5paisa Capital Reports Steady Q2 Results, Customer Base Crosses 5 Million

5Paisa Capital , a leading discount brokerage firm, has reported steady financial results for the second quarter, despite challenging market conditions. The company's customer base has surpassed the 5 million mark, showcasing its growing presence in the Indian financial services sector.

Financial Performance

5paisa Capital's total income for Q2 remained relatively stable at INR 77.30 crores, broadly in line with the previous quarter. However, the company's Profit After Tax (PAT) stood at INR 9.48 crores, down 18% quarter-on-quarter, primarily due to increased marketing investments and higher finance costs linked to Margin Trading Facility (MTF) income growth.

Key Metrics	Q2	QoQ Change
Total Income	INR 77.30 crores	Steady
PAT	INR 9.48 crores	-18%
Customer Base	5 million+	N/A
New Customer Acquisition	95,000+	+20%
Average Daily Turnover	INR 2.60 trillion	+18%
MTF Income	N/A	+22%
Client Funding Book	INR 364.00 crores	+17%
Mutual Fund AUM	INR 1,647.00 crores	+4.7%

Market Dynamics and Company Performance

The quarter was marked by volatile equity markets, with foreign institutional investors (FIIs) recording net outflows exceeding $10 billion, while domestic institutional investors (DIIs) inflows crossed $20 billion. Despite these headwinds, 5paisa Capital managed to:

Increase new customer acquisition by 20% to over 95,000 customers
Reduce customer acquisition costs by 15%
Improve first-year revenue by 25%
Grow average daily turnover by 18% to INR 2.60 trillion
Expand the client funding book by 17% to INR 364.00 crores
Increase Mutual Fund Assets Under Management (AUM) to INR 1,647.00 crores, up 4.7% sequentially

Product and Technology Enhancements

5paisa Capital continues to focus on improving its trading platform and user experience. Key upgrades implemented during the quarter include:

Real-time bank verification for digital onboarding
Dedicated in-app ETF dashboard
Enhanced payment gateways for mutual fund SIP processing
Revamped Margin Trading Facility (MTF) journey
Introduction of the Scalper platform for web trading
Launch of a strategy analyzer on the FNO360 platform
Implementation of semi-standardized validated UPI handles

Management Commentary

Gaurav Seth, MD and CEO of 5paisa Capital, commented on the results, stating, "Despite challenging external backdrop, our focus remains on delivering best-in-class solutions, high-quality customer acquisition, and ensuring a strong lifetime value from each acquired customer."

The company remains committed to continuous innovation, strengthening its product and technology stack while leveraging AI to further enhance customer experience and engagement.

Outlook

While 5paisa Capital has shown resilience in a volatile market environment, the company faces stiff competition in the discount brokerage space. Management has indicated that they are charting their own course for product development and market share growth, with an ambition to become a top player in the industry over the next three to five years.

As the Indian financial markets continue to evolve, 5paisa Capital's focus on technology-driven solutions and customer acquisition strategies will be crucial in determining its future growth trajectory and market position.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.64%	-4.84%	-14.42%	-17.81%	-45.19%	-10.04%

5Paisa Capital , a prominent player in the financial services sector, has recently come under regulatory scrutiny. The Securities and Exchange Board of India (SEBI) has imposed a penalty on the company for non-compliance related to its Online Bond Platform Provider (OBPP) operations.

Penalty Details

SEBI has levied a joint and several penalty of ₹3.00 lakh on 5paisa Capital Limited and two of its executive directors. This action follows an inspection of the company's OBPP operations conducted by SEBI.

Non-Compliance Issues

The regulatory body observed certain non-compliances with the provisions of the SEBI NCS (Non-Convertible Securities) Master Circular during its inspection. The examination was carried out to assess compliance with the SEBI (Stock Brokers) Regulations, 1992, read in conjunction with the NCS Regulations.

Key Points of the Penalty Order

Aspect	Details
Penalty Amount	₹3.00 lakh
Parties Involved	5paisa Capital Limited and 2 Executive Directors
Date of Order Receipt	October 13, 2025
Regulations in Question	SEBI NCS Master Circular

Company's Response

5paisa Capital Limited has stated that apart from the imposed penalty, there has been no significant impact on its financial, operational, or other activities. The company has also noted that one of the penalized executive directors is no longer associated with the firm.

Regulatory Disclosure

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, 5paisa Capital Limited has made the necessary disclosures to the stock exchanges. The company affirmed its commitment to maintaining high standards of corporate governance and assured continued compliance with SEBI Listing Regulations.

This incident underscores the importance of strict adherence to regulatory guidelines in the financial services sector, particularly in emerging areas like online bond platforms. It also highlights SEBI's ongoing efforts to ensure transparency and compliance in the securities market.