New-Age Tech Stocks Dip Amid Q4 Earnings; Pine Labs, Zaggle Fall

New-Age Tech Stocks Face Bearish Week Amid Q4 Earnings Season

The Indian stock market witnessed a challenging week for new-age technology companies, as investor sentiment turned cautious amidst the ongoing fourth-quarter earnings season. A significant majority of these stocks, 46 out of the 57 under coverage, experienced declines ranging from 0.2% to over 22%. This broad-based weakness underscores a selective approach from investors who are closely scrutinizing company performance and future outlooks.

Pine Labs and Groww Hit Hard by IPO Lock-in Expiry

Fintech firm Pine Labs emerged as one of the week’s biggest laggards, with its shares plummeting 22.15% after its initial public offering (IPO) lock-in period expired on Wednesday, May 13. The stock touched an all-time low of ₹151 before recovering slightly to close the week at ₹152.7. Similarly, Groww saw its shares plunge 8.15% to ₹187.6 following the expiry of its own lock-in period earlier in the week. Other prominent companies like Zaggle, Awfis, Urban Company, and MobiKwik also registered losses. Notably, Swiggy and Wakefit also touched fresh lows during this period.

Market Slumps Amid Inflationary Pressures and Geopolitical Concerns

The broader Indian equity market also ended the week under pressure, influenced by escalating geopolitical tensions in West Asia, a weakening rupee, and rising inflationary concerns. The Sensex declined by 2.7% to close at 75,237.99, while the Nifty 50 saw a 2.2% drop, settling at 23,643.50. The uncertainty surrounding a ceasefire in West Asia contributed to a rise in crude oil prices, surpassing the $105 per barrel mark. Prime Minister Narendra Modi’s call for austerity measures, including reduced fuel consumption and discretionary imports, further highlighted concerns about foreign exchange reserves amidst elevated global commodity prices.

Wholesale Inflation Surges, Dampening Investor Sentiment

Adding to market concerns, India’s wholesale inflation surged sharply to 8.30% year-on-year in April 2026, a significant increase from 3.88% in March. This marks the fastest growth since October 2022, driven primarily by rising prices in fuel, manufacturing, and food sectors. This uptick in inflation has shifted investor focus towards potential monetary policy recalibrations and the possibility of downward revisions to first-quarter FY27 earnings forecasts. Geojit Investments’ research head, Vinod Nair, noted that investors are increasingly concerned about these inflation risks, fueled by higher-than-expected WPI prints, ongoing fuel price pass-throughs, and elevated bond yields.

Nazara Technologies Surges on Block Deal Activity

In contrast to the broader market trend, Nazara Technologies experienced a strong week, with its shares climbing 11.87% to ₹300.1. This surge followed the company’s announcement of robust Q4 FY26 financial results, which saw its profit zoom to ₹55.7 Cr from ₹4.1 Cr in the previous year. Although operating revenue declined 24% YoY to ₹397.8 Cr due to the deconsolidation of NODWIN Gaming, the full-year FY26 revenue grew 13% YoY to ₹1,829 Cr, with profit soaring 61% YoY to ₹82 Cr. The stock’s upward momentum was further amplified by significant block deal activity, including brokerage firm Zerodha purchasing over 35 lakh shares for ₹93.05 Cr, and promoter entity Axana Estates buying shares worth ₹392.9 Cr. Promoter group entity Mitter Infotech LLP was the seller in these transactions.

Zaggle Faces Pressure Despite Revenue Growth

Fintech SaaS company Zaggle reported a mixed performance, with its net profit increasing by 30% YoY to ₹40.6 Cr and operating revenue rising 50% YoY to ₹617.9 Cr for the quarter ended March 2026. For the full fiscal year FY26, profit grew 57.9% YoY to ₹138.6 Cr, and revenue from operations surged 46.3% YoY to ₹1,907.6 Cr. However, the stock touched the lower circuit on Thursday, May 14, due to concerns over margin dilution and weakening cash flows. Management commentary indicated near-term margin pressure stemming from the acquisition of enterprise spend management startup Dice Enterprises. Additionally, a report by Equirus Securities flagged weak operating cash flows and a sequential dip in the EBITDA margin to 9.4% from 9.9%, exacerbated by elevated incentives and cashback expenses. The company’s shares ultimately slipped 18.26% for the week, closing at ₹210.6.

Other New-Age Companies Show Mixed Performance

Amidst the market volatility, several other new-age tech companies reported significant developments. Aye Finance, Fractal, Honasa Consumer, ideaForge, Ather Energy, and Shadowfax all touched fresh highs during the week, indicating pockets of strength. EaseMyTrip’s board approved a plan to raise ₹500 Cr via a rights issue to bolster its technology and explore strategic acquisitions. Swiggy is seeking shareholder approval to amend its articles of association and revise its board nomination framework to become an Indian-owned and controlled company. Honasa Consumer secured a favorable arbitration ruling, with a tribunal awarding AED 7.25 Mn (approximately ₹18.9 Cr) against a Dubai-based distributor. EV major Ola Electric’s board cleared a cumulative investment of ₹2,000 Cr in its cell and vehicle manufacturing arms. Awfis Space Solutions reported that GST authorities dropped tax demands worth approximately ₹7.6 Cr across FY20 to FY25.