5paisa Capital Ltd

NSE: 5PAISA · BSE: 540776 · ISIN INE618L01018 · Listed Nov 2017 (demerger from IIFL Holdings) · Not in Nifty/Sensex indices · Report date 13 Oct 2026

CMP (13 Oct 2026)

₹347 (Screener close) / ₹348.70 (Trendlyne)

Market cap

₹1,627 Cr (4.688 Cr sh) Est.

52-week high / low

₹416.65 / ₹245.00

Shares outstanding

4,68,82,257 (post Apr-26 rights)

P/E (TTM, post-rights)

36.8x Est. (aggregators ~26x, stale count)

P/B (Jun-26 BV ₹240.9)

1.44x Est.

EV/EBITDA

n.m. (client money on B/S)

Dividend / buyback

Never paid / none

IIFL House, Wagle Estate, Thane (group campus)

Founded / CIN

2007 · L67190MH2007PLC289249

Employees

609 permanent / 721 total (Mar-26)

Promoters

Nirmal Jain, R. Venkataraman — 36.50%, nil pledge

Sector

Capital markets — discount stock broking, MTF

MD & CEO / CFO

Gaurav Seth (Jan-25) / Gourav Munjal

Credit rating

CRISIL A+/Stable, A1+ (25 Aug 2026)

Next catalyst

Q2 FY27 results 15 Oct 2026; call 16 Oct

What it is, in plain English. 5paisa is a mobile-first, flat-fee (₹20/order) discount stockbroker spun out of the IIFL group. It earns money from three things: brokerage on equity and F&O trades (~47% of FY26 revenue), interest on margin-trading loans to clients and other allied fees (~24%), and interest on fixed deposits funded largely by client margin money (~29%). It has 52.6 lakh registered customers but only ~3.3 lakh actively trade on NSE — down from 17.5 lakh in Mar-22 — which places it #17 among Indian brokers by NSE active clients. After a ₹468.8 Cr rights issue in Apr-26 it is heavily capitalised (net worth ~₹1,130 Cr) but earns only 5–7% on that equity.

Quick verdict scorecard

Business

Weak

Sub-scale, losing share, price-taker

Management

Weak

Serial exits, 83 regulatory actions

Financial

Medium

Strong capital, poor returns

Valuation

Expensive P/E · Fair P/B

36.8x P/E vs 3-yr avg ~21x

Overall

Negative

Show-me story; Q2 FY27 is the test

₹319.9 Cr

FY26 total income

-11.1% YoY (FY25 ₹359.9 Cr)

₹44.2 Cr

FY26 PAT

-35% YoY; TTM Jun-26 also ₹44.2 Cr

31.6%

FY26 EBITDA margin

PBT+fin. cost+D&A; FY25 35.4%

7.1%

FY26 RoNW

Q1 FY27: 6.9% (co.) / 5.2% (CRISIL)

~81%

Cost-to-income

Q1 FY27 CRISIL; co. basis 83%

3.3 lakh

NSE active clients

Peak 17.5 lakh (Mar-22); rank #17

₹422 Cr

Avg client funding book

Q1 FY27 (MTF + T+5)

₹1,130 Cr

Net worth Jun-26

₹1,129.5 Cr (Reg 52(4)); deck ₹1,131 Cr

Reconciled figures used throughout this report

Item	Figure used	Label	Alternative seen / why rejected
P/E (TTM)	36.8x (₹1,627 Cr ÷ TTM PAT ₹44.2 Cr)	Est.	~25.9–26.6x on aggregators uses pre-rights EPS (3.125 Cr sh). Post-Giskard swap ~38.4x. 3-yr FY-end avg ~20.9x
P/B	1.44x on Jun-26 BV ₹1,129.5 Cr (₹240.9/sh)	Est.	2.5x (Screener/Heard) uses stale pre-rights BV ₹138; 1.19–1.20x mixes ex-rights price with pre-rights book
Promoter stake post Giskard swap	34.97% swap-only = 36.5% × 4.688 ÷ (4.688 + 0.2051)	Est.	34.53% (9 Oct 2026 filing) is a different base: fully diluted incl. ~6.25 lakh ESOPs (+26.76 lakh sh total). Not an error
Fairfax holding	32.76% = FIH Mauritius 24.54% + HWIC Asia 8.22%	Fact	~35.49% if RIMCO India 2.73% included (governance input treats RIMCO as Fairfax). Apparent "+2.7pp" rise is a definitional artefact, FIH flat 24.55→24.54%. Classified public; no board seat
Market share	CRISIL 0.63% overall FY26 (cash ~0.5%, F&O ~0.6%)	Fact	~0.73% of NSE active clients (Jul-26) Est.; management "~2% in F&O and cash" (Q4 FY26 call) unsupported — possibly share of retail F&O premium ADTO (~1.7% derived)
Tax exposure	~₹49–71 Cr	Est.	₹33.02 Cr block + ₹15.31 Cr GST (+₹0.94 Cr older GST) = ~₹49 Cr; add ₹21.85 Cr AY23-24 and ₹0.75 Cr AY18-19 if not subsumed by block = ~₹71 Cr
Contingent liabilities (Mar-26)	₹625.8 Cr; ~96% bank guarantees to exchanges backed by FDs	Fact	AR standalone total misprinted ₹685.8 Cr; components and consolidated note sum to ₹625.8 Cr
IIFL group ICDs	None in FY25 or FY26	Fact	CRISIL's ₹500 Cr line is a support facility, undrawn. FY27 omnibus RPT caps ~₹3,580 Cr incl. ICDs given
Capitalised software	Q1 FY27 only: ₹7.22 Cr (₹6.79 Cr employee + ₹0.43 Cr other)	Fact	Intangibles under development nil at Mar-26; FY26 D&A ₹9.22 Cr (not ₹32.5 Cr — MD&A swapped finance cost and D&A)
"Cross-sell & others 29%"	Mostly interest on lien-marked FDs (₹91.4 Cr)	Fact	Audited cross-sell/commission only ₹1.06 Cr (FY25 ₹15.96 Cr)
Giskard (Trendlyne) value	~₹200 Cr for 96.33%; ~₹207 Cr for 100% (~13x FY25 revenue ₹15.75 Cr)	Est.	Filing item (h) reads ₹121.57 Cr as aggregate (~7.7x); arithmetic ₹11,794 × 1,03,082 = ₹121.57 Cr supports cash-leg-only reading

Data freshness: prices 13 Oct 2026 close; financials to Q1 FY27 (Jun-26); shareholding Sep-26; Q2 FY27 not yet reported.

Analyst Notes

The editorial read before the data. Analyst View throughout unless labelled.

The business has been shrinking for four years, and the recovery keeps being pushed out. NSE active clients have gone from 17.5 lakh (Mar-22) to 7 lakh, 5 lakh, 4.2 lakh and 3.3 lakh (Mar-26). CRISIL's overall market share fell from 1.2% (FY23) to 0.63% (FY26), below the 0.75% level CRISIL itself names as a downgrade trigger. Revenue peaked at ₹394.7 Cr in FY24, fell to ₹319.9 Cr in FY26, and the analyst on the Q1 FY27 call was right that it has been "flat for about three years". In May 2025 management said the business would "normalize over the next few quarters". Five quarters later PAT is stuck at ₹9.5–12.3 Cr a quarter against ₹20–22 Cr in H1 FY25. The CEO's own letter calls FY26 "a reset rather than a setback". I read it as a setback.

Returns are poor and the rights issue made them worse. FY26 RoNW was 7.1%; Q1 FY27 is 6.9% on the company's basis and 5.2% on CRISIL's; TTM PAT over average equity is ~4.8%. Cost-to-income is ~81% (CRISIL) against an upgrade trigger of <65%. The ₹468.8 Cr rights issue at ₹300 lifted net worth from ₹649 Cr to ~₹1,130 Cr and the share count by 50%, but ₹227 Cr went into exchange margin because RBI barred bank intraday facilities to brokers from 1 Jul 2026, ₹150 Cr repaid banks and CP, and only ~₹88 Cr was earmarked for growth. Within 3.5 months, up to ₹121.57 Cr cash was committed to Trendlyne's parent. At ₹347 the market pays 36.8x trailing earnings for that 5–7% return.

The governance record is the biggest issue. Three CEOs since 2023, including an MD/CEO vacancy (Aug-24 to Jan-25) that breached LODR Reg 26A. Three company secretaries in ~15 months with two ~3-month vacancies. The CCO left in Jun-26 after nine months, the Head of Investing Product left in Sep-26 after eight, and the WTD & CTO — architect of the platform revamp management calls its "biggest bet" — resigned on 30 Sep 2026 with no successor named. The FY26 governance report lists 83 exchange and depository actions, including an NSE warning citing "systemic weaknesses in governance, reporting discipline, and internal control mechanisms". SEBI made a PFUTP finding on AT-1/Tier-II bonds sold as "Bonds for Senior Citizens" and named the sitting CFO as an officer in default. Yet the BRSR reports "zero penalties" and the MD&A claims "a consistent record of compliance without any reported deviations".

The tax and ownership overhangs are real. The Jan-2025 group-wide income-tax search produced a ₹33.02 Cr block assessment on 5 May 2026. It is not in the AR (signed 30 Apr) and is unprovided. Add a ₹21.85 Cr AY23-24 reassessment that may overlap, and a ₹15.31 Cr GST notice: ~₹49–71 Cr, or 1.1–1.6x FY26 PAT. On ownership, Fairfax holds 32.76% (35.5% with RIMCO), almost equal to the promoters' 36.5%, as a passive public holder with no board seat. Fairfax is restructuring its India holdings (IIFL Capital), and any monetisation in a stock with ~16% true retail float and zero domestic institutions would be the single biggest supply event.

Trendlyne raises questions. ~₹207 Cr for 100% of a business with ₹15.75 Cr FY25 revenue and undisclosed profit (~13x sales), on one valuer's DCF dated the same day as an unexplained board-meeting postponement. The cash-leg sellers are undisclosed. IIFL Securities was once an associate shareholder of the target. The filing initially said promoters would buy target shares directly, and that line was withdrawn the next day as "inadvertently included". The swap prices 5paisa at ~₹380, above market, which is mildly favourable to existing holders. Note too that Trendlyne is a common source for this company's own insider data.

The positives are real but are about the balance sheet, not the franchise. Promoters put ~₹206 Cr into the rights issue, about 133% of their entitlement, and have zero pledge. The MTF book has roughly doubled in ~15 months (average funding book ₹260 Cr → ₹422 Cr) at ~18% p.a. client pricing. MTF interest rose 77% in FY26. CRISIL A+/Stable was reaffirmed on IIFL support with the CP limit doubled to ₹400 Cr. Net worth is ~₹1,130 Cr against a ₹1,627 Cr market cap, so P/B is ~1.44x, below the 3-year average of ~2.0x. The AI/API push (MCP integration, AlgoSpace, Xstream APIs, Scalper) is credible product work. Smart money anchors sit at ₹289–300 (Ward Ferry exit, Kela entry, rights price).

What the market is pricing, and what I'd watch. At 36.8x P/E the market is pricing a recovery to well above FY25 peak earnings: a return to the ~21x 3-year average at today's price needs ~₹80 Cr PAT against ₹68 Cr at the peak. That is a bet on capital deployment plus an AI re-rating. The test comes on 15 Oct 2026 (call 16 Oct). Management promised "from this quarter on, you can see an acceleration in growth". If Q2 FY27 shows flat PAT again, falling new adds (Q1 -28% QoQ) and continued active-client erosion, the P/E has no support beyond book. My stance: negative at ₹347; book (~₹241/sh) plus the ₹290–300 smart-money band is where risk/reward starts to balance.

What to watch while reading	Where	Why it matters
Active-client and market-share trajectory	Tabs 3, 9	CRISIL downgrade trigger (0.75%) already breached
Interest vs brokerage mix; FD float	Tab 4	48% of Q1 FY27 revenue is interest; float is rate-sensitive
Q1 FY27 software capitalisation ₹7.22 Cr	Tab 5	~47% of Q1 PBT; new practice vs FY26
Rights deployment vs Giskard cash	Tabs 6, 12	Capital allocation at 5–7% RoNW
Leadership exits, NSE QSB warning, SEBI PFUTP	Tab 7	Control environment
Fairfax 32.76% overhang; tax ₹49–71 Cr	Tabs 7, 10	Supply risk; unprovided liabilities

Business Deep-Dive

Single reportable segment (broking & related). Asset-light, 100% digital, 100% domestic.

