Concall AI

5Paisa Capital Limited — Q3 FY26 earnings call

Call held 14 Jan 2026

Management summary

5Paisa Capital Limited reported a constructive Q3 FY26, driven by strong retail participation and market sentiment. The company achieved a 3% QoQ growth in total revenue to INR 79.4 crores and a robust 30% QoQ increase in PAT to INR 12.3 crores. Operational metrics like Notional ADTO and Mutual Fund AUM also showed healthy growth, supported by continuous product and technology enhancements aimed at improving user experience and customer acquisition quality.

Highlights

Total Revenue grew 3% QoQ to INR 79.4 crores.
PAT increased robustly by 30% QoQ to INR 12.3 crores, with a PAT margin of 16%.
Notional ADTO saw strong growth of 24% QoQ, reaching 3.31 trillion.
Mutual Fund AUM grew 13% QoQ to INR 1,868 crores.
Acquired 78,000 new customers, expanding total customer base to 5.08 million.

Concerns

Employee benefit expenses rose 9% QoQ, including a one-time P&L hit of INR 62.20 lakh due to new labor laws.

Key financials

01 Broking Revenue ₹37.1 Cr +7%QoQ
02 Allied Income ₹19.8 Cr +2%QoQ
03 Total Revenue ₹79.4 Cr +3%QoQ
04 PAT ₹12.3 Cr +30%QoQ
05 PAT Margin 16%
06 Net Worth ₹639 Cr
07 Notional ADTO 3.31 Tn +24%QoQ
08 Average Client Funding Book ₹379 Cr +4%QoQ
09 Mutual Fund AUM ₹1,868 Cr +13%QoQ
10 New Customers Acquired 78,000 units
11 Total Customer Base 5.08 Mn
12 F&O ADTO (Retail Exchange Premium) ₹63,900 Cr +15%QoQ
13 Retail Cash ADTO ₹39,810 Cr
14 Employee Benefit Expenses (One-time P&L hit) ₹0.622 Cr

What they filed

Q1 FY27: revenue up 12.8%, net profit up 0.0% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	101	85	71	78	77 −24%	79 −7%	85 +20%	88 +13%
Expenses	62	55	50	52	54	52	60	62
EBITDA	38	30	21	25	23 −39%	27 −10%	26 +24%	26 +4%
Margin	38%	35%	30%	32%	30%	34%	30%	30%
Other income	0	0	0	0	0	0	0	0
Interest	6	5	5	7	8	8	9	8
Depreciation	3	3	3	2	2	2	2	2
Profit before tax	29	22	13	15	13 −55%	17 −23%	15 +15%	15 +0%
Tax rate	25%	25%	25%	26%	26%	26%	25%	25%
Net profit	22	16	10	12	9 −59%	12 −25%	11 +10%	12 +0%
EPS	4.68	3.46	2.15	2.46	2.02	2.62	2.32	2.47

How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

What to watch in Q4 FY26

Customer Acquisition Quality

next quarter

Current Focused on improving first year revenue, faster payback periods, and improved lifetime value.

Target Demonstrable improvement in customer acquisition metrics (first year revenue, payback period, LTV).

Why it matters

Directly impacts profitability and sustainable growth by optimizing customer acquisition costs and value.

We remain focused on improving the quality of customer acquisition with emphasis on higher first year revenue, faster payback periods and improved lifetime value.

2 min read 5 chapters

Detailed narrative

Market Overview & Retail Participation

Q3 FY26 was characterized by a constructive market environment, with Nifty and Sensex reaching all-time highs, boosting broader market sentiment. Domestic institutional investors provided a strong counterbalancing force. Retail participation showed robust traction, with F&O ADTO improving by 15% QoQ to INR 63,900 crores, while retail cash ADTO remained stable at INR 39,810 crores. The industry-wide MTF book also scaled, crossing INR 1.1 lakh crores, indicating increased product adoption.

Operational Performance Highlights

Operationally, 5Paisa Capital Limited saw its notional ADTO grow to 3.31 trillion, a robust 24% QoQ increase. The average client funding book stood at INR 379 crores, up 4% QoQ. Mutual Fund AUM reached INR 1,868 crores, reflecting a healthy growth of 13% QoQ. The company acquired approximately 78,000 new customers during the quarter, bringing the total customer base to 5.08 million, with a continued focus on improving customer acquisition quality.

Financial Performance Overview

For Q3 FY26, broking revenue grew 7% QoQ to INR 37.1 crores, and allied income increased 2% QoQ to INR 19.8 crores. This resulted in an overall total revenue of INR 79.4 crores, representing a 3% QoQ growth. Despite a 9% QoQ rise in employee benefit expenses, which included a one-time P&L hit of INR 62.20 lakh due to new labor laws, the company achieved a PAT of INR 12.3 crores, a robust 30% QoQ growth, and a PAT margin of 16%. Net worth stood at INR 639 crore as of December 31, 2025.

Product & Technology Enhancements

The company continued to focus on improving investing and trading efficiency, user experience, and platform depth. Key enhancements included strengthening derivatives trading with position grouping and advanced candlestick indicators. From a tech perspective, trading performance was enhanced by caching static data, optimizing market feed APIs, and improving charting experience, reducing payload size by up to 50%. These initiatives aim to leverage AI for improved customer experience and management.

Customer Acquisition & Onboarding Improvements

Significant improvements were made to the customer onboarding process, enabling MTF activation from day zero and reducing friction through OCR-based data capture, intelligent bank prefill, and a more reliable e-sign flow. Features like instant margin credit on stock selling and an expanded Pay Later MTF, covering over 1,500 stocks with higher limits up to INR 3 crores and lower interest rates, also significantly improved MTF adoption. These enhancements have led to lower drop-offs, higher success rates, and faster account activation, strengthening platform stability and monetization potential.

This is an AI-generated summary of a publicly available earnings call transcript.

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