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    SMC Global Securities Limited

    SMCGLOBAL
    Financial Services·16 May 2025
    Management Summary

    SMC Global Securities reported a mixed Q4 FY25, with consolidated revenue at Rs. 421.5 crore and PAT at Rs. 4.1 crore, impacted by regulatory headwinds and market volatility. Despite a slight decline in full-year EBITDA, the company achieved 8.4% YoY revenue growth for FY25, driven by strong performance in broking AUA and new client additions. The NBFC segment faced asset quality challenges with increased GNPA/NNPA, but management expressed confidence in a better FY26 with targeted AUM growth and improved margins.

    Highlights

    5

    • FY25 consolidated revenue grew 8.4% YoY to Rs. 1775.7 crore.

    • Broking DP AUA added Rs. 36,413 crores in FY25, marking 46% growth.

    • Over 1 lakh new Demat accounts opened in FY25.

    • Mutual fund AUM rose 9.9% YoY to Rs. 4178 crores.

    • Management is bullish on the stock broking segment due to FPI buying, DII buying, and underpenetrated market.

    Concerns

    4

    • Q4 FY25 PAT was Rs. 4.1 crore, with a PAT margin of 1%.

    • FY25 operating EBITDA showed a slight decline of 1.5% YoY to Rs. 419.4 crore.

    • NBFC GNPA increased to 3.6% and NNPA to 2.2%.

    • Negative mark-to-market changes in investment portfolio led to a loss of 9.32 in net gain of fair value changes in Q4.

    What Changed1

    vs Q1 FY26

    Guidance items5 → 2 (-3)
    Key financials

    Metrics

    10

    Periods

    2

    Q4

    5
    • Operating Income
      ₹421.5 Cr
    • Operating EBITDA
      ₹63 Cr
    • EBITDA Margin
      14.9%
    • PAT
      ₹4.1 Cr
    • PAT Margin
      1%

    FY25

    5
    • Operating Income
      ₹1,775.7 Cr
      YoY+8.4%
    • Operating EBITDA
      ₹419.4 Cr
      YoY-1.5%
    • EBITDA Margin
      23.6%
    • PAT
      ₹146.8 Cr
    • PAT Margin
      8.3%

    Segment breakdown

    • Broking distribution and trading₹1,044.5 Cr56.9%
    • Financing segment₹222.6 Cr12.1%
    • Insurance broking division₹570 Cr31.0%
    Donut· Share of FY25 Revenue

    Guidance & targets

    2
    CategoryTargetPriority
    NBFC
    AUM Growth
    around 20%
    		Medium
    NBFC
    Secured AUM as % of total AUM
    75%
    		High

    NBFC AUM Growth

    Next quarter (for visibility)
    Current4.2% YoY (FY25)
    TargetAround 20% (FY26)

    Why it matters

    Key indicator of NBFC segment recovery and growth, with management expecting better visibility Q-on-Q.

    So, we expect this year the AUM to grow by around 20% but we would have better visibility as we go down the year, Quarter-on-Quarter.

    How to verify

    key_financials.segment_breakdown[name='Financing segment'].metrics[label='NBFC AUM']

    Risks & concerns

    3
    RiskSeverity

    Regulatory Changes in F&O Segment

    Stricter F&O norms, restrictions on weekly options, and increased margins led to moderation in trading volumes and short-term revenue pressure. — Management acknowledged

    medium

    Geopolitical Tensions

    Rising geopolitical tensions contributed to a visible slowdown in market activity and FPI selling, though recent developments are seen as resolving. — Management acknowledged

    medium

    NBFC Asset Quality (GNPA/NNPA)

    NBFC GNPA increased to 3.6% and NNPA to 2.2%, with specific large accounts contributing to the elevated levels. — Both acknowledged

    medium

    Q&A highlights

    6

    “So, we are in a much better position first of all. We are also very hopeful and confident about having this year FY'26 to be much better year for us in terms of the AUM growth as well as the quality of our portfolio and in addition to that, we expect spreads or margins to be better because we are working on increasing our yields on our asset book as well as there are certain tailwinds in terms of the cost of finance which is available for the NBFCs due to the reduction in interest rates and revision in RBIs stands on risk weight on bank loan to NBFC.”

    Addresses concerns about rising NPAs and provides a positive outlook for FY26 with specific drivers for improved profitability.

    asked by Rahul

    2 min read6 chapters

    Detailed Narrative

    01

    Industry Headwinds and Strategic Response

    The financial services industry faced significant challenges in Q4 FY25, including stricter F&O norms, increased margins, and geopolitical tensions, leading to a visible slowdown in market participation and retail activity. This resulted in short-term revenue pressure for intermediaries. However, management views these regulatory measures as a strategic inflection point, paving the way for a more disciplined, transparent, and stable market environment, which is beneficial for well-positioned players like SMC Global.

    02

    Consolidated Financial Performance

    For Q4 FY25, SMC Global Securities reported a consolidated revenue of Rs. 421.5 crore, with an EBITDA of Rs. 63 crores (14.9% margin) and PAT of Rs. 4.1 crore (1% margin). For the full fiscal year 2025, revenue grew 8.4% YoY to Rs. 1775.7 crore. While full-year EBITDA saw a slight decline of 1.5% YoY to Rs. 419.4 crore, PAT stood at Rs. 146.8 crore, reflecting an 8.3% margin.

    03

    Broking Segment Growth and Outlook

    The broking distribution and trading segment recorded Q4 FY25 revenue of Rs. 240.5 crores, contributing to a full-year revenue of Rs. 1044.5 crores, up 8.6% YoY. The company expanded its branch network to 208 and added over 1 lakh new Demat accounts. DP AUA grew by a significant 46% in FY25, adding Rs. 36,413 crores. Wealth advisory AUM increased 4.4% YoY to Rs. 948 crores, and Mutual Fund AUM grew 9.9% YoY to Rs. 4178 crores, with 13,930 new SIPs added. Management expressed a bullish outlook, citing positive FPI flows, strong DII buying, and the underpenetrated Indian market.

    04

    NBFC Segment Challenges and Recovery Plan

    The financing segment generated Q4 revenue of Rs. 40.9 crores and full-year revenue of Rs. 222.6 crores, an 8.2% YoY increase. NBFC AUM grew 4.2% YoY to Rs. 1,291 crores. However, the segment faced asset quality challenges, with GNPA at 3.6% and NNPA at 2.2%. Management acknowledged the industry's tough phase but stated SMC's credit quality is better than peers. They anticipate a much better FY26, targeting around 20% AUM growth and improved spreads/margins due to increasing yields and favorable interest rate trends. The company also aims to increase secured AUM to 75% over the next 3-4 years from the current 64%.

    05

    Insurance Broking Performance

    The insurance broking division reported Q4 FY25 revenue of Rs. 160.3 crores, contributing to a full-year revenue of Rs. 570 crores, marking a 7.9% YoY growth. The company successfully sold insurance policies exceeding the Rs. 10 lakh mark in FY25, demonstrating continued expansion in this vertical.

    06

    Investment Portfolio Mark-to-Market Impact

    The company reported a loss of 9.32 in the net gain of fair value changes for Q4 FY25. This was attributed to mark-to-market adjustments in the investment portfolio, reflecting the downturn in markets during the March quarter. Management expects this to improve as market conditions recover.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.