Client Mining Cross Selling Wallet Share
Expected: OngoingHIGH confidence
What: Cross-sell percentage: 21%
“So, overall, Sachin, our cross-sell percentage around IPO was about 16%, and now we have upped it to about 21%.”
Zaggle Prepaid Ocean Services Ltd: Is It a Deep Value Opportunity?
AverageSteady Growth
As of , Zaggle Prepaid Ocean Services Ltd (IT Product Companies) has a deep value score of 42/100 (rated Average). Earnings are accelerating. 1Y return vs Nifty 500: -30%.
Zaggle Prepaid Ocean Services Ltd Key Facts
- PE Ratio
- 27.1x
- Market Cap
- ₹3,484 Cr
- Value Score
- 42/100
- Margin of Safety
- 11%
- PAT Growth YoY
- +85%
- Revenue Growth YoY
- +56%
- OPM
- 10.0%
PE: Cycle BottomStrong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
💪Debt reduced 10% YoY — balance sheet strengthening
🌐FII stake increased 2.5% this quarter
🏛️DII reducing — stake down 2.1%
Earnings Acceleration Triggers
1. Client Mining Cross Selling Wallet Share
OngoingHIGH
2. New Product Or Brand Launch
Next 4-5 yearsHIGH
3. Operating Leverage Inflection
Next 6-9 monthsMEDIUM
Key Risks
1. Recent labor code changes notified under the law
LOW2. Draft income tax rules 2026 regarding employee benefits
LOWSector-Specific Signals
Active Users3.7 million
Total Customers3,700
Program Fees RevenueINR 211 Cr
Propel Points RevenueINR 275 Cr
Key Numbers
PAT Growth YoY
+85%
Stable
Revenue YoY
+56%
Stable
Operating Margin
10.0%
+100 bps YoY
PE Ratio
27.1
PEG Ratio
0.34
Current Price
₹259
3Y PAT CAGR
+28%
Market Cap
3.5K Cr
Valuation
Slightly UndervaluedWhy Are Zaggle Prepaid Ocean Services Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 19, 2026
New Product Or Brand Launch
Expected: Next 4-5 yearsHIGH confidence
What: ZAG.money monetization: 3.7 million users
Impact: INR 500 Cr revenue target in 4-5 years
“Today, ZAG.money establishes our 4th monetization pillar, a captive high-intent base of 3.7 million salaried users.”
Operating Leverage Inflection
Expected: Next 6-9 monthsMEDIUM confidence
What: IT team downsizing: Not quantified
“And if you see, we have considerably downsized our IT team, okay, keeping in mind that more and more AI we are using.”
Geographical Expansion
Expected: Next few monthsMEDIUM confidence
What: New subsidiaries: GIFT City & Abu Dhabi
“We have already spoken of our aspirations and work that we are doing to enter into the GCC and our establishment of our setup in UAE.”
Regulatory Approval Or License Win
Expected: FY 2027MEDIUM confidence
What: New Tax Regime (NTR) benefits: Not quantified
“I am pleased to announce that as per the draft... employee tax benefits have been extended to the new tax regime.”
Adjusted EBITDA growth of 62.9% Y-o-Y
HIGH confidence
What: Adjusted EBITDA growth of 62.9% Y-o-Y
“Adjusted EBITDA grew by 62.9% to INR 51 crore compared to INR 31 crore in the corresponding quarter last year.”
What Are the Key Risks for Zaggle Prepaid Ocean Services Ltd?
Earnings deceleration risks from management commentary
Recent labor code changes notified under the law
LOWTrigger: Regulatory updates to labor laws in India.
Impact: PAT impact: Minimal
Management view: Management expects only minimal impact on operations.
Monitor: labor
Draft income tax rules 2026 regarding employee benefits
LOWTrigger: Changes in how tax benefits are applied to the new tax regime.
Management view: Management views this as a positive development for the Save business.
Monitor: regulatory
What Is Zaggle Prepaid Ocean Services Ltd's Management Saying?
