Detailed Narrative
Q3 & 9M FY26 Financial Performance
Gretex Corporate Services Limited delivered a resilient operating performance in Q3 FY26, with total income reaching INR 54.8 crores and EBITDA at INR 12.3 crores, reflecting a 22.4% EBITDA margin. Profit after tax stood at INR 6.9 crores, translating to a 12.5% PAT margin. For the nine months ended December 31, 2025, total income was INR 144.8 crores, with EBITDA of INR 34.2 crores (23.6% margin) and PAT of INR 20.7 crores (14.3% margin), demonstrating consistent profitability.
Strategic Expansion into Alternative Investment Funds (AIF)
The company is expanding its presence in the alternative investment space by proposing a 50% partnership interest in Bahutex Ventures LLP, which will sponsor and manage a Category II AIF. Gretex's capital commitment to this fund is INR 2.5 crores, representing 2.5% of the target corpus of up to INR 100 crores. This initiative aligns with evolving investor preferences for alternative investment products and complements Gretex's existing capital markets platform.
Robust IPO Pipeline and Market Making Activities
Gretex maintains a strong pipeline with 20 active IPOs under execution, including 14 SME IPOs on NSE Emerge/BSE platforms and 6 Mainboard IPO mandates, providing healthy visibility for future quarters. The market-making business continues with 26 active mandates, comprising 14 on SME platforms and 12 from institutional clients, reflecting growing scale. The subsidiary, Gretex Share Broking Limited, is also progressing towards its proposed listing, which is expected to strengthen the platform.
Industry Trends and Regulatory Environment
India's capital markets remain structurally strong, with primary equity markets raising INR 1.46 lakh crores through IPOs up to November 2025, including INR 8,033 crores from SME platforms. Management views potential stricter SEBI norms for merchant bankers as a positive step for the industry, ensuring only capable players operate and strengthening the ecosystem. They acknowledge some SME IPO fatigue but do not foresee pricing pressure on their fees.
Shift in Business Model Focus and Risk Mitigation
Acknowledging the inherent volatility in EBITDA margins due to the listing-driven revenue model, management is gradually shifting its focus. The company plans to decrease its involvement in SME IPOs, which require a mandatory 5% investment as a market maker, and concentrate more on Main Board IPOs. This strategic shift aims to reduce market-making inventory risk and enhance revenue quality, with a target of 40-45% consolidated PAT margin for FY26.