5paisa Capital Limited (5PAISA.BO) Q3 FY2026 Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen. I'm [ Madli ], moderator for the conference call. Welcome to 5paisa Capital Limited Q3 FY '26 Earnings Conference Call. We have with us today Mr. Gaurav Seth, MD and CEO; and Mr. Gourav Munjal, Whole-time Director and CFO; and Mr. Ameya Agnihotri, Whole-time Director and CEO from 5paisa Capital Limited. [Operator Instructions] Please note this conference is recorded. I would now like to hand over the floor to the management. Thank you, and over to you, sir.

Thank you. Hi. Hello, everyone. Good afternoon. Welcome to our earnings call. So I will -- I'll get straight to it. We started with the commentary for the last quarter. Q3 FY '26 for us is a constructive quarter for investors with the [indiscernible] all-time highs, leading to improved sentiment across the broader market. And at the same time, domestic institutional investors continue to invest readily acting as strong counterbalancing force in the market. During this quarter, we witnessed strong traction in retail participation, the retail exchange premium for F&O ADTO improved by 15% quarter-on-quarter as compared to Q2 and to INR 63,900 crores while retail cash ADTO remained stable at INR 39.8 crores or close to INR 40,000 crores. Additionally, industry-wide MTF book continued to scale crossed INR 1.1 lakh crores during the quarter, reflecting increased adoption of this product. In Q3 FY '26, we acquired 78,000 new customers, taking our total customer base to 5.08 million. We remain focused on improving the liquidity of improving the quality of customer acquisition with emphasis on higher first year revenue, after payback periods and improve lifetime value. Operationally, our notional ADTO grew to INR 3.31 trillion, registering a robust growth of 24% quarter-on-quarter. Our average client funding book stood at INR 379 crores, which is up 4% quarter-on-quarter, while mutual fund AUM reached INR 1,868 crores, reflecting a healthy growth of 13% quarter-on-quarter. Speaking of our financial performance for Q3 FY '26, broking revenue grew to INR 37.1 crores, which is a 7% Q-on-Q or quarter-on-quarter increase. Allied income stood at INR 19.8 crores, which is up 2% quarter-on-quarter. Overall, total revenue for the quarter was INR 79.4 crores, again, representing a 3% quarter-on-quarter growth. Employee benefit expenses rose by 9% over the last quarter, driven mainly by new talent additions and a onetime P&L hit of INR 62.2 lakh resulting from implementation of new labor laws effective 21 November 2025. However optimization across other expense lines are backed for Q3 FY '26 came in at INR 12.3 crores, reflecting a robust 30% quarter-on-quarter growth and a PAT margin of 16%. Our net worth stood at INR 639 crores as of December 31, 2025. On product and technology front, we continue to focus on improving investing and trading efficiency, user experience and platform depth. Everything enhancements rolled out during the quarter, we strengthened derivative trading by enabling position grouping by underlying an expiry, allowing users to view and manage life positions directly from the action chain and introduce advanced candle stick patern indicators on TradingView.5 SRA. These enhancements are made multi-extra management, risk assessment and technical lances faster and more intuitive. Further, features such as instant margin credit on stock selling and an expanded Paylater, MTF now covering over 1,500 stocks with higher limits up to INR 3 crores and lower interest rates have significantly improved MPA production. On the onboarding side, we enabled MTF activation from day 0 and reduced friction through OCR-based data capture, penny drop verification, intelligent bank refill and a more reliable e-sign flow. These improvements have resulted in lower drop-offs, higher success rates and faster account activation. Collectively, these initiatives have further strengthened platform stability and scalability, monetization potential and appeal to serious traders and investors. From a tech perspective, we enhanced trading performance by cashing static data, thereby reducing API calls across both of them and our platforms. Market-feed APIs are optimized, reduced payload size by up to 50%. We also improved the chartering experience through faster load times, optimize data loading and improving rendering performance. We remain committed to continuous innovation and to strengthening our product and technology stack with increasingly leveraging AI to enhance customer experience and management. With that, I conclude my opening remarks and I'd like to open the floor for any questions. Thank you.

[Operator Instructions]

Moderator just to be sure, I mean, everyone is able to participate or ask question. There is no problem in connecting to you, right?

No, sir, there is no issue sir, 44 participants are connected.

Okay.

[Operator Instructions]

Moderator, we will wait for another 2 to 3 minutes, and then if there is no question, we can conclude.

Okay sir.

So I guess there's no question, Moderator. We can conclude.

Okay sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using Door Sabha's conference call service. You may disconnect your lines now. Thank you, and have a pleasant evening.