5Paisa Capital Limited — Q4 FY26 earnings call

Call held 4 May 2026

Management summary

5paisa Capital reported a robust Q4 FY26 with an 8% QoQ increase in total revenue to INR 85.5 crore, driven by strong broking revenue and F&O premium growth. The company successfully completed a rights issue, raising INR 468 crores and significantly strengthening its balance sheet. However, profit after tax saw a slight decline due to strategic investments in technology and human resources, and the market observed moderation in Demat account additions amidst broader capital market volatility.

Highlights

  • Total revenue of INR 85.5 crore, up 8% QoQ.

  • Broking revenue of INR 41.8 crore, up 13% QoQ.

  • F&O premium growth of INR 1,336 crores, up 22% QoQ.

  • Acquired over 1 lakh customers in Q4, a 33% increase QoQ, bringing total customer base to 51.8 lakh.

  • Successful rights issue raised INR 468 crores, increasing net worth to over INR 1,100 crores.

Concerns

  • Profit after tax of INR 44.3 crore, slightly declined due to tech and HR investments.

  • MF AUM decreased 6% QoQ to INR 1,761 crores due to overall market downturn.

  • Demat account additions slowed to 8.5 million in Q4, down 3% QoQ, indicating moderation in retail participation.

  • Capital markets experienced volatility due to geopolitical developments, macroeconomic uncertainty, and AI impact.

Key financials

  1. Total Customer Base ₹51.8 lakh
  2. F&O Premium Growth ₹1,336 Cr +22%QoQ
  3. Broking Revenue ₹41.8 Cr +13%QoQ
  4. Aligned Income ₹20.7 Cr +5%QoQ
  5. Total Revenue ₹85.5 Cr +8%QoQ
  6. Profit After Tax ₹44.3 Cr
  7. Net Worth ₹650 Cr
  8. MF AUM ₹1,761 Cr -6%QoQ
  9. Market Share (F&O & Cash) 2%

What they filed

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

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue101 85 71 78 77 −24%79 −7%85 +20%88 +13%
EBITDA38 30 21 25 23 −39%27 −10%26 +24%26 +4%
Net profit22 16 10 12 9 −59%12 −25%11 +10%12 +0%
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.

Capital allocation

high confidence
  • Liquidity Liquidity disclosed The company successfully completed an oversubscribed rights issue, raising INR 468 crores, which increased its net worth to over INR 1,100 crores. This capital will be deployed to support business expansion, enhance market presence, and drive long-term growth. The company has already increased its margin to 1.5x from its existing capacity.
    So, we successfully completed our rights issue, which was oversubscribed, and amount of money raised was INR 468 crores. There was a strong participation from promoters and reaching a new investor, reflecting confidence in our growth strategy. And our networth increased to more than INR 1,100 crores which is strengthening of our balance sheet. This capital will be deployed to support business expansion, enhance market presence, and drive long term growth. Lastly, we remain committed to driving innovation, strengthening our product and technology stack, and leveraging Al to enhance customer experience. / So, we have already started. We have increased our margin, as per our prospectus. And right now, our margin has been increased to a 1.5 x from our existing capacity.

Guidance & targets

Capital Deployment

  • Rights Issue Fund Utilization Capital Deployment · Ongoing · High confidence support higher trading volumes, grow our MTF book, and for overall core business expansion via better marketing, brand development, and investment in product, tech, and AI.
    So if you look at it we plan to deploy it in at a high level in three major areas. One is to support higher trading volumes as we anticipate higher growth. To support the margin extended to clients and what we need to keep with the exchanges. That's number one. Second is to grow our MTF book. This is where we're seeing good growth. And third is overall core business expansion via better marketing, brand development, and a lot of investment in product, tech, and Al.

    — Gaurav Seth

What to watch in Q1 FY27

Deployment of rights issue capital

next quarter
Current INR 468 crores raised; initial deployment to increase margin to 1.5x capacity.
Target Further deployment into trading volumes support, MTF book growth, and core business expansion (marketing, brand, product, tech, AI).

Why it matters

Verifies the strategic use of significant capital raised and its impact on growth drivers.

So if you look at it we plan to deploy it in at a high level in three major areas. One is to support higher trading volumes as we anticipate higher growth. To support the margin extended to clients and what we need to keep with the exchanges. That's number one. Second is to grow our MTF book. This is where we're seeing good growth. And third is overall core business expansion via better marketing, brand development, and a lot of investment in product, tech, and Al.

Risks & concerns

  • Capital markets volatility

    high

    Volatile capital markets due to geopolitical developments (Iran war), macroeconomic uncertainty, and AI upheaval, leading to an 11% decline in indices.

    Management acknowledged

  • Macroeconomic pressures

    medium

    Brent crude prices crossed USD 100 per barrel, increasing inflationary pressures, and weakening rupee against the dollar.

