5paisa Capital Limited (NSE: 5PAISA) Q4 2025 Earnings Call dated May. 02, 2025
Corporate Participants:
Gaurav Seth — Chief Executive Officer & Managing Director
Analysts:
Unidentified Participant
Rajvan Swatna — Analyst
Presentation:
Operator
Good afternoon, ladies and gentlemen. I’m, moderator for the conference call. Welcome to Five Capital Limited Q4 FY ’25 Earnings Conference Call. We have with us today Mr Sheth, MD and CEO; Mr Bharav, Director and CFO; and Mr Amaya, Director and CTO from Capital Limited. Thank you.
As a reminder, all participants will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need a during the conference call, please signal an operator with reference star ending zero on telephone. Please note that this conference is being recorded. I would now like to hand over the floor to Mr Gauraj Sheth. Thank you and over to you, sir.
Gaurav Seth — Chief Executive Officer & Managing Director
Thank you. Thank you all. Good afternoon. Welcome to quarter-four full-year FY ’25 earnings call. Capital markets has undergone significant transformation last quarter includes are multiple factors, most notably the implementation of ethanol regulations aimed at serving speculation and derivative volumes. These changes have notably impacted trading volumes and overall income and across-the-board in the broking industry.
As a result, industry has seen a substantial reduction in ADCO, additionally, a sharp reduction in-market indices driven by global uncertainties and increased volatility, which further affected the cash segment volumes and new customer participation. Industry overall added 71.3 Lakh new customers in Q4 FY ’25 compared to 98.7 lakhs in Q3 FY ’25, which is a 28% Q-on-Q quarter-on-quarter decline. So while these changes may have a short-term impact, we believe they empower investors and will contribute to the long-term sustainable growth, both for the capital markets in general and our business specifically. We continue to invest in technology to improve customer experience and remain focused on giving the best product to the customers and acquiring high-quality customers to ensure a healthy LTV and sustainable activation. Now I’ll come to business and financial performance. This quarter, which is Q4 FY ’25 marks a full first-quarter following the implementation of new directives on reform. Our broking revenue declined 23% quarter-on-quarter, primarily due to industry-wide drop-in derivative volumes. In an effort to remain competitive, we reduced our MTF’s interest rates effective November 1, leading to about 11% decline in the MTF income in the quarter. Allied income and other operating income dropped by 8% and 11% respectively, reflecting impact after an increase in-market volatility and index corrections. We’ve aligned our variable expenses with income trends and with further optimized cost resulting in a 9% reduction in total expense to INR58 crores for this quarter. For the full-fiscal year FY ’25, which is closing ’24-’25, we recorded revenue of INR360 crores, which is a 9% decline from last year-on a year-on-year basis and a profit of INR68 crores, which is a 25% increase on a year-on-year basis with our margins improving from 14% to 19%. Our net-worth crossed INR600 crore on, 31 March 2025, and we believe that the market and our business will normalize over the next few quarters, allowing us to return to historical profitability levels. Further, for Q4 FY ’25, acquired 91,000 new customers, which is a 19% quarter-on-quarter decline, reflecting the broader industry trend of reduced retail participation. Our total customer-base stands at 48.3 lakhs and our ADPU declined by 36% Q-on-Q to 1.93 INR1.93 trillion again primarily due to the impact of regulatory changes. Our client funding book remained stable at INR260 crores, which is a very minor 2% Q-on-Q drop. Our mutual fund AUM crossed INR1,392 crores now, spend a few minutes on what we are doing on the product fintech side continue to enhance our digital platform, deliver superior trading experience and superior trading and investing experience. Some of the key product rollouts have been an SNO 360 upgrade, which is a completely enhanced upgraded SNO trading platform, ordering advanced option strategy expert research calls and the launch of QTE which is a live expert led streaming and trading model. We also introduced something known as Intra, which is an AI-powered intra day stock basket recommendations with multiple built-in risk management and quick switch through the app. Charting upgrades in which user can view multiple charts alongside orders and market depth and trade visualization adding to trading view on traded terminals, enabling a lot of users to see trades mapped on chart. We also launched SIP via UPI and streamlining the whole SIP setup through automated technique mandates in both in mutual funds and most importantly achieved a 50 millisecond reduction in order placement latency. So this significantly boosts execution speed and platform reliability, particularly beneficial for high-frequency. Lastly, our core objective remains to build the fastest, most reliable and tech platform. We continue to enhance the product features, the user experience and leverage our the cutting-edge tech including APIs and AI tools to help investors make better decisions. And we are confident these efforts will attract — continue to attract high-quality customers and with stronger LTVs LTV while we continue to provide them outstanding share. So that’s it from our end. Happy to answer any questions.
