Zaggle Prepaid share price climbs after 145% jump in Q2 profit

Zaggle Prepaid Ocean Services recorded significant profit growth in the July-September quarter (Q2 FY25), with consolidated profits rising by 145% to ₹18.56 crore, compared to ₹7.59 crore in the same period last year. This sharp increase in profitability contributed to a 5% rise in the company’s share price on Thursday, reaching an intraday high of ₹431.2 per share on the BSE.

Market reaction and capitalisation gains

By mid-morning trading at 11:14 AM, Zaggle Prepaid shares had risen 3.85% to ₹426.5 per share on the BSE, despite a slight dip in the overall market as the BSE Sensex was down by 0.20%, trading at 77,532.51. 

The company’s market capitalisation reached ₹5,229.18 crore. Over the past year, Zaggle Prepaid shares have gained 62.4%, outperforming the Sensex, which increased by 18% over the same period, demonstrating strong interest in share market investment within the fintech sector.

Revenue growth of approx 64% during Q2 FY25

The company reported robust revenue growth for Q2, with consolidated revenue from operations rising 64.2% to ₹303 crore, compared to ₹184 crore in the year-ago quarter. The substantial rise in revenue reflects the effectiveness of Zaggle Prepaid’s operational strategies, especially in areas such as corporate employee benefits, expense management, and digital payment solutions for businesses.

EBITDA performance and margin improvement

Zaggle Prepaid’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) for Q2 grew by 77.7%, reaching ₹26.71 crore from ₹15.03 crore in the same period last year. The company’s EBITDA margins improved by 50 basis points, increasing to 8.8% from the previous 8.2%. These indicators suggest enhanced operational efficiency, a factor of interest to those following share market investment opportunities within fintech.

Fundraising approval for growth plans

The company’s board of directors has approved a fundraising of up to ₹950 crores through a qualified institutional placement, pending shareholder approval. This capital-raising initiative aligns with Zaggle Prepaid’s growth strategy, which includes increasing its projected topline growth for FY25 from the initial range of 45-55% to an updated target of 50-55%. The company is also aiming to double its FY24 revenue within the next two years, adding further momentum for share market investment interest.

Share market investment trends in Zaggle Prepaid

Zaggle Prepaid Ocean Services, part of the larger Zaggle fintech group, provides advanced prepaid card solutions and financial management tools focused on enhancing corporate financial operations. These services, particularly in areas such as employee benefits and expense management, contribute to the company’s appeal in the share market investment landscape. Given the recent financial performance, including profit growth and revenue increase, there may be sustained investor interest in the fintech firm’s stock.