Detailed Narrative
H1 FY26 Financial Performance Overview
Rikhav Securities Limited reported a total income of Rs. 386.67 crores for the first half of FY26. During the same period, the company achieved an EBITDA of Rs. 25.96 crores and a profit after tax of Rs. 17.75 crores. This performance is attributed to steady operational progress and continuous efforts to enhance efficiency, scalability, and service quality.
Margin Trading Facility (MTF) Expansion and Returns
The company's recently commenced margin trading facility (MTF) has rapidly grown to a book size of Rs. 10 crores, demonstrating healthy momentum. Management projects this segment to grow by 30-40% every half year. The expected return on capital from the MTF business is estimated to be between 15% to 20%.
Digital Transformation and Client Acquisition
Rikhav Securities has successfully rolled out its online account opening process and a mobile application designed for seamless portfolio access. The final stage of app enhancement, promising a fully integrated real-time trading and client service experience, is expected to be completed within the next 3 months. The company aims for 25-30% growth in client numbers, leveraging both digital channels and personalized engagement.
Strategic Growth Outlook and Long-term Profitability
The company anticipates a 20-25% year-on-year growth, driven by ongoing digital initiatives, expanding client reach, and operational efficiency improvements. Looking ahead, Rikhav Securities targets achieving over Rs. 100 crores in profit after tax within the next 5 years. This ambitious goal is supported by strategic capital reallocation towards scalable, technology-led, and high-yield business verticals.
SME Market Making and Risk Management
Rikhav Securities actively supports 40-45 SME IPOs annually, playing a role in enhancing liquidity and market depth. However, due to the inherent volatility in this segment, the company has strategically reduced its exposure in SME market making over the past 6 months. Selection for SME market making relies on merchant bankers and preliminary company examinations, including promoter meetings.
Cybersecurity and Regulatory Compliance
The company emphasizes its robust technology infrastructure and automated risk management. It implements a basic security patch for its mobile app every three months and conducts regular system and cyber audits regulated by SEBI. Furthermore, UPI handles accreditation, which will enhance brokering capabilities and security, is expected to be implemented within 2-3 months.