Corporate history and milestones

Year	Milestone
2007	Incorporated (CIN L67190MH2007PLC289249)
2016	Launched as IIFL's online discount-broking arm; NCLT scheme (6 Sep 2017, effective 1 Oct 2016) demerged it from IIFL Holdings, 1 share per 25 IIFL shares — why Fairfax's register mirrors IIFL
Nov 2017	Listed NSE/BSE (~1.27 Cr shares, FV ₹10)
FY19 / Aug-2019	1 lakh customers; ₹101 Cr rights issue (promoters took 49,32,734 sh)
FY21	10 lakh customers; positive unit economics
May 2021	₹250 Cr raise at ₹500: preferential to FIH Mauritius (~₹44.9 Cr), HWIC Asia, RIMCO, WF Asian Reconnaissance + 12 lakh promoter warrants (₹60 Cr)
Aug 2022	₹45 Cr of warrants converted (~₹15 Cr lapsed)
Mar-22	Peak 17.5 lakh NSE active clients
2023	FnO360 platform launched
2024	Web Trade Station 2.0; TradingView charts; 14 Mar 2024 MCX/NSE/BSE onboarding bar (Bombay HC stay)
FY25	Record ADTO ₹3.8 tn+; record PAT ₹68.2 Cr; CEO Gaurav Seth from Jan-25
2025–26	Pay Later MTF revamp, Scalper, MCP/LLM integration, MF dashboard, ETF revamp; crossed 5 Mn customers
Apr 2026	₹468.82 Cr rights issue (1:2 at ₹300)
20 Jun 2026	AlgoSpace launched at BSE Algo Convention
28 Jul 2026	Board approves Giskard Datatech (Trendlyne) acquisition

Products and services

Product	What it does	Monetisation
Cash equity (delivery/intraday)	NSE/BSE trading; "₹0 brokerage for 30 days" promo	₹20/executed order or 25 paise/share for stocks ≤₹10
F&O (index/stock)	Historically dominant: ~80% derivatives / 20% cash of revenue (Jul-25 call); "F&O-heavy base" (CEO)	₹20/order
Commodity (MCX) & currency	MCX member 55945; MCX awards 2022, 2025	₹20/order
FnO360	Option chain, Strategy Analyzer (payoff, Greeks, 50+ scanners), Alpha Scan, OI analytics	Brokerage
Scalper	3-in-1 chart terminal for fast intraday options execution	Brokerage
Advanced orders	VTT, slicing, basket, bulk, quick reverse, OneClick, OI profile on charts	Brokerage
AlgoSpace	No-code algo marketplace (equity/options/futures), backtests; zero platform fee	Brokerage only
Xstream open APIs / XTS / co-location	Zero-cost trading and market-data API; "Xstream AI" assistant; Greeks, 20-depth, static IP	Brokerage; 71 API/fintech partners
MCP / LLM integration	Conversational analyse-and-trade; named as Claude in Q1 FY26 call (AlphaStreet), later "a major LLM provider"	Engagement
Multi-platform	App (23.8 Mn installs, 4.3★), web, Windows EXE, TradingView charts	—
Mutual funds	Direct/regular MF, 0% commission (ARN-104096); MF AUM ₹2,073 Cr; 13.68 lakh active SIPs	Low yield
IPOs, NFOs, ETFs, stock SIPs	ETF revamp 2026	—
US stocks	Via partner Vested	Revenue share (n.d.)
Portfolio Intelligence / AI Insights & DYOR	Health score, rebalancing, deep-research chat, thematic baskets	Engagement
Research / advisory	SEBI RA INH000025188 (re-granted 26 Feb 2026); AI research calls, chart patterns, options intelligence	Subscription packs ("Ultra Trader"/"Power Investor") no longer shown INFERRED
Insurance / TPD	None; "near future no… midterm we'll consider" (NPS, LAS/LAMF next)	Cross-sell ₹1.06 Cr FY26
Partners	smallcase, ClearTax, MarketSmith India, Intraedge, Vested	n.d.

Client funding products (MTF "Pay Later" and T+5)

Term	MTF (Pay Later)	T+5
Coverage	1,500+ stocks (from ~700)	2,500 non-MTF scrips
Leverage	Up to 4x	2x
Client limit	Up to ₹25 Cr (Q1 FY27 call; AR says ₹3 Cr)	—
Interest	0.049%/day (~18% p.a.)	From 0.045%/day
Other	₹20/order; free pledge/unpledge; day-0 activation	BTST and CUSPA variants

Licences, registrations and certifications

Registration	Number / detail
SEBI stockbroker	INZ000010231; Qualified Stock Broker (QSB)
Exchanges	NSE 14300, BSE 6363, MCX 55945
Depository	CDSL only, IN-DP-192-2016
Research Analyst	INH000025188 (lapsed Oct-25, re-granted 26 Feb 2026)
Investment Adviser	Being surrendered; SEBI SCN 8 Jun 2026 over unpaid fees
AMFI	ARN-104096 (since Jul 2015)
RBI	5paisa P2P Ltd NBFC-P2P (CoR N-13.02371)
Certification	ISO 27001:2013; "Defense in Depth" cyber framework. No patents

Platform, technology and operations

100% paperless eKYC. DIY onboarding share: 86.4% (Q4 FY25), 85.5%, 90.5%, 94.6%, 96.6%, 96.8% (Q1 FY27). STP acquisitions 96.6% (AR).
In-house engineering, about 33%/200+ of staff in tech/product; "dedicated AI charter". The "complete platform revamp" (15–18 months of work) was in beta at Jul-26; the CTO resigned 30 Sep 2026.
Stack: XTS APIs (Symphony Fintech INFERRED), TradingView charting, exchange co-location, Google Cloud hosting INFERRED, unnamed LLM for MCP. 99.98% crash-free sessions; 50 ms latency cut; market-feed payload -50%.
Customer service in-house (Dhruv Kapadia); FinSchool investor-education arm; Options & Algo Conventions and Traders Summits.
Facilities: no manufacturing. Head office in IIFL House, Thane, rented from IIFL Facilities Services (₹2.09 Cr FY26). GIFT City subsidiary. Trendlyne (Bengaluru) office on closing. Area not disclosed.
Exports: none; 100% domestic. US-stock access via Vested and the non-operational IFSC unit are the only cross-border touchpoints.

Customer funnel and engagement (FY26 AR and decks)

Metric	Mar-24	Mar-25	Mar-26	Jun-26
Registered customers (lakh)	42.3	48.3	51.9	52.6
NSE active clients (lakh)	5.0	4.2	3.35 (AR 3,34,970)	3.31 (Jul-26)
Active / registered	11.8%	8.7%	6.5%	~6.3%
New clients in year/quarter (lakh)	—	~6.0 (FY25)	3.6 (FY26)	0.74 (Q1)
DAU / MAU (lakh)	—	—	1.70 / 6.60	—
App installs (Mn)	—	—	23.4	23.8

Other AR KPIs: 92% of new clients from Tier 2/3; ~75% of clients in Tier 2/3 (Q1 FY26 call); 62% of clients <35 years; orders 91.57 Mn FY26; ADTO ₹2.90 tn (-6%). AR MD&A calls 5paisa "the second-largest discount broker by client base" — a registered-client framing not supported by activity.

Pending acquisition: Giskard Datatech Pvt Ltd (Trendlyne)

Item	Detail
Target	Incorporated 13 Jun 2016, Bengaluru; SEBI RA; runs Trendlyne (screeners, analytics, research, alerts, datasets, "MarketMind" AI); ~1.5 Mn MAU; 40+ institutional clients
Turnover	FY23 ₹7.66 Cr; FY24 ₹12.07 Cr; FY25 ₹15.75 Cr; profit not disclosed
Valuation	DCF ₹11,794/sh (registered valuer Raghav Mandhana, IBBI/RV/06/2025/15965; report 18 Jun 2026)
Cash leg	Up to ₹121.57 Cr for up to 1,03,082 sh (58.68%); sellers undisclosed
Swap leg	20,50,588 new 5paisa sh (1:31; exact 1:31.0368) for 66,148 sh (37.65%) — Amber Pabreja 11,82,588; Devi Yeshodharan 8,68,000 (Trendlyne founders UNVERIFIED)
Implied value	~₹200 Cr for 96.33%; ~₹207 Cr for 100% Est.; swap implies ~₹380/5paisa share; remaining ~3.67% unaddressed
Disclosure correction	28 Jul outcome said promoters would buy GDPL shares directly for the cash leg; withdrawn 29 Jul as "inadvertently included" — "no proposal for the promoters… to acquire shares of GDPL"
Approvals	Postal ballot 29 Jul–27 Aug 2026 passed 99.99% (3.58 Cr votes for, 4,085 against); corrigendum 21 Aug; SEBI RA change-of-control approval and exchange in-principle pending; completion ~Jan 2027
Group linkage	IIFL Securities bought an additional 6.25% (Sep 2020, making it an associate) and sold its ~20.55–21.47% in Dec 2021 to IIFL Capital Enhance Fund (IIFL-affiliated AIF). Company says not an RPT
Funding / rating	Rights proceeds + accruals; CRISIL sees no rating impact

Segment & Revenue-Mix Analysis

One reportable segment, so there is no segment EBITDA. Revenue is analysed by stream.

Revenue mix: interest vs fees & commission (% of revenue)

Interest incomeFees & commission

Audited revenue breakdown FY26 vs FY25 (standalone, ₹ Cr; AR Notes 21–22)

Line	FY26	FY25	YoY	% of FY26 rev
Interest on bank deposits (FDs lien-marked to exchanges/banks)	91.37	103.77	-11.9%	29%
Interest on MTF loans	47.16	26.65	+77.0%	15%
Interest income total	138.53	130.41	+6.2%	43%
Brokerage & related income (incl. DP/other fees)	179.95	213.20	-15.6%	56%
Commission & other (cross-sell/distribution)	1.06	15.96	-93.3%	0.3%
Fees & commission total	181.02	229.16	-21.0%	57%
Revenue from operations	319.55	359.57	-11.1%	100%

Management split (MD&A / decks, ₹ Cr)

Period	Brokerage	Allied broking	Other operating	Total	Mix B/A/O
FY25	171.4	88.6	99.8	359.8	48/25/28
FY26	149.3	78.3	92.3	319.9	47/24/29
Q1 FY26	35.6	18.0	24.2	77.8	46/23/31
Q2 FY26 Est.	~34.8	~19.3	~23.2	77.3	45/25/30
Q3 FY26 Est.	~37.3	~19.8	~22.2	79.3	47/25/28
Q4 FY26	41.9	20.7	22.9	85.5	49/24/27
Q1 FY27	39.4	21.6	27.4	88.4	45/24/31
Q1 FY27 YoY / QoQ	+11% / -6%	+20% / +4%	+13% / +20%	+14% / +3%

Mapping MD&A streams to audited notes INFERRED

"Other operating" ₹92.3 Cr ≈ FD interest ₹91.4 Cr. "Allied" ₹78.3 Cr ≈ MTF interest ₹47.2 Cr + ~₹31 Cr of DP/other fees carved from brokerage. Brokerage ₹149.3 Cr + ₹31 Cr ≈ audited ₹180.0 Cr + ₹1.06 Cr cross-sell. FY25 does not reconcile cleanly, so indicative only. The AR p.4 pie labels 29% "Cross-sell & others"; it is essentially float interest on lien-marked FDs, largely funded by client money. Audited cross-sell is ₹1.06 Cr. No F&O vs cash split of brokerage is disclosed.

MTF / client funding book

Average client funding book and average MTF book (₹ Cr)

Avg funding book (MTF+T+5)Avg MTF book

Metric	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Avg MTF book (₹ Cr)	325.8	335.9	366.6	405.3
Avg funding book MTF+T+5 (₹ Cr)	366	380	410	421.6
Avg per-client exposure (₹)	2,28,728	2,20,089	2,21,256	2,78,600
Clients < ₹1L exposure	77.6%	77.5%	77.3%	70.7%
Clients ₹1–5L	13.6%	13.6%	13.9%	18.7%
Clients > ₹5L	8.9%	9.0%	8.9%	10.6%

Other MTF bases: CEO letter MTF book ₹179 Cr → ₹326 Cr in FY26 (+82%); audited MTF loans ₹224.9 Cr (Mar-25) → ₹340.4 Cr (Mar-26); FY26 average funding book ₹367.9 Cr (+40%); loans granted in FY26 ₹6,700 Cr aggregate (CARO). Implied ~14,500 MTF borrowers Est.. Implied MTF yield ~12.8% on average book vs borrowing cost ~8.9% Est.. Management (Q1 FY27): book "much higher now"; claimed "+10% QoQ" vs reported +3%.

Q1 FY27 cost structure (₹ Cr)

Line	Amount	% of income	Comment
Employee cost (after capitalising ₹6.79 Cr)	22.1	25%	-13% QoQ, +8% YoY; gross ~₹28.9 Cr
Other expenses	40.2	45%	+25% YoY: growth marketing, acquisition
Finance cost	8.45	10%	+16% YoY, -7% QoQ
D&A	2.21	2.5%
PBT	15.45	17.5%	~₹8.2 Cr ex-capitalisation Est.

Unit economics Est.

Metric	Value	Basis
Revenue per active client per year	~₹8,500	₹320 Cr / ~3.75 lakh avg actives
Orders per active client per quarter	~76	25.1 Mn / 3.3 lakh
Brokerage per order	~₹16	₹39.4 Cr / 25.1 Mn orders
Annual gross employee cost	~₹115 Cr	(₹22.1 + ₹6.8 Cr) × 4

Fastest grower: Allied (+20% YoY), driven by MTF/T+5; MTF interest +77% in FY26. Under pressure: brokerage, especially F&O (-6% QoQ in Q1 FY27; F&O ADTO "dipped" while cash grew) and cross-sell (-93%). Management focus: MTF/T+5 scale-up, engagement and monetisation, LAS next, TPD "midterm", AI partnerships, selective M&A.

Financials: P&L

Consolidated, ₹ Cr. EBITDA = PBT + finance cost + D&A (broker definition; no COGS). Company "EBDTA" = PBT + D&A is shown separately.

Total income vs PAT, FY22–FY26 (₹ Cr)

Total incomePAT

Five-year P&L line items

₹ Cr	FY22	FY23	FY24	FY25	FY26	Q1 FY27
Interest income	81.0	101.9	135.2	130.41	138.54	42.17
Fees & commission	216.0	236.0	259.4	229.16	181.02	46.16
Revenue from operations	297.0	337.9	394.6	359.57	319.56	88.33
Other income	~0.8	~1.5	~0.1	0.28	0.34	0.05
Total income	297.8	339.4	394.7	359.85	319.89	88.38
Finance cost	23	21	29	23.80	32.53	8.45
Employee benefits	42.2	59.1	89.5	74.03	88.62	22.10
D&A and impairment	5	9	10	12.22	9.22	2.21
Other expenses	~209	~192	~194	158.57	130.23	40.17
PBT	18.5	58.1	72.1	91.22	59.29	15.45
Tax	4.8	14.5	17.7	22.99	15.11	3.88
PAT	13.7	43.6	54.4	68.23	44.19	11.57
Diluted EPS (₹, reported)	4.68	14.33	16.67	21.79	14.13	2.60

FY25–Q1 FY27 audited/limited-review filings; FY22–24 S&P (StockAnalysis) and Screener; FY22–24 other expenses are residuals (approx.). FY20 was a loss (₹-8 Cr); FY21 PAT ₹15 Cr on ₹195 Cr income. Standalone FY26 PAT ₹44.12 Cr (EPS basic ₹14.12). Correction: the AR MD&A table swaps finance cost (₹32.5 Cr) and D&A (₹9.2 Cr) and says finance cost "declined"; audited figures above are correct.

