Good afternoon, ladies and gentlemen. I'm Akash, moderator for the conference call. Welcome to 5paisa Capital Limited Conference Call. We have with us today Mr. Gaurav Seth, MD and CEO, Mr. Gourav Munjal, Whole-time Director and CFO, and Mr. Ameya Agnihotri, Whole-time Director and CTO. As a reminder, all participants will be in listen-only mode, and there'll be an opportunity for you to ask questions after the presentation concludes. Should you need 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 being recorded. I would now like to hand over the floor to Mr. Gaurav Seth. Thank you, over to you, sir.
Okay. Thank you. Thank you. Hi. Thanks everyone for joining. Good afternoon. I'll take a few minutes to summarize our results and what we are up to and then open the floor for questions. Q4 FY 2026, we give you a quick summary. The capital markets in general have been quite volatile, as all of us know, in the past couple of months, specifically around the geopolitical developments, including the Iran war, and macroeconomics uncertainty as well. Of course, there has been quite an upheaval from the advent of AI both in the global markets and Indian markets as well. Both positive and negative.
Positive that, you know, there's a lot of potential in the technology, but negative in the sense that, you know, the impact on certain companies and certain sectors where information is asymmetric and not very clear, has impacted the valuation a lot of companies across the globe, including India. In general, Brent crude prices crossed $100 a barrel. I believe it's probably even more than that as we speak. Increasing inflationary pressures and led to weakening of rupee against the dollar. FIIs have been continuing to sell, leading to about 11% decline in indices.
However, this has been a trend that we've been witnessing, where it has a lot of local domestic institutions and MF retail money has been buying up the dip, and it highlights the strength of India's domestic investor base. There was, I mean, likely respected, some moderation on the retail participation in the markets. That moderated with DEMAT account additions slowing down to about 8.5 million, which if you compare with previous quarter, was down about 3%. Despite this, investing and trading activity generally remained strong. Exchange retail F&O premium, average daily turnover grew 22% quarter-on-quarter to INR 78,000 crore, while exchange retail cash ADTO grew 10% quarter-on-quarter to INR 43,974 crore.
From, from our company perspective, 5paisa, we remain focused on offering best-in-class solutions, continue to focus on high-quality acquisition, which means acquiring high-quality customers and increasing lifetime value. During the last quarter of the previous financial year, we improved on a lot of metrics, including our, you know, overall acquisition, organic base for organic acquisition, stronger brand campaigns and targeted engagement. We acquired 33% more customers as compared to the quarter before that. We acquired north of INR 1 lakh crore customers in the last quarter. There was also improvement in our overall cost-to-revenue and our CTR ratio, which is cost- to- revenue, from, you know, from a payback perspective. Our total customer base reached INR 51.8 lakh crore.
In Q4, our F&O premium ADTO growth grew to INR 1,336 crores, which is an increase of 22% quarter-on-quarter. Our average client funding book, which includes, you know, the regular T+ 5 margin product plus MPF, totaled up to INR 410 crores, which was again an increase of 8% quarter-on-quarter. Retail funded AUM stood at INR 1,761 crores, which is again 6% increase from a quarter-on-quarter perspective. Some part of mark-to-market impacted this number because the overall market went down. The AUM from a mark-to-market perspective also reduced. This number would have been higher.
On our financial metrics, the broking revenue grew to INR 41.8 crore in the quarter, which is a 13% increase relative to previous quarter. Allied income was up INR 20.7 crore, which is up 5%, and total revenue for the quarter was INR 85.5 crore, again 8% increase. Our employee costs increased due to hiring in product and tech, marketing, and AI teams. Other expenses also went up, mainly because of higher customer acquisition compared to last quarter. For this quarter, profit after tax, PAT, was INR 44.8 crore, and our net worth stood at INR 650 crore as of March 31st, 2026.
Well, I'll take a minute or a few minutes just to talk about, more importantly, what we have been investing in on the technology and product side. So from a product update perspective, you know, we launched several features to improve the trading experience of our customers. We've included tools like Scalper, Multi-Chart Setup, Strategy Builder, Options Screeners and Scan, which help users execute trades faster and track positions better. We also added position tracking on option chain. Grouping across indices. Further, we upgraded our API and partner ecosystem, Xstream and XTS with Greek data, 20 gap APIs and static IP support, which improved access and increased institutional participation.
On the investing side, Pay Later MTF became important monetization driver. We expanded our eligible stock universe from 700- 1,500 + stocks and increased AUMs per customer to INR 3 crore. We also improved mutual fund experience, launched an ETF Dashboard, introduced SEBI-compliant infrastructure, and reintroduced stock SIPs. Community features like trade pattern and trader stories are currently under development to support long-term user engagement. Specifically on the tech side, we significantly reduced order placement latency, improved execution speed and pro-platform reliability along with modernizing our backing systems. Some of the features that we introduced specifically on the tech infrastructure side was caching static data, reducing API across web and app platforms, and optimized market feed APIs with smaller payloads. We also made charting faster and improved load times.
