5paisa Capital Limited (NSE: 5PAISA) Q1 2026 Earnings Call dated Jul. 10, 2025
Corporate Participants:
Gaurav Seth — Chief Executive Officer
Analysts:
Mehta — Analyst
Jaiprakash Gaur — Analyst
Kajal Gandhi — Analyst
Unidentified Participant
Kajal Gandhi — Analyst
Mayank — Analyst
Presentation:
Operator
Good morning, ladies and gentlemen. I’m moderator for the conference call. Welcome to Five Capital Limited Q1 FY ’26 Earnings Conference Call. We have with us today Mr Gaurav Sheth, MD and CEO; and Mr Gabrav Munjal, Director and CFO; and Mr Anaya, Director and CTO from 5 Capital Limited. As a reminder, all participants will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Need system during the conference call, please signal an operator by presence star NNZERO on your touchstone telephone. Please note that this conference is being recorded. I would now like to hand over the floor to Mr Sheth. Thank you and over to you, sir.
Gaurav Seth — Chief Executive Officer
Thank you. All right. Good morning, everyone. Welcome to the quarter one FY ’26 earnings call. I’ll just I’ll just say a few words. Kind of note how this quarter has been. So in Q1, FY ’26 for us began on a strong note and in general for the broking industry as well. Easing global uncertainties and strengthening domestic economic indicators led to a notable improvement in investor sentiment. During this quarter, both Nifty and Sensex indices recorded a significant recovery, rising about 16% from their recent lows. And additionally, turnover in the retail F&O segment at the exchange level improved by 10% as well quarter-on-quarter. Industry added 66.9 lakh new customers in this quarter, taking total number of demand accounts in the country to over INR19.85 crores.
Now specifically for, we continue to invest in-product and tech to enhance our customer experience. Focus remains delivering best-in-class solutions while acquiring high-quality customers to ensure a healthy lifetime value and sustainable payback period. In Q1 FY ’26, we acquired 80,000 new customers, a 12% quarter-on-quarter decline, reflecting the broader industry trend. Our total customer-base now stands at 49.1 lakhs.
Our ADTO average daily turnover grew to INR2.25 trillion, marking a robust 17% quarter-on-quarter growth. Our average client funding book reached INR312 crores, which is 20% improvement or 20% attrition over the last quarter and our mutual fund AUM surged to INR1,573 crores, which is again a 13% growth quarter-on-quarter. Driven by positive market conditions and our focused execution, our total income grew to INR77.8 crores, which is 9% quarter-on-quarter growth. The rise in expenses during the quarter was variable in nature and aligned with revenue growth.
So our profit-after-tax PAT for Q1 FY ’26 stood at INR11.5 crores, which is — which registered a 15% quarter-on-quarter on a quarter-on-quarter basis. As of June 30, 2025, our net-worth stood at INR616 crores. Now specifically on the product side, in Q1 FY ’26, we remained sharply focused on product-led innovation, finance trading experiences and deepen customer experience. This quarter was marked by several initiatives which were aimed at empowering traders and enabling smarter investor decisions. Key highlights included the launch of an option strategy builder, which equips FNO traders with ready-made customizable strategies with advanced analytics, enabling smarter and faster trading.
We introduced a reimagined version of MTX, which is a margin trading facility called Pay Later, which allows investors to purchase stocks by paying only part of the value — total value upfront with the broker funding the remainder. The mutual fund web journey was also enhanced with a more modern UI UX experience, enhancing discoverability and making investing simpler and more intuitive. Additionally, the launch of IPO guest journey allows non-5 users to apply for IPOs during — using the existing DMAT accounts, expanding our acquisition funnel and boosting lead convergence, enhancing brand visibility during our IPO cycles.
Specifically on tech and infra tech and infrastructure, we have reduced our order placement latency, significantly boosting execution, speed and platform reliability. In-line with our vision of adopting AI for the benefit of investors, we’ve introduced a couple of AI-powered features like live news, extreme API assistance to support real-time decision-making and streamline developer onboarding. A major milestone is launch of 5th NCP, which is based on the model context portfolio on the using Claude AI Assistant, which is essentially an AI trading companion.
