5Paisa Capital Ltd

NSE:5PAISA

Q1-2026 Earnings Call

[Operator]

Good morning, ladies and gentlemen. I'm Felicia, moderator for the conference call. Welcome to 5paisa Capital Limited Q1 FY '26 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. [Operator Instructions]

Please note that this conference is being recorded. I would now like to hand over the floor to Mr. Gaurav Seth. Thank you, and over to you, sir.

[Gaurav Seth, executive]

Thank you. All right. Good morning, everyone. Welcome to the quarter 1 FY '26 earnings call. I'll just say a few words, kind of note how this quarter has been. So in Q1 FY '26 for us began on a strong note and in general for the broking industry as well. Easing global uncertainties and strengthening domestic economic indicators led to a notable improvement in investor sentiment.

During this quarter, both Nifty and Sensex indices recorded a significant recovery, rising about 16% from their recent lows. And additionally, turnover in the retail F&O segment at the exchange level improved by 10% as well quarter-on-quarter. Industry added 66.9 lakh new customers in this quarter, taking the total number of demat accounts in the country to over 19.85 crores.

Now specifically for 5paisa, we continue to invest in product and tech to enhance our customer experience. Focus remains delivering best-in-class solutions while acquiring high-quality customers to ensure a healthy lifetime value and sustainable payback period. In Q1 FY '26, we acquired 80,000 new customers, a 12% quarter-on-quarter decline, reflecting the broader industry trend. Our total customer base now stands at 49.1 lakhs.

Our ADTO or average daily turnover grew to INR 2.25 trillion, marking a robust 17% quarter-on-quarter growth. Our average client funding book reached INR 312 crores, which is a 20% improvement or 20% addition over the last quarter. And our mutual fund AUM surged to INR 1,573 crores, which is again, a 13% growth quarter-on-quarter.

Driven by positive market conditions and our focused execution, our total income grew to INR 77.8 crores, which is 9% quarter-on-quarter growth. The rise in expenses during the quarter was variable in nature and aligned with revenue growth. So our profit after tax, PAT for Q1 FY '26 stood at INR 11.5 crores, which registered a 15% quarter-on-quarter -- on a quarter-on-quarter basis. As of June 30, 2025, our net worth stood at INR 616 crores.

Now specifically on the product and tech side, in Q1 FY '26, we remain sharply focused on product-led innovation to enhance trading experiences and deepen customer experience. This quarter was marked by several initiatives, which were aimed at empowering traders and enabling smarter investor decisions. Key highlights included the launch of an option strategy builder, which equips F&O traders with ready-made customizable strategies with advanced analytics, enabling smarter and faster trading.

We introduced a reimagined version of MTF, which is margin trading facility called Pay Later, which allows investors to purchase stocks by paying only part of the value -- total value upfront with the broker funding the remainder. The mutual fund web journey was also enhanced with a more modern UI/UX experience, enhancing discoverability and making investing simpler and more intuitive.

Additionally, the launch of IPO Guest Journey allows non-5paisa users to apply for IPOs during -- using the existing demat accounts, expanding our acquisition funnel and boosting lead conversions, enhancing brand visibility during our IPO cycles. Specifically on tech and infra -- tech and infrastructure, we have reduced our order placement latency, significantly boosting execution, speed and platform reliability.

In line with our vision of adopting AI for the benefit of investors, we've introduced a couple of AI-powered features like live news, Xstream API assistance to support real-time decision-making and streamline developer onboarding. A major milestone was the launch of 5paisa MCP, which is based on the Model Context Portfolio on the using Claude AI Assistant, which is essentially an AI trading companion. So you could connect it to your broking account and execute trades, do whatever you can while using an app. So it's basically an assistant.

You can think of as an AI assistant connected to your broking account. So it gives you all that execution capabilities as well as deeper analysis on your portfolio and as well as all the other aspects of an AI assistant like figuring out how my portfolio is doing with respect to the market and so on and so forth.

We are also very excited about launching TradeBetter, which is our community-driven platform, specifically aimed at our -- both our investor and trader community to come and interact with our product managers and 5paisa employees in general to ask questions about anything related to our product and the market in general. We remain committed to delivering new innovations and continue to strengthen both our product and tech stack as well as sharply use AI to enhance customer experience.