These efforts together improved latency, improved execution reliability, and supported operational excellence at scale. We were one of the first to actually introduce 5paisa MCP, which is an AI trading companion linked to broking accounts. This happened in actually the previous two quarters. In last quarter we, you know, improved the product, where somebody could use an MCP server to connect to the broking account and almost execute, analyze, and execute anything that they would do on the app via chat window. There was one comment on the fundraise. We successfully completed our rights issue, which was oversubscribed, and total amount of money raised was INR 468 crores. There was a strong participation from promoters, existing, and new investors, reflecting confidence in our growth strategy.
Our net worth increased to more than INR 1,100 crores, further strengthening our balance sheet. This capital will be deployed to support business expansion, enhance market presence, and drive long-term growth. Lastly, we remain committed to driving innovation, strengthening our product and technology stack, and leveraging AI to enhance customer experience. With that, I conclude my opening remarks and welcome any questions. Thank you.
Thank you, sir. Ladies and gentlemen, we will now begin the question-and-answer session. The first question comes from the line of Mr. Harshit Singhania from RoboCapital. Please go ahead, sir.
Hello, am I audible?
Yes, sir.
Great. Yeah. Can you tell a bit about the utilization of the rights money which we have raised and, like, how we're gonna utilize it?
I understand your question. You're talking about the how we're going to use the capital, right?
Yeah.
Especially rights issue.
Okay.
Right issue.
Right issue, right. Okay. I believe we mentioned that in our draft prospectus also, letter of offer and rights issue. If you look at it'll be, we plan to deploy it in at a high level in three major areas. One is to support, you know, higher trading volumes as we anticipate higher growth, to support the margin extended to clients and then, you know, what we need to keep with the exchanges. That's number one. Second is to grow our MTF book. This is where we're seeing good growth. Third is overall, you know, core business expansion via, you know, better marketing, brand development, and lot of investment in product tech and AI. Those are the three major areas where we are looking to deploy capital.
Okay. Have we utilized some part of this fund as of now?
You know, actually we've been, yeah, Gourav, you can take that, like, specifically technically speaking. Yeah, go ahead.
Sure. We have already started, you know, we have increased our margin as per the prospectus. Right now our margin has been increased to 1.5x from our existing capacity.
Okay, great. Thank you so much, sir. That will be it from my side.
Thank you, sir. The next question comes from the line of Mr. Sudhanshu Yadav from Dalal Street Investment Journal . Please go ahead, sir.
Can you please give me some glimpse on 5paisa F&O and cash market shares? Lastly.
Sorry, what was?
Hello. Lastly, there was.
Yeah. Can you repeat your question, please?
[certainty] going on. What was the outcome of it? What is customer acquisition strategy for 5paisa?
Okay. Gourav, you wanna take that?
Regarding your first question that customer outcome of the company. Outcome of the company is simple. I mean, basically we have uploaded our result table financials as well as balance sheet, which shows that we have increased in revenue by 8%. Our profit is slightly declined because of the investment in tech investment as well as SR investment. Nothing major, I mean, unusual as outcome is there apart from the right issue, which we have already mentioned.
Second question, sir, was in respect of the customer acquisition strategy. Maybe you can take.
Yeah. Okay. I think the customer acquisition strategy for us is, you know.
One.
I have some queries. If this request, if people are not speaking can go on mute.
Yeah. From our perspective, an acquisition strategy is directly linked to what our overall company strategy is. That is something that we want to focus play of deepening where we are good at on in the trading stack, as well as growing our investing business, which is mutual funds and other products. Anyone who is looking to, let's say, whether it is a person who is a pro trader would look to come to us, to, you know, to carry out their trades or, you know, to improve their profitability or, do more and more deeper things with the stack. That is something that we are focused on.
On the other side, people who are specifically looking to build long-term wealth and not necessarily trade, for that we have other products like we have MTF, we have to a certain extent, you know, ETFs, mutual funds and some other products which are there in the pipeline. That's really our overall strategy to acquire customers in the future.
What about the market share? Please give some numbers.
Market share. We have approximately 2% market share on both F&O and cash.
Okay.
Okay. Thank you.
Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on the telephone keypad. I repeat, if you have any questions, please press star and one on the telephone keypad. Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. There are no further questions, sir. I hand over floor to the management for the closing comments.
Okay. I mean, Thank you. Thank you for attending. If you have any further questions I think, Gourav, what we can please provide the email ID that they can reach us.
Thank you, sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using Door Sabha's Conference Call Services. You may disconnect your lines now. Thank you and have a pleasant day.