Synopsis: Ashish Kacholia’s stock surged 16% after issuing strong FY27 growth guidance and signing a five-year deal with Fanuc India Private Limited, boosting recurring revenue and cross-selling potential.
The shares of this company build world-class financial solutions and products to manage the business expenses of corporates, SMEs, & Startups through automated and innovative workflows are in the spotlight after it rose by 16% in today’s session after issuing strong FY27 revenue guidance and signing a five-year agreement with Fanuc India Private Ltd.
With a market capitalisation of Rs. 2,870 cr, the shares of Zaggle Prepaid Ocean Services Ltd were trading at Rs. 213.45 per share, surging 16% in today’s market session, making a high of Rs. 217.35 per share, up from its previous close of Rs. 187.15 per share. As of Q3FY26, Ace investor Ashish Kacholia holds a stake of 2.23% in the company.
Revenue Guidance
Zaggle Prepaid Ocean Services Limited has issued a positive revenue outlook for FY27, reflecting the strong business momentum and performance achieved across its operating segments. The company expects standalone revenue growth to be in the range of 25–30% during FY27. On a consolidated basis, which includes the contribution of subsidiaries and associated businesses, the company is projecting growth of around 40%.
Management’s key focus areas for FY27 are to improve working capital so that cash is collected faster and less money remains tied up in operations, drive revenue growth by acquiring new customers while also increasing sales to existing clients through cross-selling, and expand profit margins by benefiting from operating leverage and using AI-driven efficiencies to lower costs and improve productivity.
About the order
Zaggle Prepaid Ocean Services Limited has signed a five-year agreement with Fanuc India Private Limited under which Zaggle will provide its “Zaggle Save” employee expense management and benefits platform to Fanuc India. The agreement is domestic in nature and is expected to help Zaggle strengthen its corporate customer base and generate recurring revenue over the next five years.
Management may also benefit from opportunities to cross-sell other employee benefits and expense management products to Fanuc India in the future. The company clarified that this is not a related-party transaction and that neither the promoter group nor group companies have any interest in Fanuc India.
About the company
Zaggle Prepaid Ocean Services Ltd is one of the leading players in spend management, with a differentiated value proposition and diversified user base. The company operates in the business-to-business-to-customer segment and is amongst a small number of uniquely positioned players with a diversified offering of financial technology products and services. Zaggle is one of the largest issuers of prepaid cards in India in partnership with its banking partners.
Sales of the company rose from Rs. 432 cr in Q2FY26 to Rs. 526 cr in Q3FY26. Operating profit increased to Rs. 52 cr from Rs. 44 cr. Net profit also rose from Rs. 35 cr to Rs. 37 cr over the same period.
In Q3 FY26, it reported gross revenue of Rs. 497.6 crore, compared with Rs. 336.5 crore in Q3 FY25. Software fees increased from Rs. 8.9 crore to Rs. 11.2 crore, program fees rose from Rs. 135.5 crore to Rs. 211.1 crore, and Propel Points revenue grew from Rs. 192.1 crore to Rs. 275.3 crore.
On a net basis, after deducting point redemption and gift card costs, Propel Points revenue increased from Rs. 6.7 crore in Q3 FY25 to Rs. 14.3 crore in Q3 FY26. Total net revenue for the quarter rose sharply from Rs. 151.1 crore to Rs. 236.6 crore.
Profitability also improved, with adjusted EBITDA margin on gross revenue increasing from 9.4% in Q3 FY25 to 10.3% in Q3 FY26, while adjusted EBITDA margin on net revenue rose from 20.9% to 21.6%.
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