Profit lines and margins (% of total income)

₹ Cr / %	FY22	FY23	FY24	FY25	FY26
YoY total income growth	+53%	+14%	+16%	-9%	-11%
Net revenue (income less finance cost)	274.8	318.4	365.7	336.1	287.4
Net revenue margin	92.3%	93.8%	92.7%	93.4%	89.8%
EBITDA	46.5	88.1	111.1	127.2	101.0
EBITDA margin	15.6%	26.0%	28.1%	35.4%	31.6%
EBIT	41.5	79.1	101.1	115.0	91.8
EBIT margin	13.9%	23.3%	25.6%	32.0%	28.7%
PBT margin	6.2%	17.1%	18.3%	25.3%	18.5%
PAT margin	4.6%	12.8%	13.8%	19.0%	13.8%
Effective tax rate	25.8%	25.0%	24.5%	25.2%	25.5%
Cost-to-income (CRISIL basis)	—	—	80%	73%	79%

5-yr CAGR (FY21–26): income ~10%; PAT ~25%. FY23–26 revenue CAGR ~-2%. Cost-to-income alternatives: company ~75% (FY25), ~81% (FY26 CEO letter); Q1 FY27 81% CRISIL / 83% company.

Last 8 quarters

Quarterly total income vs PAT (₹ Cr)

Total incomePAT

Quarter	Total income	YoY	QoQ	EBITDA	EBITDA %	PBT	PAT	PAT YoY	PAT QoQ	Dil. EPS ₹
Q2 FY25 (Sep-24)	100.8	+4%	-1%	~38.5	38%	29.31	21.90	+14%	+9%	6.96
Q3 FY25 (Dec-24)	85.3	-15%	-15%	~30.2	35%	21.55	16.18	+7%	-26%	5.15
Q4 FY25 (Mar-25)	71.41	-37%	-16%	21.31	29.8%	13.47	10.07	~+70%*	-38%	3.22
Q1 FY26 (Jun-25)	77.77	-24%	+9%	25.28	32.5%	15.50	11.55	-43%	+15%	3.68
Q2 FY26 (Sep-25)	77.30	-23%	-1%	23.10	29.9%	12.74	9.48	-57%	-18%	3.03
Q3 FY26 (Dec-25)	79.34	-7%	+3%	26.90	33.9%	16.53	12.30	-24%	+30%	3.93
Q4 FY26 (Mar-26)	85.48	+20%	+8%	25.76	30.1%	14.52	10.86	+8%	-12%	3.47
Q1 FY27 (Jun-26)	88.38	+14%	+3%	26.11	29.5%	15.45	11.57	+0.2%	+7%	2.60

*Low base (Q4 FY24 PAT ~₹6 Cr). Q2 FY26 derived from FY26 audited less other quarters; Q2–Q3 FY25 from S&P with ~₹3.2 Cr/qtr D&A. Company "EBDTA" (PBT + D&A): Q1 FY26 ₹18.0 Cr, Q2 ₹15.1, Q3 ₹18.7, Q4 ₹16.7, Q1 FY27 ₹17.7 Cr (20–24% margin). Q1 FY27 operating margin -292 bps YoY (MarketsMojo). Company-reported RoNW: Q4 FY25 6.7%, Q1 FY26 7.6%, Q2 6.1%, Q3 7.8%, Q4 6.7%, Q1 FY27 6.9%.

Q1 FY27 operating KPIs

KPI	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
New clients (lakh)	0.91	0.80	0.95	0.78	1.03	0.74
Registered base (lakh)	48.3	49.1	50.1	50.8	51.8	52.6
ADTO (₹ tn, notional)	1.93	2.25	2.68	3.31	3.40	3.04
MF AUM (₹ Cr)	1,392	1,573	—	1,868	1,761	2,073
DIY onboarding	86.4%	85.5%	90.5%	94.6%	96.6%	96.8%
Orders (Mn)	—	—	—	—	26.3	25.1

One-time items and earnings quality

Item	Period	₹ Cr	Effect
ESOP/RSU reversal (net SBP credit; gross unvested reversal ₹8.66 Cr)	FY25	+5.79	Flattered FY25 peak
ESOP charge	FY26	-2.55	Ex-SBP, PBT fell ~28% (₹85.4 → ₹61.7 Cr) vs reported -35%
Labour-code past-service cost	Q3 FY26	-0.62	One-off
Software capitalised (Ind AS 38): ₹6.79 Cr employee + ₹0.43 Cr other	Q1 FY27	+7.22	~47% of Q1 PBT (~₹5.4 Cr post-tax); none in FY26 (intangibles under development nil)
MCX penalty ₹2.60 Cr	FY25	provided	SAT appeal pending

Are profits backed by cash?

Cumulative 5-yr PAT ₹224.1 Cr vs cumulative OCF ₹-213.5 Cr; OCF negative in FY22, FY24, FY26. This is mostly mechanical: client-money timing and MTF loan growth are classified as operating. Pre-working-capital cash profit (₹105–122 Cr/yr) runs 1.8–2.4x PAT, so it is not an accrual red flag. But growth is balance-sheet funded (₹161 Cr new debt in FY26, then the rights issue). The new Q1 FY27 capitalisation is the earnings-quality watch item: it inflates PAT relative to cash.

Cost-to-income vs RoNW (CRISIL basis, %)

Cost-to-incomeRoNW

Financials: Balance Sheet, Cash Flow & Ratios

Broker balance sheet: ~72% of assets are lien-marked FDs largely funded by client money. Inventory days, debtor days and CCC are n.m.; EV/EBITDA n.m.

Balance sheet (consolidated, ₹ Cr, 31 Mar)

Item	FY22	FY23	FY24	FY25	FY26	Jun-26
Fixed assets (PPE + ROU + intangibles)	11.4	15.5	24.9	20.0	17.6	n.d.
— of which ROU	—	—	—	11.18	11.24
Goodwill	0	0	0	0	0	0
Inventory (trading securities)	12.2	6.4	0	0	0
Trade receivables	81.1*	100.3*	137.6*	0.05	0.19
Loans (MTF / margin funding)	~277*	~197*	~220*	224.9	340.4
Cash & cash equivalents	89.4	20.9	70.9	20.3	37.3
Other bank balances (incl. client FDs)	~1,123*	~1,293*	~1,583*	1,316.3	1,380.4
Other financial assets (exchange margin etc.)	—	—	—	65.6	110.8
Total assets	1,608.6	1,641.6	2,047.9	1,667.3	1,907.1	~2,260 Est.
Total debt (ex-leases)	279	169	336	217.4	378.6	~339 Est.
— Commercial paper	—	—	—	0	74.2
— Bank WCDL / OD	—	—	—	217.4	304.3
Lease liabilities	2.8	2.4	15.0	12.1	12.6
Client & other financial liabilities + payables	~956	~1,009	~1,172	773.0 + 57.0	815.0 + 57.2
Net worth	374.0	463.3	539.9	603.6	649.2	1,129.5
Equity share capital	29.4	30.6	31.2	31.24	31.25	46.88
BVPS (₹)	127.1	151.2	173.1	193.3	207.7	240.9

*S&P classification differs from Ind AS; indicative only. Jun-26 net worth from Reg 52(4) annexure; debt derived from D/E 0.30; assets from debt/assets 0.15. Assets pledged as security (standalone): FDs ₹1,380.0 Cr + other financial assets ₹388.1 Cr = ₹1,768.1 Cr (93% of total assets).

Client funds and lien-marked deposits (standalone, ₹ Cr, 31 Mar)

Item	FY26	FY25
Cash & bank: current accounts	15.37	0.84
Cash & bank: client accounts	21.62	19.23
Fixed deposits, 100% lien-marked (BG/OD and exchange margin)	1,380.00	1,315.89
Deposit / margin with exchanges	13.20	8.58
Clients & exchanges receivables (net)	48.24	12.03
Interest accrued on deposits	44.55	40.41
Clients & exchanges payables (client money owed)	797.14	756.23
MTF loans (repayable on demand, secured by pledged securities)	340.37	224.89
Standalone net worth	649.97	604.45

Q1 FY26 call: cash and bank ~₹1,400 Cr, of which ~₹500 Cr own and ~₹900 Cr client. Gross float interest (~₹70 Cr) is of the order of annual profit; management says net float income is lower after BG and funding costs.

Cash flow (consolidated, ₹ Cr)

Item	FY22	FY23	FY24	FY25	FY26
PAT	13.7	43.6	54.4	68.2	44.2
Operating profit before WC changes	—	—	—	121.9	104.8
Change in loans (MTF)	—	—	—	-49.3	-115.5
Change in bank deposits	—	—	—	+250.2	-64.2
Change in client liabilities	—	—	—	-302.9	+42.1
Change in other financial assets	—	—	—	+126.6	-45.2
OCF	-140.6	24.6	-91.7	97.9	-103.7
Capex (PPE + intangibles)	-7.5	-13.6	-19.4	-8.0	-6.9
FCF (OCF − capex)	-148.1	11.0	-111.1	89.9	-110.6
CFI	-12.0	-8.1	-12.5	-7.0	-6.7
CFF	225.2	-85.0	154.2	-141.5	127.3
Net debt raised / (repaid)	+45.0	-109.7	+167.0	-118.9	+161.1
Equity issued (net)	+187.0	+45.3	+15.7	+1.1	-1.3
Cash taxes paid	2.9	3.5	16.4	20.1	18.3
FCF yield on FY-end mcap	-14.6%	+1.3%	-7.1%	+8.1%	-14.2%

FY26 net debt raised = OD +₹86.9 Cr, CP +₹74.2 Cr. FCF yield on current mcap ₹1,627 Cr: -6.8%. Capex is maintenance-level (₹7–19 Cr/yr); asset turns n.m. for a broker.

Working-capital metrics

Metric	FY22	FY23	FY24	FY25	FY26
Debtor days	n.m.	n.m.	n.m.	n.m.	n.m. (0.2 days)
Inventory days	n.m.	n.m.	n.m.	n.m.	n.m.
Creditor days	n.m.	n.m.	n.m.	n.m.	n.m. (~930 on client float)
Cash conversion cycle	n.m.	n.m.	n.m.	n.m.	n.m.
Working-capital days (Screener)	-1,026	-941	-899	-785	-865
MTF loans as days of revenue (the real driver)	~340*	~213*	~204*	228	388

Ratios

Ratio	FY22	FY23	FY24	FY25	FY26	Q1 FY27 / TTM
RoE (avg equity)	5.2%	10.4%	10.9%	11.9%	7.05%	6.9% co. / 5.2% CRISIL / ~4.8% TTM
RoCE	~7.9%	~12.2%	~13.2%	~13.4% (AR 13.6%)	~9.9% (AR 8.9%)
D/E	0.75	0.37	0.65	0.38	0.58	0.30
Interest coverage (EBIT/finance cost)	1.8x	3.8x	3.5x	4.8x	2.8x	2.8x
ISCR / DSCR (company)	—	—	—	—	2.60 / 2.84	2.83 / 3.09
Current ratio	1.29	1.38	1.36	1.56	1.50	1.93
Asset turnover	0.22	0.20	0.20	0.18	0.16
Net profit margin	4.6%	12.8%	13.8%	19.0%	13.8%	13%
Total debt / total assets	—	—	—	—	0.20	0.15
Bad debts to receivables	—	—	—	—	0.01x	0.01x

Borrowings, lenders and credit rating

Instrument (standalone, 31 Mar)	FY26 ₹ Cr	FY25 ₹ Cr	Security	Tenor	Rate
Commercial paper	74.24	nil	Unsecured	<1 yr	8.30–9.10%
Working capital demand loans	210.00	129.45	Secured, 1.75x cover on receivables/current assets	7–365 days, bullet	MCLR + 0.75–1.50%
Bank overdraft	94.32	87.96	Against bank FDs	On demand	FD rate + 0.50–1.00%
Loans from related parties (IIFL group)	nil	nil	Unsecured	On demand	SBI 1-yr MCLR + 2.5–3.5% (framework only)
Total ex-lease	378.56	217.42	Lease liabilities ₹12.57 Cr (<1 yr 3.50; 1–2 yr 4.05; 2–5 yr 5.02)

Lender (CP Letter of Offer, 27 Jan 2026; CRISIL bulletin 20 Jan 2026)	Facility	₹ Cr
SBM Bank	OD/WCDL against FD	29.10
HDFC Bank	OD/WCDL against FD	25.51
Indian Bank	OD/WCDL against FD	23.55
Bandhan Bank	OD/WCDL against FD	18.16
DCB Bank	OD/WCDL against FD	12.45
Federal Bank	OD/WCDL against FD	8.64
Aditya Birla Finance / Capital	WCDL against receivables (CRISIL: ABCL ₹40 Cr)	40–100
IDFC First Bank	WCDL against receivables (CRISIL: ₹150 Cr)	60–75
IDBI Bank	Bank guarantee	75
ICICI Bank	CP issuing & paying agent	—

Unutilised lines ₹366 Cr (Jun-26, CRISIL). All debt short-term (no term loans, no NCDs outstanding). CARO: no defaults, no diversion of short-term funds. Post-rights ₹150 Cr repaid to banks/CP (CFO, Jul-26); CPs redeemed 9 Oct 2026. Board approved NCDs up to ₹250 Cr/yr by private placement (30 Apr 2026; AGM 1 Sep 2026 passed). From 1 Jul 2026 RBI barred bank intraday facilities to brokers.

CRISIL rating (letter 25 Aug 2026)	₹ Cr	Rating	Action
NCDs	50	A+/Stable	Reaffirmed
NCDs (new)	50	A+/Stable	Assigned
Long-term bank loan facility	100	A+/Stable	Reaffirmed
Short-term bank loan facility	300	A1+	Reaffirmed
Commercial paper	400 (from 200; from 100 in Aug-25)	A1+	Reaffirmed

Rating rests on IIFL promoter-group support (₹500 Cr ICD support line from IIFL Finance, IIFL Capital Services, 360 ONE WAM — ₹600 Cr until Feb-25 — undrawn in FY25 and FY26). Downgrade triggers: market share below 0.75% for a prolonged period (breached at 0.63%); material change in IIFL support or holding. Upgrade trigger: cost-to-income <65%. No ICRA/CARE/India Ratings rating. Prior reaffirmations: 23 Sep 2024, 12 Feb 2025, 26 Aug 2025.

