5paisa Capital Limited — Q4 FY26

5paisa Capital Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=uefam2T-3y0 Published: 9 days ago

0:03 3 seconds Good afternoon ladies and gentlemen. I'm Akash moderator for the conference call. 0:07 7 seconds Welcome to FIPA Capital Limited conference call. We have with us today Mr. Goro Set MD and CEO. Mr. Goro Munjal 0:15 15 seconds wholetime director and CFO and Mr. Amaya Agnihotri wholetime director and CTO. As a reminder, all participants will be in 0:24 24 seconds listen only mode and there'll be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the 0:32 32 seconds conference call, please signal an operator by pressing star and then zero on your touchstone telephone. Please note this conference is being recorded. 0:40 40 seconds I would now like to hand over the floor to Mr. Goraset. Thank you and over to you sir. 0:48 48 seconds Okay. Thank you. Thank you. Hi. Um, thanks everyone for joining. Good afternoon. Um, I'll uh I'll take a few 0:57 57 seconds minutes to summarize our results and and what we are up to and then open the floor for questions. 1:06 1 minute, 6 seconds So, uh, Q4 FY26, um, we give you a quick summary. The capital markets in general have been quite volatile as as all of us 1:15 1 minute, 15 seconds know in the past past couple months uh you know specifically all the you know geopolitical developments including the 1:22 1 minute, 22 seconds Iran war um and macroeconomic uncertaintity as well. uh and of course there has been quite an upheaval from 1:31 1 minute, 31 seconds the advent of AI both um in the global markets and Indian markets as well um both positive and negative and positive 1:38 1 minute, 38 seconds that um you know there's there's a lot of potential in the technology but negative in the sense that um you know the the impact on certain companies and 1:47 1 minute, 47 seconds certain sectors where information is asymmetric and not very very clear uh has impacted the valuation a lot of lot 1:54 1 minute, 54 seconds of companies across the globe including India In general, brand crude prices crossed $100 bar. I believe it's probably even more than that as we 2:01 2 minutes, 1 second speak. Um, increasing inflationary pressures and um led to weakening of rupee against the dollars 2:09 2 minutes, 9 seconds have been continuing to sell leading to about 11% decline in indices. Um however um this has been a trend that we've been 2:17 2 minutes, 17 seconds witnessing that has a lot of um local domestic institutions and MF retail money has been buying up the dip and it 2:26 2 minutes, 26 seconds highlights the strength of India's domestic investor base. Um there was I mean uh likely expected um some 2:33 2 minutes, 33 seconds moderation on the retail participation in the markets. Um uh so that moderated with the MAT account additions slowing 2:41 2 minutes, 41 seconds down to uh about 8 and a half million uh which if you compare with previous quarter was down about 3%. Uh despite 2:49 2 minutes, 49 seconds this investing in trading activities generally remains strong exchange retail SNO premium um average daily turnover 2:56 2 minutes, 56 seconds grew 22% quarter and quarter to 78,000 cr while exchange retail cashto 3:03 3 minutes, 3 seconds grew 10% quarter and quarter to 49 43,974 cr um from from our company perspective 3:11 3 minutes, 11 seconds we remain focused on offering best-in-class solutions um continue to um focus was on high quality acquisition 3:19 3 minutes, 19 seconds which means acquiring high quality customers and increasing lifetime value. 3:24 3 minutes, 24 seconds Um during the last quarter of the previous financial year we um we improved on a lot of metrics including 3:32 3 minutes, 32 seconds you know overall acquisition organic uh base for organic acquisition stronger brand campaigns and targeted 3:38 3 minutes, 38 seconds engagement. Um so we acquired 33% more customers um as compared to the quarter before that. Uh so we acquired north of one lakh customers in the last quarter. 3:50 3 minutes, 50 seconds Um there was also an improvement in our overall plus year revenue and our CTR ratio which is cost to revenue um from um you know from a 3:59 3 minutes, 59 seconds payback perspective. Our total customer base reached 51.8 lakh and in Q4 uh our FNO premium Ato growth grew to uh 1336 4:08 4 minutes, 8 seconds crores which is uh an increase of 22% quarteron quarter. Um our average client funding book which includes uh you know 4:16 4 minutes, 16 seconds the regular T plus 5 margin product plus MPF um totaled up to 410 crores which is again an increase of uh 8% quarteron 4:25 4 minutes, 25 seconds quarter. Recent fund am stood at 1,761 crores which is again 6% um uh increase from a quarter and quarter perspective. 