So you could connect it to a broking account and execute trades, do whatever you can while using an assets basically an assistant. You can think of as an AI assistant connected to your broking account. So it gives you all that execution capabilities as well as deeper analysis on your portfolio and as well as all the other aspects of an AI assistant like figuring out how my portfolio is doing with respect to the market and so on so forth. We are also very excited about launching Trade better which is a community driven platform specifically aimed at our both our investor and trader community to come and interact with our product managers and 5 employees in general to ask questions about anything related to our product and the market in general.
We remain committed to delivering new innovations and continue to strengthen both our product and tech stack as well as you know, sharply use AI to enhance customer experience. With that, I conclude my opening remarks and open the floor for any questions.
Questions and Answers:
Operator
Thank, sir. Ladies and gentlemen, we will now begin the question-and-answer session. If you have a question, please press R&1 on the telephone keypad and wait for your turn to ask a question. If you would like to withdraw your request, you may do so by pressing star and 1 again ladies and gentlemen, if you have any question, please press and one on your telephone first question comes from Neet Mehta from. Please go-ahead first question comes from Mr Mehta. Please go-ahead.
Mehta
So, sir, basically what marketing initiatives are you taking for newer client acquisition? And how do you sort of acquire newer clients in the near-future?
Gaurav Seth
So marketing for us is an ongoing — ongoing activity as an investment or typically we follow the entire stack. There is marketing through digital means, which is performance marketing as well as we continue to build our brand and using organic initiatives, right? So brand-name and brand-related marketing as well. We also do content-led marketing, etc., right, which provides information to a lot of prospects out there about markets, etc.
And that’s also an acquisition channel. In general, going-forward and present, I can’t — you know, there is no specific plan as such to change tracks. I think — but we do calibrate marketing strategy as well as how much investment we do in it from time-to-time based on what our strategic goals are, right? When is it that you want to actually grow the market and whether the macros and fundamentals are in-place where it is supportive of customer acquisition and so on and so forth. So I hope I answered your question. So we acquired through performance marketing, we acquired through organic initiatives, etc., etc. And so usual marketing stack.
Mehta
Yeah. So next, are we seeing any moderation in investing activities due to these macroeconomic events and geopolitical tensions? And are we seeing the growth coming back or — and next, how do you — do you start to also cross-sell other means by increasing the revenue by cross-selling the insurance and other things which your peers are doing or you want to stick to only trading and investing those kind of activities.
Gaurav Seth
Okay. So part one of your question, are you seeing a moderation? I think the — with respect to where the market was last year versus where it is today, not specifically about this quarter or the earlier quarter. There is some — we’ve seen some moderation because there is a you know markets were at a frenzy last year and compared to that, there is moderation. But there is still a healthy addition of clients Who are opening DMAT accounts are still a lot of people very, very interested in investing in trading. Obviously, the macro-environment is because of geopolitical uncertainty and what has happened earlier this year across the world hasn’t — has some sort of an impact, right, temporary impact. But if you see the markets overall, I think they have come back-in a very positive — in a very positive way. Going-forward, obviously, I can’t comment and not do I know the answer, right, how the markets will be. But yes, compared to last year, there was some moderation in the activity.
Mehta
Now second part of your question was, do you — do you want to cross-sell insurance?
Gaurav Seth
The answer is no. At least in the short-term, we don’t have any plans to do third-party products. I think there is a lot — there is a lot to focus on in this segment itself and to be the best player in investing in trading and that’s what our strategic focus is. So coming back to the Gene Street and the news came up and also news came up about the by linking your positions, cash positions to. So do we see that impact coming in the coming years or a kind of any impact that will be there on your FNO turnover and so on?
Sure. So see again this — all of this clearly started where SEBI took and I think the regulator knows best and they do the right things. So this all started last year, right, with the publishing of the report as well as some of the measures that were taken and that did have a material impact across the industry, right? So the volumes fell earlier this year for not just us, but for all of our peers and broking industry in general. But you also see the volumes then coming back again. Now what the regulator will do in the next couple of weeks or months or whenever they come up, it’s maybe some additional measure.
