Gretex Corporate

Gretex Corporate Services Limited reported a resilient operating performance for Q3 FY26, with total income reaching INR 54.8 crores. The company achieved an EBITDA of INR 12.3 crores, translating to an EBITDA margin of 22.4%, indicating strong sequential improvement in operating profitability. Profit after tax stood at INR 6.9 crores, with the PAT margin improving to 12.5%, reflecting healthy bottom-line conversion.

For the nine months ended December 31, 2025, Gretex reported a total income of INR 144.8 crores and income from operations of INR 143.7 crores. EBITDA for this period was INR 34.2 crores, resulting in an EBITDA margin of 23.6%. The profit after tax for 9M FY26 was INR 20.7 crores, with a PAT margin of 14.3%, demonstrating consistent profitability despite varying market conditions.

The company maintains a strong and balanced pipeline, with 20 active IPOs currently under execution, comprising 14 SME IPOs on NSE Emerge and BSE platforms, and 6 mainboard IPO mandates. Additionally, its market-making business manages 26 active mandates, with 14 on NSE Emerge/BSE SME platforms and 12 from institutional clients, indicating growing scale and depth in its operations.

Gretex is expanding its presence in the alternative investment space through a proposed investment in a CATEGORY II AIF. This AIF, to be sponsored and managed by Bahutex Ventures LLP, will see Gretex Corporate Services Limited holding a 50% partnership interest. The fund aims for a target corpus of up to INR 100 crores, aligning with evolving investor preferences for alternative investment products.

During the quarter, Gretex successfully completed the listings of Flywing Simulator Training Centre Limited, MPK Steel India Limited, and Munish Forge Limited. The company also secured In-Principle approvals for SSG Furnishing Solutions Limited, Vama Wovenfab Limited, and Shreyas Fabtech Limited, and filed DRHPs for Brandman Retail Limited, Sureflo Techcon Limited, and Acetech E-Commerce Limited, highlighting a robust IPO pipeline.

Management indicated a strategic shift to gradually reduce focus on SME IPOs and transition the business model towards mainboard IPOs. This move is aimed at achieving more stable revenue and reducing risk, as SME IPOs require a minimum 5% investment as a market maker. The company plans to focus on mainboard IPOs while selectively undertaking SME IPOs.

Gretex views SEBI's potential increase in eligibility criteria for investment bankers as a positive step to strengthen the industry by ensuring only capable players. Despite signs of SME IPO fatigue and normalizing subscription numbers, management stated they would not reduce merchant banking fees, asserting that their efforts increase when market conditions are challenging.