5Paisa Shares Gain On Technical Bounce, Backed By Strong Client Additions In Q2

5Paisa Capital’s stock rose nearly 20% intraday on Friday before paring its gains in afternoon trade, even as the company reported a sharp drop in quarterly profit and revenue. However, strong customer addition in Q2 and robust app downloads appeared to be boosting investors' sentiment.

Earnings Review

5Paisa Capital’s business showed signs of slowing in the recent quarter amid volatility in financial markets. The company’s revenue for the quarter decreased 23.4% on a year-on-year (YoY) basis to ₹77.17 crore, while net profit dipped 57% to ₹9.48 crore from ₹21.90 crore in the same quarter last year. 

Profit from operations also dipped with EBITDA declining 40% to ₹22.96 crore and margins also contracting to 29.8% from 38.2% in the year-ago period.

However, the company still added 95,000 new customers in the quarter, taking the total number of registrations to 5.01 million. Its mobile app has been installed over 22.7 million times and has a good rating of 4.2 on Google Play.

Managing Director and CEO Gaurav Seth said the quarter remained volatile, with foreign investor selling pressure offset by steady domestic inflows, reflecting the mixed tone across India’s capital markets. 

He added that the firm’s Margin Trading Facility (MTF), including the new “Pay-Later” feature and broader security coverage, helped grow the client funding book to ₹364 crore.

Technical View

SEBI-registered analyst Varunkumar Patel said 5Paisa’s rally looked more like a technical bounce than a sustained uptrend.

He observed that the stock is below its 20-day exponential moving average (EMA) and 50-day EMA, indicating resistance on the higher side. The stock has support around ₹349, and if it breaks down, it could move towards ₹336–₹340. 

On the other hand, if the stock breaks above ₹400–₹413, it can move towards higher levels.

Patel added that while momentum indicators such as the Relative Strength Index (RSI) don’t show overbought conditions, the rally will need volume confirmation to sustain.

He recommended that investors accumulate stocks selectively, with a stop-loss at ₹345–₹350, and noted that if the market surpasses ₹410, it could signal the beginning of a trend reversal.

Outlook

Patel said 5Paisa remains a range-bound stock with short-term upside capped unless its fundamentals improve. Traders should track volume patterns, client growth metrics, and fintech sector trends for directional cues.

What Is The Retail Mood?

On Stocktwits, retail sentiment was ‘bullish’ amid ‘normal’ message volume.

5Paisa’s stock has declined 28% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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