Equity dilution and share-count history

Shares outstanding (Cr)

Post rightsDashed = post Giskard swap (pending)

Date	Event	Shares (Cr)	Notes
Nov 2017	Listing post demerger	~1.27	Equity ₹12.7 Cr
FY19–FY20	Rights issue ₹101 Cr	~2.55	Equity ₹25.5 Cr
FY21	ESOP	~2.6
FY22	Preferential at ₹500 (₹187–190 Cr cash) to FIH, HWIC, RIMCO, WF Asian	2.94	Promoter 34.53% → 29.95%
FY23	Promoter warrant conversion ₹45 Cr (~₹15 Cr lapsed)	3.06	Promoter 29.95% → 33.33%
FY24	ESOP ₹15.7 Cr	3.12	Diluted 3.27 vs basic 3.09 that year
FY25	ESOP ₹1.1 Cr	3.124
FY26	ESOP: 6,000 sh (8 Aug 2025), 12,500 sh (4 Feb 2026)	3.1255	3,12,54,838 sh
13 Apr 2026	Rights 1:2 at ₹300; 1,56,27,419 sh = ₹468.82 Cr; 1.24x (123.67%)	4.688	+50%; expenses ₹1.49 Cr to premium
Pending (~Jan 2027)	Giskard swap 20,50,588 sh at ~₹380	4.893	+4.4%; fully diluted incl. ESOPs 4.956

Rights use	Letter of offer ₹ Cr	Actual (CFO, Jul-26) ₹ Cr
Exchange margin deposits	227.00	227 (deployed; RBI rule 1 Jul 2026)
Repayment of borrowings	150.00	150 (banks and CP)
General corporate purposes	88.08	88 (product, tech, marketing)
Total	465.08	~465–468 (CFO's "₹268 Cr" a misstatement)

Board approved rights up to ₹475 Cr (24 Feb 2026); terms 11–12 Mar; record date 17 Mar; open 27 Mar–10 Apr; listed ~16 Apr. Utilisation is not in the AR (no monitoring-agency statement). Giskard cash (up to ₹121.57 Cr) exceeds the ₹88 Cr GCP bucket — funded by "rights proceeds plus accruals" per CRISIL. ESOP overhang: ESOP 2017 7,18,400 + ESOP 2023 25,000 ≈ 7.43 lakh (1.6%); 9 Oct 2026 filing shows 6.25 lakh (1.26%). No QIP, bonus, split, dividend or buyback ever.

Contingent liabilities (AR Note 30, ₹ Cr)

Item	FY26	FY25
Bank guarantees to exchanges / clearing corps	602.00	500.00
Income-tax matters (AY23-24 ₹21.85 Cr; AY18-19 ₹0.75 Cr; other)	23.54	21.85
Legal cases / penalties	0.26	0.27
Total (components; consolidated note)	625.81	522.12

The AR standalone note prints ₹685.8 Cr; components sum to ₹625.8 Cr — an addition error. ~96% is bank guarantees backed by FDs, i.e. operational. The ₹33.02 Cr block assessment (5 May 2026) post-dates the AR and is not included or provided.

Key balance-sheet risks: short-tenor rollover for MTF funding; MTF credit risk in a sharp fall (limits up to ₹25 Cr/client); rating sensitivity (trigger breached); encumbered liquidity (100% FDs lien-marked); unprovided ₹33.02 Cr tax demand; over-capitalisation dragging RoE.

Management, Promoters & Governance

Primary source: FY26 Annual Report (CG report, secretarial audit, Notes 30/32/34), AGM notice and voting results, SHP Jun-26.

Area	Assessment	Key evidence
Promoter alignment	Mixed-positive	Took 44% of the rights (~₹206 Cr); stake 32.76% → 36.50%; nil pledge
Control structure	Watch	Fairfax 32.76% (35.5% with RIMCO) vs promoters 36.5%; Fairfax public, no board seat
Board	Adequate, thinning	5 IDs + 2 EDs after CTO exit; Chair on 5 other listed boards
KMP stability	Red flag	3 CEOs in 3 years; Reg 26A breach; 3 CSs in ~15 months; CCO, CTO, product head exits 2026
Regulatory record	Red flag	83 exchange/depository actions; NSE QSB "systemic weaknesses" warning; SEBI PFUTP finding
Tax	Red flag	₹33.02 Cr block + ₹21.85 Cr AY24 + ₹15.31 Cr GST: ~₹49–71 Cr
RPT	Watch	Omnibus caps ~₹3,580 Cr incl. ICDs given; actual FY26 flows ~₹7 Cr, no ICDs
M&A	Watch	Giskard ~₹207 Cr, ~13x revenue; disclosure corrected in 24h
Auditor	Clean, with EoM	Unmodified; EoM on IT search; one KAM (IT systems); rotation due 2027
Disclosure quality	Watch	CL total mis-added; MD&A line swap; pay ratios on wrong names; BRSR "zero penalties"

Promoter group (Jun-26: 36.50%, 1,71,13,393 sh, 0% pledged/NDU/encumbered)

Holder	Shares	%
Nirmal Bhanwarlal Jain	93,07,632	19.85
Madhu N. Jain (wife)	27,67,524	5.90
Venkataraman Rajamani	25,84,594	5.51
Aditi Avinash Athavankar (wife of R.V.; trustee Kalki Family Pvt Trust)	14,40,000	3.07
Ardent Impex Pvt Ltd (SBO Nirmal & Madhu Jain)	5,76,429	1.23
Orpheus Trading Pvt Ltd	2,77,540	0.59
Jain Mansukhlal (trustee, Nirmal Madhu Family Pvt Trust)	80,059	0.17
Harshita Nirmal Jain (daughter)	55,615	0.12
Aditi Athavankar (2nd folio)	24,000	0.05
Promoter group	1,71,13,393	36.50
Relatives classified as public	3,61,619	0.77

Nirmal Jain — founded IIFL (India Infoline, 1995); promoter/ED of IIFL Finance, promoter of IIFL Capital Services, NED of IIFL Home Finance. Not on 5paisa's board. Promoter group holds 24.89% of IIFL Finance and 30.70% of IIFL Capital. Reported IIM-A, CA, ex-Hindustan Lever UNVERIFIED.
R. Venkataraman — co-promoter; ED IIFL Finance, NED IIFL Home Finance. Reported IIT-KGP, IIM-B, ex-ICICI and Barclays UNVERIFIED.
Group context UNVERIFIED: RBI gold-loan restriction on IIFL Finance (Mar–Sep 2024); SEBI onboarding bar on IIFL Securities (Jun-2023, SAT stay); group-wide IT search 28 Jan–3 Feb 2025 incl. 5paisa. Other related parties: MNJ Consultants, Sunder Bhanwar Ventures, India Infoline Employee Trust, Meenakshi Towers LLP, Shreyans Foundations LLP.

Promoter support and trading history

Date	Event	Value
Dec-2017	N. Jain market buy 1,28,520 sh	~₹2.46 Cr
Dec-2018 / May-2019	Market purchases	—
Aug-2019	Rights: promoters took 49,32,734 sh	—
May-2021	12 lakh warrants at ₹500 (₹60 Cr); ₹45 Cr converted FY23	~₹15 Cr lapsed
Mar-2023	N. Jain 1,25,000 sh; R.V. 75,000 sh	~₹5.5 Cr
Jun-2023	Family trust 15,000; R.V. 5,000	—
26–30 Dec 2025	Harshita Jain 10,420 sh at ~₹335	₹34.9 lakh
13 Apr 2026	Rights: 68,72,275 sh (~133% of entitlement)	~₹206 Cr

Key management

Person	Role	Since	Background	FY26 pay
Gaurav Seth (DIN 10415364)	MD & CEO	CEO 14 Jan, MD 17 Jan 2025	~25 yrs: CPO Syfe; founding CBO Paytm Money; Morgan Stanley WM digital (NY). CFA, ISB MBA, Thapar BE. 2,00,000 ESOPs; no shares	₹2.26 Cr
Gourav Munjal (DIN 06360031), 38	WTD & CFO	Board 16 Jan 2020	B.Com, CA, CS, ACCA DipIFRS; ex-IIFL group finance. 9,656 sh + 1,75,000 ESOPs. Named officer in default in SEBI OBPP order; sold 29,700 sh Dec-2023 (~₹1.65 Cr)	₹0.81 Cr (+16%)
Ameya Agnihotri (DIN 07680132)	WTD & CTO	Resigned eff. 30 Sep 2026	Highest-paid director; ₹18 lakh sundry receivable from him at Mar-26; sold 12,500 sh Mar-2025 (₹41.6 lakh)	₹2.31 Cr (+35%)
Mehul Somaiya (ACS 43026)	CS & Compliance Officer	16 Jul 2026	Ex-SBM Bank India, IIFL Finance, Tata Capital, L&T Financial	—
Yogesh Maroli / Lalit Lathe / Mahesh Gujaran	CISO / CRO / Chief Surveillance	—	Ops head Lalit Lathe; Risk Mandar Chavan	—
Mehul Jain; Rajeshree Jadhav; Dhruv Kapadia; Dinesh Singh; Geetha Menon	Trading products; digital sales; customer service; design; HR	Singh, Menon Jan-2026	—	—

Pay disclosures: AR median ratios (Seth 12.45x, Munjal 35.47x, Agnihotri 34.58x) are attached to the wrong names; all imply a median ~₹6.5 lakh, so the CEO ratio is ~35x Est.. Median pay +9%, managerial +4%. Executive pay ~₹5.4 Cr ≈ 12% of PAT. Other KMP: Namita Godbole (CS to 11 Jul 2025) ₹25.8 lakh; Charvi Panchmatia (CS from 10 Oct 2025) ₹7.0 lakh; ex-CEO Narayan Gangadhar ₹1.19 Cr in FY25. Headcount 721; 318 hires; voluntary attrition 32.6%; average age 31.1; women 30.9%.

Leadership-churn timeline

Date	Event
Jun–Dec 2023	Ex-CEO/WTD Prakarsh Gagdani sold ~5.5 lakh sh (>₹2.5 Cr, ~45 trades)
May-2023	Narayan Gangadhar (ex-Angel One CEO) appointed CEO
30 May 2024	Gangadhar resigns eff. 28 Aug 2024 to become Strategic Advisor (AI) to IIFL group
28 Aug 2024 – 14 Jan 2025	No MD/CEO; LODR Reg 26A non-compliance flagged by secretarial auditor; Sep-24 and Dec-24 results certified by CFO alone
Jan-2025	Gaurav Seth appointed
11 Jul 2025	CS & CCO Namita Godbole exits; interim CO Ravindra Kalvankar 23 Jul
2 Sep 2025	ID Ravindra Garikipati retires; Sudhendoo Ganddhi appointed CCO
10 Oct 2025	Charvi Panchmatia CS (seat vacant ~3 months)
13 Jan 2026	Abhinav Agarwal (product), Dinesh Singh (design), Geetha Menon (HR) hired
13–17 Apr 2026	Panchmatia resigns; CS vacant again to 16 Jul 2026
15–16 Jun 2026	CCO Ganddhi resigns after ~9 months
18 Jun 2026	Board meeting postponed "until further notice" for "certain exigencies"; Giskard valuation report dated the same day; link UNVERIFIED; re-held 28 Jul
18 Sep 2026	Head – Investing Product Abhinav Agarwal resigns (~8 months)
30 Sep 2026	WTD & CTO Ameya Agnihotri resigns; no successor named

Board of directors (13 Oct 2026)

Name	Role	Category	Tenure	Background / other boards	FY26 attendance	FY26 pay
Dr Archana Hingorani (DIN 00028037)	Chair; RMC chair	Independent	Through FY25–26	ID Mafatlal, Grindwell Norton, Phoenix Mills, Balaji Telefilms, EMA Partners (5 listed); ex-CEO IL&FS Investment Managers; PhD Pittsburgh	7/7	₹6.0L + ₹10.45L
Milin Mehta (DIN 01297508)	Audit Committee chair	Independent	n.d.	ID VA Tech Wabag, Styrenix, Atlanta Electricals; CA, lawyer	7/7	₹6.0L + ₹10.25L
Nirali Sanghi (DIN 00319389)	SRC chair	Independent	n.d.	Founder-CEO India Parenting; ex-Barings, Citi, BCG	6/7	₹6.0L + ₹7.95L
Dr Sarat Kumar Malik (DIN 09791314)	ESG chair	Independent	8 Jul 2025–7 Jul 2030	ID String Metaverse, Spacenet; ex-SEBI/RBI	6/6	₹5.30L
Zor Gorelov (DIN 11329941)	ID Committee chair	Independent	9 Oct 2025–8 Oct 2030 (99.996% vote)	Ex-CEO Kasisto (US AI banking); Klaros	—	₹4.15L
Gaurav Seth	MD & CEO	Executive	Jan-2025	—	7/7	₹2.26 Cr
Gourav Munjal	WTD & CFO	Executive	Jan-2020; re-appointed 1 Sep 2026 AGM	Director of all 4 subsidiaries	7/7	₹0.81 Cr
Ameya Agnihotri	WTD & CTO	Executive	Ceased 30 Sep 2026	—	7/7	₹2.31 Cr
Ravindra Garikipati	ID	Independent	Ceased 2 Sep 2025	—	1/2	₹2.1L

7 board meetings FY26 (1 May, 8 Jul, 9 Oct 2025; 13 Jan, 21 Jan, 24 Feb, 11 Mar 2026). ID fees ₹75,000/board or audit meeting, ₹20,000 other committees, ₹6 lakh commission; IDs hold no shares/ESOPs; FY27 NED commission up to 1% of profit approved. Committees: Audit, NRC, SRC, Finance, RMC, CSR, ESG, ID, IT. No promoter or Fairfax director.

Shareholding trend

Promoter / FII / Public (%), Dec-24 to Sep-26

PromoterFII/FPIPublic (incl. FIH as foreign company)

Quarter	Promoter	FII/FPI	DII	Public	# holders
Dec-24	32.76	21.59	0.25	45.38	58,385
Mar-25	32.75	21.57	0.25	45.41	58,095
Jun-25	32.75	21.62	0.26	45.37	56,884
Sep-25	32.74	21.68	0.25	45.32	55,170
Dec-25	32.78	12.36	0.01	54.83	55,308
Mar-26	32.76	12.41	0.01	54.80	52,243
Jun-26 (post-rights)	36.50	15.11	0.00	48.38	50,145
Sep-26	36.50	15.21 (20 FPIs)	0.00	48.27	47,099
Pro-forma post swap, swap only Est.	34.97	—	—	65.03	—
Pro-forma fully diluted incl. ESOPs (filing 9 Oct 2026) Fact	34.53	—	—	65.47	—

Dec-25 FII drop = Ward Ferry exit (WF Asian Reconnaissance/Smaller Cos, 7.88%) with Madhusudan Kela's Shubhi Consultancy (domestic LLP, counted as public) buying — not an unexplained exodus (ScanX "19.91% → 17.88%" is a misprint). At Mar-26, 67 holders owned 83% of equity. Rights take-up Est.: promoters ~68.7 lakh vs ~51 lakh entitlement; FIIs ~13 lakh extra; non-institutional ~30 lakh under-subscribed.