4:34 4 minutes, 34 seconds Um and um and some part of market uh impacted this number because um the overall market went down so from a 4:44 4 minutes, 44 seconds marketing also uh reduce this number would have been higher. Um on our financial metrics the broking revenue grew for to 41.8 8 cr in the quarter 4:53 4 minutes, 53 seconds which is 13% increase um relative to previous quarter. Uh aligned income was up 20.7 cr which is up 5% and total 5:02 5 minutes, 2 seconds revenue for the quarter was 85.5 cr again 8% increase. Uh our employee costs um increased due to hiring in product 5:11 5 minutes, 11 seconds and tech marketing and AI teams. Other expenses also went up mainly because of higher customer acquisition compared to 5:18 5 minutes, 18 seconds last quarter. And for the uh for this quarter profit after tax pack was 44.3 cr and our net worth stood at 650 cr as of March 31st 2026. 5:30 5 minutes, 30 seconds Um well I'll take a minute or a few minutes to talk about u more importantly what we have been investing in on the 5:38 5 minutes, 38 seconds technology and product side. Um so from a product product update perspective um we launched um you know several features 5:46 5 minutes, 46 seconds to improve the trading experience of our customers. We've included tools like scalper multi chart setup strategy builder option spinners and scan which 5:55 5 minutes, 55 seconds help user execute trades faster and track positions better. Um we also track position also added position tracking on 6:02 6 minutes, 2 seconds option chain and uh grouping across indexes. Further we upgraded our API and partner ecosystem um extreme and XTS 6:11 6 minutes, 11 seconds with Greek data 20 depth APIs and static IP support which improved access and increase institutional participation. Uh 6:19 6 minutes, 19 seconds on um on the investing side pay later MTF became important monetization driver and we expanded our eligible stock 6:26 6 minutes, 26 seconds universe from 700 to 1500 plus stocks and increase the per customer to three growth. We also improved mutual fund 6:34 6 minutes, 34 seconds experience, launched an ETF dashboard, introduced sever compliant infrastructure, and reintroduced stock FIBs. Community features like trade 6:41 6 minutes, 41 seconds patter and trader stories are currently under development to support long-term user engagement. Uh specifically on the tech side, um we significantly reduce 6:49 6 minutes, 49 seconds order placement latency, improved execution speed, and platform reliability. 6:55 6 minutes, 55 seconds um along with modernizing our backend systems. Um some of the features that that we introduced specifically on a tech infrastructure side was caching 7:03 7 minutes, 3 seconds static data, reducing API across web u uh across web and app platforms and optimized market feed APIs with smaller 7:11 7 minutes, 11 seconds payloads. We also made charting faster and improved load times. These efforts together improved latency, improved 7:19 7 minutes, 19 seconds execution reliability and supported operational excellence at scale. 7:24 7 minutes, 24 seconds Um we were one of the first to actually introduce Vipesa NCP which is an AI trading companion linked to broking 7:31 7 minutes, 31 seconds accounts. This this happened uh in in actually the previous two quarters and last quarter we you know improved the 7:39 7 minutes, 39 seconds product um where somebody could use an MCP server to connect to the broking account and almost execute analyze and 7:47 7 minutes, 47 seconds execute anything that they would do on the app via chat window. 7:50 7 minutes, 50 seconds Um this was one um one comment on um on the fund raise. So we successfully 7:57 7 minutes, 57 seconds completed our rights issue which was um and uh which was overs subscribed and then total uh total total amount of 8:04 8 minutes, 4 seconds money raised was 468 crores. Um this is there was a strong participation from promoters increasing in new investors reflecting confidence in our growth 8:12 8 minutes, 12 seconds strategy and and our net worth increased to more than 1,100 cr further strengthening our balance sheet. Um, 8:20 8 minutes, 20 seconds this capital will be deployed to support business expansion, enhance market presence, and drive long-term growth. 8:26 8 minutes, 26 seconds Lastly, we remain committed to driving innovation, strengthening our product and technology stack, and leveraging AI to enhance customer experience. With that, I'll conclude my opening remarks and welcome any questions. Thank you. 8:39 8 minutes, 39 seconds Thank you, sir. 8:41 8 minutes, 41 seconds Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and one on your telephone keypad and wait 8:49 8 minutes, 49 seconds for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and one again. 8:57 8 minutes, 57 seconds Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. 9:08 9 minutes, 8 seconds The first question comes from the line of Mr. Harshett Singana from Robo Capital. Please go ahead. Hello. Am I audible? 