Questions and Answers:
Operator
Thank you, sir. Ladies and gentlemen, we will now begin the question-and-answer session. If you have a question, please press the and one on your telephone 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 one again.
Ladies and gentlemen, if you have any question, please press star and one on your telephone in we will wait for a moment and the question ladies and gentlemen, if you have any questions, please address bar and one on your telephone ladies and gentlemen, if you have any question, please address and one on your telephone.
Gaurav Seth
Moderate if there are no questions and if there are any questions later on people have, they can they can reach-out to us that was IR at 500.com. Again, it’s at.
Operator
I’m sorry to interrupt sir, we have one question, sir.
Gaurav Seth
Okay, great.
Operator
The first question comes from Pradesh Mora from India. Please go-ahead. Hello yes, sir, please go-ahead
Unidentified Participant
So what’s has been redu has been fallen by 22% you are right, yes, quarterly grosses has been reduced by 22%. Yeah. What’s the reason behind this?
Gaurav Seth
Primarily the biggest reason behind this is the implementation of — I think I would say two reasons in general, specifically look at last quarter. One is the last quarter was the first-quarter in which you had a complete impact of the steady FNO regulation which started in last — in Q3 and also some new trade market to a large extent in and in parts of Q4. So those are the two major AUM
Unidentified Participant
Okay, any plans for mutual fund AUM increasing of mutual fund AUM?
Gaurav Seth
Are you asking that the performance or you asking the plan that didn’t get
Unidentified Participant
Yeah AUM
Gaurav Seth
So our hypothesis there is that because of people being a little bit more risk-averse, including even the trading cohort so some people have actually withdrawn from the market especially in talking about the SNO trading community, right? So while you can argue that, look, there are a lot of people who would continue to be in the market, but a lot of them would take losses, et-cetera and start to withdraw the market become a little bit more.
And that is the primary hypothesis. Is that why people have put money back-in mutual funds, some of them. And also, we could assume that the market were also gave good opportunity for people to enter the mutual fund segment, specifically around you know, quality equity stock for that matter. We need a that. And that’s why we actually see an increase in our mutual fund during this case
Operator
The next question comes from Rajvan Swatna from Shah India Securities Limited. Please go-ahead.
Rajvan Swatna
I just wanted to ask something about that platform, which is the AI-powered one. So what is the development there and how are we looking upon like when are we going to introduce that
Gaurav Seth
Talking about AI
Rajvan Swatna
That AI-powered built-in risk management that product I guess that’s the name.
Gaurav Seth
It is in the pilot page and without cold shortly.
Rajvan Swatna
Okay. So like when can we expect By Q2 or any guidance you add-in that?
Gaurav Seth
Yeah. So I think by early Q2. So you think that would give you the edge in terms of both revenue and other things. Look, some of these — some of these enhancements are there as a product company on an ongoing basis, we have to do our to make sure that the customers are getting a good experience and we are adding value to them.
It does not necessarily mean that one particular feature enhancement or two will necessarily have a huge material impact on us. We have an existing base of internet traders. I think the idea is to actually serve them better. But yes, we believe that this will be a — it will be a positive for us overall growth in that.
Rajvan Swatna
Okay, okay. And one last follow-up. So is there any other similar product in the line which you think like from which it can stand-out as an investors part of. We are not
Gaurav Seth
I mean you talked about — your question is more about compared to what we have or compared to what the
Rajvan Swatna
What the industry has developed talking about what you’re planning, is there any existing trading platform or website for similar kind of services hired
Gaurav Seth
I havee not aware personally higher as a scale something like this
Rajvan Swatna
So this would be your first breakthrough we can say first after technology.
Gaurav Seth
Yeah, yeah, and all that there is something that — I mean other competitors might actually also be working on. So I would not like to go and make that statement. But I think from our perspective, we definitely think it is — it would be a good valuation.
Rajvan Swatna
Okay, okay. Thank you.
Gaurav Seth
Thank you
Operator
Thank you. Ladies and gentlemen, if you have any questions, please press star in one on the telephone ladies and gentlemen, if you have any questions, please press and one on your telephone ladies and gentlemen, if we have any questions, please press on your telephone to there are no further questions, ladies and gentlemen, this concludes your conference call for today. Thank you for your participation and for you can do conference call service. You may disconnect your lines now. Thank you and have a good day.
Gaurav Seth
Thank you.
Operator
Thank you, sir