Company Overview

Emkay Global Financial Services Limited (NSE: EMKAY | BSE: 532737) is a diversified financial services institution with a 30+ year legacy operating through three business verticals: Capital Markets, Wealth Management, and Asset Management, serving over 40,200 clients across 19 branches in India.

Financial Performance Highlights

FY26 Consolidated Results (₹ in Lakhs):

  • Revenue: ₹39,629 (FY25: ₹36,124) - 9.7% increase
  • Profit After Tax: ₹1,520 (FY25: ₹5,683) - 73.3% decrease
  • EPS: ₹5.92 (FY25: ₹22.80)
  • Total Assets: ₹1,74,017 (FY25: ₹1,23,336)

FY26 Standalone Results:

  • Total Income: ₹36,719 (FY25: ₹33,962) - 8.12% increase
  • Profit After Tax: ₹1,190 (FY25: ₹5,891) - 79.80% decrease
  • Net Worth: ₹30,956

The significant profitability decline was primarily due to increased finance costs and operating expenses, despite revenue growth across business segments.

32nd Annual General Meeting Details

  • Date: August 10, 2026 | Time: 4:30 PM IST | Mode: Virtual
  • Record Date: August 3, 2026 for dividend eligibility

Key Agenda Items:

  • Adoption of audited standalone and consolidated financial statements
  • Declaration of dividend of ₹1.50 per share (15% payout)
  • Re-appointment of Mr. S.K. Saboo as Non-Executive Director (special resolution required due to age above 75)
  • Payment of commission to independent directors for FY2026-27 to FY2030-31
  • Increase in borrowing limits from ₹500 crore to ₹1,000 crore
  • Issuance of NCDs up to ₹100 crore via private placement

Business Segments Performance

Capital Markets:

  • Institutional equities with ₹10 billion equity ADTO and ₹3,339 billion derivative ADTO
  • 85% broking revenue from institutional clients
  • Investment banking executed 5 capital market transactions worth ₹4,178 crore
  • Coverage of ~240 companies across 20+ sectors

Asset Management (Emkay Investment Managers Limited):

  • AUM increased to over ₹1,550 crore across 9 investment strategies (4 PMS, 5 AIF)
  • 4 investment strategies outperformed their benchmarks
  • Expanded international distribution through Dubai operations

Wealth Management:

  • Assets under advisory surpassed ₹15,400 crores
  • Advisory revenues grew 24% YoY to ₹2,256 lakhs
  • Serves over 37,500 clients including UHNIs and family offices

Capital Structure & Financing

  • Equity Share Capital: ₹2,618.91 lakhs (26,189,063 shares)
  • Raised ₹66.87 crore through issuance of 95,00,000 convertible warrants at ₹239.50 per warrant
  • NCD Outstanding: ₹9,020 lakhs (₹4,600 lakhs at 12%, ₹4,420 lakhs at 11.25%)
  • ICRA Rating: [ICRA]BBB+ (Positive) for NCD program
  • Debt Equity ratio: 0.43 (FY25: 0.28)

Key Developments & Risk Factors

Expansion:

  • Established Dubai operations to access Middle East HNI investors
  • India's wealth management AUM expected to grow from $1.1 trillion to $2.3 trillion by FY29

Risks:

  • Increased Securities Transaction Tax: STT increased to 0.05% from 0.02% on futures (150% increase), potentially reducing trading volumes
  • Geopolitical Tensions: Affecting foreign institutional investor participation
  • Elevated Crude Prices: Above $100/barrel impacting inflation and corporate profitability
  • Cybersecurity: Ongoing vulnerabilities requiring robust 24x7 monitoring

Corporate Governance & Leadership

Board Composition:

  • 8 Directors total (3 Executive, 5 Non-Executive including 4 Independent)
  • 1 Woman Director (Mrs. Hutokshi Wadia)
  • 5 Board meetings held in FY2025-26

Key Managerial Personnel:

  • Mr. Krishna Kumar Karwa (Managing Director)
  • Mr. Prakash Kacholia (Managing Director)
  • Mr. Saket Agrawal (Chief Financial Officer)
  • Mr. Nishant S. Shirke (Company Secretary & Compliance Officer from May 16, 2026)

Subsequent Events & Outlook

  • Board recommended dividend of ₹1.50 per share subject to shareholder approval
  • No other significant events after reporting date requiring disclosure
  • Company positioned to benefit from India's growing wealth management and capital markets ecosystem despite near-term profitability challenges

Auditor Report

  • Clean audit opinion from S.R. Batliboi & Co. LLP
  • No material fraud noticed or reported during the year
  • No defaults in repayment of loans or borrowings