Key quotes from recent conference calls
“In light of our strong performance and the momentum we are witnessing across our business segments, we recently upped our revenue guidance to 40% to 45%. [Previous Revenue Growth guidance]”
“By significantly reducing our production time and time to market, we are just not working faster, we are becoming more responsive. [Initiative: Agentic AI Workflows]”
“This initiative aligns with our broader vision of expanding our global cross-border payments and financial services capabilities, leveraging the GIFT City ecosystem. [Initiative: International Expansion (GIFT City & UAE)]”
“Regarding the recent labor code changes as notified under the law, we expect only minimal impact on our operations. [Risk (labor): LOW]”
What Did Zaggle Prepaid Ocean Services Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
INR 498 Cr
YoY +47.9%QoQ +15.5%
Why: Growth was largely driven by an increase in program fee, followed by a strong contribution from the total platform revenues.
Revenue narrowly missed the INR 500 crore mark by INR 2 crores.
EBITDA
INR 51 Cr
YoY +62.9%Margin 10.2%
Why: Margin expansion was driven by relentless bottom line discipline and flawless execution through cost efficiencies and revenue optimization.
This marks the first time quarterly adjusted EBITDA crossed the INR 50 crore threshold.
PAT
INR 36 Cr
YoY +77.7%QoQ +9.1%
Why: Profitability surged due to margin expansion at both EBITDA and PAT levels, with margins improving to 7.2%.
PAT growth lagged slightly behind revenue growth on a quarter-on-quarter basis.
Other Highlights
• Cash PAT reached INR 46 crore, marking 76% Y-o-Y growth.
• Surpassed last full year's profitability levels within nine months.
• Active users reached 3.7 million, a testament to platform scalability.
What Sector Metrics Matter for Zaggle Prepaid Ocean Services Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Active Users
3.7 million
QoQ +0.2 million
Why: Strong testament to the scalability and adoption of the platform.
Total Customers
3,700
QoQ +100
Why: Signed several marquee clients like Senco Gold and BIBA Fashion during the period.
Program Fees Revenue
INR 211 Cr
QoQ +21.3%
Why: Driven by adoption of newer customers, cross-selling, and new use cases like vendor payments.
Propel Points Revenue
INR 275 Cr
QoQ +11.3%
Why: Growth driven by the festive season and gift voucher redemptions.
SaaS Platform Fees
INR 12 Cr
QoQ +14.3%
Why: Steady growth in software usage fees across the customer base.
Cross-Sell Percentage
21%
QoQ Inline
Why: Focusing on increasing penetration by selling 3-5 products to a single customer.
Incentive Cost % of Program Fee
67%
QoQ Stable
Why: High levels due to rapid growth phase; expected to stabilize at 50% in 5 years.
Cash Balance
INR 445 Cr
QoQ -22.3%
Why: Cash used for acquisition purposes and supporting business growth during the festive season.
What Is Zaggle Prepaid Ocean Services Ltd's Management Guidance?
Forward-looking targets from management for FY 2026
Revenue Growth Target
40%
OPM Guidance
14–15%
Revenue Outlook
40% to 45% growth
Margin Outlook
REAFFIRMED
Capex Plan
INR 100-plus crores
Primary capital infusion for ZAG.money (formerly Rio.money) segment.
Management Tone: BULLISH
Guidance Changes
REAFFIRMED
Revenue: 40% to 45% → 40% to 45%
How Fast Is Zaggle Prepaid Ocean Services Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +56% | +52% | Stable |
| PAT (Net Profit) | +85% | +28% | Stable |
| OPM | 10.0% | +100 bps | Expanding |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
Other Deep Value Stocks in IT Product Companies
Frequently Asked Questions: Zaggle Prepaid Ocean Services Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What is Zaggle Prepaid Ocean Services Ltd's deep value score?
Zaggle Prepaid Ocean Services Ltd has a deep value score of 42/100 (rated Average). This score is calculated from three components
- Earnings Score: 24/40 — measures PAT growth momentum across quarters
- Underperformance Score: 14/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
- Quality Score: 12/25 — operational quality (margins, revenue growth, valuation)
Is Zaggle Prepaid Ocean Services Ltd fundamentally improving?
Zaggle Prepaid Ocean Services Ltd's quarterly profit (PAT) growth trajectory
- Latest Quarter PAT Growth (QoQ): +6%
- Previous Quarter PAT Growth (QoQ): +34%
- 2 Quarters Ago PAT Growth (QoQ): -16%
- PAT Acceleration: +11.0pp (profits are accelerating)
- 2 consecutive quarters of positive PAT growth
Why is Zaggle Prepaid Ocean Services Ltd underperforming despite good earnings?
