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Shares of Zaggle plunged as much as 19% during the intraday trading to hit a low of ₹230.5 on BSE after the fintech SaaS company reported a sequential decline in margins despite strong top line growth in the March quarter.

The stock later pared some of the losses and was trading 17.7% lower at ₹234 apiece at 11:45 IST. The company’s market capitalisation stood at ₹3,147 Cr (about $328 Mn) at the time.

With today’s sharp fall, the stock saw its biggest single-day decline since listing.

Over the past month, the stock is down 9.6%, while it has declined nearly 40% in the last six months and about 32% so far this year.

The stock fell today as investors reacted negatively to the decline in margins and rising cashback costs, even though the company reported strong growth in revenue and profit for the March 2026 quarter.

Yesterday, Zaggle reported a 30.4% rise in consolidated net profit to ₹40.6 Cr in Q4 FY26 from ₹31.1 Cr in the corresponding quarter a year ago. Sequentially, profit rose 9.4% from ₹37.1 Cr in Q3 FY26.

Revenue from operations jumped 49.9% to ₹617.9 Cr during the quarter under review from ₹412.2 Cr a year ago. The top line rose 17.6% from ₹525.5 Cr in the preceding quarter. Including other income of ₹7.7 Cr, total income stood at ₹626.3 Cr in Q4 FY26.

The company attributed the growth to strong traction across its revenue streams.

On a standalone basis, Propel platform revenue rose 46% YoY to ₹357.8 Cr in Q4 FY26, while program fee revenue increased 41.2% to ₹221.8 Cr. Software fee revenue also grew 40.5% YoY to ₹13.1 Cr.

At the operating level, adjusted EBITDA surged 62.4% YoY to ₹60.5 Cr in Q4 FY26. EBITDA margin improved to 9.8% from 9% in the year-ago quarter. However, on a sequential basis, it declined from 9.9% in Q3 FY26, which appeared to trigger investor concerns.

Over the past year, Zaggle expanded its business through acquisitions and new launches. It acquired GreenEdge Enterprises and Rivpe Technology, now rebranded as Zagg.Money, which marked its entry into the retail credit card segment giving boost to its UPI offerings.

The company also set up a unit in GIFT City to grow its international payments and cross-border financial services business.

“Looking ahead, we remain optimistic about the opportunities across the digital payments and enterprise spend management ecosystem. For FY27, we project standalone revenue growth of 25-30% and consolidated revenue growth of around 40%,” Zaggle cofounder and executive chairman Raj P Narayanam said.

According to JM Financial, which maintained a ‘Buy’ rating on Zaggle with a target price of ₹380, the company delivered another strong quarter with continued momentum across segments, driven by new client additions and higher per-client monetisation.

The brokerage also highlighted adjusted EBITDA margin expansion, improving operating leverage and traction in products such as Zoyer, Zatix and ZIP.

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