5PAISA - 5Paisa Capital

📊 NSE: 5PAISA 🏢 Finance & Investments 📅 Last Updated: 12/13/2025 17:33

💰 Financial Performance

Revenue Growth by Segment

Total income for FY25 was INR 360 Cr, representing an 8.86% decline from INR 395 Cr in FY24. Broking & Allied income, the primary segment, fell 11.6% from INR 259 Cr in FY24 to INR 229 Cr in FY25. Q1FY26 total income stood at INR 78 Cr.

Profitability Margins

Net Profit Margin improved from 13.67% in FY24 to 18.89% in FY25. The cost-to-income ratio improved from 80% in FY24 to 73% in FY25, though it rose slightly to 78% in Q1FY26. Adjusted RoE for FY24 was 15.3% after accounting for one-off expenses.

EBITDA Margin

Core profitability as measured by the cost-to-income ratio improved by 700 basis points YoY to 73% in FY25. PAT grew 25.9% YoY from INR 54 Cr in FY24 to INR 68 Cr in FY25 despite the revenue decline, driven by lower one-off expenses and improved operational efficiency.

Capital Expenditure

The company utilized internal accretion to increase its networth to INR 553 Cr as of June 30, 2024. These funds are being deployed to upgrade technology infrastructure to improve service quality and handle higher transaction volumes.

Credit Rating & Borrowing

The company maintains a 'Stable' outlook from CRISIL Ratings. It has a board-approved Inter-Corporate Deposit (ICD) line of INR 600 Cr from IIFL Group companies to support liquidity. Gearing remained low at 0.4 times in FY25 compared to 0.6 times in FY24.

⚙️ Operational Drivers

Raw Materials

Not applicable for brokerage services; however, primary operational costs include Technology Infrastructure (upgraded via INR 553 Cr networth) and Employee Costs (INR 8.66 Cr ESOP cost reversed in FY25).

Import Sources

Not applicable for digital brokerage services.

Key Suppliers

IIFL Finance Ltd, IIFL Securities Ltd, and 360 One WAM provide critical financial support and liquidity via a collective INR 600 Cr ICD line.

Capacity Expansion

Current operations are supported by a digital platform targeting retail investors. Expansion is focused on the IFSC unit (5paisa International Securities) and the P2P lending platform (5paisa P2P Limited) following receipt of RBI registration.

Raw Material Costs

Not applicable. Operating expenses are driven by technology and compliance; one-off expenses in FY24 included INR 9 Cr for consultant fees and INR 2.5 Cr for exchange margin penalties.

Manufacturing Efficiency

Not applicable. Operational efficiency is tracked via the cost-to-income ratio, which improved to 73% in FY25 from 80% in FY24.

Logistics & Distribution

Not applicable. Services are distributed via a mobile application and online technology platform.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth will be achieved by upgrading technology infrastructure to improve DIY (do-it-yourself) service quality, scaling the newly registered NBFC P2P lending business, and operationalizing the IFSC unit in GIFT City to capture international securities trading.

Products & Services

Online equity broking, derivatives trading, margin trading facility (MTF), P2P lending, insurance brokerage, and international financial services (IFSC).

Brand Portfolio

5paisa

New Products/Services

5paisa P2P Limited (NBFC P2P) and 5paisa International Securities (IFSC) are expected to diversify the income profile beyond traditional domestic broking.

Market Expansion

Targeting high-volume retail traders across India and international investors through the IFSC unit in GIFT City.

Market Share & Ranking

The company monitors a market share threshold of 0.75%; falling below this level is considered a downward rating sensitivity factor.

Strategic Alliances

Linkage with IIFL Finance, IIFL Securities, and 360 One WAM for strategic oversight and financial backing.

🌍 External Factors

Industry Trends

The industry is shifting toward lower leverage (reduced from 10-15x to 4-5x) due to upfront margin regulations. There is an increasing trend of digital transformation and regulatory tightening to protect retail investors.

Competitive Landscape

Intense competition from large digital-first brokers (e.g., Zerodha, Groww) and established bank-based brokers who have advanced IT infrastructure.

Competitive Moat

The moat is built on a low-cost DIY technology platform and strong promoter backing from IIFL veterans Nirmal Jain and R Venkataraman, providing a board-approved INR 600 Cr liquidity line.

Macro Economic Sensitivity

Highly sensitive to capital market volatility and retail investor participation rates, which directly impact transaction volumes and broking income.

Consumer Behavior

Shift toward DIY (do-it-yourself) investing and high-frequency trading among retail participants using mobile applications.

⚖️ Regulatory & Governance

Industry Regulations

The company must comply with the Companies Act 2013 and Secretarial Standards. It operates under RBI registration for its P2P subsidiary and requires Registrar of Companies (RoC) clearances for name changes and business commencement.

Legal Contingencies

The company reported a reversal of margin penalty to clients of INR 7 Cr in FY23 and an exchange margin penalty of INR 2.5 Cr in FY24. No other non-capital market legal disputes were disclosed.