I don’t know, I can’t comment on it. But what we’ve seen typically is that retail investors provide not just the big ones, but the retail investors. Of today, there is a different breed. They want to — they want to build wealth, they want to learn and they are a critical part of like capital markets and broadening and deepening of our capital markets in terms of providing liquidity.
So, yes, there could be a short-term impact, which I can’t speculate on. But usually if history is any guide, I think these things come back to normal over a period of time with adjustments. And last question about your AI assistant platform. So basically it is a algorithmic trading platform that you only have to kind of write your code and means select your strategy and it will execute on your behalf or it is that it will manage your portfolio or it will guide you that what you are doing wrong in basis of your performance with the indices or what kind of platform is it?
Mehta
Yeah. So the 5 MCP is specifically an AI assistant. It is not an algo trading platform. What it does is that there is a — there is a setup that you can do once you have done, there are few steps you have to do. And once you have done that setup, it uses the MCP protocol, which is model context portfolio, connects to Claude AI. Cloud is one of the AI providers or AI system providers and I think everybody knows it like a ChatGPT and it connects it to your — to let’s say you have a broking account with 5 and you do the initial setup, it will connects to your broking account. And whatever you can do in your broking account, today you can do via chat, right, via the AI system. So you could say buy two shares of, right, and it will go and execute that.
Gaurav Seth
Analyze my portfolio, give you analysis of your existing positions. It would also suggest you strategies. It really depends on the prompts that you give you. So it’s like a — it’s a — it’s an AI assistant as well as it has the capability to integrate with your trading account and you can basically use that to do whatever you want to do with your trading app it is not an algo trading platform. Basically it will connect with your broking and it will give you the answer based on your prompts. So basically, are you willing to means your moat I think is that you provide a best solution for traders.
So are you willing to go in the LGO trading also building kind of trading platform and how do you kind of help traders with who are coming newer to the market? So is that a plan in future or it will only remain the AI assistant that you are talking about? Yeah. So I think there are two different things. So the AI system itself is a channel for people who are excited about AI and understand the power of AI to be able to you know, to be able to use AI systems for their benefit. So that’s something that we have given to our customers and we will continue to build-on functionality and features on-top of it.
On the algo front, we’ve seen a lot of interest and so we are we are in the midst of actually building something which we will launch in the next couple of months on the algo side and that would be — that is to your point, would be something where customers can use algos who and do not necessarily to write algos. There will be a different it will cater to different spectrum of customers, people who can write their own algos. We will simplify it for them. People who want to use out-of-the-box algos and people who want to use algos from trusted providers. So this is the strategy that we have — that we are working on. So to understand what is the mix of customers, basically more customers are using your trading part or they are also investing so that is the first.
And second one that are you doing something on fundamental research or you are empowering the customers with the fundamentally strong companies or kind of such a research or what sort of customer mix you are seeing in your platform?
Mehta
No. So the — yeah, I mean, I think Gaurav can answer the question of like the split our CFO. Gaura, why did you take this?
Gaurav Seth
Sir, actually, I mean to be honest, we can’t share these kind of a data because it is an internal strategical data. I mean, how many are using for alco and all. Regarding second question you can take. Yeah. So second question I think was like how are you empowering your users, right? Yeah, on basis of fundamentals of the company, because you see a market has so much dynamic and retail public, you do not know much about fundamentals and all. So how are you kind of empowering them from your — going from your trading journey to kind of build a long-term wealth through investing and by selecting strong fundamentally rich companies so that they can build long-term build.
Yeah. So I think on the first part like also the data that you asked for, but in general, like this is all linked, right, a lot. It’s not that people only trade, there are people who — there is a percentage of people who only trade, but a lot of people are actually — so they have mutual funds, they have equity investments and they also do F&O trading, right?
There is — there is — there is a mix-and-match of the people. So we have mutual funds — direct mutual funds on our platform and almost the entire universe of it and we have seen that AUM grow year-on-year. So that is one thing which shows robust that people are not just trading, they are also investing. So that is one. On the second part, like we do have a — we do have analysts who we have as part of IBESA and then they provide calls both intraday, which is obviously not fundamental calls but and also certain stocks which might result in which could be good buys in the near-term.
