5PAISA - 5paisa Capital Limited Share Price

In the Q2 FY26 earnings conference call held on October 10, 2025, 5paisa Capital Limited management provided insights into their outlook and future expectations amid a challenging market environment.

Management noted that despite a difficult backdrop characterized by significant foreign institutional investor outflows exceeding $10 billion and a decline in cash market average daily turnover (ADTO) by 16.7% QoQ to INR 39,770 crores, the domestic institutional investors offset some of this impact with inflows of over INR 20 billion. They reported that their customer acquisition initiatives yielded a 20% QoQ increase in new customers, reaching over 95,000 and reducing acquisition costs by 15%. The first-year revenue (FYR) per customer improved by 25%.

Looking ahead, management emphasized a commitment to enhance product and technology, aiming for continued growth. They expect average daily turnover to rise, noting a QoQ rise of 18% to INR 2.6 trillion, and aim for a better performance in H2 FY26, contingent on market conditions.

Key figures shared include:

• Total income for Q2 FY26 remained stable at INR 77.3 crores.
• A PAT of INR 9.48 crores, representing an 18% QoQ decline.
• MTF income grew 22% QoQ, and the average funding book expanded 17% to INR 364 crores.
• The mutual fund AUM increased to INR 1,647 crores (up 4.7% sequentially).

With a focus on continuous innovation and a strong product offering aimed at serious traders, management did not provide specific revenue guidance but expressed hope for improved performance in the second half of the fiscal year.

1. Heet Modi: "Sir, any specific reason for de-grossing in your revenue from last September 2025?"

   • Gaurav Seth: "The overall revenue decreased by only 1% compared to last quarter; it's not significant. Industry volumes fell by 16% in cash and 14% in F&O, so our revenue reduction aligns with industry trends."

2. Heet Modi: "Is H2 likely to be the same as H1 or better?"

   • Gaurav Seth: "We expect H2 to be better, but that largely depends on the market conditions, which I cannot predict. We are hopeful."

3. Sonal Minhas: "What is the client acquisition cost and payback period?"

   • Gaurav Seth: "Our client acquisition cost is around INR 700-715, while first-year revenue is between INR 1,000-1,200. We aim for a 7- to 8-month payback period, which positions us competitively in the industry."

4. Prince Aakash: "Do you foresee delivery charges increasing industry-wide due to suppressed trends?"

   • Gaurav Seth: "Yes, I believe some firms may start charging for previously free services as cross-subsidization fades. We currently charge INR 20 for equity delivery but have no immediate plans for an increase."

5. Chinmay Nema: "Will dormant users return once the market improves?"

   • Gaurav Seth: "It varies. Some dormant users may return when financial situations improve, while others may remain inactive due to losses or better alternatives. We continually gather feedback to improve retention."

6. Vidur Dayal: "How do you plan to catch up with competitors and achieve top market share?"

   • Gaurav Seth: "While catching up is challenging, we're focused on executing our independent product roadmap. It's not solely about matching competitors; we need to understand our unique strengths to grow consistently."