5paisa Capital Ltd Q2 FY26 — ₹77 Cr Revenue, ₹9.4 Cr PAT, ₹1,061 Cr Market Cap: When Discount Broking Meets Discounted Profits
1. At a Glance
Once upon a time, brokers wore suits, charged 1% per trade, and called you “Sir.” Then came 5paisa Capital Ltd, the no-nonsense, app-based disruptor that replaced tie-wearing agents with push notifications.
Fast forward to Q2 FY26: The company clocked ₹77 Cr revenue (–23% QoQ) and ₹9.4 Cr PAT (–57% QoQ). At ₹340 per share, the stock trades at P/E 22.6, P/B 1.7, and a modest ₹1,061 Cr market cap.
The company serves 48 lakh clients, processes 147 million orders, and yet makes just ₹47 Cr annual profit — proving that volume ≠ value, and “discount” isn’t just their business model, it’s their mood.
2. Introduction
If India’s stockbroking world were a Bollywood movie, Zerodha would be the hero, Groww the flashy newcomer, and 5paisa the underrated side character who still hasn’t got a solo song.
Spun out of IIFL Holdings, 5paisa started as India’s budget brokerage app. It offered trades for less than your chai-pav combo and quickly amassed millions of DIY investors who thought “research” meant Telegram tips.
Today, the platform sits somewhere between serious fintech and meme stock. It offers stocks, mutual funds, F&O, commodities, screeners, even P2P lending. Basically, anything that can legally generate a service charge.
But while the customer base balloons, profits remain in cardio mode — always running, never bulking.
3. Business Model – WTF Do They Even Do?
5paisa runs a pure-tech brokerage. No branches, no suits, no free coffee — just an app and an algorithm that occasionally crashes during Nifty expiry.
Core Verticals:
Broking (48%) — Stocks, F&O, commodities. The bread and butter.
Allied Services (24%) — Margin funding, research, distribution of MFs, bonds, PMS.
Other Income (28%) — Interest on client funds, subscriptions, tech partnerships.
It’s also a Depository Participant (CDSL), AMFI distributor, and SEBI-registered Research Analyst (yes, the same license SEBI almost suspended recently — we’ll get there).
Their apps — 5paisa Web, App, Xstream, FnO360, tv.5paisa — collectively have 21.7 million+ installs, though half might just be people checking IPO allotments.
Target audience: retail traders who love leverage and believe RSI 14 can predict their destiny.
4. Financial Overview
Source table
Metric
Latest Qtr (Sep 2025)
YoY (Sep 2024)
Prev Qtr (Jun 2025)
YoY %
QoQ %
Revenue
₹77.17 Cr
₹100.79 Cr
₹77.69 Cr
–23.4 %
–0.7 %
EBITDA
₹22.95 Cr
₹38.50 Cr
₹25.22 Cr
–40.4 %
–9.0 %
PAT
₹9.44 Cr
₹21.89 Cr
₹11.52 Cr
–56.9 %
–18.1 %
EPS (₹)
3.02
7.01
3.69
–57 %
–18 %
Operating margins collapsed from 38 % → 30 %. Profit fell faster than retail traders during budget day volatility.
But hey — EBITDA’s still positive, so the auditor can sleep peacefully (for now).
5. Valuation Discussion – Fair Value Range
Let’s remove hopium and do math.
(a) P/E Method:
EPS ₹15.1 × Industry P/E 16.5 → ₹250 per share.
(b) EV/EBITDA:
EV ₹70.7 Cr / EBITDA ₹99 Cr = 0.71× (insanely low because of low EV post-fund infusion). Re-rate to 6× = ₹600 Cr EV → roughly ₹190–210 per share.
