5paisa Capital has reported its third quarter financial results, showing a decline in key performance metrics compared to the same period last year. The financial services company faced headwinds during the quarter, with both revenue and profitability coming under pressure.

Financial Performance Overview

The company's financial performance for Q3 reflects the challenging operating environment in the financial services sector. Key metrics showed a downward trend across major parameters, indicating the impact of market conditions on business operations.

Revenue Analysis

5paisa Capital recorded revenue of ₹793.00 million in Q3, marking a decrease of ₹60.00 million or 7.03% compared to ₹853.00 million in the corresponding quarter of the previous year. This decline in top-line performance reflects the broader challenges faced by financial services companies during the period.

Profitability Trends

The company's net profit for Q3 stood at ₹123.00 million, representing a significant decline of 23.60% from ₹161.00 million reported in Q3 of the previous year. The profit margin compression indicates that the company faced greater pressure on its bottom line compared to the revenue decline, suggesting increased operational costs or other factors affecting profitability.

Quarter Performance Summary

The Q3 results highlight the impact of market conditions on 5paisa Capital's business operations. The company experienced a more pronounced decline in profitability compared to revenue, with net profit falling by nearly a quarter while revenue decreased by approximately 7%. This performance gap between revenue and profit trends suggests operational challenges during the quarter that affected the company's ability to maintain its profit margins at previous year levels.

5paisa Capital Limited has reported its consolidated financial results for the quarter ended December 31, 2025, showing mixed performance amid regulatory challenges. The online stockbroking and financial services company announced these results following a Board meeting held on January 13, 2026.

Financial Performance Overview

The company's financial performance for Q3FY26 reflected both challenges and resilience in a dynamic market environment.

Revenue Composition and Trends

The company's revenue streams showed varied performance during the quarter. Interest income grew to ₹3,472.36 lakhs from ₹3,121.37 lakhs in Q3FY25, representing an 11.24% increase. However, fees and commission income declined significantly to ₹4,455.14 lakhs from ₹5,405.33 lakhs, a decrease of 17.58%.

For the nine-month period ended December 31, 2025, total revenue from operations stood at ₹23,413.38 lakhs compared to ₹28,830.02 lakhs in the corresponding period of the previous year, indicating an 18.79% decline.

Expense Management and Profitability

Total expenses for Q3FY26 were ₹6,280.43 lakhs compared to ₹6,376.26 lakhs in Q3FY25, showing controlled cost management. Key expense categories included:

• Employee benefits expense: ₹2,233.94 lakhs (up from ₹1,903.94 lakhs)
• Finance cost: ₹821.25 lakhs (increased from ₹541.20 lakhs)
• Other expenses: ₹3,008.90 lakhs (down from ₹3,621.13 lakhs)

The company's profit before tax for the quarter was ₹1,653.23 lakhs, with tax expenses of ₹423.27 lakhs.

Regulatory Developments and Challenges

The company faced several regulatory matters during the period. In January 2025, the Income Tax Department conducted a search operation at 5paisa Capital's premises. 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, with which the company has complied.

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.

Leadership Appointments and Corporate Actions

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

During the period, the company allotted 6,000 equity shares pursuant to stock option exercises under the 5Paisa Employee Stock Option Scheme-2017. The paid-up equity share capital stood at ₹3,124.23 lakhs as of December 31, 2025.

Key Financial Ratios and Metrics

The company's financial health indicators for the nine-month period showed:

The company operates through four wholly-owned subsidiaries: 5paisa P2P Limited, 5paisa Trading Limited, 5paisa Corporate Services Limited, and 5paisa International Securities (IFSC) Limited, maintaining its diversified approach to financial services delivery.