With that, I conclude my opening remarks and open the floor for any questions.

[Operator]

[Operator Instructions] The first question comes from Meet Mehta from SGSITS.

[Meet Mehta, analyst]

So sir, basically, what marketing initiatives are you taking for newer client acquisitions? And how do you sort of acquire newer clients in the near future?

[Gaurav Seth, executive]

So marketing for us is an ongoing activity as an investment. Typically, we follow the entire stack. There is marketing through digital means, which is performance marketing as well as we continue to build our brand and using organic initiatives, right? So brand name and brand-related marketing as well.

We also do content-led marketing, et cetera, right, which provides information to a lot of prospects out there about markets, et cetera, and that's also an acquisition channel. In general, going forward and present, I can't -- there's no specific plan as such to change tracks. I think -- but we do calibrate the marketing strategy as well as how much investment we do in it from time to time based on what our strategic goals are, right?

When is it that you want to actually grow the market, whether the macros and fundamentals are in place where it is supportive of customer acquisition and so on and so forth. So I hope I answered your question. So we acquired through performance marketing, we acquired through organic initiatives, et cetera, et cetera, as the usual marketing stack.

[Meet Mehta, analyst]

So next, are we seeing any moderation in investing activities due to these macroeconomic events and geopolitical tensions? And are we seeing the growth coming back? Or -- and next, how do you sort to also cross-sell other means by increasing the revenue by cross-selling the insurance and other things which your peers are doing? Or you want to stick to only trading and investing kind of activities?

[Gaurav Seth, executive]

Okay. So part one of your question, are we seeing a moderation? I think with respect to where the market was last year, versus where it is today, not specifically about this quarter or the earlier quarter. There is some -- there we've seen some moderation because the markets were at a frenzy last year and compared to that, there is moderation.

But there is still a healthy addition of clients, who are opening demat accounts. There's still a lot of people very, very interested in investing in trading. Obviously, the macro environment is because of geopolitical uncertainty and what has happened earlier this year across the world has some sort of an impact, right, temporary impact. But if you see the markets overall, I think they have come back in a very positive way.

Going forward, obviously, I can't comment and nor do I know the answer, right, how the markets will be. But yes, compared to last year, there was some moderation in the activity. Now second part of your question was, do you want to cross-sell like insurance and the answer is no. At least in the short term, we don't have any plans to do third-party products. We want -- I think there is a lot to focus on in this segment itself and to be the best player in investing and trading, and that's what our strategic focus is.

[Meet Mehta, analyst]

So coming back to the Jane Street and the news came up and also news came up about SEBI curbing the F&O by linking your positions, cash positions to F&O. So do we see that impact coming in the coming years or kind of any impact that will be there on your F&O turnover and so on?

[Gaurav Seth, executive]

Sure. So see, again, all of this really started where SEBI took -- and I think the regulator knows best and they do the right things. So this all started last year, right, with the publishing of the report as well as some of the measures that were taken, and they did have a material impact across the industry, right? So the volumes fell earlier this year for not just us, but for all of our peers and broking industry in general.

But you also see their volumes then coming back again. Now what the regulator will do in the next couple of weeks or months or whenever they come up with maybe some additional measures, I don't know. I can't comment on it. But what we have seen typically is that retail investors provide not just the big ones, but the retail investors of today, there is a different breed. They want to build wealth. They want to learn, and they are a critical part of like capital markets and broadening and deepening of our capital markets in terms of providing liquidity. So yes, there could be a short-term impact, which I can't speculate on. But usually, if history is any guide, I think these things come back to normal over a period of time with adjustments.

[Meet Mehta, analyst]

Okay. And last question about your AI assistant platform. So basically, it is an algorithmic trading platform that you only have to kind of write your code and means select your strategy and it will execute on your behalf or it is that it will manage your portfolio or it will guide you that what you are doing wrong in basis of your performance with the indices or what kind of platform is it?