Named large holders and the Fairfax reconciliation

Holder	Jun/Sep-26 %	Class	Note
Promoter group	36.50	Promoter	Nil pledge
FIH Mauritius Investments (Fairfax / Prem Watsa)	24.54	Public, foreign company	76,70,130 sh at Mar-26 (24.5%); 24.55% Sep-25; added ₹44.9 Cr at ₹500 (2021)
HWIC Asia Fund Class A (Fairfax)	8.22	FPI Cat-I	38,55,279 sh (25,70,186 at Mar-26 → full rights take-up)
Fairfax (FIH + HWIC) — figure used	32.76	CRISIL: 32.82% (Jun-24), 32.80% (Dec-24), 32.78% (Jun-25), 32.76% — flat
RIMCO India Ltd (Fairfax-affiliated per governance input; background not verified per street input)	2.73	FPI Cat-II	2021 preferential participant
Fairfax incl. RIMCO — alternative	~35.49	Apparent "+2.7pp" vs CRISIL series is definitional (RIMCO added), not buying
Shubhi Consultancy Services LLP (+PAC Brijkishor Trading) — Madhusudan Kela-linked (reported)	7.46	Public LLP	23.31 lakh sh 17–19 Nov 2025 at ~₹290–293 (~₹68 Cr); took rights
Bank Muscat India Fund	3.98	FPI Cat-II	Up from ~3.2% (timing unverified)
Amber Pabreja / Devi Yeshodharan	2.42 / 1.77 (post-swap)	Public	Pending swap shares
Retail <₹2 lakh (48,620 holders)	10.43	Public	True dispersed float ~16% Est.
MF / insurance / DII	0.00	—	Zero domestic institutions

RPT voting and "promoter-aligned control". At the 1 Sep 2026 AGM, FIH (≥10% holder, hence a related party under LODR) and KMP were excluded from voting on the 12 RPT resolutions; HWIC (8.22%, below the threshold) voted. Public-institution votes on the RPT items were 51,76,681 vs 13,21,402 on item 1; the 38,55,279 difference is exactly HWIC — so ~43% of the 89.8 lakh "minority" approving votes came from a Fairfax entity, and unaffiliated approval was ~11% of equity Est.. The narrative input's inference that FIH is "related to the IIFL promoter group" and that promoter-aligned control is ~61% is UNVERIFIED; the simpler explanation is the LODR ≥10% related-party rule.

Insider / SAST disclosures

Date	Person	Category	Action	Qty	Value
13 Apr 2026 (disclosed 13 May)	Nirmal Jain & PACs	Promoter	Rights allotment (SAST 29(2))	68,72,275	~₹206 Cr
26–30 Dec 2025	Harshita Nirmal Jain	Promoter group	Buy	10,420	₹34.9 lakh
17–19 Nov 2025	Shubhi Consultancy LLP + Brijkishor	Acquirer >5%	Buy (SAST 29(1))	23,31,000	~₹68 Cr
4–25 Nov 2025	WF Asian funds (Ward Ferry)	Exiting holder	Sell 11,874 then 24,21,905	24,33,779	~42% loss vs ₹500 cost
4–5 Mar 2025	Ameya Agnihotri	WTD/CTO	Sell (to nil)	12,500	₹41.6 lakh
Mar 2025	Sapna Kshirsagar	Designated person	Sell	900	—
Dec 2023	Gourav Munjal	WTD/CFO	Sell	29,700	₹1.65 Cr
Jun–Dec 2023	Prakarsh Gagdani	Ex-CEO	~45 sells	~5.5 lakh	>₹2.5 Cr
Oct–Dec 2023	Mayur Dedhia	Designated person	Sells	~36,000	~₹1.9 Cr
Mar & Jun 2023	N. Jain, R.V., family trust	Promoter	Buys	2.2 lakh	~₹6.4 Cr

Promoters buy; EDs and KMP net sell. Caveat: Trendlyne (insider data source) is owned by Giskard, the acquisition target.

Bulk / block deals

Date	Exch	Party	B/S	Qty	Price ₹
17 Nov 2025	BSE	WF Asia Fund (Ward Ferry)	Sell	24,21,905	289.16
17 Nov 2025	BSE	Shubhi Consultancy LLP (Kela)	Buy	19,12,362	290.69
17 Nov 2025	NSE	Shubhi Consultancy LLP	Buy	3,03,301	292.94
17 Nov 2025	BSE	Bhavin Yashodhan Mehta	Buy/Sell	7,06,838 each	289.16/289.30
17 Nov 2025	BSE	Neo Apex Venture LLP	Buy/Sell	7,37,159/7,27,159	289.59/291.09
17 Nov 2025	BSE	D3 Stock Vision LLP	Net buy	~1.35 lakh	289.55/293.18
17 Nov 2025	BSE	Vedika Vanijya	Net buy	~0.84 lakh	289.28/292.93
17–18 Nov 2025	BSE/NSE	Irage, NK Securities, Junomoneta, Microcurves	HFT round trips	~1.8–2.1 lakh legs	294–355
10 Oct 2025	NSE/BSE	Graviton, Irage, NK Securities, Pace, Silverleaf	HFT round trips	2.2–3.6 lakh	358–367

No bulk/block deals in 2026. Stock rose ~21% in two days after the Kela entry and ~15% (to ₹397 intraday) after Q2 FY26 results.

Related-party transactions — actual FY26 (AR Note 34, ₹ Cr)

Counterparty	Nature	FY26	FY25
IIFL Facilities Services	Rent, IIFL House (registered office)	2.09	2.21
IIFL Facilities Services	Expense allocation paid	1.32	1.51
IIFL Finance	Allocation paid / received	1.24 / 0.49	1.63 / 0.45
IIFL Capital Services	Allocation paid / received	0.91 / 0.34	2.18 / 1.58
IIFL Home Finance; Livlong Protection	Allocation received	0.06; 0.24	0.01; —
IIFL Management Services	Rent	0.01	0.02
India Infoline Foundation	CSR (all FY26 CSR)	1.46	0.98
KMP remuneration	Seth 2.26; Agnihotri 2.32; Munjal 0.81; Godbole 0.26; Panchmatia 0.07	5.71	4.80
ID sitting fees	—	0.65	0.59
Ameya Agnihotri	Sundry receivable from director	0.18	—
Gross IIFL-group flows paid (rent + allocations + others + CSR)	~2.2% of revenue	~7.1	~8.6

Balances: security deposit with IIFL Facilities ₹0.98 Cr; payables to group ₹1.08 Cr. No ICDs, loans or guarantees with any IIFL entity in FY25 or FY26 (Note 15 nil; CARO 3(iii) nil to related parties). Note 34 covers "significant" transactions. Aug-2025 AGM also approved "material" RPTs not visible in the notes (open question). No brokerage/referral income from IIFL entities disclosed.

FY27 omnibus RPT approvals (AGM 1 Sep 2026; ICDs taken or given at SBI 1-yr MCLR + 250–350 bp, <1 yr)

Counterparty	Relation	Cap ₹ Cr	% of FY26 turnover	Counterparty FY26 PAT ₹ Cr
IIFL Finance	Common promoters (24.89%)	830	231%	1,153.5
IIFL Facilities Services	WOS of IIFL Capital	725	201%	75.8
IIFL Home Finance	Sub of IIFL Finance	720	200%	745.8
IIFL Samasta Finance	Sub of IIFL Finance	716.5	199%	21.3
IIFL Management Services	WOS of IIFL Capital	216.5	60%	-9.2 (loss)
Livlong Insurance Brokers	WOS of IIFL Capital	216	60%	6.8
Livlong Protection & Wellness	Sub of IIFL Capital	66	18%	9.8
IIFL Capital Services	Common promoters (30.70%)	43	12%	530.9
IIFL Commodities (non-operational)	WOS of IIFL Capital	16	4%	4.4
IIFL Fintech	WOS of IIFL Finance	14.5	4%	2.7
IIHFL Sales	Step-down of IIFL Finance	14.5	4%	1.6
India Infoline Foundation (Sec 8)	WOS of IIFL Capital	2.5	1%	-27.0
Total	12 entities	~3,580	~11x revenue

Caps ~500x actual flows; allow ICDs given to loss-making entities after net worth rose to ~₹1,130 Cr. Nothing drawn — optionality, not leakage. All passed 99.99%. Monitor the H1 FY27 Reg 23(9) filing.

Auditor

Item	Detail
Statutory auditor	V. Sankar Aiyar & Co. (FRN 109208W), Mumbai; partner Asha Patel (M.No. 166048); UDIN 26166048RJEBRB7425
Tenure	~FY18 onwards; second and final 5-yr term from 15th AGM (2022) to 20th AGM (2027): rotation due 2027
Fees FY26	Audit ₹17.5 lakh + certification ₹2.5 lakh = ₹20 lakh
FY26 opinion (signed 30 Apr 2026)	Unmodified. EoM (Note 42): only the uncertain outcome of the Jan-2025 IT search — "not received any communication… impact not ascertainable". Does not cover the ₹33.02 Cr order (5 May 2026)
Q1 FY27 limited review (16 Jul 2026)	Unmodified; EoM names the ₹33.02 Cr s.158BC(1)(c) demand (block 1 Apr 2018–3 Feb 2025), appeal at CIT(A); Other Matter: one subsidiary reviewed by another auditor
KAM	One: IT systems and controls over financial reporting
IFC opinion	Unmodified ("adequate", "operating effectively"); covers financial reporting only — not in conflict with NSE operational findings, but in tension with them
CARO	Clean; MTF repayable on demand (standard wording); no fraud (s.143(12)); no whistle-blower complaints; audit trail operational
Others	Internal: ANSA & Associates LLP; Secretarial: Nilesh Shah & Associates (FY26–FY30); Scrutinizer: Shah Patel & Associates; RTA: MUFG Intime

Subsidiaries and group structure

Entity (all 100%)	Purpose / status	Contribution
5paisa P2P Ltd	RBI NBFC-P2P (CoR N-13.02371)	Total assets ₹5.26 Cr; PAT ₹0.03 Cr
5paisa Corporate Services Ltd (inc. 27 Oct 2018; ex-5paisa Insurance Brokers, renamed 16 Nov 2022)	Dormant: "shall commence its business shortly"	Nil
5paisa Trading Ltd (inc. 27 Feb 2020)	—	Immaterial
5paisa International Securities (IFSC) Ltd (inc. 15 Jun 2022)	GIFT City; still awaiting NSE IFSC membership after 4 years	Q1 FY27 income ₹3.75 lakh
Investment ₹7.85 Cr less ₹3.51 Cr impairment = ₹4.34 Cr	Combined turnover ~₹0.18 Cr	Consol PAT ₹44.19 vs standalone ₹44.12 Cr

No associates, JVs or cross-holdings. SEBI advisory (Dec-2024): subsidiaries must not use the 5paisa brand for unregulated products. Track record on new businesses is weak: insurance arm dormant, IFSC unit not operational, IA business being exited, RA licence lapsed. Acquisition record: Giskard is the first.

Governance red flags

Leadership and compliance-function instability (above).
Unexplained 18 Jun 2026 board postponement.
NSE QSB warning on "systemic weaknesses" plus 83 actions; board report says controls "adequate and effective".
Tax exposure ~₹49–71 Cr.
RPT approval mechanics (HWIC vote; ~11% unaffiliated).
Giskard disclosure error; ~13x revenue; data-platform conflict.
SEBI PFUTP finding naming the sitting CFO.
Two near-equal blocks; zero DIIs.
Disclosure quality: CL mis-addition, MD&A swap, pay ratios, BRSR "zero penalties", CP LoO "no regulatory strictures", ESOP count conflict (7.18 vs 2.45 lakh exercisable).
Weak new-business record.

Mitigants: zero pledge; ~₹206 Cr promoter infusion; independent chair, majority-independent board, full attendance; clean audit opinions; no group ICDs; A+ reaffirmed; no shareholder complaints in FY26; no criminal/MCA actions or director disqualification.

Supply Chain

For a broker, "suppliers" are regulated market rails, funding and technology; "customers" are retail traders and investors.

↑ Upstream — what 5paisa depends on

Input	Named suppliers / counterparties	Dependence and risk	Pass-through
Market access & clearing	NSE, BSE, MCX; NSE Clearing, ICCL, MCXCCL INFERRED	Regulated near-monopoly; NSE dominates F&O — effectively single-source	Transaction charges, SEBI fees, STT, stamp passed through; rebate income removed by true-to-label (Oct-2024)
Depository	CDSL only (no NSDL)	Single depository	DP ₹15.34/scrip/day on sell; BSDA AMC ₹25/month
Funding for MTF and margin	SBM, HDFC, Indian, Bandhan, DCB, Federal (OD/WCDL vs FD); Aditya Birla Finance, IDFC First (WCDL vs receivables); IDBI BG ₹75 Cr; CP ₹400 Cr limit (ICICI IPA)	~9 lenders; borrowings ₹378.6 Cr Mar-26; unutilised ₹366 Cr; tenors 7–365 days — rollover risk; RBI intraday ban from 1 Jul 2026	MTF ~18% p.a. client price vs ~8.9% borrowing cost Est.
IIFL group support	IIFL Finance (CRISIL AA/Stable), IIFL Capital, 360 ONE WAM; promoters	₹500 Cr ICD support line (undrawn); rating "centrally factors" support; shared premises and media staff	Rent ₹2.09 Cr; allocations
Technology	In-house; XTS APIs (Symphony Fintech INFERRED); TradingView; Google Cloud INFERRED; LLM for MCP; exchange co-location	Moderate lock-in on OMS/RMS; outages bring penalties (MCX ₹2.60 Cr for unreported glitches)	Fixed cost
Content & partner products	smallcase, ClearTax, MarketSmith, Intraedge, Vested; Trendlyne (pending)	Non-critical	n/a
Customer acquisition	Digital ads (Google/Meta INFERRED), affiliates, referrals, partner/sub-broker model	CAC sensitive to ad costs and SEBI incentive curbs	Not passed through
People	721 staff; ~200+ in tech	32.6% attrition; CTO exit	~₹115 Cr gross annual cost Est.

Import/country dependence negligible; cloud and LLM vendors may be foreign-headquartered. Supplier concentration is highest in regulated rails (NSE, CDSL, RBI-regulated banks).

