SMC Global Securities Q1 FY27 earnings call

SMC Global Securities Limited delivered a strong Q1 FY27, with consolidated operational income growing 21.2% year-on-year to ₹515.1 crores. Consolidated EBITDA stood at ₹107 crores, marking a 6.9% YoY and 19.3% QoQ increase, with an EBITDA margin of 20.9%. Profit after tax (PAT) also saw a healthy rise of 22.3% YoY, reaching ₹36.7 crores compared to ₹30 crores in Q1 FY26. Standalone operational income was ₹273.4 crores, up 11.1% YoY, with PAT at ₹25.1 crores, up 9.6% YoY.

This segment demonstrated robust performance, with revenue increasing 15.1% YoY to ₹316.3 crores and EBIT growing 17.6% YoY to ₹74.3 crores. The client base, including StoxKart, expanded to 13.8 lakh accounts, and DP AUA reached ₹1,64,962 crores. Mutual Fund AUM grew to ₹4,787 crores, supported by 92,129 active SIPs. Growth was attributed to a stable market, increased cash market activity (brokerage percentage up from 45% to 55%), and a shift from derivatives to cash business.

The insurance broking business experienced significant top-line growth, with segment revenue surging 44.4% YoY to ₹167.3 crores. Gross premium for the quarter stood at ₹759 crores, resulting in 2.7 lakh policies issued. However, segment EBIT was moderated to ₹1.6 crores, as the company is investing heavily in manpower, technology, and distribution capacity to support future growth and expects operating leverage to improve in subsequent quarters.

The Financing NBFC segment reported revenue of ₹46.5 crores and EBIT of ₹26.1 crores. AUM stood at ₹1,025 crores as of June 2026, a decline from ₹1,118 crores in Q4 FY26. This variance was primarily due to the strategic discontinuation of LAP (₹50 crores decline) and tightening of unsecured business loans (₹40 crores decline). Management aims to close FY27 with AUM between ₹1,250-1,300 crores and targets a 20-25% CAGR over the next five years, driven by a shift towards secured retail products like Micro LAP and Gold Loan, which is also expected to improve NIM gradually.

SMC Global is making significant investments in technology and AI, having established a comprehensive base for AI enablement. Key initiatives include the launch of an AI-based Chatbot using a proprietary low-language model for cost-efficient customer interaction, and an AI-based Algo platform. The company is also integrating AI capabilities into its mobile app to provide AI-generated insights, script analysis, and trend analysis, with these features currently in testing and slated for a near-term launch.

Management expressed strong optimism for India's financial sector and SMC's position as a leading player across all capital market segments. The company targets a 20% CAGR for overall revenue over the next five years, aiming for ₹6,000-8,000 crores, and expects PAT to reach ₹170 crores for FY27. This growth will be driven by continued investments in technology, AI, expansion in all product offerings, and the promising prospects of its Gift City businesses, alongside a focus on both HNI corporate and retail clients.

Stoxkart, SMC's online discount brokerage arm, demonstrated exceptional performance, quadrupling its revenue year-on-year. In Q1 FY27, it acquired approximately 26,000 subscription clients through its 'Smart Trader Plan,' which involves upfront subscription for trading software. This innovative model, mimicking the subscription culture, is proving highly successful and is expected to contribute tremendously to SMC's overall revenues going forward^⏳.