[Gaurav Seth, executive]

Yes. So the 5paisa MCP is specifically an AI assistant. It is not an algo trading platform. What it does is that there is a setup that you can do. Once you have done -- there are a few steps you have to do. And once you have done that setup, it uses the MCP protocol, which is model context portfolio, connects to Claude AI. Claude is one of the AI providers or AI assistant providers. I mean I think everybody knows it as like a ChatGPT. And it connects it to your -- so let's say you have a broking account with 5paisa and you do the initial setup, it will connect to your broking account.

And whatever you can do in your broking account today, you can do via chat, right, via the AI assistant. So you could say, buy 2 shares of 5paisa, right? And it will go and execute that. Analyze my portfolio, it will give you an analysis of your existing positions. It would also suggest you strategies. It really depends on the prompts that you give you. So it's like -- it's an AI assistant as well as it has the capability to integrate with your trading account, and you can basically use that to do whatever you want to do with your trading app. It is not an algo trading platform.

[Meet Mehta, analyst]

So basically, it will connect with your broking account and it will give you the answer based on your prompts. So basically, are you willing to -- means your moat, I think, is that you provide the best solution for traders. So are you willing to go in the algo trading -- also building kind of algo trading platform? And how do you kind of help traders who are coming newer to the market? So is that a plan in future? Or it will only remain the AI assistant that you are talking about?

[Gaurav Seth, executive]

Yes. So I think there are 2 different things. So the AI assistant itself is a channel for people who are excited about AI and understand the power of AI to be able to use AI assistance for their benefit. So that's something that we have given to our customers, and we will continue to build on functionality and features on top of it.

On the algo front, we've seen a lot of interest. So we are in the midst of actually building something, which we will launch in the next couple of months on the algo side, and that would be -- that is, to your point, would be something where customers can use algos and do not necessarily write algos. I mean there will be -- it will cater to different spectrum of customers, people who can write their own algos, we will simplify it for them. People who want to use out-of-the-box algos and people who want to use algos from trusted providers. So this is the strategy that we have -- that we are working on.

[Meet Mehta, analyst]

So to understand what is the mix of customers? Basically, more customers are using your trading part or they are also investing. So that is the first. And second one, that are you doing something on fundamental research or you are empowering the customers with the fundamentally strong companies or kind of such a research or what sort of customer mix you are seeing in your platform?

[Gaurav Seth, executive]

No. So the -- yes, I mean, I think Gourav can answer the question of like the split, our CFO. Gaurav, why don't you take this?

[Gourav Munjal, executive]

Sir, actually, I mean, to be honest, we can't share this kind of data because it is internal statistical data. I mean, how many are using for algo traders and all. Regarding second question, you can take.

[Gaurav Seth, executive]

Yes. So second question, I think it was like how are you empowering your users, right?

[Meet Mehta, analyst]

Yes, on a basis of fundamentals of the companies because you see a market has so much dynamic and retail public do not know much about fundamentals and all. So how are you kind of empowering them from -- going from your trading journey to kind of build a long-term wealth through investing and by selecting strong fundamentally rich companies so that they can build long-term wealth?

[Gaurav Seth, executive]

Yes. So I think on the first part, like also the data that you asked for, but in general, like this is all linked, right, a lot. It's not that people only trade. There are people who -- there are -- there is a percentage of people who only trade, but a lot of people are actually linked. So they have mutual funds, they have equity investments and they also do F&O trading, right? There is a mix and match of the people.

So we have mutual funds -- direct mutual funds on our platform and almost the entire universe of it. And we have seen that AUM grow year-on-year. So that is one thing which shows robust that people are not just trading, they're also investing. So that is one.

On the second part, like we do have analysts who we have as part of 5paisa, and they provide calls both intraday, which is obviously not fundamental calls, but -- and also certain stocks, which might result in -- which could be good buys in the near term. However, we do not have -- which has not been our strategy so far to have a large research team because we are more tech first, and we want to focus on that and doing analysis on fundamental aspects of stocks and recommending things for the long run. But yes, I mean, we do consider from time to time in partnering with the right analysts in the market and start giving -- providing that research. I mean, currently, we don't do that.

[Operator]

The next question comes from Jaiprakash Kumhar from Korman Capital.

[Jaiprakash Kumhar, analyst]

I'm a bit new to the company. So pardon if I ask some basic questions. So first question is on cash on books, right? Can you hear me?

[Gaurav Seth, executive]

Yes, yes. Please go on.

