-
Proceeds from sales of long-term assets	-
Purchase of other long-term assets	-
Interest received	-
Net Cashflows From Investing Activities	-
Proceeds from issuing shares	-
Proceeds from borrowings	-
Repayments of borrowings	-
Payments of lease liabilities	-
Interest paid	-
Other inflows (outflows) of cash	-
Net Cashflows from Financing Activities	-
Net change in cash and cash eq.	-

Standalone figures (in Rs. Crores) / View Consolidated Data

Finance costs	-
Change in inventories	-
Depreciation	-
Adjustments for interest income	-
Net Cashflows from Operations	-
Income taxes paid (refund)	-
Net Cashflows From Operating Activities	-
Purchase of property, plant and equipment	-
Purchase of intangible assets	-
Proceeds from sales of long-term assets	-
Purchase of other long-term assets	-
Interest received	-
Net Cashflows From Investing Activities	-
Proceeds from issuing shares	-
Proceeds from borrowings	-
Repayments of borrowings	-
Payments of lease liabilities	-
Interest paid	-
Other inflows (outflows) of cash	-
Net Cashflows from Financing Activities	-
Net change in cash and cash eq.	-

Income Statement for ZAGGLE PREPAID OCEAN SERVICES

Standalone figures (in Rs. Crores) / View Consolidated Data

QuarterlyAnnual

Description	(%) Q/Q	Dec-2024	Sep-2024	Jun-2024	Mar-2024	Dec-2023	Sep-2023
Revenue From Operations	10.9%	336	303	252	273	200	184
Other Income	-7.7%	3.53	3.74	4.52	4.68	4.47	0.67
Total Income	11.1%	340	306	257	278	204	185
Cost of Materials	-	0	0	0	0	0	0
Employee Expense	-5.9%	17	18	14	8.26	11	18
Finance costs	3.3%	2.25	2.21	2.06	3.79	2.14	3.37
Depreciation and Amortization	105.6%	3.96	2.44	2.14	2.15	1.81	2.4
Other expenses	12.5%	290	258	216	238	168	151
Total Expenses	11.8%	313	280	234	252	183	175
Profit Before exceptional items and Tax	4%	27	26	23	26	21	9.92
Total profit before tax	4%	27	26	23	26	21	9.92
Current tax	5.1%	6.57	6.3	6.14	7	5.96	2.34
Deferred tax	-1400%	-0.05	0.93	-0.1	-0.2	-0.28	0
Total tax	-11.2%	6.53	7.23	6.04	6.8	5.68	2.34
Total profit (loss) for period	5.6%	20	19	17	19	15	7.58
Other comp. income net of taxes	-8.5%	-0.02	0.06	0.29	-0.47	0.13	0.04
Total Comprehensive Income	5.6%	20	19	17	19	15	7.62
Earnings Per Share, Basic	27.5%	1.65	1.51	1.37	1.57	1.47	0.78
Earnings Per Share, Diluted	25.5%	1.64	1.51	1.36	1.56	1.45	0.77
Debt equity ratio	-	-	-	-	-	014	013
Debt service coverage ratio	-	-	-	-	-	0.0264	0.0241
Interest service coverage ratio	-	-	-	-	-	0.09	0.0591

Description	(%) Q/Q	Mar-2024
Revenue From Operations	-	776
Other Income	-	11
Total Income	-	787
Employee Expense	-	51
Finance costs	-	14
Depreciation and Amortization	-	8.36
Other expenses	-	654
Total Expenses	-	727
Profit Before exceptional items and Tax	-	60
Total profit before tax	-	60
Current tax	-	16
Deferred tax	-	-0.45
Total tax	-	16
Total profit (loss) for period	-	44
Other comp. income net of taxes	-	-0.3
Total Comprehensive Income	-	44
Earnings Per Share, Basic	-	4.06
Earnings Per Share, Diluted	-	4.03