↓ Downstream — who depends on 5paisa

Dimension	Detail
End customers	Indian retail individuals: DIY investors and high-volume traders; no institutional broking
Scale	52.6 lakh registered; ~3.3 lakh NSE-active; ~14,500 MTF borrowers Est.; 13.68 lakh active SIPs
Geography / age	~75% Tier 2/3 (call); 92% of FY26 adds from Tier 2/3; 62% under 35
Customer concentration	None disclosed or likely
Product concentration	Brokerage 45–49% of revenue, ~80% derivatives (Jul-25); MTF >₹5L cohort 10.6% of borrowers but likely a large share of book
What output ends up in	Executed trades; holdings in CDSL demat; MF units via RTAs; MTF positions pledged to 5paisa; US stocks via Vested
Stickiness / tenor	At-will, no contracts; switching cost low; stickiness from pledges, MTF ("older customers… trust your platform"), API/algo integrations, SIP mandates

Value-chain map

RegulatorsSEBI, RBI — set economics (F&O curbs, incentive curbs, intraday-funding ban)

RailsNSE/BSE/MCX, clearing corps, CDSL

FundingBanks/NBFCs (OD, WCDL, CP), IIFL ICD line (undrawn)

5paisaApp/web/EXE/APIs, AlgoSpace, FnO360, Scalper; XTS RMS/OMS; AI layer; DIY eKYC; DP, RA, MF ARN

Retail clients₹20/order, MTF ~18% p.a., DP fees, float interest, MF (0% to client)

End assetsDemat holdings, F&O positions, MF units/SIPs, US stocks

Link	Pricing power	Why
Exchanges (NSE above all)	Strongest	Set charges and product design; true-to-label removed broker rebates
SEBI / RBI	Strong	Define economics: F&O framework, incentive curbs, 1 Jul 2026 intraday ban
Scale discount brokers (Groww, Zerodha, Angel)	Sets price cap	₹20 or zero pricing is the industry ceiling
5paisa	Weak in brokerage Moderate in funding	Price-taker; MTF spread healthy on granular book; edge is features, not price
Clients	High	Low switching cost, multi-homing

Competitive Position

Rank #17 by NSE active clients (Jul-26), below sister broker IIFL Capital (#16). Oligopoly at the top, fragmented tail.

5paisa NSE active clients (lakh)

Market share — three numbers, one reconciled view

Measure	Value	Source / label	Comment
Overall market share FY26 (used)	0.63%	CRISIL 25 Aug 2026 Fact	Cash ~0.5%, F&O ~0.6%; FY22 cash 1.3%, F&O 1.6%; FY23 1.2%, FY24 1.0%, FY25 0.72%. Below 0.75% downgrade trigger
Share of NSE active clients, Jul-26	~0.73%	3.31 lakh / ~4.54 Cr Est.	~0.85% Mar-25; ~0.72% Mar-26
Management claim (Q4 FY26 call)	~2%	CEO UNVERIFIED	No basis given; possibly retail F&O premium ADTO (₹1,336 Cr / ₹78,000 Cr ≈ 1.7%, derived). Not used
ValuePickr Dec-2024 ranking	1.28%	Forum	13th; stale

Peer comparison

Company	Status	FY26 Rev ₹ Cr	YoY	EBITDA %	PAT ₹ Cr	PAT %	RoE	P/E	P/B	EV/EBITDA	NSE actives (share)	Moat
5paisa	Listed	320 (TI)	-11.1%	31.6% (Q1 FY27 29.5%)	44	13.8%	7.1%	36.8x	1.44x	n.m.	3.31 lakh (0.73%, #17)	Weak
Groww (Billionbrains)	Listed Nov-25	4,644.6	+19.0%	~61–63%	2,083	44.8%	~25%	49.5x	12.5x	n.m.	1.34 Cr (29.2%, #1)	Strong
Zerodha	Unlisted	~8,847	~0%	n.d.	4,283	~48.4%	Very high	n.a.	n.a.	n.a.	67.91 lakh (14.7%, #2)	Strong
Angel One	Listed	5,136.6	-1.9%	n.d.	915.1	17.8%	~15%	26.4x	4.4x	n.m.	67.55 lakh (14.7%, #3)	Mod-strong
ICICI Securities	Delisted (ICICI Bank sub)	5,890	-7.0%	n.d.	1,713	29.1%	n.d.	n.a.	n.a.	n.a.	21.60 lakh (4.7%, #4)	Strong
Upstox (RKSV)	Unlisted	945 (FY25)	-0.6%	~1%	215 (FY25)	17.8% of TI	n.d.	n.a.	n.a.	n.a.	18.54 lakh (4.0%, #5)	Moderate
Motilal Oswal	Listed	5,908 (net op.)	+14%	n.d.	2,043 / 2,360 op.	34.6%	n.d.	~31.7x	n.d.	n.m.	9.02 lakh (~2.0%, #11)	Strong
Kotak Securities	Unlisted	n.d.	n.d.	n.d.	~465 (Q1 FY26)	n.d.	n.d.	n.a.	n.a.	n.a.	13.92 lakh (3.0%, #6)	Strong
Dhan (Raise)	Unlisted	n.d.	n.d.	n.d.	n.d.	n.d.	n.d.	n.a.	n.a.	n.a.	11.21 lakh (2.4%, #8)	Moderate
Paytm Money	Sub of One97	n.d.	n.d.	n.d.	n.d.	n.d.	n.d.	n.a.	n.a.	n.a.	7.63 lakh (1.7%)	Weak-mod

Prices: Groww ₹193.81, mcap ₹1,20,673 Cr (13 Oct 2026); Angel ₹294.80, ~₹27,250 Cr (8 Oct); MOFSL ~₹64,826 Cr (7 Oct). EV/EBITDA n.m. for brokers. Revenue definitions differ (total income vs net op. revenue). Profit pool: Zerodha + Groww + Angel ≈ ₹7,280 Cr FY26 PAT; 5paisa ≈ 0.6%.

NSE active clients — top brokers (Sep-26) and 5paisa's neighbourhood (Jul-26)

Rank	Broker	Active clients	MoM	Share
1	Groww	1.34 Cr	+1,00,961	29.16%
2	Zerodha	67.91 lakh	-5,313	14.73%
3	Angel One	67.55 lakh	+36,956	14.65%
4	ICICI Securities	21.60 lakh	+4,410	4.69%
5	Upstox	18.54 lakh	-10,343	4.02%
6	Kotak Securities	13.92 lakh	n.d.	3.02%
7	HDFC Securities	13.54 lakh	n.d.	2.94%
8	Dhan	11.21 lakh	+13,624	2.43%
9	SBI Securities	10.21 lakh	-22,525	2.21%
10	Paytm Money	7.63 lakh	-27,950	1.66%
—	INDmoney / Sahi	7.19 / 2.81 lakh	+5,070 / +28,077	1.56% / 0.61%
11–15 (Jul)	Motilal 9,01,868; Paytm 8,61,706; INDstocks 6,93,526; Sharekhan 5,30,958; Axis Sec 4,28,671	—	—	—
16 (Jul)	IIFL Capital Services (sister)	3,41,109	—	~0.75%
17 (Jul)	5paisa	3,31,486	—	~0.73%
18–22 (Jul)	Choice 2,50,748; Mirae 2,32,231; Geojit 2,16,303; PhonePe Wealth 2,13,303; Fyers 2,00,810	—	—	—

Industry: NSE actives 4.92 Cr (Mar-25) → 4.57 Cr (Mar-26, -7%) → 4.61 Cr (Sep-26); Groww took >63% of Sep-26 net adds. FY26 share changes: Groww 26.26→28.31%; Zerodha 16.03→15.08%; Angel 15.4→14.79%; Upstox 5.58→4.35%; ICICI Sec 3.96→4.57%; SBI Sec 1.99→2.55%; Dhan 2.27%; Kotak ~3.03%. Groww retail cash ADTO 15.7% (Q4 FY26); Motilal blended ADTO 7.8%; Zerodha MTF book ~₹9,000 Cr; Groww MTF ₹2,814 Cr.

5paisa vs each peer

Peer	5paisa strengths	5paisa weaknesses
Groww	P/B 1.44x vs 12.5x; F&O-trader heritage	~40x smaller active base; PAT margin 13.8% vs 44.8%; revenue -11% vs +19%; MF AUM ₹2,073 Cr vs ₹1.9 lakh Cr
Zerodha	Listed, rated balance sheet	~20x smaller actives; PAT ~100x larger; MTF book ~21x 5paisa's funding book
Angel One	Lower P/B; flat-fee simplicity	PAT 21x larger; 3.74 Cr clients; AMC/wealth/credit diversification
ICICI Sec / Kotak Sec	Pure digital cost base	Bank-led 3-in-1 distribution, captive bases, gaining share
Upstox	Profitable; lower ad burn	~5.6x the actives; stronger backers (Tiger, Ratan Tata)
Motilal Oswal	Lower-cost model for traders	77% non-broking income; research brand
Dhan	Larger registered base; listed	~3.4x actives and gaining; better trader product reputation
Paytm Money	A+ balance sheet	~2.3x actives
IIFL Capital (sister)	Discount-pricing focus	Slightly more actives; group channel overlap

Porter's Five Forces

Force	Intensity	Comment
Rivalry	Very high	Price ~₹20/order or zero; top 3 hold ~58.5% of actives; 30+ tail brokers
New entrants	High	PhonePe Wealth, Sahi, INDmoney, Jio-BlackRock UNVERIFIED, Kotak Neo zero plans
Buyer power	High	Low switching cost; multi-homing
Supplier power	Mod-high	NSE near-monopoly in F&O; SEBI "licence to operate"
Substitutes	Moderate	Direct MF platforms, bank 3-in-1, PMS, passive

Barriers to entry low-to-moderate and rising (compliance, cyber, algo rules); CAC is the real barrier (Upstox ₹467 Cr ads = 47% of FY25 expenses). Moat: weak — the IIFL lineage and A+ rating are a balance-sheet buffer, not a moat. No PLI/subsidy; tailwinds are financialisation, UPI/AA onboarding, T+1/T+0.

Regulatory timeline

Date	Measure	Impact
2024 (RBI)	Currency derivatives need underlying exposure	INR F&O volumes -~90%
Eff. 1 Oct 2024	SEBI true-to-label MII charges	Rebate income gone (Zerodha ₹400 Cr → 0); key cause of broking & allied ₹229 → ₹181 Cr
Eff. 1 Oct 2024	STT options 0.0625% → 0.1%; futures 0.0125% → 0.02% UNVERIFIED	Lower churn
20 Nov 2024 / 1 Feb / 1 Apr 2025	SEBI/HO/MRD/TPD/P/CIR/2024/132: lot size ₹15–20 lakh, one weekly expiry per exchange, +2% ELM, upfront premium, no calendar-spread benefit, intraday position monitoring	Cut retail F&O; exchange F&O ADTO ₹537 tn (Sep-24) → ₹288 tn (Feb-25) → ₹592 tn (Jan-26) → ~₹486–492 tn (Apr–Jun 26)
Feb 2025	Retail algo framework UNVERIFIED	Cost; opportunity for API brokers
2025	Expiry days moved; delta-based OI limits UNVERIFIED	Fewer expiry-day trades
Jul 2025	SEBI study: ~91% of F&O traders lost money FY25 (~₹1.06 lakh Cr) UNVERIFIED	Continued intent to curb
Feb 2026 Budget	Further STT rise reported (futures 0.05%, options 0.15%) UNVERIFIED	Further headwind
2025–26	Curbs on broker incentives, finfluencer rules; proposed RA restriction	Cited by CRISIL for active-client drop
1 Jul 2026 (RBI)	No bank intraday facilities to brokers	₹227 Cr of rights cash to exchange margin

Risks & Red Flags

Risk register

#	Risk	Category	Severity	Explanation	Mitigant
1	Continued loss of active clients and share	Business	High	Actives 4.2 → 3.3 lakh in FY26 (-21%); rank #17; Q1 FY27 new adds -28% QoQ	Growth marketing from rights; revamp; Trendlyne AI
2	CRISIL downgrade trigger breached	Financial	High	0.63% vs 0.75% trigger; downgrade would raise CP/WCDL cost as MTF scales	NW ₹1,130 Cr; gearing 0.3x; IIFL support
3	Retail F&O regulatory tightening	Regulatory	High	~80% of revenue derivatives (Jul-25); industry activity -20–30%	Shift to MTF, MF, T+5
4	Rebate income loss (true-to-label)	Regulatory	High	Permanent; broking & allied -21% FY26	In base
5	Negative operating leverage	Financial	High	Cost-to-income 73% → 79% → 81%; Q1 FY27 PAT +0.2% on income +14%	Employee cost -13% QoQ (partly capitalisation)
6	RoE dilution from over-capitalisation	Financial	Med-High	NW +74%; RoNW 5–7%; share count +50%	MTF deployment
7	Giskard valuation, governance, execution	Governance	Med-High	~₹207 Cr, ~13x revenue, profit undisclosed; single DCF; undisclosed cash sellers; ex-IIFL associate; SEBI approval pending; promoter-purchase line retracted	Registered valuer; 99.99% vote
8	Income-tax block assessment ₹33.02 Cr (5 May 2026)	Tax	High	~75% of FY26 PAT; unprovided; outside AR; plus ₹21.85 Cr AY24 (may overlap)	CIT(A) appeal; management "confident"
9	GST SCN ₹15.31 Cr (30 Sep 2026)	Tax	Med	FY23 ITC: excess ₹2.04 Cr, ineligible ₹0.07 Cr, reversal ₹13.20 Cr + interest/penalty	Company says "no merits"
10	Fairfax monetisation overhang	Governance/Market	High	32.76% passive holder; Fairfax restructuring India stakes (51% of IIFL Capital, May-2026; IIFL Finance selldowns)	Promoter/Kela floor ~₹290–300
11	IIFL linkage change	Governance	Med	Rating trigger on change in IIFL support/holding	Promoter stake up to 36.5%
12	Control-environment failures	Regulatory	High	83 actions FY26; NSE QSB "systemic weaknesses"; MCX ₹2.60 Cr + 14-day bar; Mar-24 onboarding bar; SEBI PFUTP	New CS/CO; QSB remediation
13	Key-person churn	Execution	High	CTO, CCO, product head, 3 CSs, 3 CEOs	Promoter oversight
14	RPT headroom ~₹3,580 Cr incl. ICDs given	Governance	Med	Allows lending to loss-making group cos	Nil drawn; Reg 23(9) monitoring
15	Interest-rate / float dependence	Macro	Med	FD interest 29% of revenue; finance cost +37% FY26	Rights equity reduces borrowing
16	MTF credit risk	Financial	Med	Limits up to ₹25 Cr/client; book growing fast	Granular (70.7% <₹1L); 0.01x bad debts
17	Market cyclicality	Macro	High	Volume-linked earnings	Recurring MTF/MF income
18	Price war	Business	Med-High	Zero-brokerage plans; funded entrants	Low cost base
19	Tech outages / cyber	Execution	Med	MCX penalty for glitches; third glitch Oct-2025	ISO 27001; revamp
20	Product obsolescence	Business	Med	~6% activation	AI features
21	Capital allocation / further M&A	Execution	Med	"Selective inorganic"; Giskard cash exceeds GCP bucket	Shareholder approvals
22	Disclosure quality	Governance	Med	Multiple AR errors and contradictions (table below)	Auditor rotation 2027
23	Illiquidity, no dividend, zero DIIs	Market	Low-Med	~29k shares traded 13 Oct; 2-yr return -26.6%; holders -19% since Dec-24	—
24	ESG / conduct	ESG	Med	F&O promotion; bond mis-selling finding	SEBI ad norms
25	SEBI RA proposal	Regulatory	Med	RAs barred from researching distributed products — complicates broker + Trendlyne	Pending
26	Civil suit ₹2.70 Cr (Aravind Tambad)	Legal	Low	Ex-employee termination claim	Defended

