5paisa Capital Limited has delivered a robust financial performance in Q3FY26, marking a significant recovery with strong quarter-on-quarter growth across key metrics. The discount brokerage and fintech platform reported substantial improvements in profitability and operational efficiency during the quarter ended December 31, 2025.

Financial Performance Highlights

The company's financial results for Q3FY26 demonstrated strong momentum with profit after tax reaching ₹123 million, representing a 30% increase quarter-on-quarter from ₹95 million in Q2FY26. EBITDA grew 23% QoQ to ₹187 million, with EBITDA margin improving to 24% compared to 20% in the previous quarter.

Revenue Composition and Business Performance

Total income from operations reached ₹793 million in Q3FY26, up 3% from ₹773 million in Q2FY26. Brokerage income contributed ₹371 million, showing 7% quarter-on-quarter growth, while allied broking income remained stable at ₹198 million with 1% QoQ growth. Other operating income stood at ₹224 million, declining 2% from the previous quarter.

The company's nine-month performance for FY26 showed total income of ₹2,344 million compared to ₹2,885 million in 9MFY25, with PAT at ₹334 million versus ₹582 million in the corresponding period last year.

Product Innovation and Customer Experience

5paisa Capital continued enhancing its trading ecosystem with several new product launches and feature improvements. The company expanded its Pay Later offering to over 1,200 stocks with funding limits up to ₹3 crores and competitive interest rates starting from 0.026% per day.

The platform achieved significant milestones with over 23.05 million app installs and maintained a 4.2-star rating on app stores. Customer satisfaction improved to 94% in Q3FY26, reflecting the company's focus on service excellence.

Business Metrics and Market Position

The company's customer base exceeded 5 million registered users, with strong engagement metrics across its digital platforms. The margin trading facility (MTF) book showed healthy growth, supported by the expanded product offerings and improved onboarding processes.

5paisa Capital's net worth exceeded 70% of total client funds, ensuring strong financial stability and compliance with regulatory requirements. The company maintained its position as a qualified stockbroker under SEBI's framework while continuing to invest heavily in technology and product development.

Balance Sheet Strength

As of December 31, 2025, the company's total assets stood at ₹18,569 million compared to ₹16,666 million as of March 31, 2025. The loan book grew to ₹3,527 million from ₹2,248 million, reflecting increased MTF business. Total equity and reserves reached ₹6,391 million, up from ₹6,036 million at the end of FY25.

The strong Q3FY26 performance demonstrates 5paisa Capital's ability to navigate market challenges while continuing to invest in product innovation and customer experience improvements. The company's focus on technology-driven solutions and comprehensive financial services positions it well for sustained growth in the evolving fintech landscape.

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.