Performance Overview
In the December quarter, 5paisa Capital's revenue from operations was recorded at ₹79.27 crore, a decrease of 7 per cent compared to ₹85.26 crore in the same
period the previous year. On a consolidated level, the total income saw a 3 per cent increase quarter-on-quarter, while operating expenses decreased by 3 per cent quarter-on-quarter, resulting in a total comprehensive income of ₹12.2 crore for the quarter, reflecting a 28 per cent increase quarter-on-quarter. The total expenses for the quarter amounted to ₹62.8 crore, slightly down from ₹63.7 crore a year earlier, representing a 1 per cent decrease. According to the company's filing, 5paisa onboarded 0.78 lakh new clients during the quarter, bringing the total number of registered customers to 50.8 lakhs. The 5paisa mobile app had over 23.05 million installs at the end of the quarter, with a 4.2-star rating on the Play Store.
Market Sentiment
The stock of 5paisa Capital experienced a decline, dropping by 5.6 per cent on the BSE, reaching an intra-day low of ₹336.4 per share. This selling pressure was triggered by the company's announcement of its December quarter (Q3FY26) results. At 9:31 AM, the share price was trading 4.65 per cent lower at ₹340.1 on the BSE. In comparison, the Sensex showed a slight increase of 0.02 per cent, reaching 83,646.71. The stock's market capitalization is approximately ₹1,062.55 crore, with its 52-week high at ₹433.55 per share and a 52-week low at ₹287.95. Investors saw the company's performance and reacted in a way that led to a decrease in the stock's value, signaling a cautious approach following the financial results. The contrast between the company's performance and the broader market sentiment highlights the nuances involved in evaluating financial outcomes and their impact on market dynamics.
Leadership Perspective
Gaurav Seth, the managing director and CEO of 5paisa Capital, shared insights into the quarter's performance. He highlighted that Q3 FY26 was an excellent quarter for investors, with the Nifty and Sensex reaching all-time highs. This was supported by strong participation from domestic institutional investors and improvements in Exchange average daily turnover and industry MTF book. Seth also noted significant growth in the company's average daily turnover, up 24 per cent quarter-on-quarter, alongside an improved margin trading facility book. He further stated that the company plans to remain in a growth phase, backed by solid performance across core metrics, while continuing to invest in technology upgrades and AI integration to accelerate growth. This reveals a forward-looking strategy that emphasizes technology and innovation as key drivers of future success, building on the achievements of the recent quarter.
Profitability Analysis
Despite some areas of growth, the consolidated profit after tax (PAT) saw a 24 per cent decrease, falling to ₹12.3 crore from ₹16.2 crore a year earlier. However, the PAT increased by 30 per cent quarter-on-quarter, moving up from ₹9.5 crore in Q2FY26. The shift in profitability indicates both challenges and opportunities. While the year-on-year comparison indicates a decline, the quarter-on-quarter growth suggests that the company is adapting and improving its performance within the existing market dynamics. A closer look at revenue from operations shows a dip of 7 per cent year-on-year. This shows the importance of efficient operations and strategic management to sustain profitability amidst challenges.