However, we do not have — it has not been a strategy so-far to have you know, a large research team because we are more tech first and we want to focus on that and doing analysis on fundamental aspects of stocks and recommending things for the long-run. But yes, I mean, we do consider from time-to-time in partnering with the right analysts in the market and start giving — providing that research. I mean currently we don’t do that. Currently we don’t do that.
Mehta
So thank you so much. That’s from my side.
Operator
Okay. Thank you. Thank you. Next question comes from Jayth Prakash Umhar from Gourman Capital. Please go-ahead.
Jaiprakash Gaur
Hi, hi, everyone. I’m a bit new to the company. So pardon if I ask some basic question. So the first question is on cash and that’s right. Can you hear me? Yes, yes, please go on. Yeah. Yeah. So cash on this is I think as per last balance sheet was like INR1,300 crores. So I just want to understand how much is it’s available for investors and how much it is like encumbered to the clients or anything which
Gaurav Seth
You are using just if you can throw some light on that. Yeah. I think, you should take that. So our approximately cash and every balance, you can see approximately INR1,400 crores, which consists of INR500 crore is our and at INR1800 crores to INR900 crore is of the client fund.
Jaiprakash Gaur
Okay, understood. Thank you. Just a next question is just a bit mid-term. I just want to understand how do you see yourself in next three, four years because a lot of brokers, right, they are trying to become wealth manager and maybe become distributor of the wealth management products. So what is your strategy and where your market in stand?
Gaurav Seth
So I think our overall strategy is to build — continue to build trust in the market. I think this the financial services market, especially if you are being in the business for some time and then with the pedigree that we have, we’ve been one of the first — first — earliest discount brokers in the industry before everyone else. So we want to continue to build-on that legacy, we want to be tech first, which we are, but there’s a lot of work and a lot of investment which is needed on an ongoing basis to remain competitive.
So our investments will be on product and our investments will be on user experience and our investments will be on continuously upgrading our tech stack. Specifically to provide the best experience to F&O traders, investors and obviously equity investors, both on the mutual fund side as well as people who are buying and selling stocks as well, right? We believe that this — there is a lot to do and there is a lot of growth in the market. I think we are very early stages in our Indian capital markets journey.
And so to answer your question, yes, I mean at this — at this point in time, we are not looking to get into wealth or any such related trajectory. We think there’s a lot to do in this space as well and being the best top three, top-five player in the industry in the next — in the next few years. And like if you can give a little bit of a mix of your existing clients like where they are from Tier-1, Tier-2, Tier and what is the new client addition which you are doing is like incrementally where-is it coming from?
Jaiprakash Gaur
Yeah. So Gaurav, would you have between split between Tier-1 and beyond 30 cities in general, some kind of split or?
Gaurav Seth
So approximately, I mean on the basis on address side, more than 75% to 80% is also on the Tier-2, Tier-3 city. But again, I mean in India, there is many questions have coming up that the people have address of their hometown, but they are staying in Bangalore or some in metro cities. So I mean — but on the basis of address, I can say that the split is 75%, 25%. 75% is from Tier-2, Tier-3 and from Tier-1, it is 25%.
Jaiprakash Gaur
Thank you.
Operator
Thank you. Ladies and gentlemen, if you have any question, please press R&1 on a telephone keypad. The next question comes from Gandhi from ICICI Securities. Please go-ahead.
Kajal Gandhi
Hello. Hi, sir, up. I have one question. Yeah, one question on we show 49 lakh customers and our app downloads are like 22 million. So are we like — these are just registering for looking at the app or are we doing some cross-sell to them? How are we approaching this segment? One was that? And second was if you can discuss on how will be a split on day volume and day. So per ADTO that we are giving is it has to be in that because this at all one expiry has to happen, what can be quantified impact? These are my two questions. Thank you.
Gaurav Seth
Okay. So first question I think was that your 49 lakh clients and what are you doing with them? What are you cross-selling to them? Is that right? So our downloads that appear as 22 million is higher. So that segment of customer, how we are doing or are we having any details about them? So I guess, Kajal, many people download their app, you know, to check some information, to check some news notes that they have opened our house. Some people have a two or three phones also.
