Detailed Narrative
FY26 Financial Performance Overview
For the full fiscal year 2026, Rikhav Securities reported a total income of INR1,991 crores, with an EBITDA of INR32.53 crores and a Profit After Tax (PAT) of INR18.96 crores, resulting in an Earnings Per Share (EPS) of 4.95. The second half of FY26 saw a total income of INR1,604 crores, EBITDA of INR6.57 crores, and PAT of INR1.20 crores, with an EPS of 0.31. Profitability was notably impacted by a loss of INR18-23 crores from cash market shares of old investments and volatile market conditions.
Strategic Investments in Technology and Infrastructure
The company invested approximately INR5.40 crores in computer software systems and technology enhancement initiatives during FY26. This investment, while contributing to higher depreciation expenses, significantly strengthened operational scalability, backend efficiency, and overall technology capabilities for long-term growth. The robust technology infrastructure includes a low-latency, high-efficiency trading ecosystem with strong direct architecture and automated monitoring.
Business Diversification and Market Making Capabilities
Rikhav Securities has diversified its platform across equity broking, derivatives trading, commodities broking, market making, and proprietary trading. The company continues to support liquidity creation in the SME capital market ecosystem and has started market making in ETFs with Kotak Mutual Fund, with plans to expand to two or three more mutual funds. Proprietary trading, driven by algorithm-based arbitrage and delta hedging, also contributes significantly to revenue.
Client Acquisition and Institutional Engagement
The company's active client base stands at around 12,500, with an additional 2,500 clients added in the last half-year. Quarterly active clients range from 10,000 to 12,000, and daily active traders are between 2,000 and 2,500. Rikhav Securities has successfully onboarded institutional clients such as Kotak Mutual Fund, Bank of India, RBL Bank, and 8-10 FPIs, with plans to empanel with SBI and LIC, indicating a focus on expanding its institutional presence.
Digital Strategy and Client Acquisition
The company utilizes a digital-first onboarding infrastructure, including Aadhaar-based e-KYC, with an account opening cost of INR60-70 per account and an overall cost of INR500. While digital marketing has not yet commenced, the company plans to launch it after the current quarter, acknowledging its importance for attracting newer generations like Gen Z. Currently, client acquisition relies heavily on existing networks and relationship-based approaches.
Outlook and Growth Drivers for FY27
For FY27, Rikhav Securities anticipates approximately 20% growth in both brokerage and cliental, and a 20-25% growth in algo trading and delta hedging income. The company aims to open 8-10 franchisee branches annually, albeit cautiously due to high compliance requirements and associated risks. Management remains positive on the long-term outlook for India's capital market ecosystem, driven by increasing retail participation and financial savings.