9:16 9 minutes, 16 seconds Yes sir. Yeah. 9:18 9 minutes, 18 seconds Yeah. So uh can you uh tell a bit about the utilization of the rights money which we have raised and like how we going to utilize it? 9:28 9 minutes, 28 seconds So I understand your question you're talking about that um how we going to use the capital right? Yeah. 9:37 9 minutes, 37 seconds Right. Right issue right issue. Right. Okay. So um so I we mentioned that in our in our draft 9:45 9 minutes, 45 seconds perspectives also um letter of offer done right is so if you look at it will be u we plan to deploy it in um at a 9:53 9 minutes, 53 seconds high level in three major areas. One is to support um you know higher trading volumes as we anticipate higher growth um to support uh the margin uh extended 10:02 10 minutes, 2 seconds to clients and and you know what we need to keep with the exchanges. That's number one. Second is to grow our MTF book. This is where we've seen good 10:10 10 minutes, 10 seconds growth. And third is overall um you know poor business expansion via you know better marketing, brand development and 10:19 10 minutes, 19 seconds and a lot of investment in product, tech and AI. So those are the three major areas where we look we are looking to deploy capital. 10:27 10 minutes, 27 seconds Okay. And have we utilized some part of this fund as of now? 10:32 10 minutes, 32 seconds Um you know we can take that like technically speaking. Yeah, go ahead. 10:40 10 minutes, 40 seconds Sure. Sure. So, we have already started, you know, we have increased our margin as per the perspective because uh uh and right now our margin has been increased to 1.5x from our existing capacity. 10:55 10 minutes, 55 seconds Okay, great. Thank you so much. So, that'll be it for my side. 11:02 11 minutes, 2 seconds Thank you, sir. The next question comes from the line of Mr. Sudhan Shu Yaza from Dalia Consulting LLC. 11:10 11 minutes, 10 seconds Can you please give me a give some glimpse on fire and cash market shares 11:19 11 minutes, 19 seconds and hello? Last year there was a question 11:28 11 minutes, 28 seconds going on. What was the outcome of it and what is customer acquisition strategy for Pipesa? 11:38 11 minutes, 38 seconds Okay. What do you want to take that? 11:41 11 minutes, 41 seconds Uh so uh regarding your first question that uh customer uh out uh outcome of the company. So outcome of the company is a simple I mean basically we have 11:50 11 minutes, 50 seconds uploaded our resultable financials as well as balance sheet which shows that we have increased in revenue by 8%. Uh our profit is slightly declined because 11:57 11 minutes, 57 seconds of the investment in uh uh tech investment as well as HR investment. So nothing major uh I mean unusual uh as 12:05 12 minutes, 5 seconds outcome is there apart from the IT which we have already discussed. Uh second question sir was in respect of the customer uh acquisition uh strategy 12:13 12 minutes, 13 seconds maybe you can take yeah so okay so I think the customer acquisition strategy for us is you know 12:20 12 minutes, 20 seconds live somebody if just request if people are not speaking can go on mute. 12:30 12 minutes, 30 seconds Yeah. So from our perspective u an acquisition strategy is directly linked to what our overall company strategy is 12:38 12 minutes, 38 seconds um and and that is something that we want to focus play of deepening where we are good at on in the trading stack um 12:46 12 minutes, 46 seconds as well as growing our investing business uh which is mutual funds and other products. Um so anyone who is 12:54 12 minutes, 54 seconds looking to let's say whether it is a person who is a pro trader would look to come to us um to you know uh to carry 13:04 13 minutes, 4 seconds out the trades or you know to to improve their profitability or um do more and more deeper things with the stack. That is something that that that we're 13:12 13 minutes, 12 seconds focused on. And on on the other side, people who are um specifically looking to build long-term wealth and not 13:18 13 minutes, 18 seconds necessarily trade. Um for that we have other products like we have NTFS uh we have to certain extent um you know ETFs, 13:27 13 minutes, 27 seconds mutual funds and some other products which are there in the pipeline. So that's really our overall strategy to acquire customers in the future. 13:38 13 minutes, 38 seconds What about the market share? Please give some numbers. 13:44 13 minutes, 44 seconds market share we have approximately 2% market share on uh both SNO and cash 13:52 13 minutes, 52 seconds okay okay thank you thank you sir ladies and gentlemen if 14:00 14 minutes you have any questions please press star and one on the telephone keypad I repeat if you have any questions 14:10 14 minutes, 10 seconds please press star and one on a telephone keypad. 14:29 14 minutes, 29 seconds Ladies and gentlemen, if you have any questions, please press star and one on a telephone keypad. 14:48 14 minutes, 48 seconds There are no further questions sir. 14:51 14 minutes, 51 seconds Now I hand off floor to the management for the closing comments. 14:59 14 minutes, 59 seconds Okay. I mean if you have any s Thank you. Thank you for attending. If you have any further questions then I think uh go what we can please provide the email id that they can reach us. 15:13 15 minutes, 13 seconds Thank you sir. 15:15 15 minutes, 15 seconds Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using doabas conference call services. You may disconnect your lines now. Thank you and have a pleasant day.