5paisa Capital (5PAISA) Q3 24/25 earnings summary

Executive summary

• The quarter was challenging for the stock broking industry due to regulatory changes and a 10% market index correction, leading to reduced client participation and exchange turnover.

• Q3FY25 revenue declined 15% quarter-on-quarter to ₹853 Mn, with PAT down 26% quarter-on-quarter to ₹162 Mn, impacted by regulatory changes and lower turnover volumes.

• Customer base grew 2% quarter-on-quarter to 4.74 Mn, but client acquisition and app user growth slowed, with a 31% quarter-on-quarter drop in new clients.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were approved and reviewed by the Board and statutory auditors, with an unmodified review report issued.

• Appointment of Mr. Gaurav Seth as Additional Director (Managing Director) and Mr. Mahesh Gujaran as Chief Surveillance Officer effective January 17, 2025.

Financial highlights

• Average daily turnover (ADTO) declined 20% quarter-on-quarter to ₹3.03 trillion.

• Broking revenue fell 8% quarter-on-quarter to ₹43.9 crore; allied income dropped 39% to ₹16 crore.

• Consolidated total income for Q3 FY25 was ₹10,084.62 lakhs, up from ₹10,032.70 lakhs in Q3 FY24; nine-month total income was ₹28,843.94 lakhs, up from ₹28,185.48 lakhs year-over-year.

• Consolidated net profit for Q3 FY25 was ₹1,617.74 lakhs, compared to ₹1,584.70 lakhs in Q3 FY24; nine-month net profit was ₹5,816.67 lakhs, up from ₹4,866.56 lakhs year-over-year.

• Basic EPS (consolidated) for Q3 FY25 was ₹5.18, up from ₹4.91 in Q3 FY24; nine-month EPS was ₹18.64, up from ₹15.83 year-over-year.

Outlook and guidance

• Regulatory changes (True to Label, weekly derivatives discontinuation) expected to continue impacting turnover and revenue.

• Management expects regulatory changes to have a temporary effect, ultimately supporting long-term sustainable growth.

• Focus remains on digital onboarding, operational efficiency, and expanding cross-sell products.

• Payback period for client acquisition is expected to increase from 6 to 8 months due to regulatory changes.

• Management aims to improve customer experience and operational efficiency to drive future growth.