They have downloaded with a single fan number these kind of a cases happen, but it’s I mean it’s not like that we are specifically looking for a cross-sell to them okay. So I think the number that you focus on — should focus on is who’s opening account because you can’t cross-sell to anybody unless we open an account with us. So we focus on — people would have downloaded app or they would have browsed or they would have known about, which is great because it broadens our funnel. But finally, the moment of truth for us is that who opens your account and then how do they — how do they use the platform, how do they transact and so on so forth. So that number is 49 lakhs.
And then obviously beyond that there is NHC active and etcetera, etcetera, etcetera. Yeah, and there was a second question, what was the second question that on expiry. Expiry days and non-expiral days. So broadly, what will be a ratio like one is two, maybe if you want to share the number is good, it is not so on a normal day, it’s one, but on expiry days 10x, 28% if the expiry number is one, the normal day would be the 0.65 to 0.7. So expiry for 30% to 40% more AGTO even in exchange and then last ADT also
Kajal Gandhi
Okay, okay, sure. And do you think this recent news flow? I did hear somebody ask me this question and start, but Fortnitely expiries which are being talked about is a possibility and there will be some impact then. So I can take that like this.
Gaurav Seth
First of all, yes, there is no talk about Fortnite XI, but till the till, till the ruling or the order actually comes, no one can no one, no one can say anything. So I would not like to speculate. Second is, if it’s something like this does come, if you look at an example from last year where a lot of major changes were done, right, in terms of like increasing the lot size, etc., etc, right, and changing the expiries as well. So it did have some impact, but it again it reverted to normal this year. So we can’t again hard to estimate impact. Yes, there could be some short-term impact possibly if something like this comes, but in the long-run we estimate that it should normalize.
Kajal Gandhi
Thanks. Thank you. Ladies and gentlemen, if you have any question, please press on your telephone keypad. Repeat ladies and gentlemen, if you have any question please press RN1 on a telephone keypad. We have a follow-up question from Neet Mehta from. Please go-ahead.
Unidentified Participant
So sir, basically I was seeing the client acquisition data. Despite the rebound in the market, we are not seeing any kind of client acquisition newer. So means in the growth terms. So what kind of — is are we not pushing aggressively to kind of acquire newer clients or what kind of — are we seeing same kind of data similar in the industry or what kind — so what is the issue that you are not able to acquire newer clients?
Gaurav Seth
So it is not that you’re not able to acquire new clients. I think the metrics that we go by are initially are not just the number of clients or what is the ARPU for us, right, ARPU and RPCH revenue per customer and the quality of the customer that is. So we are interested in quality acquisition. So we are doing calibrated acquisition. So even though if you look at last two quarters, the acquisition of the quarter that has concluded is lower than the acquisition of the previous quarter, but you know, the market-share has increased. So it is the quality of the — of the customer.
Second is in some cases, you know, if you go very aggressive on performance marketing and digital acquisition, you can acquire higher numbers. But what we also end-up seeing is that some of those higher numbers do not necessarily translate into revenue and then as an extension of that margin and profit, right? So that is — it’s not that we are not acquiring it is our own calibrated approach to acquire higher-quality customers and then we’ll Continue to continue to see the quality and the performance on the platform in terms of how we acquiring customers, what kind of customers we want to acquire and so on and so forth. So do we add-on this, I mean, sometimes intent is also important. So overall industry were acquiring 1.31 crore customers per quarter. Right now, the number is 66 lakhs, flats by so intent is also better because of many other factors. That is also the reason.
Kajal Gandhi
Yeah. Thanks.
Gaurav Seth
Thank you.
Operator
Thank you. The next question comes from Mayank from Millennium Money. Please go-ahead.
