Small-cap stocks that have reduced debt in the past three years show financial discipline and improving balance sheets. This article highlights two such companies, explaining how lowering debt can strengthen their position and potentially offer better growth and stability for investors.
Here are a few small-cap stocks that have reduced debt over the past three years
Zaggle Prepaid Ocean Services Limited
With a market capitalization of Rs. 5,645.94 crore, the shares of Zaggle Prepaid Ocean Services Limited were currently trading at Rs. 420.60 per equity share, rising nearly 0.08 percent from its previous day’s close price of Rs. 420.25.
The stock is down by 29.55 percent from the 52-week high of Rs. 597. Over the last one year, the stock has given a positive return of 43.64 percent. Over the past three years, the company has sharply cut its borrowings from Rs. 141 crore in FY23 to Rs. 87 crore in FY24 and just Rs. 20 crore in FY25. This aggressive debt reduction has driven its debt-to-equity ratio down to a mere 0.02x, highlighting a much stronger, more resilient balance sheet.
Zaggle Prepaid Ocean Services Limited was founded in 2011 and is a financial technology company providing automated business spend management solutions, including SaaS platforms for expense management, employee benefits, rewards, payroll cards, and customer engagement, serving corporates, SMEs, and startups across India.
Coming into financial highlights, Zaggle Prepaid Ocean Services Limited’s revenue has increased from Rs. 273 crore in Q4 FY24 to Rs. 412 crore in Q4 FY25, which has grown by 50.55 percent. The net profit has also grown by 64 percent, from Rs. 19 crore in Q4 FY24 to Rs. 32 crore in Q4 FY25. Zaggle Prepaid Ocean Services Limited’s revenue and net profit have grown at a CAGR of 80.5 percent and 85.14 percent, respectively, over the last five years.
J G Chemicals Limited
With a market capitalization of Rs. 1,875.05 crore, the shares of J.G.Chemicals Limited were currently trading at Rs. 476.40 per equity share, rising nearly 3.58 percent from its previous day’s close price of Rs. 459.95.
The stock is down by 2.05 percent from the 52-week high of Rs. 486.50. Over the last one year, the stock has given a positive return of 88.31 percent. Over the past four years, the company has sharply cut its borrowings from Rs. 94 crore in FY22 to Rs. 70 crore in FY24, Rs. 14 crore in FY24, and has entirely eliminated debt by FY25. This aggressive debt reduction has driven its debt-free company, highlighting a much stronger, more resilient balance sheet.
J.G. Chemicals Limited was established in 1975 and is India’s largest zinc oxide manufacturer and among the world’s top ten, producing over 80 grades for industries like rubber, ceramics, paints, pharmaceuticals, electronics, agro-chemicals, and animal feed.
Coming into financial highlights, J G Chemicals Limited’s revenue has increased from Rs. 181 crore in Q4 FY24 to Rs. 224 crore in Q4 FY25, which has grown by 23.76 percent. The net profit has also grown by 14.29 percent, from Rs. 14 crore in Q4 FY24 to Rs. 16 crore in Q4 FY25. J G Chemicals Limited’s revenue and net profit have grown at a CAGR of 16.33 percent and 36.77 percent, respectively, over the last five years.
Written By – Nikhil Naik
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