[Jaiprakash Kumhar, analyst]

Yes. So cash on books is, I think as per the last balance sheet was like INR 1,300 crores. So I just want to understand how much is available for investors and how much it is like encumbered to the clients or anything which you are using, if you can throw some light on that?

[Gaurav Seth, executive]

Yes. I think, Gourav, you should take that.

[Gourav Munjal, executive]

Yes. So our approximately cash and FD balance, you can see approximately INR 1,400 crores, which consists of INR 500 crores is ours and the rest INR 800 crores to INR 900 crores of the client funds.

[Jaiprakash Kumhar, analyst]

Okay. Understood. Just next question is a little bit midterm. I just want to understand how do you see yourselves in next 3, 4 years because a lot of brokers, right, they are trying to become wealth manager and maybe become distributor of the wealth management products. So what is your strategy and where your market investors are?

[Gaurav Seth, executive]

So I think our overall strategy is to build -- continue to build trust in the market. I think this -- the financial services market, especially if you have been in the business for some time and with the pedigree that we have, we've been one of the first earliest discount brokers in the industry before everyone else.

We want to continue to build on that legacy. We want to be tech first, which we are, but there's a lot of work and a lot of investment which is needed on an ongoing basis to remain competitive. So our investments will be on product and our investments will be on user experience and our investments will be on continuously upgrading our tech stack, specifically to provide the best experience to F&O traders, investors and obviously, equity investors, both on the mutual fund side as well as people who are buying and selling stocks as well, right?

We believe that there is a lot to do and there is a lot of growth in the market. I think we are very early stages in our Indian capital markets journey. And so to answer your question, yes, I mean, at this point in time, we are not looking to get into wealth or any such related trajectory. We think there's a lot to do in this space as well and being the best top 3, top 5 player in the industry in the next few years.

[Jaiprakash Kumhar, analyst]

And like if you can give a little bit of mix of your existing clients like where they are from Tier 1, Tier 2, Tier 3 and what is the new client addition which you are doing like incrementally, where is it coming from?

[Gaurav Seth, executive]

Yes. So Gourav, would you have between -- split between Tier 1 and beyond 30 cities in general, some kind of a split or...

[Gourav Munjal, executive]

So approximately, I mean, on the basis on address side, more than 75% to 80% is on from the Tier 2, Tier 3 city. But again, I mean, in India, there is -- many questions have coming up that the people have address of their hometown, but they are staying in Bangalore or some in metro cities. So I mean -- but on the basis of address, I can say that the split is 75%, 25%. 75% is from Tier 2, Tier 3 and from Tier 1, it is 25%.

[Operator]

[Operator Instructions] The next question comes from Kajal Gandhi from ICICI Securities.

[Kajal Gandhi, analyst]

One question on -- we show 49 lakh customers and our app downloads are like 22 million. So are we -- so these are just registering for looking at the app? Or are we doing some cross-sell to them? How are we approaching this segment? One was that. And second was if we can discuss on how will be our split on expiry day volume and non-expiry days per ADTO that we are giving, if it has to be split in that because if at all, if likely one expiry has to happen, what can be quantified impact? These are my 2 questions.

[Gaurav Seth, executive]

Okay. So first question, I think, was that your 49 lakh clients and what are you doing with them? What -- are you cross-selling to them? Is that right?

[Kajal Gandhi, analyst]

No, sir. App downloads that appear as 22 million, which is higher. So that segment of customer, how we are dealing? Or are we having any details about that?

[Gourav Munjal, executive]

So I guess, Kajal, many people download their app to check some information, to check some news. Not necessarily they have opened the account. Some people have 2 or 3 phones also. They have downloaded with a single PAN number. These kind of cases happen. But it's -- I mean, it's not like that we are specifically looking for a cross-sell to them.

[Gaurav Seth, executive]

So I think the number that you focused on -- should focus on is who's opening account because you can't cross-sell to anybody unless they open an account with us. So we focus on -- people would have downloaded app or they would have browsed or they would have known about, which is great because it broadens our funnel. But finally, the moment of truth for us is that who opens an account and then how do they use the platform, how do they transact and so on and so forth. So that number is 49 lakhs. And then obviously, beyond that, there is NSE active and et cetera, et cetera, et cetera.

