Ashish Kacholia Stock for FY26 Watchlist
Zaggle Prepaid Ocean Services Limited, a prominent financial technology company, is currently in the spotlight following strong financial performance and ambitious growth projections. The company, established in 2011 and headquartered in Hyderabad, Telangana, specializes in comprehensive business spend management solutions, including prepaid ocean freight solutions, digital payment services, customs warehousing, and logistics management for both shippers and carriers. Its core offerings automate and digitize workflows across expense management, employee benefits, rewards, recognition, corporate gifting, and incentives, leveraging a suite of SaaS and FinTech solutions.
The company's key platforms, such as Zaggle SAVE for employee expenses, Zaggle Propel for channel partner rewards, Zaggle Zoyer for vendor payments, and ZatiX for smart spend analysis, underscore its diversified approach to corporate financial management. Zaggle boasts a robust customer base, serving over 3,400 corporate clients and more than 3.2 million users. Its extensive network includes partnerships with approximately 16 banks, through which it has issued over 50 million cards. Recent client acquisitions, including Indus Towers, Honasa Consumer (Mamaearth), Forbes Marshal, Truecaller International, Aster DM Healthcare, Tech Mahindra, Physics Wallah, Zepto, and Wonder Home Finance, have significantly bolstered its presence across critical sectors like telecom, consumer goods, healthcare, education, and fintech.
Financially, Zaggle Prepaid Ocean Services Limited has demonstrated impressive growth. For the fourth quarter of FY25, its revenue surged by 50.55 percent, rising from Rs. 273 crore in Q4 FY24 to Rs. 411 crore. Concurrently, net profit saw a substantial increase of 68.42 percent, climbing from Rs. 19 crore in Q4 FY24 to Rs. 32 crore. Over the last five years, the company has achieved a remarkable Compound Annual Growth Rate (CAGR) of 80.50 percent in revenue and 85.14 percent in net profit. The company's return ratios are also healthy, with ROCE and ROE standing at 13 percent and 9.60 percent, respectively. With an earnings per share (EPS) of Rs. 6.52 and a low debt-to-equity ratio of 0.01x, Zaggle presents a strong financial profile.
Looking ahead, management has provided optimistic guidance for FY26. Standalone revenue is projected to grow by 35–40 percent. More significantly, if all planned acquisitions are finalized by September, consolidated revenue growth could reach an impressive 80 percent. The company's long-term vision includes achieving $1 billion in annual revenue. EBITDA margins are guided to improve to 10–11 percent next year, up from 9–10 percent in FY25, with a target of 12–15 percent within the next three to four years, indicating a steady improvement of approximately one percentage point annually. Employee stock option expenses are estimated at Rs. 9–10 crore for FY26. The company’s market capitalization stands at Rs. 5,641.92 crore, with its shares closing at Rs. 420.30 per equity share, reflecting a marginal increase of nearly 0.01 percent from its previous day’s close. Ace investor Ashish Kacholia holds a notable 2.2 percent stake in the company, amounting to 30.03 lakh shares valued at Rs. 124.1 crores, highlighting significant investor confidence.
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