Consolidated figures (in Rs. Crores) / View Standalone Data

QuarterlyAnnual

Description	(%) Q/Q	Dec-2024	Sep-2024	Jun-2024	Mar-2024	Dec-2023	Sep-2023
Revenue From Operations	11.3%	337	303	252	273	200	184
Other Income	-49.5%	3.53	6.01	4.52	4.68	4.47	0.67
Total Income	10.1%	340	309	257	278	204	185
Cost of Materials	-	0	0	0	0	0	0
Employee Expense	-5.9%	17	18	14	8.26	11	18
Finance costs	3.3%	2.25	2.21	2.06	3.79	2.14	3.37
Depreciation and Amortization	105.6%	3.96	2.44	2.14	2.15	1.81	2.4
Other expenses	12.8%	291	258	216	238	168	151
Total Expenses	12.2%	314	280	234	252	183	175
Profit Before exceptional items and Tax	-7.4%	26	28	23	26	21	9.92
Total profit before tax	-7.4%	26	28	23	26	21	9.92
Current tax	5.1%	6.57	6.3	6.14	7	5.96	2.34
Deferred tax	-310%	-0.05	1.5	-0.1	-0.2	-0.28	0
Total tax	-18.9%	6.52	7.81	6.04	6.8	5.68	2.34
Total profit (loss) for period	0%	20	20	17	19	15	7.58
Other comp. income net of taxes	-8.5%	-0.02	0.06	0.29	-0.47	0.13	0.04
Total Comprehensive Income	0%	20	20	17	19	15	7.62
Earnings Per Share, Basic	-7.6%	1.61	1.66	1.37	1.57	1.47	0.78
Earnings Per Share, Diluted	-7.7%	1.6	1.65	1.36	1.56	1.45	0.77
Debt equity ratio	-	-	-	-	-	014	013
Debt service coverage ratio	-	-	-	-	-	0.0264	0.0241
Interest service coverage ratio	-	-	-	-	-	0.09	0.0591

Description	(%) Q/Q	Mar-2024
Revenue From Operations	-	776
Other Income	-	11
Total Income	-	787
Employee Expense	-	51
Finance costs	-	14
Depreciation and Amortization	-	8.36
Other expenses	-	654
Total Expenses	-	727
Profit Before exceptional items and Tax	-	60
Total profit before tax	-	60
Current tax	-	16
Deferred tax	-	-0.45
Total tax	-	16
Total profit (loss) for period	-	44
Other comp. income net of taxes	-	-0.3
Total Comprehensive Income	-	44
Earnings Per Share, Basic	-	4.06
Earnings Per Share, Diluted	-	4.03

Is ZAGGLE PREPAID OCEAN SERVICES Better than it's peers?

Detailed comparison of ZAGGLE PREPAID OCEAN SERVICES against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.

Ticker	Name	Mkt Cap	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
SBICARD	SBI CARDS AND PAYMENT SERVICESNon Banking Financial Company(NBFC)	83.29 kCr	18.64 kCr	+4.24%	+23.91%	43.46	4.47	+6.59%	-20.41%
PAYTM	One 97 CommunicationsFinancial Technology (Fintech)	53.14 kCr	7.89 kCr	+1.82%	+161.69%	-80.12	6.97	-6.19%	+42.82%
CMSINFO	CMS Info SystemsDiversified Commercial Services	7.14 kCr	2.48 kCr	-5.34%	+7.40%	19.48	2.88	+14.49%	+9.14%
INFIBEAM	INFIBEAM AVENUESFinancial Technology (Fintech)	4.64 kCr	3.64 kCr	+3.64%	-48.10%	20.11	1.28	+16.22%	+58.97%
FINOPB	Fino Payments BankOther Bank	1.92 kCr	1.75 kCr	+7.40%	-18.01%	20.78	1.04	+24.94%	+7.31%

ZAGGLE - ZAGGLE PREPAID OCEAN SERVICES LIMITED Share Price

What does ZAGGLE PREPAID OCEAN SERVICES LIMITED do?

Valuation

Fundamentals

Profitability

Summary of Latest Earnings Report from ZAGGLE PREPAID OCEAN SERVICES

Sector Comparison: ZAGGLE vs IT - Services

Comparative Metrics

Performance Comparison

Share Holdings

Holding Pattern

Share Holding Details

Overall Distribution

Ownership Distribution

Balance Sheet for ZAGGLE PREPAID OCEAN SERVICES

Investor Care

Financial Health

Cash Flow for ZAGGLE PREPAID OCEAN SERVICES

Income Statement for ZAGGLE PREPAID OCEAN SERVICES

Is ZAGGLE PREPAID OCEAN SERVICES Better than it's peers?

Price to Sales Ratio

Revenue (Last 12 mths)

Net Income (Last 12 mths)