[Kajal Gandhi, analyst]

Yes. And there was a second question.

[Gourav Munjal, executive]

Kajal, what was the second question, that ADTO on expiry?

[Kajal Gandhi, analyst]

Expiry days and non-expiry days. So broadly, what will be a ratio like 1:2, maybe if you want to share the number is good, if it is not. So on a normal day, it's 1, but on expiry days, 10x, 20x?

[Gourav Munjal, executive]

One, if the expiry number is 1, the normal day would be the 0.65 to 0.7. So expiry -- 30% to 40% more ADTO even in exchange ADTO and in ours ADTO also.

[Kajal Gandhi, analyst]

Okay. Okay. Sure. And do you think this recent news flow, I did hear somebody ask me this question at start, but fortnightly expiries, which are being talked about is a possibility and there will be some impact then?

[Gaurav Seth, executive]

So I can take that. Like first of all, yes, there has been talk about fortnightly expiry, but until the ruling or the order actually comes, no one can say anything. So I would not like to speculate. Second is, if it's something like this does come, if you look at an example from last year where a lot of major changes were done, right, in terms of like increasing the lot size, et cetera, et cetera, right, and changing the expiries as well. So it did have some impact, but again, it reverted to normal this year. So we can't -- again, hard to estimate impact. Yes, there could be some short-term impact possibly if something like this comes. But in the long run, we estimate that it should normalize.

[Operator]

[Operator Instructions] We have a follow-up question from Meet Mehta from SGSITS.

[Meet Mehta, analyst]

So sir, basically, I was seeing the client acquisition data. Despite the rebound in the market, we are not seeing any kind of client acquisition newer. So it means in the growth terms. So what kind of -- is -- are we not pushing aggressively to kind of acquire newer clients? Or what kind of -- are we seeing same kind of data similar in the industry? Or what kind -- what is the issue that we are not able to acquire newer clients?

[Gaurav Seth, executive]

So it is not that we are not able to acquire new clients. I think the metrics that we go by initially are not just the number of clients, what is the ARPU for us, right, ARPU and RPCs revenue per customer and the quality of the customer that is. So we are interested in quality acquisition. So we are doing calibrated acquisition.

So even though if you look at last 2 quarters, the acquisition of the quarter that has concluded is lower than the acquisition of the previous quarter, but the market share has increased. So it is the quality of the customer. Second is, in some cases, if you go very aggressive on performance marketing and digital acquisition, you can acquire higher numbers.

But what we also end up seeing is that some of those higher numbers do not necessarily translate into revenue and then as an extension of that margin and profit, right? So that is it. It's not that we are not acquiring. It is our own calibrated approach to acquire higher-quality customers. And then we continue to see the quality and the performance on the platform of how we're acquiring customers, what kind of customers we want to acquire and so on and so forth.

[Gourav Munjal, executive]

To add on this, I mean, sometimes intent is also important. So overall industry were acquiring 1.31 crore customers per quarter. Right now, the number is 66 lakhs, slashed by 50%. So intent is also matter because of many other factors. That's also the reason.

[Operator]

The next question comes from [ Mayank Khadiwala ] from Millennium Money Finance.

[Unknown Analyst]

I'm relatively new here, so my question might be basic, but there's been talk about pricing levers in this industry. Just wanted to get your thoughts on the same.

[Gaurav Seth, executive]

Pricing levers, I mean, you mean raising the prices, lowering the prices? What do you mean by that?

[Unknown Analyst]

Raising the prices. Raising the prices, that's usually what we have heard that there is potential to raise prices given volumes have gone lower and that the assumption is that the demand is fairly insensitive to pricing. So just ballpark, I wanted to understand your thoughts around all of this.

[Gaurav Seth, executive]

Yes. So everyone has a -- there is no consensus in the market, so to say, right? And there cannot be a consensus in a competitive market, like players are free to figure out their own independent strategies and go with it. And as far as we are concerned, we don't have free stuff. I mean, generally, our equity delivery is also chargeable.

