Detailed Narrative
Strong Financial Performance in FY26
Choice International Limited reported robust financial results for FY26, with consolidated revenue reaching Rs. 1,145 Cr, marking a 24% year-on-year growth. Profit after tax (PAT) for the full year surged 46% YoY to Rs. 238 Cr, reflecting improved operating efficiency with an EBITDA margin of 37%. For Q4 FY26, consolidated revenue grew 23% YoY to Rs. 314 Cr, and PAT increased 27% YoY to Rs. 68 Cr, with an EBITDA margin of 39.08%.
Broking & Distribution Segment Momentum
The broking and distribution segment was a key growth driver, contributing 59% to total revenue in Q4 FY26 with a PBT of Rs. 55 Cr. Stockbroking AUM grew significantly by 28% YoY to Rs. 52,482 Cr in Q4 FY26. The company's Demat account base expanded to 13 lakhs, representing a 16% YoY increase, supported by enhanced onboarding processes and a wider product offering.
Advisory Business Strength and Pipeline
The advisory segment demonstrated strong performance, reporting FY26 revenue of Rs. 330 Cr and PBT of Rs. 120 Cr. The segment currently holds a healthy order book of Rs. 698 Cr, providing revenue visibility for the next two to three years. While the Q4 order book saw a QoQ decline due to active project execution, management emphasized a strong pipeline and confidence in securing more contracts, including bids for projects exceeding Rs. 400 Cr.
NBFC Segment Focus on Secured Lending
The NBFC segment continued its strategic focus on secured lending, particularly in MSME, micro-LAP, and rooftop solar financing. The loan book stood at Rs. 800 Cr as of FY26, contributing 13% to total revenue. Asset quality remained stable, with a Gross Non-Performing Asset (GNPA) ratio of 2.74% and a Net Non-Performing Asset (NNPA) ratio of 1.86% as of March 31, 2026, with net interest margins at 11.22%.
Strategic Partnerships and Digital Reach
Choice secured a significant digital investment platform mandate from India Post Payments Bank (IPPB), which is expected to provide access to a large distribution network and enable cross-selling with negligible customer acquisition costs. The company highlighted its strong digital adoption, with approximately 70% of its revenue generated through digital channels, including its mobile app and web trading platform, reflecting its tech-driven approach.
Asset Management and Insurance Growth
In asset management, Choice expanded its product offerings by launching the Choice Nifty 50 Index Fund and Choice Nifty Next 50 Index Fund, targeting an AUM of Rs. 1,000 Cr by FY27. The insurance business experienced consistent growth, driven by a broader partner network and increased use of digital platforms, with Q4 FY26 premium collection reaching Rs. 84 Cr, a 14% YoY increase, and policy volumes at 50,887.
Technology-Driven Margin Expansion and AI Initiatives
Management articulated that leveraging technology for higher scales and maintaining stable fixed costs would be key to expanding net margins over the next 2-3 years, as evidenced by Q4 profit growth outpacing revenue growth. The company has a dedicated team for AI implementation across all business verticals, focusing on data analytics and customer-facing activities like personalized notifications to enhance customer engagement and operational efficiency.
Capital Allocation and Future Strategic Outlook
The company confirmed it possesses sufficient internal accruals to support the growth of all its businesses, which are largely self-sufficient in capital. While value unlock remains a long-term target, there are no immediate plans for demerger. Choice aims to maintain a 30% YoY growth in revenue and profitability, with a future revenue mix targeting 50% from broking & distribution, 40% from advisory, and 10% from NBFC.