Revenue and Profit Growth
Over the fiscal years ending March 2023 to March 2025, Zaggle Prepaid's net sales surged from ₹553.46 crores to ₹1,303.76 crores, reflecting a compound annual growth rate that underscores the company's expanding market presence. This growth in top-line revenue was accompanied by a steady increase in operating profit before depreciation, interest, and tax (PBDIT), which rose from ₹48.10 crores in March 2023 to ₹114.01 crores in March 2025, excluding other income.
Including other income, operating profit climbed to ₹140.78 crores in March 2025, up from ₹49.22 crores two years prior. This improvement was achieved despite a rise in total expenditure, which nearly doubled from ₹505.36 crores in March 2023 to ₹1,189.75 crores in March 2025, driven largely by increased manufacturing expenses and employee costs.
Profit before tax more than tripled, reaching ₹118.34 crores in March 2025 compared to ₹31.64 crores in March 2023. Correspondingly, profit after tax (PAT) showed a similar upward trend, rising from ₹22.90 crores to ₹87.82 crores over the same period. Earnings per share (EPS) also improved significantly, from ₹2.48 to ₹6.55, indicating enhanced value creation for shareholders.
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Operating Margins and Expense Analysis
Zaggle Prepaid's operating profit margin, excluding other income, remained relatively stable, hovering around 8.7% to 9.1% during this period. The gross profit margin improved notably from 6.84% in March 2023 to 10.21% in March 2025, reflecting better cost management and pricing power.
Employee costs increased from ₹43.58 crores to ₹66.74 crores, while manufacturing expenses more than doubled, signalling investments in production capacity or service delivery. Other expenses also rose substantially, which is typical for a growing company expanding its operations and market reach.
Balance Sheet Strength and Asset Growth
The company's total assets expanded significantly from ₹232.45 crores in March 2023 to ₹1,314.21 crores in March 2025, driven by increases in both current and non-current assets. Notably, cash and bank balances surged from ₹22.60 crores to ₹653.34 crores, enhancing liquidity and financial flexibility.
Shareholders' funds rose sharply from ₹48.75 crores to ₹1,247.97 crores, supported by a substantial increase in reserves. This growth in equity was accompanied by a marked reduction in total debt, which fell from ₹71.40 crores to ₹7.26 crores, indicating a stronger capital structure and reduced financial risk.
Book value per share also improved dramatically, from ₹5.29 to ₹92.99, reflecting the company's enhanced net worth and value per share for investors.
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Cash Flow and Financial Operations
Cash flow from operating activities showed a marked improvement, turning positive at ₹19 crores in March 2025 after negative cash flows in the previous two years. This shift indicates better operational efficiency and working capital management.
However, cash flow from investing activities remained negative, reflecting ongoing investments in growth and capacity expansion. Financing activities provided strong inflows, supporting these investments and contributing to a net positive cash inflow of ₹30 crores in March 2025.
Despite challenges in working capital changes, the company has managed to maintain a healthy cash position, closing the year with ₹38 crores in cash and equivalents, a significant increase from ₹7 crores the previous year.
Conclusion
Zaggle Prepaid's historical performance over the last three years highlights a company in strong growth mode, with substantial increases in revenue, profitability, and shareholder equity. The firm has successfully managed rising expenses while improving margins and reducing debt, positioning itself well for future expansion. Investors seeking exposure to a growing small-cap in the IT and software sector may find Zaggle Prepaid's financial trajectory compelling, especially given its improved cash flows and strengthened balance sheet.
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