Company Overview

5paisa Capital Limited is a prominent Indian technology-driven financial service company, primarily operating online. The company offers a comprehensive suite of broking services to clients in the Indian capital markets, with all other activities supporting its core business. Headquartered in Thane, Maharashtra, 5Paisa Capital Ltd has rapidly become a significant player in the financial sector. Although founded by Nirmal Jain in 2007, it commenced large-scale operations in 2016.

The company went public with listings on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in November 2017. 5Paisa Capital Ltd is promoted by the founding members of IIFL, emerging from a demerger with IIFL Holdings Ltd to establish itself as an independent entity focused on the discount broking model.

Business Model and Services

5Paisa Capital provides financial products through its advanced online platforms and mobile applications, catering mainly to retail investors and traders who prefer a "do-it-yourself" (DIY) approach to the securities market. The company started as a discount brokerage and was initially a wholly-owned subsidiary of IIFL Holdings Ltd. Post-demerger, it leverages its technology platform to offer a wide array of financial products and services at competitive costs.

Its extensive product offering includes:

- Broking: Equity, Commodities, Currency trading.

- Investment Products: Mutual Funds, Bonds, Debentures.

- Wealth Management & Advisory: Equity and Mutual Fund Research, Investment Advisory.

- Other Services: Depository Services, Insurance Distribution, Algo Trading, Peer-to-peer lending (via 5Paisa Loans), Learning Platform (Finschool), and Community (Stocky5).

Clients can access these services via internet terminals, mobile applications, and a dedicated call-and-trade unit. The company facilitates trading on the NSE, BSE, and MCX. A key differentiator is its flat ₹20 brokerage fee per trade, regardless of the transaction size, segment, or exchange. 5Paisa offers subscription plans like the Regular Account Pack, Power Investor Pack, and Ultra Trader Pack.

Financial Performance

#### Recent Financial Results

Quarter Ended March 2025 (Q4 FY25):

- Net Profit: ₹10.07 crore (a 74.22% increase from ₹5.78 crore in Q4 FY24)

- Sales/Revenue: ₹71.27 crore (a 36.85% decrease from ₹112.86 crore in Q4 FY24)

Full Year Ended March 2025 (FY25):

- Net Profit: ₹68.23 crore (a 25.33% increase from ₹54.44 crore in FY24)

- Sales/Revenue: ₹359.57 crore (an 8.87% decrease from ₹394.57 crore in FY24)

Quarter Ended December 2024 (Q3 FY25):

- Net Profit: ₹16.18 crore (a 7.22% increase from ₹15.09 crore in Q3 FY24)

- Sales/Revenue: ₹85.27 crore (a 14.95% decrease from ₹100.26 crore in Q3 FY24)

#### Key Financial Metrics

- Revenue (Q4 FY25): ₹71.41 Crore

- Net Profit (Q4 FY25): ₹10.07 Crore

- Annual Revenue (FY25): ₹359.57 Crore

- Annual Net Profit (FY25): ₹68.23 Crore

Market Position and Valuation

As of July 08, 2025, 5Paisa Capital Ltd holds a Market Capitalization of ₹1,300.20 Crore, classifying it as a small-cap company. The company is valued at approximately ₹1,032 crores on the stock exchange.

- PE Ratio (as of Jul 08, 2025): 19.36

- PB Ratio (as of Jul 08, 2025): 0.46

The stock's 52-week high is ₹607.05 and the 52-week low is ₹311.65. As of July 08, 2025, the current share price of ₹410.45 represents a decline of 32.39% from its 52-week high and an increase of 31.70% from its 52-week low.

Leadership and Management

Gaurav Seth (DIN: 10415364) was appointed as an Additional Director, serving as the Managing Director and CEO, effective January 17, 2025. Mr. Seth brings over twenty-five years of global experience in building businesses at the intersection of financial services and technology, with a background in the US, India, and Southeast Asia. Previously, at Morgan Stanley, he led digital transformation initiatives for their wealth management division and advised other wealth managers on digital strategies. He holds the CFA designation and an MBA from the Indian School of Business, Hyderabad.

Technology and Platform

5Paisa operates a sophisticated online stock trading platform and a mutual fund robo-advisor. As a stock broker, it offers online trading across equity, commodities, and currency segments. The company has developed a multi-lingual stock market app aimed at empowering regional investors, available on both Android and iOS platforms. Its competitive pricing model includes a flat ₹20 brokerage, making it attractive for active traders.

Shareholding Pattern

As of March 2025, the promoter holding in 5Paisa Capital Ltd stood at 32.75%, a slight decrease from 32.78% in June 2024. The promoter holding is considered relatively low at 32.8%.

Regulatory Compliance and Registrations

5Paisa Capital Ltd is a legitimate stock brokerage company registered with relevant authorities. It is registered with SEBI as a stock broker, depository participant, and research analyst, and with AMFI as a mutual fund distributor. The company is also registered with CDSL, BSE, NSE, and MCX. 5Paisa is regularly audited by regulatory bodies and exchanges, maintaining strong compliance. CRISIL Ratings has reaffirmed its 'CRISIL A+/Stable/CRISIL A1+' rating on the company's bank loan facilities, non-convertible debentures, and commercial paper, underscoring its financial stability and creditworthiness.

5Paisa Capital Ltd continues to solidify its position in the Indian financial services sector through its technology-centric approach, competitive pricing, and a comprehensive array of financial products and services designed for retail investors and active traders.