Welcome to 5paisa Capital Limited, Q3 FY 2026 earnings conference call. Please stay connected. Your conference will begin shortly.
Welcome to 5paisa Capital Limited, Q3 FY 2026 earnings conference call. Please stay connected. Your conference will begin shortly.
Your conference is being recorded.
Good afternoon, ladies and gentlemen. I'm Aadri, moderator for the conference call. Welcome to 5paisa Capital Limited, Q3 FY26 earnings conference call. We have with us today Mr. Gaurav Seth, MD and CEO, and Mr. Gourav Munjal, Whole Time Director and CFO, and Mr. Ameya Agnihotri, Whole Time Director and CTO from 5paisa Capital Limited. As a reminder, all participants will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during the conference call, please signal an operator by pressing star and then zero on your touch-tone telephone. Please note this conference is recorded. I would now like to hand over the floor to the management. Thank you, and over to you, sir.
Thank you. Hi, hello everyone, good afternoon. Welcome to our earnings call. So I'll get straight to it and start with the commentary for the last quarter. Q3 FY 2026 for us is a constructive quarter for investors with the Nifty and Sensex touching all-time highs, leading to improved sentiment across the broader market. And at the same time, domestic institutional investors continue to invest steadily, acting as a strong counterbalancing force in the market. During this quarter, we witnessed strong traction in retail participation. The retail exchange premium for F&O ADTO improved by 15% quarter-on-quarter as compared to Q2 and to INR 63,900 crores, while retail cash ADTO remained stable at 39.8 or close to INR 40,000 crores. Additionally, industry-wide MTF book continued to scale and crossed INR 1.1 lakh crores during the quarter, reflecting increased adoption of this product.
In Q3 FY26, we acquired 78,000 new customers, taking our total customer base to 5.08 million. We remained focused on improving the quality of customer acquisition with emphasis on higher first-year revenue, faster payback periods, and improved lifetime value. Operationally, our notional ADTO grew to 3.31 trillion, registering a robust growth of 24% quarter-on-quarter. Our average client funding book stood at 379 crores, which is up 4% quarter-on-quarter, while mutual fund AUM reached 1,868 crores, reflecting a healthy growth of 13% quarter-on-quarter. Speaking of our financial performance for Q3 FY26, broking revenue grew to 37.1 crores, which is a 7% QoQ or quarter-on-quarter increase. Allied income stood at 19.8 crores, which is up 2% quarter-on-quarter. Overall total revenue for the quarter was 79.4 crores, again representing a 3% quarter-on-quarter growth.
Employee benefit expenses rose by 9% over the last quarter, driven mainly by new talent additions and a one-time P&L hit of INR 62.2 lakhs, resulting from implementation of new labor laws effective 21st November 2025. Supported by optimization across other expense lines, our PAT for Q3 FY26 came in at INR 12.3 crores, reflecting a robust 30% quarter-on-quarter growth and a PAT margin of 16%. Our net worth stood at INR 639 crores as of December 31st, 2025. On product and technology front, we continue to focus on improving investing and trading efficiency, user experience, and platform depth. Several key enhancements rolled out during the quarter. We strengthened derivatives trading by enabling position grouping by underlying and expiry, allowing users to view and manage live position directly from the option chain, and introduced advanced candlestick pattern indicators on TradingView 5paisa.
These enhancements have made multi-level strategy management, risk assessment, and technical analysis faster and more intuitive. Further, features such as instant margin credit on stock selling and an expanded Pay Later MTF now covering over 1,500 stocks with higher limits up to 3 crores and lower interest rates have significantly improved MTF adoption. On the onboarding side, we enabled MTF activation from day zero and reduced friction through OCR-based data capture, penny drop verification, intelligent bank pre-fill, and a more reliable eSign flow. These improvements have resulted in lower drop-offs, higher success rates, and faster account activation. Collectively, these initiatives have further strengthened platform stability and scalability, monetization potential, and appeal to serious traders and investors. From a tech perspective, we enhanced trading performance by caching static data, thereby reducing API calls across both web and app platforms. Market feed APIs are optimized, reduced payload size by up to 50%.
We also improved the charting experience through faster load times, optimized data loading, and improving rendering performance. We remain committed to continuous innovation and to strengthening our product and technology stack with increasingly leveraging AI to enhance customer experience and management. With that, I conclude my opening remarks and would like to open the floor for any questions. Thank you.
Thank you, sir.
Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and one on your telephone keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and one again. The participants, if you have any questions, please press star and one on your telephone keypad.
Moderator, just to be sure, I mean, everyone is able to participate or ask questions? There is no problem in connecting to you, right?
No, sir, there is no issue, sir. 44 participants are connected.
Okay, great.
The participants, if you have any questions, please press star and one on your telephone keypad.
Moderator, we will wait for another two to three minutes, and then if there is no question, we can conclude.
Okay, sir. The participants, if you have any questions, please press star and one on your telephone keypad.
So I guess there are no questions, Moderator. We can conclude.
Okay, sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using Durbhash Conference Call Service. You may disconnect your lines now. Thank you and have a pleasant evening.