5paisa Capital (5PAISA) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 saw strong industry momentum, with indices at all-time highs and significant Demat account additions, supporting robust investor activity.

• Achieved highest ever quarterly PAT of ₹219 Mn in Q2FY25, up 9% QoQ and 15% YoY.

• Customer acquisition reached 1.62 lakh, up 20% year-over-year, with a focus on quality over quantity to improve first-year revenue and customer lifetime value.

• Product and technology upgrades were rolled out across web and iOS, with Android enhancements scheduled by month-end, aiming to improve user experience and operational efficiency.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, were approved and reviewed without qualification by statutory auditors.

Financial highlights

• Total revenue for Q2 FY25 was ₹1,008 Mn (INR 100.1 crore), up 4% year-over-year.

• PAT for Q2FY25 at ₹219 Mn, up 9% QoQ and 15% YoY; PAT margin improved to 22%.

• Broking revenue grew 3% year-over-year to ₹413 Mn.

• Basic EPS (standalone) for Q2 FY25 was ₹7.03, up from ₹6.21 in Q2 FY24.

• Employee benefit expenses increased 49% due to normalization after a prior one-time ESOP/RSU impact.

Outlook and guidance

• Management expects accelerated revenue and profitability in coming quarters, driven by ongoing product development, technology upgrades, and cost optimization.

• Emphasis on expanding digital platforms, cross-selling, and enhancing customer experience.

• Customer acquisition is expected to increase quarter-on-quarter over the next three to four quarters, with continued marketing investment.

• OpEx is expected to remain stable, with increases tied mainly to higher customer acquisition rates.

• Focus on leveraging technology and data to drive growth and client engagement.