Mayank
Hi, good morning. I hope I’m audible and thank you for taking my question. I’m relatively new here, so my question might be basic, but there’s been talk about some pricing levers in this industry. Just wanted to get your thought thoughts on the same. Pricing levers, I mean you mean raising the prices, lowering the prices, what do you mean by that? Raising the prices, raising the prices, that’s usually what we have heard that there is potential to raise prices given volumes have gone lower and that the assumption is that the demand is fairly insensitive to pricing. So just ballpark wanted to understand your thoughts around all of this
Gaurav Seth
. Yeah. So everyone has a — there is no consensus in the market, so to say, right, and there cannot be a consensus in a competitive market like players are free-to figure out their own independent strategies and go with it. And as far as we are concerned, we don’t have free stuff. I mean, generally, we are — our equity delivery is also chargeable. So we have reasonable pricing because we think we provide value. And some of the other players in the market might have, let’s say, certain aspects of this, specifically equity delivery free. There has been speculation, there has been some chatter on social media, some of the larger players saying that look we might consider raising the pricing.
But again as with anything like and again like what SEBI will do, we don’t know what the larger industry will come around and do. And, our belief is that if you provide a best-in-class experience and a lot of reliability, at least on a platform where people know that, look, we are getting what we want to this whole brokerage issue on brokerage pricing becomes, I would not say material, but it’s not a — it is not a very big lever.
So we continue to charge. Don’t know-how others will think about it. Perhaps they might also come around and start charging for stuff which they are not charging if I can follow-up what is our current pricing on the options futures trades and all of that so it is 20 piece? Which is standard with most of the other brokers.
Mayank
Okay. Yes. And specifically to this, do you think that if the market or if some of the other brokers were to raise this that could it have any regulatory implications, could it have any demand implications or competitive implications or do you think that pricing would largely be insensitive if this 20s increased to 25 or 30 at any point in time.
Gaurav Seth
Yeah, you mean demand in the elasticity of demand with respect to pricing, right? Yeah, specifically in this segment. Yeah. Yeah. So I don’t think there is any regulatory — I mean regulators are not asking anyone to do anything on the pricing front. As I said, right, it’s a competitive open-market. People can charge INR100 also if they think they have value right and they provide enough value, so to say, right? I mean, some of the bank-based brokers, they charge — they charge higher, right, because they provide a bouquet of services that others may not be. So, but elasticity of demand with respect to pricing, my personal view is I’ve been over competitive scenario as and if 1% raises from 20 to 30, another one keeps it at 20%, does it make any difference? Hard to say, but keeping it at lose by keeping it at either 20 or 30% from a competitive standpoint.
Okay. So I think the way that I would address your question is that if as far as the serious people on any platform are concerned, unless the pricing knows you drastically changes on the upside, it typically does not matter, right, because they value other things like stability, reliability and nobody leaves for like INR5. But there could be a bunch of customers who would believe that, look, there is — there is more value to be had in another platform which is lower. So yes, they might they might leave.
So finally, your — we can’t estimate whether you know whether someone raises the price, it will be good for us or not, maybe they even raise the price, people still stick with them. You follow what I’m saying, I mean, yeah, there is enough. Yeah. And that the same methodology even applies to us for people who believe there is 5% adding value, even if you raise the prices, they will stick with us or newer customers will continue to come.
Mayank
Got it. If I could just ask one more question, just very basic one because I’m sure not track to about your brokerage income, what percentage comes from cash trades versus derivative trades? You want to take that?
Gaurav Seth
Yeah. So it’s 80-20, 80% is for the derivative and 20% is in the cash segment. It is in the line with most of the other default brokers. Most of the other discount brokers.
Mayank
Okay. Got it. Got it. And are there still any revenue streams that some of the other discount brokers might be pulling in that we still don’t have a product like MPF or something. I’m just trying to understand, are there any revenue gaps that we can still plug? In terms of broking, we don’t have — we also provide MDF facility where we also then have DP and everything. But if other one is doing cross-selling, I mean outside the broking income, then we are not going into that as earlier as mentioned. But in terms of broking segment, we are doing everything.
Got it. Perfect. Thank you so much. Thank you so much. All the questions. Thank you very much.
Operator
Thank you. The next question comes from M, an Individual Investor. Please go-ahead.
Unidentified Participant
Hello. Am I audible?
Gaurav Seth
Yes. Please go-ahead.
