5paisa Capital Limited ($5PAISA)

_Good afternoon, ladies and gentlemen. -- or for the conference call. Welcome to 5paisa Capital Limited. [Audio Gap] To about $8.5 million, which if you compare the previous quarter, was down about 3%. Despite this investing in trading activities generally remained strong, exchange retail F&O premium, average daily turnover grew 22% quarter-on-quarter to INR 78,000 crores. While exchange retained cash EBITDA grew 10% quarter-on-quarter to INR 43,974 crores. From our company perspective, [indiscernible], we remain focused on offering best-in-class solutions, continue to focus on high-quality acquisition, which means acquiring high-quality customers and increase in lifetime value. During the last quarter of the previous financial year, we improved on a lot of metrics, including our overall acquisition, organic -- base for organic acquisitions, stronger brand campaign and targeted engagement. So we acquired 33% more customers as compared to the quarter before us. So we acquired north of 1 lakh customers in the last quarter. There is also improvement in our overall [indiscernible] revenue and our CTR ratio, which is cost to revenue from a payback perspective. Our total customer base reached 51.8 lakhs. And in Q4, our F&O [indiscernible] grew to INR 1,346 crores, which is an increase of 22% quarter-on-quarter. Our average [indiscernible] book, which includes the regular [indiscernible] margin product plus MTF total up to INR 410 crores, which is again an increase of 8% quarter-on-quarter. Retail fund AM stood at INR 1,761 crores, which is again 6% increase from a quarter-on-quarter perspective. And some part of mark-to-market impacted this number because the overall market going down to [indiscernible] market market, so we also reduced this number would have been higher. On our financial metrics, the broking revenue grew to INR 41.8 crores in the quarter. This is 13% increase related to previous quarter. Aligned income was up INR 20.7 crores, which is up 5%, and total revenue for the quarter was INR 85.5 crores. Again, an 8% increase. Our employee costs decreased due to hiring in product and tech, marketing and AI teams. Other expenses also went up mainly because of higher customer acquisition compared to last quarter. And for the quarter, profit after tax, PAT, was INR 44.3 crores and our net worth stood at INR 650 crores as of March 31, 2026. I'll take a minute or a few minutes first to talk about more importantly what we have been investing in on the technology and product side. So now product update perspective, we launched 7 features [indiscernible] experience of our customers. We've included tools like Scalper, multi-charge setup, Strategy Builder option pains and scan, which [indiscernible] faster and calculations better. We also track position -- also added position tracking on option chain and grouping across [indiscernible]. Further, we upgraded our API and partner ecosystem, Xtreme Api [indiscernible] with breach data 20-PIsandstratic and static IP support, which improved access and increasing institutional participation. On the investing side, Pay Later NPS became important monetization driver and we expanded our eligible stock inverse from 700 to 1,500 plus stocks and increased units per customer to INR 3 crores. We also improved metal fund experience, [indiscernible] ETF dashboard, introduced SEBI compliant infrastructure and introduce stock SIB. Community features like trade better and trader stories are currently in development to support long-term user vision. Specifically on the tech side, we significantly reduced order placement latency into execution speed and platform reliability, along with modernizing our braking systems. Some of the features that we introduced specifically on the tech infrastructure side, was [indiscernible] data, reducing API across [indiscernible] in our platforms and optimize market feed APIs with smaller payloads. We also made charting foster and improve load times. These efforts together improve latency, improved execution reliability and supported operational experience at scale. We were one of the first to actually introduce 5paisa MCP, which is an AI trading companion linked to broking accounts. This happened in -- actually the previous 2 quarters and last quarter, we improved the product where somebody could use an MCP server to connect to the broking on and almost execute analyze and execute anything that they would do via [indiscernible] do. One comment on the fund raise. So we successfully completed our rights issue, which was oversubscribed and total amount of money raised was INR 468 crores. This was a strong participation from promoters [indiscernible] investment reflecting confidence in our growth strategy, our network increased to more than INR 1,100 crores, further stamping our balance sheet. This capital will deploy to support business expansion, enhanced market presence and drive long-term growth. Lastly, we remain committed to driving innovation, strengthening our product and technology stack and leveraging AI to enhance customer experience. With that, I conclude my opening remarks and welcome any questions. Thank you.

[Operator Instructions] The first question comes from the line of Mr. Harshit Singhania from Robo Capital.

Yes. So can you tell a bit about the utilization of the rice value which we have raised and like how are we going to utilize it?

So I understand the question. You're talking about the -- how we are going to use the capital, right?

Yes. [indiscernible] rights issued.

Rights issue, right. Okay. So I believe we mentioned that in a drop perspective also letter of offer angst. So if you look at it, will be we plan to deploy at a high level in 3 major areas. One is to support higher trading volumes as we anticipate higher growth to support the margin extended to clients and what we need to keep the changes. That's number one. Second is to grow our NPS book. This is where we're seeing good growth. And third is the overall core business expansion via better marketing, brand development and a lot of investment in product, tech and AI. So those are the 3 major areas where we look -- we are looking to deploy capital.

Okay. And have we utilized some part of this fund as of now?

Gourav, you can take that, like specifically technically speaking. Yes. Go ahead.

Sure, sure. So we have already started here and we have increased our margin as per the perspective because -- and right now, our margin has been increased to 1.5x from our existing capacity.

The next question comes from the line of Mr. Sudhanshu [indiscernible].

Can you please give some glimpse on 5paisa F&O and cash market share? Hello. Last year [indiscernible] going on. What was the outcome of it? And what is customer acquisition strategy for 5paisa?

Okay. Gourav, do you want to take that?

So regarding your first question that customer -- outcome of the company. [indiscernible] we have uploaded our resalable financials as well as balance sheet, which shows that we have increased in the revenue by 8%. Our profit is slightly declined because of the investment in -- tech investment as well as HR investment. So nothing major, I mean, unusual as outcome is there an outcome is there apart from the , which we have already replied. Second question was in respect of the customer acquisition strategy, maybe you can take.

Yes. So -- okay. So I think the customer acquisition strategy for us is it lies. [indiscernible]. If the request people are not speaking can go on mute. Yes. So from our perspective, an acquisition strategy really linked to but our overall company strategy is, and that is something that we want our focus play of deepening where we are good at in the trading stack as well as growing our investing business, which is mutual funds and other products. So anyone who is looking to, let's say, whether it is a person who's a potato would look to come to us to carry out their trades or to improve their profitability or do more and more deeper things with that, that is something that we are focused on. And on the other side, people who are specifically looking to build long-term wealth and not necessarily trade, for that, we have other products like we have NPS, we have [indiscernible] ETFs, metal funds and some other products, which are there in the pipeline. So that's really our overall strategy to acquire customers in the future.

Whatever the market share please give some numbers?

Market share, we have approximately 2% market share on both F&O and cash.

[Operator Instructions] There are no further questions, sir. Now I hand the floor to the management for the closing comments.

Okay. I mean, if you have any further [indiscernible]. Thank you for attending. If you have any further questions, then I think what -- Gourav, what we can please provide an e-mail ID that they can reach us.

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