Ace investor Vijay Kedia, operating through Kedia Securities, has made a significant bulk purchase in Zaggle Prepaid Ocean Services Ltd. On Tuesday, Kedia acquired 20 lakh shares, representing a 1.48% stake in the company, for approximately Rs 32.94 crore. The shares were bought at an average price of Rs 164.72 each.
This strategic investment follows a tumultuous Monday for Zaggle, when its stock plummeted by 20%, hitting a 52-week low of Rs 160.45. The sharp decline was triggered by two key factors: soft first-quarter earnings and the dismissal of the company's appeal against an income tax demand for the assessment year 2022-23.
Zaggle's Q1 FY27 Performance and Challenges
For the first quarter of fiscal year 2027, Zaggle Prepaid Ocean Services reported a 33% year-on-year decline in net profit, falling to Rs 17.5 crore from Rs 26.1 crore in the corresponding period last year. Despite the profit dip, revenue saw a healthy 27.5% increase, reaching Rs 423.3 crore compared to Rs 332 crore in Q1 FY26.
However, the company's EBITDA remained flat at Rs 31 crore, leading to a contraction in the EBITDA margin from 9.2% to 7.3%. Zaggle attributed this margin pressure primarily to costs associated with its acquisition of Dice. These expenses included transaction fees, one-time vendor payments, and relocation costs for over 100 employees. The company stated that revenue from Dice contracts is expected to be recognized from Q2 FY27 onwards, suggesting a potential improvement in future quarters.
Income Tax Appeal Dismissal
Separately, Zaggle informed stock exchanges that its appeal against an income tax demand for AY23 had been dismissed by the Honourable Commissioner of Income Tax (Appeal) in an order dated August 14, 2026. The company, however, maintains that it possesses strong grounds to defend its position and intends to pursue the matter before the appropriate appellate authority.
Following Kedia's substantial investment, Zaggle Prepaid Ocean Services shares saw a recovery on Tuesday, ending 3.37% higher at Rs 165.85 against its previous close of Rs 160.45, with the firm's market capitalization rising to Rs 2229.99 crore.