Unidentified Participant
Understood. So I just want to understand regarding your strategic direction and the focus that you are giving for the business because as you would also realized for the past five years, capital market participation has been at an all-time high, but our client acquisition has comparatively gone down as much as, I mean from what it used to be before. So the general question is, why is it that we are not focusing more on the client acquisition part?
Gaurav Seth
Yes, you’re saying that you want quality clients, but while I understand we have a technologically superior platform, right? I mean, you are providing AI integration and a lot of other things, but how will customers even come to know about that platform if you’re not marketing aggressively? Should the focus not be to increase the number of people who come in so that there’s more stickiness and more people who stay with the platform rather than just getting quality clients. Yeah. No, that’s a — that’s a great question. So I think you have to do both.
As I think I was answering a related question earlier, right? So as far as far as focus is concerned, it is clearly on tech for investors and traders or traders and investors. You know, I think we are in from our company perspective, we are in a sort of a massive product plus tech upgrade cycle. And we would like that to be concluded, although it is never concluded in this industry because we have to continually invest and then start to go more aggressive on client acquisition and that’s what I’m telling you as-is — I mean right now we are doing more calibrated acquisition. We are very mindful of our costs as well
. Obviously, we are here and we all realize that we are a public real-estate company. And we are mindful of both revenue as well as costs and the profits that we make, right? So I think we get the best ROI when this product and tech upgrade cycle is complete and that’s where when we, depending on macro factors will significantly exceed acquisition.
Unidentified Participant
Got it, sir. Like is there any estimated timeline maybe two years, three years or like when do you expect a major part of this tech upgrade to conclude so that you focus more on the marketing part. Yeah, no, it’s not that far-out. It’s, I would say the next few quarters. Okay, got it. Thank you very much. All the best. Thank you.
Operator
Thank you. We have a follow-up question from Jay Prakash from Capital. Please go-ahead. Thank you.
Gaurav Seth
So just a question on this cash you have about INR1,400 crores, right? So you must be earning the interest income on that maybe, let’s say if I assume it to be 6% maybe then INR70 odd crore is the interest income. And last year’s profit was INR60 crores. So it means that after all the — all the profits coming from just the cash you have now and nothing is coming from the part. So much.
When we see this consolidated figure, we should not — I mean, we should not do a one-on-one because the cash component on which I mean, a broker enjoying the float is also part of a broking income. If hypothetically, tomorrow says that you can’t enjoy the float income, it would be difficult for every discount broker to go for a trade of INR20 per order. Then the order of INR40 or INR50 per order. My point is in mathematically you are saying, yes, if you remove that income, so it will come — there will be no profit, but interest income, the name is interest income, but it is allied to a main business, broking business. So we should see all the together.
Yeah, but maybe the year-on INR500 crore, right, it should become part of other income because you said INR500 crore is there. So that should at least show in other income, right, rather than so INR500 crore if you do — typically you get a 5% interest-rate. So INR500 crore to INR5 crores, it would be INR25 crores.
So yes, yes, you are right, INR25 crores is our own interest income. But again, you need these funds, but there are costing associated to that also. You need to go for the bank guarantee, you need to do the ODFT for the regular payout purpose no, I didn’t understand the last part, sorry. So what I’m saying is, there are income associated to that. I mean, if you are saying the INR500 crore and you are getting interest on that, but there are also cost — there are some cost is also associated to that because you don’t keep old points in exchange just in the FD.
You take bank guarantee for the margin purpose. So there are some costs associated to that also.
Jaiprakash Gaur
Okay. Understood. Thank you. That’s it.
Operator
Thank you thank you. Ladies and gentlemen, if you have any question please press star and 1 on a telephone repeat, ladies and gentlemen, if you have any question, please press chart and one on your telephone pass that would be the last question for the day. Now I hand over the floor to the management for closing comments.
Gaurav Seth
Okay. Well, yes, there are any follow-up questions, I think there is an email which is if you have any follow-up questions please you can use that email to ask. Thank you very much for your participation. Have a good day. Have a good day. Thanks everyone. Thank you. Thank you, sir. Ladies and gentlemen, this concludes your conference call for today
Operator
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