5Paisa Capital Limited (5PAISA) Q4 2026 Earnings Call Transcript

Good afternoon, ladies and gentlemen. I'm Akash, moderator for the conference call. Welcome to FIFISA Capital Limited Conference Call. We have with us today Mr. Gaurav Seth, MD and CEO, Mr. Gaurav Munjal, whole-time director and CFO, and Mr. Ameya Agnihotri, whole-time director and CTO. As a reminder, all participants will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchstone telephone. Please note this conference is being recorded. I would now like to hand over the floor to Mr. Gaurasit. Thank you and over to Esau.

Okay, thank you. Thank you. Hi. Thanks, everyone, for joining. Good afternoon. I'll take a few minutes to summarize our results and what we are up to, and then open the floor for questions. So Q4, FY26, we'll give you a quick summary. Capital markets generally have been quite volatile, as all of us know in the past. The past couple of months, you know, specifically about, you know, geopolitical developments, including the Iran war, and macroeconomics of uncertainty as well. And, of course, there has been quite an upheaval from the advent of AI, both in the global markets and the Indian markets as well, both positive and negative, and positive that You know, there's a lot of potential in the technology, but negative in the sense that, you know, the impact on certain companies and certain sectors where information is asymmetric and is not very clear has impacted the valuation of a lot of companies across the globe, including India. In general, Brent roof prices cross $100. I believe it's probably even more than that as we speak, increasing inflationary pressures, and led to the theme of rupee against the dollar. That's why it has been continuing to sell, leading to about 11% decline in indices. However, this has been a trend that we've been witnessing that it has a lot of local domestic institutions and MF retail money has been buying up the dip, and it's highlighted the strength of India's domestic investor base. There was, I mean, likely respected some moderation on the retail participation in the markets, so that moderated with DMAT account additions slowing down to about $1.5 million, which if you compare with previous quarters. It was down about 3%. Despite this, investing and trading activity generally remained strong. Exchange retail F&O premium average return over grew 22% quarter and quarter to 78,000 crores, while exchange retail cash EDTO grew 10% quarter and quarter to 43,974 crores. From our company perspective, we remain focused on offering best-in-class solutions. Continues to focus on high-quality acquisition, which means acquiring high-quality customers and increasing lifetime value. During the last quarter of the previous financial year, we improved on a lot of metrics, including our overall acquisition, organic, base for organic acquisition, stronger brand campaigns, and targeted engagement. So we acquired 33% more customers as compared to the quarter before that. So we acquired not a one-lack customer in the last quarter. There was also improvement in our overall cost-year revenue and our CTR ratio, which is cost-to-revenue from a payback perspective. Our total customer base reached 51.8 lakh, and in Q4, our FNO premium ADTO growth grew to 1,336 crores, which is an increase of 22% quarter-on-quarter. Our average client funding book, which includes, you know, the regular teacher-side margin product plus MPF, totaled up to 410 crores, which was, again, an increase of 8% quarter-on-quarter. We still find AEM stood at 1,761 crores, which is, again, 6% increase from a quarter-and-quarter perspective. And some part of market-to-market impacted this number because the overall market went down to the AEM from a market-to-market, so to also reduce this number would have been higher. On our financial metrics, the broking revenue grew to $41.8 crore in the quarter, which is a 13% increase relative to previous quarters. Aligned income was up $20.7 crore, which is up 5%, and total revenue for the quarter was $85.5 crore, again, 8% increase. Our employee costs increased due to hiring in product and tech, marketing, and AI teams. Other expenses also went up, mainly because of higher customer acquisition compared to last quarter, and for this quarter, profit after tax tax was 44.3 crores, and our net worth stood at 650 crores as of March 31st, 2026. Well, I'll take a minute or a few minutes to talk about, more importantly, what we have been investing in on the technology and product side. So now, Bart? Product update perspective, we launched, you know, several features to improve the trading experience of our customers. We've included tools like scalper, multi-chart setup, strategy builder, option cleaners, and scan, which these are executed faster and track positions better. We also track position, also added position tracking on option chain. And grouping across indices, further, we updated our API and partner ecosystem, Xtreme and XTF, with big data, 20 depth APIs, and static IP support, which include access and increased institutional participation. On the investing side, PayLater, NTF became an important monetization driver, and we expanded our eligible stock universe from 700 to 1500-plus stocks and increased MS per customer to 3 crores. We also improved mutual fund experience, launched an ETF dashboard, introduced survey-compliant infrastructure, and reintroduced stock SIPs. Community pieces like JPETER and Trader Stories are currently in a development to support long-term user engagement. Specifically on the tech side, we significantly reduced order placement latency, improved execution speed, and platform reliability, along with modernizing our backing systems. Some of the features that we introduced specifically on the tech infrastructure side was caching static data, reducing API across web and app platforms, and optimized market-free APIs with smaller payloads. We also made charting faster and improved load times. These efforts together improved latency, improved execution reliability, and supported operational excellence at scale. We were one of the first to actually introduce 5SR, NCP, which is an AI trading companion linked to broking accounts. This happened in actually the previous two quarters. In the last quarter, we improved the product where somebody could use an NCP server to connect to the broking account and almost execute, analyze and execute anything that they would do on the app via a chat window. This was one comment on the fund raise. So we successfully completed our rights issue, which was oversubscribed, and then total amount of money raised was 468 crores. There was a strong participation from promoters, increasing in new investors, reflecting confidence in our growth strategy. And our network increased to more than 1,100 crores for the strengthening of 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 AI to enhance customer experience. With that, I conclude my opening remarks and welcome any questions. Thank you.

Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and one on a telephone keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and one again. Ladies and gentlemen, if you have any questions, please press star and one on a telephone keypad. The first question comes from the line of Mr. Harshit Singhania from RoboCapital. Please go ahead, sir.

Hello.

I'm an audible.

Yes, sir.

Yes. Yeah. So can you tell a bit about the utilization of the rights money which we have raised and like how we can utilize it? So, I understand the question. You're talking about that, how are you going to use the capital, right? That's really right. Right, right. Okay, so I think we mentioned that in our drafts perspective also, letter of offer, so if you look at it, it will be, we plan to deploy it. At a high level in three major areas, one is to support, you know, higher trading volumes as we anticipate higher growth to support the margin extended to clients and, you know, what we need to keep with the exchanges. That's number one. Second is to grow our MTF book. This is where we've seen good growth. And third is overall, you know, core business expansion via, you know, better marketing, brand development, and a lot of investment in product tech and AI. So, those are the three major areas that we are looking to deploy capital. Okay, and have we utilized some part of this fund as of now? You know, actually, you know, yeah, Gaurav, you can take that, like, specifically, technically speaking. Yeah, go ahead.

Sure, sure. So we have already started, you know, we have increased our margin as per the prospectus because and right now our margin has been increased to 1.5x from our existing capacity.

Okay, great. Thank you, Dr. WX on my side.

Thank you, sir. The next question comes from the line of Mr. Sudhanshu Yagov from Dandinshia Consulting LLP. Please go ahead, sir.

Can you please give me some glimpses on 5 Paisa F&O and cash market shares? Hello, can you read the question, please? What was the outcome of it, and what is customer acquisition strategy for 5SR?

Okay, Gaurav, you want to take that?

So, regarding your first question that our customer outcome of the company, so 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 the investment in tech investment as well as HR investment. So, nothing major, I mean, unusual as outcome is there apart from the ITC, which we have already discussed. Second question, sir, was in respect of the customer acquisition strategy, maybe you can take. Yeah, so, okay, so, I think, so, customer acquisition strategy for us is, you know, lies,

what, if this request, if people are not speaking, can go on mute. Yeah, so from our perspective, an acquisition strategy is 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 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, you know, to carry out their trades or, you know, to improve their profitability or do more and more deeper things with the stack. That is something that we are 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 NTF, we have two-thirds next-end, you know, ETFs, mutual funds, and some other products which are there in the pipeline. So that's really our overall strategy for our customers in the future.

What about the market share? Please give some numbers. Market share, we have approximately 2% market share on both FNO and cash.

Okay. Okay, thank you.

Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on the telephone keypad.

I repeat, if you have any questions, please press star and 1 on the telephone keypad.

Ladies and gentlemen, if you have any questions, please press star and 1 on your telephone keypad. There are no further questions, sir. Now I hand the floor to the management for the closing comments.

Okay. I mean, if you have any thoughts, thank you. Thank you for attending. If you have any further questions, then I think, go. We can please provide the email ID that they can reach out.

Thank you, sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using Doorsabha's conference call services. You may disconnect your lines now. Thank you and have a pleasant day.