Zaggle Signs 5-Year PNB Deal as Q4 Profits Surge 30%, June 21

Zaggle Prepaid Ocean Services signed a five-year agreement with Punjab National Bank on June 19 to market and promote co-branded twin credit cards. The deal lets Zaggle use its corporate customer base to drive card acquisition. The company reported Q4 FY26 net profit jumped 30.42% to Rs 40.60 crore on revenue growth of 49.94% to Rs 671.91 crore. The stock rose 1.17% to Rs 212.55 on June 19.

PNB Partnership Expands Card Reach

Zaggle will use its existing corporate customer base to drive acquisition and marketing of the PNB-Zaggle co-branded twin credit cards. The five-year agreement is domestic and does not involve related-party transactions. Revenue from the deal depends on active users and their spending on the platform each month. The twin cards combine Visa’s global acceptance with RuPay lifestyle benefits and UPI convenience.

Strong Quarterly Results Drive Growth

Zaggle’s Q4 FY26 net profit surged 30.42% to Rs 40.60 crore from Rs 31.20 crore in Q4 FY25. Revenue from operations jumped 49.94% to Rs 671.91 crore. MarketsMOJO rates the stock Hold with a Price to Book ratio of 2.0. The company maintains a net-debt-free balance sheet, reducing financial risk.

Valuation Signals Underpricing

Despite a one-year stock return of negative 47.92%, Zaggle’s profits grew 57.1% over the same period. This produces a Price/Earnings to Growth ratio of 0.4, suggesting the stock may be undervalued relative to earnings growth. The stock settled at Rs 212.55 on June 19. Annual net sales growth reached 56.83% and operating profit growth hit 54.28%.

What the Data Shows

Zaggle operates in spend management with a diversified portfolio including prepaid cards and SaaS products for tax and payroll. The company issues one of India’s largest numbers of prepaid cards through banking partnerships. With strong profit growth, a debt-free balance sheet, and a new five-year revenue stream from PNB, the data points to improving fundamentals. The Hold rating reflects balanced risk-reward at current valuations.

Final Thoughts

Zaggle’s PNB deal and 30% profit growth show improving fundamentals, but the Hold rating and negative one-year return suggest the market remains cautious. The low PEG ratio indicates potential upside if earnings growth continues.

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