Zaggle Prepaid Ocean Services Limited had its income tax appeal for Assessment Year 2024-25 dismissed by the Commissioner of Income Tax (Appeals) on September 8, 2026. The order relates to an assessment dated March 25, 2026, and a consequential demand notice under Section 156 of the Income-tax Act, 1961.

The company intends to pursue available legal remedies by filing an appeal before the Income Tax Appellate Tribunal (ITAT) within prescribed timelines. Zaggle stated it has strong grounds to defend its position in the matter.

This update follows a disclosure made on March 26, 2026, regarding the initial filing of the appeal against the assessment order. The dismissal was communicated to the National Stock Exchange of India Limited and BSE Limited on September 9, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The case involves a dispute over tax assessments for the fiscal year ending in 2025. While the specific monetary value of the demand was not disclosed in this update, the procedural outcome requires the company to escalate the matter to the next appellate authority.

Hari Priya, Company Secretary and Compliance Officer, signed the disclosure letter. The company will continue to monitor the legal proceedings as they move to the tribunal stage.

Zaggle Prepaid Ocean Services has submitted its Business Responsibility and Sustainability Report (BRSR) for FY26 to the National Stock Exchange of India Limited and BSE Limited. The filing, dated September 7, 2026, outlines the company’s adherence to nine principles of responsible business conduct. It highlights zero disciplinary actions for bribery or corruption and full coverage of board members under awareness programmes.

Governance and Ethics

The report confirms strict compliance with ethical standards. Zaggle reported zero fines, penalties, or settlement amounts relating to regulatory or judicial proceedings during the year. All 100% of Board Members and Key Managerial Personnel (KMPs) were covered under awareness and familiarization programmes. The company maintains an Anti-Bribery and Anti-Corruption policy with a zero-tolerance approach. No complaints regarding conflict of interest were received from directors or KMPs in FY26 or FY25.

Employee Well-being and Diversity

Zaggle employed 310 permanent employees at the end of FY26, comprising 225 males and 85 females. The company provided 100% health and accident insurance coverage to all permanent employees. Turnover rates for permanent employees rose significantly to 58.66% in FY26, compared to 33.52% in FY25 and 30.05% in FY24. Female representation on the Board of Directors stood at 16.67%, while Key Management Personnel included one female member (25%).

Environmental Impact

As a digital-first fintech entity, Zaggle’s environmental footprint remains minimal. Total energy consumption from non-renewable sources was 997.12 Gigajoules in FY26, up from 657.03 Gigajoules in FY25. Water withdrawal from third-party sources increased to 56.86 kilolitres from 44.84 kilolitres in the previous year. Scope 2 greenhouse gas emissions rose to 193.88 tCO2e from 130.67 tCO2e. The company reported no significant adverse environmental impacts from its value chain.

Corporate Social Responsibility

Zaggle invested ₹13.82 million towards CSR initiatives in FY26. Of this amount, ₹6.82 million was contributed towards education, skill development, and welfare programmes for marginalised communities. The remaining funds supported healthcare, women empowerment, rural development, and livelihoods. The company reported zero human rights-related complaints during the financial year.

What the Numbers Show

The sharp rise in employee turnover to nearly 59% in FY26, more than double the rate seen in FY25, stands out against a backdrop of stable headcount at 310 permanent employees. This divergence suggests significant churn within the workforce rather than expansion-driven hiring, warranting attention to retention strategies despite high insurance coverage.