5Paisa Capital , a prominent fintech company, has reported a significant decline in its financial performance for the second quarter. The company's net profit fell by 57% to ₹95.00 million, down from ₹219.00 million in the same quarter last year. This sharp decrease in profitability comes alongside a 24% reduction in revenue, which dropped to ₹772.00 million from ₹1,010.00 million year-over-year.

Financial Performance Overview

The company's financial results reveal a challenging quarter:

This decline in top-line, bottom-line, and EBITDA figures indicates a tough operating environment for 5Paisa Capital during the quarter. The company's EBITDA margin also compressed to 29.77% from 38.17% in the previous year's corresponding quarter, indicating reduced profitability.

Factors Influencing Performance

While specific reasons for the decline were not provided in the available data, the significant drop in revenue suggests potential challenges in the company's core business areas, which include stock broking and distribution of financial products primarily through internet and mobile applications.

Company's Response

In light of these results, 5Paisa Capital has taken steps to strengthen its governance and operational structure. As per the LODR data, the company has made several key appointments:

1. Ms. Charvi Panchmatia has been appointed as the Company Secretary and Compliance Officer, effective October 10.
2. Mr. Zor Gorelov has been appointed as an Additional Non-Executive Independent Director, subject to shareholder approval.
3. The company has merged its Information Technology Committee and Cyber Security Committee, renaming it as the "Information Technology Committee."

These strategic moves may be part of 5Paisa Capital's efforts to navigate the current challenging business environment and improve its performance in the coming quarters.

Regulatory Matters

It's worth noting that 5Paisa Capital is currently addressing some regulatory matters:

1. The company received a notice from the Income Tax Department to file a revised return for a specific period.
2. SEBI has issued a Show Cause Notice regarding the company's Research Analyst License, which expired on April 2, 2022.

The impact of these regulatory issues on the company's financial results is yet to be determined.

As 5Paisa Capital navigates through these challenges, investors and market watchers will be keenly observing how the company's new appointments and structural changes might influence its performance in the upcoming quarters.

5Paisa Capital Limited, a prominent financial services company, is facing regulatory scrutiny as it received a Show Cause Notice (SCN) from the Securities and Exchange Board of India (SEBI) on September 10, 2025. The notice pertains to the potential cancellation of the company's Research Analyst certificate of registration, raising concerns about its compliance with regulatory requirements.

Regulatory Non-Compliance

The SCN was issued under Section 12(3) of the SEBI Act, 1992, in conjunction with Regulation 30A of the SEBI (Intermediaries) Regulations, 2018. The primary issue revolves around 5paisa Capital's failure to pay the prescribed renewal fees for its Research Analyst registration within the stipulated timeframe.

According to SEBI regulations, specifically Clause 3 of the Second Schedule of SEBI (Research Analyst) Regulations, 2014, research analysts are required to pay prescribed fees every five years to maintain their registration. These fees must be paid within three months before the expiry of the current registration period.

Expiration of Registration

The company's certificate of registration as a Research Analyst has already expired due to the non-payment of these fees. This lapse has led SEBI to question whether 5paisa Capital continues to satisfy the conditions of registration as stipulated under Regulation 13(i) read with Clause 3 of the Second Schedule of SEBI (Research Analyst) Regulations, 2014.

Company's Response

In response to this development, 5paisa Capital has stated that it will promptly respond to the show cause notice. The company has also committed to informing the stock exchanges of any material developments regarding this matter.

Gourav Munjal, Whole Time Director & CFO of 5paisa Capital Limited, signed the disclosure, emphasizing the company's commitment to adhering to the highest standards of corporate governance.

Financial Impact

While the exact financial implications of this regulatory action remain uncertain, 5paisa Capital has acknowledged that the impact cannot be quantified at this time. The ultimate financial consequences will depend on the outcome of the proceedings following the company's response to the SCN.

Market Implications

This development could have significant implications for 5paisa Capital's operations, particularly in its capacity as a research analyst. The potential cancellation of its Research Analyst registration could affect the company's ability to provide certain services to its clients and may impact its market position in the financial services sector.

As the situation unfolds, investors and market watchers will be keenly observing how 5paisa Capital addresses these regulatory concerns and what steps it takes to rectify its compliance issues with SEBI.

5paisa Capital Limited will continue to make disclosures in compliance with the SEBI Listing Regulations as further developments occur in this matter.