5paisa's profit flat as ₹33 cr tax notice clouds June quarter
Revenue rose 14% to ₹88.34 crore but net profit barely budged. The company also faces a ₹33.02 crore income tax demand and a pending SEBI licence review.
— 4 earlier stories on 5Paisa Capital Ltd. →What's new
- Q1 net profit flat at ₹11.57 cr despite 14% revenue growth to ₹88.34 cr.
- Income tax demand of ₹33.02 cr received in May 2026; company has appealed.
- Mehul Somaiya appointed company secretary and compliance officer.
Why this matters
The tax demand is nearly three times quarterly profit. Even with an appeal, it adds a layer of uncertainty to a stock already under SEBI's microscope over its investment-adviser licence. For a company valued at 37 times earnings, any earnings risk matters more.
What we're watching
- Outcome of the CIT(A) appeal on the ₹33 cr tax demand.
- SEBI's next move on the investment-adviser licence cancellation threat.
- Whether revenue growth accelerates enough to lift profits in coming quarters.
The full read
5paisa Capital reported ₹88.34 crore in Q1 revenue, up 14% from a year ago. Net profit was ₹11.57 crore — flat against last year's ₹11.55 crore. For a brokerage with a 37.5x P/E and a market cap of ₹1,658 crore, revenue growth that doesn't drop to the bottom line is a concern. The bigger news is the ₹33.02 crore income tax demand received in May, stemming from a January 2025 search. The company has appealed and is confident of a favourable order. But ₹33 crore is nearly three times the quarterly profit. Combined with SEBI's ongoing review of 5paisa's investment-adviser licence, the regulatory fog is thickening. The appointment of Mehul Somaiya as company secretary is routine.
Questions answered
- Why did net profit not grow despite higher revenue?
- Revenue rose 14% to ₹88.34 crore but net profit stayed flat at ₹11.57 crore, likely due to higher costs or provisions. The company didn't break out expense details.
- What is the ₹33 crore income tax demand about?
- The demand stems from a January 2025 search and relates to disallowance of expenses and inclusion of certain income. 5paisa has filed an appeal with the CIT(A) and says it expects a favourable order.
- How does the tax demand compare to 5paisa's earnings?
- The ₹33.02 crore demand is about 2.85 times the quarterly net profit of ₹11.57 crore, making it material even if ultimately resolved.
- Is 5paisa facing any other regulatory issues?
- Yes, SEBI is reviewing whether to cancel 5paisa's investment-adviser licence, a separate overhang flagged in our prior coverage.
- What does the new company secretary appointment mean?
- Mehul Somaiya replaces the previous CS; it is a routine governance change that does not signal any specific concern.
5Paisa Capital Ltd.
Latest quarter · Jun 2026
Leverage & growth
Story so far
All notes on 5PAISA →- 16 Jul 2026 · 7:30 PM IST 5paisa's profit flat as ₹33 cr tax notice clouds June quarter
- 1d ago 5paisa pivots to quality after capital raise; guided revenue lift lacks numbers
- 2d ago 5paisa's profit flat as regulatory overhang intensifies
- 33d ago 5paisa eyes preferential issue as SEBI reviews its licence
- 42d ago SEBI wants to know why 5paisa's investment-adviser license shouldn't be cancelled.