Zaggle Prepaid Ocean Services Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
- 1-Year Return vs Nifty 500: -30%
- 6-Month Return vs Nifty 500: -27%
- 3-Month Return vs Nifty 500: -6%
- Yet average quarterly PAT growth is +8% — earnings are improving
- The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.
What is the earnings momentum for Zaggle Prepaid Ocean Services Ltd?
Zaggle Prepaid Ocean Services Ltd's earnings momentum is Steady — consistent growth.
- PAT QoQ progression: -16% → +34% → +6% (2Q ago → 1Q ago → latest)
- Acceleration: +11.0pp
- PAT YoY Growth: +85%
Is Zaggle Prepaid Ocean Services Ltd undervalued?
Zaggle Prepaid Ocean Services Ltd's valuation metrics
- Price-to-Earnings (PE): 26.9x
- Price-to-Book (PB): 2.7x
- PEG Ratio: 0.3x
- Margin of Safety: +56% (appears undervalued)
What are the revenue and margin trends for Zaggle Prepaid Ocean Services Ltd?
Zaggle Prepaid Ocean Services Ltd's revenue and margin trends
- Latest Quarter Revenue Growth (QoQ): +22%
- Average Quarterly Revenue Growth: +11%
- Revenue Acceleration: +20.5pp
- Latest OPM Change: -0.2pp (margins contracting)
- Average OPM Change: +0.4pp
- Revenue YoY: +56%
What is Zaggle Prepaid Ocean Services Ltd's trailing twelve month (TTM) performance?
Zaggle Prepaid Ocean Services Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹129 Cr
- TTM PAT Growth: +69.7% YoY
- TTM Revenue: ₹2,000 Cr
- TTM Revenue Growth: +46.1% YoY
- TTM Operating Margin: 9.6%
What sector does Zaggle Prepaid Ocean Services Ltd belong to?
Zaggle Prepaid Ocean Services Ltd key facts
- Sector: IT Product Companies
- Market Cap: ₹3.5K Cr
- Rank in IT Product Companies: #1 by value score
- Overall rank among all deep value stocks: #31
Is Zaggle Prepaid Ocean Services Ltd a good deep value opportunity to study?
Zaggle Prepaid Ocean Services Ltd shows limited deep value signals currently — score is 42/100 (Average). Monitor for improvement.
- Value Score: 42/100 (Average)
- Earnings: Accelerating
- 1Y Underperformance: -30% vs Nifty 500
What is the bull and bear case for Zaggle Prepaid Ocean Services Ltd?
Research Signals (Bull Case)
- Earnings accelerating — profit growth speeding up
- 2 consecutive quarters of positive PAT growth
- Appears undervalued based on fair value analysis
- Revenue growth also accelerating
- Operating margins expanding
Which other IT Product Companies stocks are deep value opportunities?
Other deep value stocks in IT Product Companies
- Network People Services Technologies Ltd — Score 59/100, Average
How does the IT Product Companies sector look for deep value?
IT Product Companies deep value sector overview
- 2 deep value stocks in this sector
- Average value score: 51/100
- Avg PAT acceleration: +4.9pp
- Top pick: Zaggle Prepaid Ocean Services Ltd
What is deep value investing?
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
How is the deep value score calculated?
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
What are the growth catalysts for Zaggle Prepaid Ocean Services Ltd?
Zaggle Prepaid Ocean Services Ltd has 6 key growth catalysts identified from recent earnings analysis
- Client Mining Cross Selling Wallet Share
- New Product Or Brand Launch
- Operating Leverage Inflection
- Geographical Expansion
What are the key risks in Zaggle Prepaid Ocean Services Ltd?
Zaggle Prepaid Ocean Services Ltd has 2 key risks worth monitoring
- Recent labor code changes notified under the law
- Draft income tax rules 2026 regarding employee benefits
What did Zaggle Prepaid Ocean Services Ltd's management say in the latest earnings call?
In Q3 FY26, Zaggle Prepaid Ocean Services Ltd's management highlighted
- "In light of our strong performance and the momentum we are witnessing across our business segments, we recently upped our revenue guidance to 40% to 4..."
- "By significantly reducing our production time and time to market, we are just not working faster, we are becoming more responsive. [Initiative: Agent..."
- "This initiative aligns with our broader vision of expanding our global cross-border payments and financial services capabilities, leveraging the GIFT ..."
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.