Red-flag checklist

Flag	Status	Evidence
Rising debt	Moderate	₹217 → ₹379 Cr FY26; CP limit ₹400 Cr; gearing 0.30x post-rights
Margin deterioration	Yes	EBITDA margin 35.4% → 31.6%; Q1 FY27 -292 bps YoY
Auditor concerns	EoM	EoM on IT search (FY26) and ₹33.02 Cr demand (Q1 FY27); KAM IT systems; opinions unmodified
Related-party abuse	Watch	No ICDs; ~₹3,580 Cr caps; HWIC vote; Giskard ex-IIFL associate
Promoter selling	No	Buying; 32.76% → 36.50%
Dilution	Yes	+50% rights; +4.4% swap
Customer loss	Yes	Actives -81% from FY22 peak
Litigation / tax	Yes	~₹49–71 Cr
Institutional exit	Explained	Ward Ferry exit at loss; Kela bought; DIIs 0%
Rating trigger	Yes	0.63% vs 0.75%
Earnings quality	Watch	Q1 FY27 capitalisation ₹7.22 Cr (~47% PBT)

Regulatory, legal and enforcement log

Date	Authority	Matter	Outcome
14 Mar 2024	MCX, then NSE/BSE	New-client onboarding restricted pending RCA	Revoked 15–17 Mar; Bombay HC writ/stay
1 Jul 2024	MCX MCSGFC	Non-reporting of glitches, delayed RCAs (inspection Apr-22 to Dec-23)	₹2.5975 Cr + GST + 14-day bar; SAT stay 5 Jul 2024 on 50% deposit (₹1.30 Cr); fully provided; pending
30 Jul 2024	SEBI AO	Wrong UCC data for 14,494 clients (4.81%)	₹2 lakh
31 Oct 2024	SEBI AO	Enhanced-supervision misreporting, client-balance gaps, AP supervision, MTF margin shortfall, cyber lapses	Penalty paid
FY25	SEBI	KYC lapses	Administrative warning
10 Sep 2025	SEBI	RA registration expired	Surrendered; new RA 26 Feb 2026
13 Oct 2025	SEBI AO (s.15HB)	OBPP: no seller agreements; ₹5.16 Cr not via RFQ; incomplete deal sheets; no risk policy; AT-1/Tier-II sold as "Bonds for Senior Citizens"/"Ultra Safe Bonds" (PFUTP)	₹3 lakh joint & several on company, Munjal, Gangadhar; IDs exonerated
19 Mar 2026	SEBI	Links to algo platforms claiming guaranteed returns (one of 122 brokers)	Settled ₹1 lakh
8 Jun 2026	SEBI	IA registration unpaid fees	SCN; IA being surrendered
FY26	NSE	MTF margin ₹72,542; T+5 breaches ₹50,000 ×2 (95 of 11,542 instances); 44-min incident delay ₹50,000; statements of accounts ₹1 lakh; payout delay ₹45,000	Paid
FY26	CDSL	VIPV/transmission irregularities (102 instances)	₹4.62 lakh
27 Oct 2025	MCX	Third system glitch	₹50,000
FY26	NSE (item 81)	QSB non-compliance: gaps in Risk, IT, Cyber, BCP, Wind-down; "systemic weaknesses in governance, reporting discipline, and internal control mechanisms"	Warning; item 83 directed before the Board
Oct-2024 to FY26	NSE/BSE/MCX/CDSL	83 actions; 23 with monetary penalties ~₹10.2 lakh	Frequency is the red flag

Tax and disputed dues

Item	₹ Cr	Status	In AR?
IT block assessment s.158BC(1)(c), order 5 May 2026, block 1 Apr 2018–3 Feb 2025 (after 28 Jan–3 Feb 2025 search; s.158BC notice 6 Oct 2025)	33.02	CIT(A) appeal; Q1 FY27 EoM	No — post-dates AR; unprovided
IT reassessment AY2023-24 (order 23 May 2025; appeal date printed 9 Apr 2025 — typo)	21.85	CIT(A); contingent; may overlap block	Yes (Note 30)
IT AY2018-19 (order 1 Apr 2025)	0.75	Appeal filed 27 Apr 2026	Yes
GST SCN FY23 ITC (CGST Mumbai East, 30 Sep 2026)	15.31	Contested	No
GST orders: Karnataka FY19 ₹0.52 Cr; Karnataka FY20 ₹0.10 Cr; Tamil Nadu FY22 ₹0.32 Cr	~0.94	Appeals filed / pending	Partly
Open exposure Est.	~49–71	1.1–1.6x FY26 PAT; ~4–6% of NW, before interest/penalties

Disclosure-quality inconsistencies

Document	Claim	Reality
AR Note 30 (standalone)	Contingent total ₹685.8 Cr	Components ₹625.8 Cr
AR MD&A	Finance cost ₹9.2 Cr, D&A ₹32.5 Cr; employee and finance costs "declined"	Swapped; both rose (+19.7%, +36.7%)
AR MD&A	"Consistent record of compliance without any reported deviations"	SEBI PFUTP order; 83 actions
BRSR	"Zero penalties or fines"	SEBI ₹3 lakh, exchange penalties
CP Letter of Offer (27 Jan 2026)	No material litigation or regulatory strictures in 5 years	MCX ₹2.60 Cr penalty, SEBI orders
AR remuneration annexure	Seth 12.45x median	~35x; ratios on wrong names; Agnihotri increase 11% vs ~35%
AR p.4 pie	"Cross-sell & others 29%"	FD interest; cross-sell ₹1.06 Cr
AR ESOP	7,18,400 exercisable (Note 35)	2,44,950 vested (CG report)
AR MTF figures	₹326 / ₹340 / ₹368 / ₹410 Cr	Different bases, loosely presented
Note 15	Cross-refers RPT loans to "note 33"	Should be Note 34

Customer and street sentiment

Platform	Rating	Themes
Apple App Store	4.4/5 (386 ratings)	Easy trading; wrong P&L/holdings data; poor support; IPO mandate issues
Google Play	4.3 (company deck); not independently retrieved	—
Trustpilot	2.1/5 (9 reviews, 78% 1-star)	DP AMC on "free" accounts; auto square-off; re-KYC friction
ValuePickr (47 posts, ~14.3k views)	Bearish/disengaged	2022 "customer service the worst"; 2024 red-flag questions; Aug-2026 "lagging peers"
Reddit / X	Not retrievable	Gap

Concall Highlights & Guidance

AlphaStreet machine transcripts (preliminary), cross-checked with filings. Guidance is qualitative throughout. No sell-side participants identified.

Quarter / call	Participants	Key numbers	Management said	Analyst Q&A / hidden risk	Tone
Q4 FY25 — 2 May 2025	Seth only; Shah India Sec + 1	Broking -23% QoQ; MTF income -11% (rate cut 1 Nov 2024); FY25 rev ₹360 Cr, PAT ₹68 Cr; adds ~91k; funding book ~₹260 Cr; MF AUM ₹1,392 Cr	"The market and our business will normalize over the next few quarters"; "Intra" AI tool "by early Q2"	~22% revenue fall from F&O rules; traders migrating to MF	Defensive
Q1 FY26 — 10 Jul 2025	Kajal Gandhi (ICICI Sec), Millennium Money, others	Income ₹77.8 Cr; PAT ₹11.5 Cr (-43%); fees -33.6%; employee +~50%; NW ₹616 Cr; ADTO ₹2.25 tn; book ₹312 Cr	"Top-three to top-five player in the next few years"; 3P cross-sell "The answer is no"; algo product "next couple of months"; MCP with Claude	Float interest (~₹70 Cr) ≈ annual profit; ~80/20 derivatives/cash; ~75% Tier 2/3; weekly-expiry risk dodged	Confident
Q2 FY26 — 10 Oct 2025 (transcript unreadable)	—	Income ₹77.3 Cr (-23%); PAT ₹9.48 Cr (-57%); H1 PAT ₹21.0 Cr (-50%); book ₹364 Cr; installs 22.7 Mn	Blamed volatility, FII selling; "quality acquisition"; Zor Gorelov joins	Stock +14–15% to ₹397 despite PAT fall	Macro-blaming
Q3 FY26 — 14 Jan 2026	44 attendees, zero questions	Revenue ₹79.4 Cr; broking ₹37.1 Cr (+7%); PAT ₹12.3 Cr; ADTO ₹3.31 tn; book ₹379 Cr; labour-code ₹0.62 Cr	Pay Later on 1,500+ stocks up to ₹3 Cr; onboarding upgrades	None	Upbeat
Q4 FY26 — 4 May 2026	Seth, Munjal; RoboCapital, Talencia	Income ₹85.5 Cr (+20% YoY); PAT ₹10.9 Cr; F&O premium ADTO ₹1,336 Cr; adds >1 lakh; book ₹410 Cr	"Approximately 2% market share in both F&O and cash"; rights oversubscribed; margin capacity 1.5x	Macro: "Iran war", Brent >$100, indices -~11%	Defensive P&L / celebratory capital
Q1 FY27 — 17 Jul 2026	Seth, Munjal; Jatin Sahani, Amit Mehendale (RoboCapital)	Income ₹88.4 Cr; PAT ₹11.6 Cr (+1%); adds -28% QoQ; book ₹422 Cr; MF ₹2,073 Cr	"From this quarter on, you can see an acceleration in growth"; operating leverage "very quickly"; rights: ₹227/₹150/₹88 Cr	Revenue "flat for about three years"; "biggest bet" is the revamp; "a little bit of moderation"; "some people have gained market share, some… lost"	Cautious / defensive
Q2 FY27 — 15 Oct (results), 16 Oct 2026 (call)	Pending: tests "acceleration" guidance and CEO letter's "MTF momentum to continue into FY27"

KPI trend from calls

Quarter	Total income	Brokerage (AR)	PAT	OPM (Screener)	New clients	Base (lakh)	Funding book	MF AUM
Q1 FY25	102	—	20	36%	—	—	—	—
Q2 FY25	101	—	21.9	38%	—	—	—	—
Q3 FY25	85	—	16.2	35%	—	47.4	~265	—
Q4 FY25	71	—	10	30%	~91k	48.3	~260	1,392
Q1 FY26	77.8	35.5	11.5	32%	~80k	49.1	312–315	1,573
Q2 FY26	77.3	34.8	9.5	30%	95k	50.1	364–366	—
Q3 FY26	79.4	37.1	12.3	34%	78k	50.8	379–380	1,868
Q4 FY26	85.5	41.9	10.8	30%	>1 lakh	51.8	410	1,761
Q1 FY27	88.4	39.4	11.6	30%	74k	52.6	422	2,073

Guidance vs actual (credibility check)

When	Said	What happened	Verdict
Q4 FY25	Business will "normalize over the next few quarters"	Five quarters of ₹9.5–12.3 Cr PAT vs ₹20–22 Cr; FY26 PAT -35%; RoNW 11.9% → 7.1% → 5.2%	Missed
Q4 FY25	"Intra" AI tool by early Q2 FY26	Not referenced again; absent from AR	Faded
Q1 FY26	Algo product "next couple of months"	AlgoSpace launched 20 Jun 2026 (~12 months)	Late
Q1 FY26	Tech upgrade cycle ends "next few quarters"	Revamp still beta Jul-26; CTO resigned 30 Sep	Slipping
Q1 FY26	"Top-three to top-five player"	Share 0.72% → 0.63%; rank #17	Moving away
Q1 FY26	3P/insurance cross-sell: "no"	AR: "distribution-led offerings"; Jul-26 "midterm"; Giskard cites cross-sell	Reversal
Q4 FY26	Rights money to fund growth	₹227 Cr margin (RBI-forced), ₹150 Cr debt, ₹88 Cr GCP; then ₹121.6 Cr Giskard cash	Defensive
AR CEO letter	MTF momentum to continue into FY27	Book ₹422 Cr, "much higher now"; limits ₹25 Cr	On track
Q4 FY25–Q1 FY27	MF AUM growth	₹1,392 → ₹2,073 Cr (+49%)	Delivered
Q1 FY27	"Acceleration in growth" from Q2	Test 15 Oct 2026; Q1 adds -28%, exits	Pending
Q1 FY27	Operating leverage "very quickly"	Cost-to-income 81% even after ₹7.2 Cr capitalised	Not visible

Credibility: low to moderate. Delivers on balance-sheet and feature items; repeatedly slips on P&L normalisation, share and platform timelines.

