Since the beginning of 2026, the Nifty Capital Market Index has gained around 14.2% even as the Nifty 50 declined around 7.4%. Even as capital market stocks have done well, there’s one particular stock that stands out as perhaps what could be called a favourite of the foreign institutional investors (FIIs).
Why do we say that?
This one stock is the only one that attracted serious FII interest.
Moreover, apart from the FIIs who increased their stake in the company, the promoters too their stake significantly during the period.
This is a rare sight when both institutional investors and promoters are increasing their stake in a company simultaneously, defying the overall market sentiments.
Wondering which stock we are talking about?
It is neither Angel One nor Groww. It’s 5paisa Capital Limited.
FIIs increased their stake in 5paisa by 2.7% points, taking the total holding to 15.1%, and promoters raised their stake by 3.72% points, taking the total holding to 36.5% as of 20 April 2026.
The promoters bought new shares via a rights issue during April 2026, while FIIs bought the stake from the open market only.
In this editorial, we will try to find out the rationale behind both FIIs’ and promoters’ moves.
5Paisa Capital Limited: Digital-First Brokerage House with 51 lakh Users
5Paisa Capital Ltd. is a discount broker offering different investment products and services such as stock trading, derivatives trading, commodity trading, mutual funds, call & trade facility, a wide range of trading platforms, which include web-based terminals, and mobile applications for trading and investments.
It has a current customer base of 51.8 lakh as of Q4FY26, which has increased by 2% compared to Q3FY26.
The number of app users of the brokerage house also increased by 2% QoQ to 234 lakhs at the end of the quarter.
The continuous surge in users has perhaps been a result of continuous innovation and enhancement of the products and solutions offered by the brokerage house. For instance, only within the first three months of 2026, the company introduced an array of products such as Pay later facility, Mutual fund dashboard, revamped ETFs trading and investment facility, Scalper, and others.
Generating an Average Daily Turnover of ₹3.4 Trillion
5paisa Capital has been witnessing a continuous surge in its average daily turnover (ADT). If you look at Q4FY25 data, ADT stood at ₹1.93 trillion, which has surged to a whopping ₹3.4 trillion in Q4FY26, logging a massive 78% YoY growth.
Coming to the total orders executed by the brokerage house, during Q4FY26, the number stood at 263 lakhs, up from 218 lakhs in the corresponding quarter last fiscal.
Digital Push – 96.6% DIY Acquisition
5paisa Capital has been a tech-first or digital-first brokerage house since its inception, and now it is transforming further with artificial intelligence (AI).
The company has transformed the entire software development process with AI, making it quick and reliable. Now they are introducing new products faster, which is another reason behind the growing customer base.
This is evident with the increasing number of customers acquired via digital platforms of the company. Around 96.6% of the users acquired during the Q4FY26 came via DIY acquisition, which means they didn’t take any physical or digital form from the executives of the company. This number stood at 86.4% in Q4FY25, which indicates the ease of the 5Paisa capital offer when it comes to account opening and using their platforms.
A Massive MTF Book of ₹36,666 Lakhs
With the rising number of Demat accounts across the country and increasing ADT across the derivatives segment, Margin Trading Facility (MTF) has become a crucial metric to understand the performance of any capital market player.
In the case of 5paisa Capital, the average MTF book size increased from ₹27,530 lakh in Q1FY26to ₹36,660 lakh in Q4FY26.
FIIs & Promoters Raising Stakes Despite Negative Growth
While the number of users and customers increased, average daily trades increased during the fiscal year, but the overall income dropped from ₹360 crore in FY25 to ₹320 crore in FY26, declining by 11.2% YoY.
Similarly, the net profit declined from ₹68 crore to ₹44 crore during the same period, slowing down by a massive 35.2%.
If you look at the revenue mix, then broking income declined from ₹171 crore to ₹149 crore, while allied broking income dropped from ₹88.6 crore to ₹78.3 crore, and other operating income declined from ₹99.8 crore to ₹92.3 crore.
So, FIIs and promoters raising their stakes despite the negative sales and profit growth perhaps indicate the long-term growth of the company and the continuously growing capital market in the country.
Talking about the long-term performance, the company has generated a 5-year compounded sales growth of 10% and a compounded profit growth of 25% during the period.
Talking about returns, the 5-year average return on equity (ROE) stood at 9%. However, the latest ROE is 7.1%, a bit lower than the industry median of 12.5%.
Still Trading at a Premium?
The stock is trading at a price/earnings of 35.5x while the industry median is 20.8x, and the price/earnings to growth ratio (PEG) is at a whopping 75.6x, way above the industry median of just 0.63x, indicating that the stock is overpriced at the current price level.
1-Year Share Price Chart of 5Paisa Capital Ltd.
Final thoughts
FIIs and promoters increasing their stake in this capital market stock is quite interesting, especially when they are mostly dumping other stocks from the sector. It is further interesting as the company witnessed negative sales and profit growth during FY26. Usually, an increase in stake by both FIIs and promoters signals strong potential of a business, and this is perhaps the long-term potential that these big investors are looking at over the short-term slowdown.
However, only time could tell whether the company can turn its growing customer base into growing sales and generate profit from that, or not, and to keep an eye on the same, you need to add this stock to your watchlist today.
We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
Maumita Mitra is a seasoned writer specializing in demystifying the world of investment for a broad audience. She has a keen eye for detail and a knack for explaining complex financial concepts in the simplest manner possible.
Disclosure: The writer and her dependents do not hold the stocks discussed in this article. The website managers, their employees (s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities, or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources, and only after consulting such independent advisors as may be necessary.