So we have reasonable pricing because we think we provide value. Some of the other players in the market might have, let's say, certain aspects or specifically equity delivery free. There has been speculation. There has been some chatter around social media, some of the larger players saying that, look, we might consider raising the pricing. But again, as with anything like again, like what SEBI will do, we don't know what the larger industry will come around and do.

Specifically, our belief is that if you provide the best-in-class experience and a lot of reliability, at least on a platform where people know that, look, we are getting what we want, et cetera this whole brokerage issue on brokerage pricing becomes -- I would not say immaterial, but it is not a very big lever. So we continue to charge. I don't know how others will think about it. Perhaps they might also come around and start charging for stuff which they are not charging.

[Unknown Analyst]

Understood. Sorry, if I can follow up, what is our current pricing on the options, futures trades and all of that?

[Gaurav Seth, executive]

So it is INR 20.

[Unknown Analyst]

Which is standard with most of the other brokers.

[Gaurav Seth, executive]

Yes.

[Unknown Analyst]

And specifically to this, do you think that if the market -- if some of the other brokers were to raise this, that could it have any regulatory implications? Could it have any demand implications or competitive implications? Or do you think that pricing would largely be insensitive if this INR 20 is increased to INR 25 or INR 30 at any point in time?

[Gaurav Seth, executive]

Yes, you mean demand -- the elasticity of demand with respect to pricing, right?

[Unknown Analyst]

Yes, specifically in this segment?

[Gaurav Seth, executive]

Yes. So I don't think there is any regulatory -- I mean the regulators are not asking anyone to do anything on the pricing front. As I said, right, it's a competitive open market. People can charge INR 100 also if they think they have value if they provide enough value, so to say, right? I mean some of the bank-based brokers, they charge higher, right, because they provide a bouquet of services that others may not be. So -- but elasticity of demand with respect to pricing, my personal view is I've been.

[Unknown Analyst]

What competitive scenario as and if one person raises from INR 20 to INR 30 and another one keeps it at INR 20, does it make any difference?

[Gaurav Seth, executive]

Hard to say, but I think...

[Unknown Analyst]

Would you gain or lose by keeping it at either INR 20 or INR 30 from a competitive standpoint?

[Gaurav Seth, executive]

Okay. So I think the way that I would address your question is that if -- as far as the serious people on any platform are concerned, unless the pricing goes drastically changes on the upside, it typically does not matter, right, because they value other things like stability, reliability and nobody leaves for like INR 5. But there could be a bunch of customers who would believe that, look, there is more value to be had in another platform, which is lower. So yes, they might leave.

So finally, your -- we can't estimate whether someone raises the price, it will be good for us or not. Maybe they even raise the price, people still stick with them. You follow what I'm saying? I mean yes, there is enough -- and that -- the same methodology even applies to us for people who believe there is 5paisa adding value, even if you raise the prices, they will stick with us or newer customers will continue to come.

[Unknown Analyst]

Got it. Sir, if I could just ask one more question, just a very basic one because I'm not tracked this company before. Of your brokerage income, what percentage comes from cash trades versus derivative trades?

[Gaurav Seth, executive]

Gourav, do you want to take that?

[Gourav Munjal, executive]

Yes. So it's 80-20, 80% is for derivative and 20% is in the cash segment. It is in the line with most of the other discount brokers.

[Unknown Analyst]

Most of the other discount brokers. Okay. Got it. Got it. And are there still any revenue streams that some of the other discount brokers might be pulling in that we still don't have like MTF or something? I'm just trying to understand, are there any revenue gaps that we can still plug?

[Gourav Munjal, executive]

In terms of broking, we don't have -- we also provide MTF facility. We also, I mean, have DP and everything. But if other one is doing cross-selling, I mean, outside the broking income, then we are not going into that as earlier sir mentioned. But in terms of broking segment, we are doing everything.

[Operator]

The next question comes from [indiscernible], an individual investor.

[Unknown Attendee]

Am I audible?

[Gaurav Seth, executive]

Yes, yes. Please go ahead.