Contradictions and recurring themes

Contradiction	Detail
Market share	"~2%" vs CRISIL 0.63%
Funding-book growth	"+10% QoQ" vs ₹410 → ₹422 Cr (+3%)
Rights total	"₹268 Cr" stated vs parts ₹465 Cr
Quality over quantity	Claimed every call; actives fall every year
3P distribution	No (Jul-25) → distribution-led (Apr-26) → midterm (Jul-26) → cross-sell rationale (Giskard)
"Active customers"	Q2 FY26 write-up "5 Mn active" vs CRISIL ~4 lakh
AR MD&A	Cost declines that didn't happen; "second-largest discount broker"; "7% acquisition growth" is base growth
Giskard price	Item (g) cash ≤₹121.57 Cr vs item (h) "aggregate consideration"; promoter-purchase line withdrawn 29 Jul; corrigendum 21 Aug

Recurring themes: regulation/macro as explanation; AI/product velocity (MCP, Intra, AlgoSpace, Scalper) with unquantified monetisation; mix shift to MTF/T+5/MF; RPC/LTV/CAC language without metrics; float income as hidden pillar. Tone path: defensive → confident → macro-blaming → upbeat (no Q&A) → defensive/celebratory → "reset rather than a setback" (AR) → cautious/defensive.

Growth, Outlook & Valuation

"Order book" equivalent — revenue visibility

Bucket	Proxy	Size	Visibility
Annuity-like: MTF/T+5 interest	Avg funding book Q1 FY27	₹422 Cr	Medium (at-will, but sticky)
Annuity-like: float	Lien-marked FDs Mar-26	₹1,380 Cr	Rate-sensitive
Annuity-like: MF	AUM / active SIPs	₹2,073 Cr / 13.68 lakh	Low yield
Transactional: brokerage	~47% of FY26 revenue; ~80% derivatives	₹149 Cr	Low
Contracted revenue	None	0%	No order book; book-to-bill n.a.

Growth plans and catalysts

Horizon	Item	Status / timing
Near-term	Q2 FY27 results / call	15 Oct / 16 Oct 2026
Near-term	Giskard closing; SEBI RA change-of-control approval	~Jan 2027
Near-term	Complete platform revamp to production	"Next few months" (Jul-26); CTO replacement needed
Near-term	CTO successor; H1 Reg 23(9) RPT filing	Q3 FY27
12 months	MTF/T+5 scale-up (₹25 Cr limits; 2,500 T+5 scrips); NCDs up to ₹250 Cr/yr	Ongoing
12 months	LAS, then NPS/LAMF; "couple of other things in the pipeline"	Unquantified
12 months	CRISIL surveillance (trigger breached)	Aug-2027 review
12 months	CIT(A) appeal on ₹33.02 Cr; GST SCN reply	Unknown
3–5 years	AI-led investing platform (Trendlyne data, MCP, AlgoSpace); selective M&A	Strategic
Risk events	Fairfax stake decisions; further SEBI F&O/STT changes; auditor rotation 2027	—

No numeric guidance; no capex plans beyond tech (capex ₹7–19 Cr/yr). Industry tailwinds: financialisation, demat growth (~20 Cr+ UNVERIFIED), MTF industry book >₹1.1 lakh Cr. No PLI.

Valuation (CMP ₹347, 13 Oct 2026)

Metric	Current	FY24 end	FY25 end	FY26 end	3-yr avg
Price (₹)	347	505.05	355.35	249.10 (ex-rights)
Market cap (₹ Cr)	1,627	1,575	1,110	779
P/E (TTM)	36.8x	28.9x	16.3x	17.6x	~20.9x
P/B	1.44x	2.92x	1.84x	1.20x*	~2.0x
EV/EBITDA	n.m.	n.m.	n.m.	n.m.	n.m.
Price / sales (TTM)	~4.9x	4.0x	3.1x	2.4x
Earnings yield / dividend yield	2.7% / 0%	0%	0%	0%

Reconciliation. P/E 36.8x Est. uses TTM PAT ₹44.2 Cr (₹9.48 + 12.30 + 10.86 + 11.57) over 4.688 Cr shares. Aggregator ~26x (25.9–26.6x) uses pre-rights EPS ₹13.03–14.14 and understates the multiple. Screener's restated TTM EPS ₹9.43. Post-swap ~38.4x. MarketsMojo quoted ~41x vs sector ~21x. P/B 1.44x Est. on BVPS ₹240.9; 2.5x on aggregators uses stale BV ₹138. *FY26 P/B mixes ex-rights price with pre-rights book. Mechanical EV/EBITDA ~18.9x (3-yr ~12.7x) is distorted by client money and shown n.m. Price CAGR: 1-yr +6%, 3-yr -9%, 5-yr -8%; Q1 FY27 result-day close ₹385.05.

Implied requirement: to return to ~20.9x at ₹347 needs PAT ~₹78–80 Cr, above the FY25 peak (₹68 Cr). The stock trades ~75% above its 3-yr P/E average but ~28% below its 3-yr P/B average.

Peer multiples

Company	P/E	P/B	RoE	PAT growth FY26
5paisa	36.8x	1.44x	7.1%	-35%
Groww	49.5x	12.5x	~25%	+14%
Angel One	26.4x	4.4x	~15%	-22%
Motilal Oswal	~31.7x (27.5x op.)	n.d.	n.d.	+16% op.

Street coverage — none active

House	Rating	Target ₹	Date	Price at reco	Status
ICICI Direct	BUY	360	17 Mar 2021	276.25	Stale; achieved
ICICI Direct	BUY	600	16 Jul 2021	552.20	Stale
ICICI Direct	BUY	450	1 May 2022	360.50	Stale
ICICI Direct	BUY (Q1 FY23)	375	20 Jul 2022	348.70	Stale
ICICI Direct	Downgrade to HOLD	375	Dec 2022	—	Last institutional view

Quant / aggregator (not coverage)	Rating	Fair value / target ₹	Date
TipRanks (six AI-model "analysts")	All Hold	368–389	~6 Oct 2026; "no analyst ratings in last 3 months"
MarketsMojo	Strong Sell → Sell (48/100, 17 Jul) → Hold (24 Sep / 5 Oct)	280–300	Quality "Below Average"; valuation "Fair"; technicals bullish
Stockopedia	—	375	Undated; = stale ICICI TP
Univest blog	—	390	May 2026
Simply Wall St	Insufficient data	—	2026

Price anchors

Event	₹/share
2021 preferential (FIH, WF Asian, others)	500
52-week high (after 17 Jul 2026)	416.65
Q1 FY27 pre-results close	385
Implied 5paisa value in Giskard swap (₹11,794 ÷ 31)	~380
Current	347
Rights issue price (promoters ~133% of entitlement)	300
Kela entry / Ward Ferry exit (Nov 2025)	~290–293 / 289.16
52-week low	245
Jun-26 book value per share	240.9

Scenarios (12–18 months) Analyst View

Case	Assumptions	FY28 PAT ₹ Cr	Multiple	Value ₹/sh
Bear	Actives keep falling; rating action; tax crystallises; Fairfax block	35–40	1.1x book	~265
Base	MTF grows, brokerage flat; Giskard closes; RoNW ~6–7%	55–65	1.4x book (~25x P/E)	~340
Bull	Share stabilises; cost-to-income <70%; Trendlyne lifts ARPU; RoNW ~10%	90–100	2.0x book (3-yr avg)	~500

24-month news flow

Date	Event
Jul-2024	MCX ₹2.60 Cr penalty + 14-day bar; SEBI ₹2 lakh (UCC)
1 Nov 2024	MTF rate cut "to stay competitive"
Oct–Dec 2024	SEBI F&O framework; Q4 FY25 broking -23% QoQ
14/17 Jan 2025	Gaurav Seth CEO, then MD & CEO
28 Jan–3 Feb 2025	IT search of IIFL group incl. 5paisa
12 Feb / 26 Aug 2025	CRISIL reaffirmations; CP ₹100 → ₹200 Cr
9–10 Oct 2025	Q2 FY26 PAT -57%; stock +15%; Gorelov joins
13 Oct 2025	SEBI OBPP order ₹3 lakh (PFUTP)
17–19 Nov 2025	Ward Ferry exit; Kela's Shubhi buys 7.46%; stock +21% in two days
14 Jan 2026	Q3 call with zero questions
20 Jan 2026	CRISIL bulletin: IDFC First ₹150 Cr, ABCL ₹40 Cr, IDBI BG ₹75 Cr
24 Feb – 13 Apr 2026	Rights approved, priced (1:2 at ₹300), subscribed 1.24x, allotted
30 Mar / 1 Apr 2026	IT order ₹0.75 Cr
30 Apr 2026	FY26 results; AR "reset rather than a setback"
5 May 2026	IT block assessment ₹33.02 Cr
22 May 2026	Committees reconstituted
16–18 Jun 2026	CCO resigns; board meeting postponed
1 Jul 2026	RBI intraday ban; ₹227 Cr to margin
16–17 Jul 2026	New CS; Q1 FY27; stock -4.4% over two sessions
28–29 Jul 2026	Giskard approved; promoter-purchase line withdrawn
21–28 Aug 2026	Corrigendum; CRISIL reaffirm, CP ₹400 Cr; postal ballot 99.99%
1–2 Sep 2026	19th AGM: 16 resolutions incl. 12 IIFL RPTs, NCDs, NED commission
18 / 30 Sep 2026	Investing-product head and CTO resign; stock ~₹314 on 18 Sep
30 Sep / 1 Oct 2026	GST SCN ₹15.31 Cr
9 Oct 2026	Preferential update (promoters 34.53% fully diluted); CPs redeemed
13 Oct 2026	Q2 FY27 call intimation; stock ~₹347

Final Verdict

Business Quality

Weak

#17, 0.63% share, price-taker, ~6% activation

Management Quality

Weak

Serial exits; 83 actions; NSE warning; missed guidance

Financial Quality

Medium

₹1,130 Cr NW, A+, low gearing; RoNW 5–7%

Valuation

Expensive

36.8x P/E vs ~21x avg; P/B 1.44x is fair

Overall View

Negative

Avoid at ₹347; re-look near book

Bull case

Capital floor: NW ~₹1,130 Cr, P/B 1.44x, promoters in at ₹300 with ~₹206 Cr, Kela at ~₹290 — downside cushioned near book.
MTF engine: funding book ₹260 → ₹422 Cr in ~15 months at ~18% client pricing; deploying idle rights capital could lift RoNW toward double digits.
AI re-rating: Trendlyne (~1.5 Mn MAU) + MCP/AlgoSpace/APIs could reposition it as an AI-led investing platform; founders took stock at ~₹380.

Bear case

Structural decline: actives -81% since FY22, share below CRISIL's trigger, revenue flat for three years against Groww's scale.
Governance and control: CTO/CCO/product-head exits, NSE "systemic weaknesses", PFUTP finding, disclosure errors, Giskard at ~13x sales with retracted promoter line.
Overhangs: ₹49–71 Cr tax, Fairfax's 32.76% possible exit, a 36.8x P/E that needs PAT above the FY25 peak.

Base case (12–18 months)

MTF interest grows, brokerage stays flat, opex absorbs growth. PAT ₹45–60 Cr, RoNW ~6–7%. Giskard closes ~Jan 2027 (+4.4% shares). CRISIL holds A+ on parentage. Stock range-bound ₹290–400, gravitating to ~1.4x book (~₹340).

Five things to remember

Use 36.8x P/E and 1.44x P/B. The ~26x and 2.5x on aggregators use pre-rights data.
Only ~3.3 lakh of 52.6 lakh customers trade. Share is 0.63% (CRISIL), not "~2%".
43% of revenue is interest, and FD float interest is labelled "cross-sell". Real cross-sell is ₹1.06 Cr.
The ₹33.02 Cr tax demand is not in the AR and is unprovided. Contingent liabilities are ₹625.8 Cr, mostly exchange BGs.
Fairfax (32.76%) roughly equals the promoters (36.5%). There are no DIIs and no sell-side coverage.

Five questions to ask before investing

Does Q2 FY27 show the promised "acceleration": active clients, new adds, cost-to-income below 80% excluding capitalisation?
Who receives the ₹121.57 Cr Giskard cash, does any seller link to the IIFL group, and what are Trendlyne's profits?
Is the AY23-24 ₹21.85 Cr demand subsumed in the ₹33.02 Cr block order, and will any amount be provided?
Who replaces the CTO, and what remediation answers NSE's QSB "systemic weaknesses" warning?
What are Fairfax's intentions for its 32.76%, and will any FY27 RPT headroom (ICDs given) be used?

Monitorables

Metric	Latest	Positive signal	Negative signal
NSE active clients	3.31 lakh	>3.5 lakh	<3.0 lakh
Cost-to-income (CRISIL)	81%	<70%	>85%
Quarterly PAT	₹11.6 Cr	>₹15 Cr ex-capitalisation	<₹10 Cr
Avg funding book	₹422 Cr	>₹600 Cr	Stalls
Market share	0.63%	≥0.75%	Rating action
Fairfax holding	32.76%	Stable	Block sale

Final opinion: 5paisa is a well-capitalised but structurally shrinking, sub-scale broker with a weak control environment. It trades at 36.8x earnings for a 5–7% return on equity. The promoter cheque and the book value are real, but so are the share loss, the exits and the tax overhang. Negative at ₹347. Risk/reward balances only near book (~₹240–300) or after two quarters of delivered recovery, starting with Q2 FY27 on 15 Oct 2026.

Sources

All accessed 13 Oct 2026. Merged and de-duplicated from the financials, business, governance, narrative, market, street-sentiment and AR gap-fill inputs. Limitations: the BSE PDFs returned 403, NSE archives timed out, and Reddit, X and Google Play could not be fetched. This synthesis did not re-search or grep the AR; figures were taken from the input modules.

Company filings and annual report

Annual Report FY2025-26 (Directors' Report, CG Report, MR-3, auditor's report, Notes 4, 6, 14–16, 21–25, 30–35, 42; BRSR)

Q1 FY27 results, limited review, Reg 52(4) (16 Jul 2026)

Q1 FY27 revised press release and investor presentation (17 Jul 2026)

FY26 audited results, board outcome (30 Apr 2026)

CRISIL rating intimation (26 Aug 2026)

Shareholding pattern Jun-2026

AGM Notice FY26 · 19th AGM voting results · AGM proceedings

Annual Secretarial Compliance Report FY26

Postal ballot notice (28 Jul 2026) · Board outcome 28 Jul 2026 · Revised outcome 29 Jul 2026 (NSE) · NSE outcome 28 Jul

Postal ballot scrutinizer report · Corrigendum (21 Aug 2026) · Preferential issue update (9 Oct 2026)

CTO resignation (30 Sep 2026) · Head–Investing Product resignation · CS appointment · CCO resignation · CS resignation (13 Apr 2026)