Kedia Securities buys 2 million Zaggle Prepaid shares after sharp valuation drop

Veteran Indian investor Vijay Kedia has acquired a significant stake in corporate spend management firm Zaggle Prepaid Ocean Services. Kedia Securities executed a bulk deal for 2 million shares on the National Stock Exchange on 18 August.

The transaction occurred as the fintech company navigates notable stock price volatility and margin compression. Following the purchase, Zaggle’s shares rallied more than 7 percent on the NSE the subsequent day.

This brief price recovery contrasts with a broader downward trend for the stock. Over a recent five-day window, the share price declined from 202 rupees to 183.25 rupees.

The timing of the acquisition suggests a value-oriented investment strategy. On 18 August, the stock touched a 52-week low of 154.40 rupees on the Bombay Stock Exchange.

That valuation represents a severe correction from the 52-week high of 417.40 rupees recorded in August 2025. Such steep drops frequently attract experienced investors seeking entry at discounted multiples.

Market participants will now monitor how Zaggle balances its top-line expansion with bottom-line realities. In the first quarter of fiscal year 2027, the company posted a 28 percent year-on-year revenue increase to approximately 4,232 million rupees.

Despite this strong top-line performance, net profit contracted by roughly 33 percent year-on-year to 175 million rupees. Adjusted EBITDA margins also shrank by 190 basis points, falling from 10.1 percent in Q1FY26 to 8.2 percent in Q1FY27.

This profitability pressure is largely attributed to elevated employee, technology, and integration expenses. These costs have been particularly pronounced following the company’s recent acquisition of DICE.

Zaggle’s management has characterized the current quarter as a strategic inflection point. The business is transitioning from a decade of profitable growth into a phase focused on transformation and consolidation.

To address margin concerns, the firm plans to optimize core operations and scale artificial intelligence across its platforms. Integrating recent acquisitions remains a central priority for stabilizing future earnings.

Zaggle Prepaid operates at the intersection of software and payment solutions, targeting corporate expense automation. Its ecosystem includes specialized platforms for rewards, expense management, and invoice-to-pay workflows.

The firm has issued over 50 million cards and serves more than 3,900 corporate customers across various sectors. This extensive business-to-business footprint provides multiple revenue streams as the company navigates its current consolidation phase.