5paisa Capital Limited reported mixed quarterly results for Q3FY26, with net profit declining despite operational improvements in certain areas. The fintech company announced its financial results for the quarter ended December 31, 2025, alongside key management appointments and regulatory updates.

Financial Performance Overview

The company's consolidated financial performance showed a year-on-year decline in profitability. Net profit for Q3FY26 stood at ₹1,229.96 lakhs, representing a 24.00% decrease from ₹1,617.74 lakhs in Q3FY25. However, sequential growth was positive, with profits increasing 29.70% from ₹948.17 lakhs in Q2FY26.

Revenue Composition and Trends

Total revenue from operations declined to ₹7,927.50 lakhs in Q3FY26 from ₹8,526.70 lakhs in the corresponding quarter of the previous year. The revenue breakdown showed interest income of ₹3,472.36 lakhs and fees and commission income of ₹4,455.14 lakhs. While interest income grew 11.24% year-on-year, fees and commission income contracted significantly by 17.58%.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, the company's performance reflected broader challenges. Total revenue decreased to ₹23,413.38 lakhs from ₹28,830.02 lakhs in the previous year, marking an 18.79% decline. Net profit for the nine-month period dropped 42.70% to ₹3,333.03 lakhs from ₹5,816.67 lakhs.

Regulatory and Operational Updates

The company faced several regulatory challenges during the period. In January 2025, the Income Tax Department conducted a search operation at the company's premises. Subsequently, the company received a notice under Section 158BC of the Income Tax Act on October 6, 2025, requiring filing of a revised return for the period from April 1, 2018, to February 3, 2025, which has been complied with.

Additionally, the company received a show cause notice from SEBI on September 10, 2025, regarding its Research Analyst License that expired on April 2, 2022. The company has submitted its response within the prescribed timeline.

Management Appointments

The Board of Directors approved the appointment of three new senior managerial personnel:

All three executives have been designated as Senior Managerial Personnel of the company, reflecting the organization's focus on strengthening its leadership team across key functional areas.

Financial Health Indicators

Despite the profit decline, the company maintained reasonable financial health metrics. The debt-equity ratio stood at 0.45 times, while the current ratio was 1.50 times. Net worth increased to ₹63,916.89 lakhs, and the company maintained an operating margin of 19% and net profit margin of 14% for the nine-month period.

The company operates primarily in stock broking and distribution of financial products through internet and mobile applications, with four wholly-owned subsidiaries including 5paisa P2P Limited, 5paisa Trading Limited, 5paisa Corporate Services Limited, and 5paisa International Securities (IFSC) Limited.

5paisa Capital has reported its third quarter financial results, showing a decline in key profitability metrics compared to the same period in the previous year. The financial services company experienced pressure on both absolute EBITDA figures and margin performance during the quarter.

Financial Performance Overview

The company's Q3 financial performance reflects operational challenges, with key metrics showing year-over-year declines across profitability indicators.

Profitability Analysis

The EBITDA decline of ₹32 million represents a decrease from the previous year's Q3 performance. The company's EBITDA margin compression of 1.36 percentage points indicates that operational efficiency faced headwinds during the quarter.

Despite the decline, 5paisa Capital maintained an EBITDA margin above 33%, suggesting the company continues to operate with reasonable profitability levels in the competitive financial services sector.

Key Takeaways

The Q3 results highlight several important aspects of the company's current operational performance:

• EBITDA decreased by ₹32.00 million year-over-year
• Margin compression of 1.36 percentage points reflects operational challenges
• The company maintained profitability above 33% EBITDA margin threshold

The financial performance indicates that 5paisa Capital faced operational pressures during the third quarter, with both absolute profitability and margin efficiency showing year-over-year declines.