Financial Performance Highlights

Q2 FY27 Performance (Quarter Ended September 30, 2026)

  • Revenue from operations: ₹2,732 million, representing 20% year-on-year growth
  • Profit After Tax (PAT): ₹419 million, representing 50% year-on-year growth
  • PAT margin: 15%

H1 FY27 Performance (Half Year Ended September 30, 2026)

  • Revenue from operations: ₹5,193 million, representing 21% year-on-year growth
  • PAT before exceptional items: ₹810 million, representing 60% year-on-year growth
  • PAT after exceptional items: ₹653 million, representing 29% year-on-year growth

Business Segment Performance

Broking and Related Services

  • Q2 FY27 revenue: ₹1,551 million (34% YoY growth from ₹1,158 million in Q2 FY26)
  • H1 FY27 revenue: ₹2,831 million (25% YoY growth from ₹2,267 million in H1 FY26)
  • Equity cash segment contributed 52% of broking revenues in both quarter and half year
  • Digital platform contributed 36% of brokerage income in H1 FY27

Non-Broking Businesses

Margin Trading Facility (MTF):

  • Q2 FY27 interest income: ₹496 million (36% YoY growth)
  • H1 FY27 interest income: ₹924 million (43% YoY growth)
  • MTF book value as of September 30, 2026: ₹1,499 crores (38% YoY growth)
  • MTF Net Interest Margin (NIM): 4.5%
  • Borrowing cost: ~9.5%
  • Zero NPA in MTF book over 8 years of operation
  • Average book size per customer: below ₹17 lakhs

Distribution Business:

  • Q2 FY27 distribution income: ₹327 million
  • H1 FY27 distribution income: ₹603 million
  • Assets Under Management (AUM): ₹99,990 million (29% YoY growth)
  • Assets Under Custody: ₹1.15 trillion (13% YoY growth)

Operational Metrics

Client Base

  • Total clients: Approximately 10.5 lakhs as of September 2026
  • 55% of clients associated for more than 3 years
  • 71% of active clients located across Tier 2 and Tier 3 cities

Distribution Network

  • 99 branches across India
  • 1,071 authorized persons
  • Presence across 314 cities

Capital Structure

  • Debt equity ratio: 1.02 as of September 30, 2026
  • Company maintains disciplined leverage and adequate liquidity

Management Guidance and Outlook

FY27 Targets

  • MTF book size target: ₹1,750-1,800 crores (representing ~40% growth)
  • Distribution AUM growth target: 40% for FY27
  • Company has already achieved 57% of MTF target in H1 FY27
  • Distribution AUM has achieved 29% growth toward 40% full-year target

Growth Strategy

  • Focus on scaling financing and distribution businesses
  • Increasing engagement with existing clients
  • Strengthening recurring revenue streams
  • Targeting 15-20% growth in broking business
  • Targeting 30-35% growth in non-broking segments (up to 40% in some cases)
  • Trail income currently covers 75% of salaries

Market Context and Industry Trends

Capital Market Environment

  • Nifty 50 declined by 5.22% quarterly and 1.3% half-yearly
  • September 2026 saw 6% market correction
  • Weakness more pronounced in large cap and sector indices

Industry Growth Drivers

  • IPO activity: 108 companies raised over ₹90,000 crores in Q2 FY27
  • H1 FY27: 154 mainboard IPOs raised ₹96,585 crores (36% growth YoY)
  • Mutual Fund AUM: Quarterly average increased to ₹87 lakh crores in Q2 from ₹84.2 lakh crores in Q1
  • SIP inflows: Reached ₹32,490 crores in September 2026, crossed 10 crore milestone in August 2026
  • Demat accounts: Net addition of 31.1 lakh in September 2026, total base nearly 24 crores (7% growth from 22.5 crores at year-start)
  • Industry MTF book: Grew 41% YoY to ₹156,261 crores as of October 12, 2026

Q&A Session Highlights

Debt Market Participation

  • Company primarily focused on equity and equity-related products
  • Minimal exposure to debt instruments in client portfolios
  • Management views current government security yields as attractive for short-term but prefers equity for long-term returns

Distribution Income Growth vs AUM

  • 4% growth in distribution income despite 29% AUM growth attributed to:
  • Shift from upfront commissions to trail-based income
  • Regulatory change increasing ARN transfer cooling period from 6 to 12 months
  • Time lag for AUM growth to translate into revenue

Employee Expenses

  • 31% increase in employee expenses due to:
  • Expansion of RM base
  • Strengthening product teams
  • Bringing outsourced employees onto company payroll
  • Continuous addition of ~150 employees quarterly

Market Volume Trends

  • Equity cash market volumes showing consistent growth
  • Derivative volumes static or lower due to RBI circular impact on proprietary broking
  • Company outperformed industry in F&O volumes due to lack of proprietary trading

Business Diversification

  • Focus on consolidating existing business lines (insurance, mutual funds, PMS, AIF)
  • Strengthening NRI business segment
  • No immediate plans for new business segments beyond current diversification

MTF Business Details

  • Growth primarily from existing clients rather than new users
  • Selective client approval based on internal guidelines and net worth
  • No specific focus on market capitalization segments - stock selection based on liquidity, profitability, and risk parameters
  • MTF provides customer stickiness and additional revenue streams beyond interest income

Cash Position

  • Net cash decline from ~₹2,700 crores to ~₹900 crores due to:
  • Clients converting cash margins to government securities post-RBI circular
  • Change in margin format rather than business reduction
  • Business remains intact despite format change

Forward-Looking Statements

Management expects continued growth of 15-20% in top line and 20-30% in bottom line, focusing on reducing volatility through non-broking revenue expansion.