[Unknown Attendee]

Yes, sir. So I just want to understand regarding your strategic direction and the focus that you are giving for the business. Because as you would also realize for the past 5 years, capital market participation has been at an all-time high, but our client acquisition has comparatively gone down as much as -- I mean, from what it used to be before. So the general question is, why is it that we are not focusing more on the client acquisition part? Yes, you're saying that you want quality clients. But while I understand we have a technologically superior platform, right? I mean you are providing AI integration and a lot of other things. But how will customers even come to know about that platform if you're not marketing aggressively? Should the focus not be to increase the number of people who come in so that there's more stickiness and more people who stay with the platform rather than just getting quality clients?

[Gaurav Seth, executive]

Yes. No, that's a great question. So I think you have to do both, as I think I was answering a related question earlier, right? So as far as focus is concerned, it is squarely on tech for investors and traders or traders and investors. I think we are in -- I think from our company perspective, we are in a sort of a massive product plus tech upgrade cycle. And we would like that to be concluded, although it is never concluded in this industry because we have to continually invest and then start to go more aggressive on client acquisition. And that's -- I'm telling you as is. I mean right now, we are doing more calibrated acquisition.

We will be mindful of our cost as well. Obviously, we are here and we all realize that we are a publicly listed company. And we are mindful of both revenue as well as cost and the profits that we make, right? So I think we get the best ROI when this product and tech upgrade cycle is complete. And that's where when we -- depending on macro factors, will significantly accelerate acquisition.

[Unknown Attendee]

Got it, sir. Like is there any estimated time line, maybe 2 years, 3 years? Or like when do you expect the major part of this tech upgrade to conclude so that you focus more on the marketing part?

[Gaurav Seth, executive]

Yes. No, it's not that far out. It's, I would say, the next few quarters.

[Operator]

We have a follow-up question from Jaiprakash Kumhar from Korman Capital.

[Jaiprakash Kumhar, analyst]

So just a question on this cash you have about INR 1,400 crores, right? So you must be earning the interest income on that maybe, let's say, if I assume it to be 6%, maybe then INR 70-odd crores is the interest income. And last year's profit was INR 60 crores. So it means that all the profit is coming from just the cash you have and nothing is coming from the broking part?

[Gaurav Seth, executive]

Yes, Gourav, please take it.

[Gourav Munjal, executive]

When we see this consolidated figure, we should not -- I mean, we should not do a one-on-one because the cash component on which -- I mean, a broker enjoying the float is also part of a broking income. If hypothetically, tomorrow, SEBI says that you can't enjoy the float income, it would be difficult for every discount broker to go for a trade of INR 20 per order. Then the order may become INR 40 to INR 50 per order. My point is in mathematically, you are saying, yes, if you remove that income, so it will come -- there will be no profit. But interest income, the name is interest income, but it is allied to a main business, broking business. So we should see always it together.

[Jaiprakash Kumhar, analyst]

Yes. But maybe your own INR 500 crores, right, it should become part of other income, right? Because you said INR 500 crores is there. So that should at least show in other income, right, rather than allied...

[Gourav Munjal, executive]

So INR 500 crores, if you do -- typically, you get a 5% interest rate. So [ INR 500 crores at 5% ] would be INR 25 crores. So yes, you are right, INR 25 crores is our own interest income. But again, you need these funds, but there is costing associated to that also. You need to go for the bank guarantee, you need to do the ODFD for the regular payout purpose.

[Jaiprakash Kumhar, analyst]

No, I didn't understand the last part, sir, sorry.

[Gourav Munjal, executive]

So what I'm saying, there are income associated to that. I mean, if you're saying the INR 500 crores and you are getting interest on that. But there are also cost -- there are some cost is also associated to that because you don't keep own funds in exchange just in the FD. You take bank guarantee for the margin purpose. So there are some costs associated to that also.

[Operator]

[Operator Instructions] That would be the last question for the day. Now I hand over the floor to the management for closing comments.

[Gaurav Seth, executive]

Okay. Well, yes, if there are any follow-up questions, I think there is an e-mail, which is [email protected]. If you have any follow-up questions, please you can use that e-mail to ask. Thank you very much for your participation. Have a good day.

[Gourav Munjal, executive]

Have a good day. Thanks, everyone.

[Gaurav Seth, executive]

Thank you.

[Operator]

Ladies and gentlemen, this concludes your conference call for today. Thank you for your participation and for using Door Sabha's conference call service. You may disconnect your lines now. Thank you, and have a good day.