    Management acknowledged

  • Slowdown in retail participation

    medium

    Demat account additions slowed to 8.5 million in Q4, a 3% QoQ decline, indicating moderation in retail participation.

    Management acknowledged

Q&A highlights

4 direct
Utilization of rights issue funds Direct
So if you look at it we plan to deploy it in at a high level in three major areas. One is to support higher trading volumes as we anticipate higher growth. To support the margin extended to clients and what we need to keep with the exchanges. That's number one. Second is to grow our MTF book. This is where we're seeing good growth. And third is overall core business expansion via better marketing, brand development, and a lot of investment in product, tech, and Al.

Clarifies the strategic allocation of the recently raised capital, indicating focus areas for future growth.

Asked by Harshit Singhania

Current utilization of rights issue funds Direct
So, we have already started. We have increased our margin, as per our prospectus. And right now, our margin has been increased to a 1.5 x from our existing capacity.

Provides immediate evidence of capital deployment and its impact on operational capacity.

Asked by Harshit Singhania

Outcome of F&O and cash market shares Partial
Outcome of the company is a simple, I mean, basically, we have uploaded our resultable financials as well as balance sheet, which shows that we have increased in revenue by 8%. Our profit is slightly declined because of tech investment as well as HR investment. So, nothing major, I mean, there is no unusual as outcome which we have already published.

Addresses the financial performance and explains the slight profit decline, confirming it's due to strategic investments.

Asked by Sudhanshu Yadav

Customer acquisition strategy Direct
I think the customer acquisition strategy is, Just request if people are not speaking and go on mute. From our perspective, and I could just send strategies directly linked to what our overall company strategy is. And that is something that we want to focus play of deepening, where we are good at on in the trading stack, as well as growing our investing business, which is mutual funds and other products. So anyone who is looking to, let's say, whether it is a person who is a pro trader would look to come to us to carry out their trades or to improve their profitability or do more and more deeper things with the fact that is something that that that we're focused on. And on the other side, people who are specifically looking to build long term wealth and not necessarily trade. For that, we have other products like we have MTF. Have product, you know, ETFs, mutual funds, and some other products which are there in the pipeline. So that's really our overall strategy to acquire customers in the future.

Details the dual-pronged approach to customer acquisition, targeting both active traders and long-term investors.

Asked by Sudhanshu Yadav

Specific market share numbers Direct
Market share, we have approximately 2% market share on, both F & O and cash.

Provides a key competitive metric for the company's position in the market.

Asked by Sudhanshu Yadav

2 min read 5 chapters

Detailed narrative

Q4 FY26 Financial Performance Overview

5paisa Capital reported a total revenue of INR 85.5 crore for Q4 FY26, marking an 8% increase QoQ. Broking revenue specifically grew 13% QoQ to INR 41.8 crore, while aligned income saw a 5% QoQ increase to INR 20.7 crore. Despite the revenue growth, profit after tax stood at INR 44.3 crore, experiencing a slight decline attributed to strategic investments in technology and human resources. The company's net worth strengthened to over INR 1,100 crores following a successful rights issue.

Customer Growth and Market Share

The company's total customer base reached 51.8 lakh. In Q4 FY26, 5paisa acquired over 1 lakh new customers, representing a 33% increase QoQ. The F&O premium growth was robust, increasing 22% QoQ to INR 1,336 crores. The company maintains approximately a 2% market share in both F&O and cash segments, reflecting its competitive position in the market.

Capital Markets Volatility and Retail Participation Trends

The capital markets experienced significant volatility during the quarter, influenced by geopolitical developments, macroeconomic uncertainty, and the impact of AI, leading to an 11% decline in indices. Brent crude prices surpassed USD 100 per barrel, contributing to inflationary pressures and a weakening rupee. Retail participation showed moderation, with Demat account additions slowing to 8.5 million, a 3% decrease QoQ, although local domestic institutions and retail investors continued to buy the dip.

Strategic Technology and Product Investments

5paisa continued its focus on technology and product enhancements, launching new features like Scalper, multi-chart setup, and an AI trading companion (5paisa MCP). The company upgraded its API ecosystem, expanded its eligible stock universe from 700 to over 1,500 stocks, and increased the investor limit to INR 3 crore. These efforts aimed at reducing order placement latency, improving execution speed, and enhancing platform reliability, alongside modernizing back-end systems and optimizing market-free APIs.

Rights Issue and Capital Deployment Strategy

The company successfully completed an oversubscribed rights issue, raising INR 468 crores, which significantly boosted its net worth to over INR 1,100 crores. This capital is earmarked for three key areas: supporting higher trading volumes by extending margin to clients and maintaining capital with exchanges, growing the MTF book, and expanding core business through enhanced marketing, brand development, and further investments in product, technology, and AI. The company has already utilized part of these funds to increase its margin capacity to 1.5x.

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