Quarterly revenue remained flat at INR1,025 crore despite a 15% quarter-on-quarter decline in broking volumes
Revenue stability achieved through higher order intensity and growth in wealth management business
Cost to Serve increased due to three factors: AI-related costs, higher compute costs from increased trading days, and a one-time technical issue costing INR10-13 crore on an expiry day
Cost to Grow decreased primarily due to absence of IPL branding costs which were present in previous quarter
Employee costs remained stable at INR169 crore for the quarter
Annual Cost to Grow budget ranges between INR400-500 crore, with flexibility based on market conditions
Operational Metrics and Business Updates
Margin Trade Funding (MTF) book growing at INR600-700 crore quarterly run rate
Implemented enhanced risk management policies for MTF after March quarter issues, including higher haircuts (up to 80% in some cases) and real-time stock approval list changes
No material one-off costs from MTF in Q2 despite market volatility
Cash market share stable at ~15%, derivatives market share at ~11%, while NSE active client market share exceeds 23-24%
Company expects market shares to converge toward active client share over long term as customers mature
Product Development and Launches
US stock trading in beta testing phase with positive early feedback
MF Prime product showing rapid growth but still small contribution
Fisdom acquisition integration completed, products being mainstreamed across platforms
915 power trading platform launched but not yet contributing materially to volumes or revenue
Company focusing on AI development with in-house stack to reduce per-token costs
Regulatory Environment
SEBI's CAS circular expected to normalize derivatives volumes once implemented
Both proposed CAS options (100% VWAP or weighted average) not expected to significantly impact derivatives segment
UPI MDR implementation still under discussion, with concerns about proposed INR300 cap being unaffordable
Company working with regulators on capital market-specific pricing for UPI transactions
Wealth Management Business
First-time disclosure of wealth AUM (amount not quantified)
More than 50% of customers use more than two products
Over 5% of customers use more than four products
Wealth management revenue reported under "Other Operating Income"
30 IPOs in Q2 including large offerings (SBI AMC, NSE) significantly contributed to other operating income
BSDA (Basic Services Demat Account) revenue also accrued based on new demat accounts added
Additional Data Points
MTF contributes slightly above 5% to cash turnover
Brokerage income per order: ~INR15-16 for cash, INR20 for equity derivatives and commodities
Revenue recognition: Cash - mix of order size and number of orders; Derivatives/Commodities - purely order-based
Quarterly Transacting Users (QTU) metric now preferred over broking transacting users
Loan Against Shares (LAS) product launched and showing good traction
Personal loan business growing gradually quarter-on-quarter
Management Commentary
Company maintains customer-first philosophy rather than competition-focused approach
Focus on becoming the primary platform for customers rather than pushing multiple products
AI investments focused on shipping faster, better quality products, and improving customer experience
Expect MTF book growth to continue due to underpenetration in both customer base and market share
