SMC Global Securities Limited

SMC Global Securities reported a strong Q4 FY26 with consolidated operational income growing 22.6% YoY to INR 516.9 crore and EBITDA increasing 42.6% YoY to INR 89.7 crore, with a margin of 17.4%. Q4 PAT significantly improved to INR 21.5 crore from INR 4.1 crore in Q4 FY25. However, for the full year FY26, consolidated EBITDA was lower by 10.3% and PAT by 29.9% YoY, primarily due to sustained higher finance costs of INR 221.3 crore and a deliberate calibration in the financing business.

The broking, distribution, and trading segment demonstrated resilience, with FY26 revenue growing 4.3% YoY to INR 1089.2 crore, and Q4 EBIT sharply improving by 66.6% YoY to INR 60.9 crore. The client base expanded to 13.39 lakh accounts, and Broking DP AUA grew 23.96% to INR 1,42,703 crore. Stoxkart, the digital broking arm, reported a 150% revenue growth and added 100,000 clients in FY26, positioning it as fourth in NSE active clients.

The financing NBFC segment underwent a deliberate recalibration, leading to a 15.1% YoY revenue decline and 26.2% YoY EBIT decline in FY26. Disbursements were significantly lower at INR 720.05 crore, reflecting a conscious decision to reduce exposure to unsecured loans (from INR 281 crore in FY25 to INR 93 crore in FY26) and large-ticket LAP. The focus shifted to secured products like micro-LAP, gold loans, and asset finance, which saw disbursements grow from INR 452 crore to INR 614 crore (excluding the reduced products). This strategy improved asset quality, with GNPA at 3%, NNPA at 2%, and a healthy CRAR of 43.2%.

The insurance broking business maintained strong growth momentum, with FY26 segment revenue increasing 17.1% YoY to INR 667.5 crore and Q4 revenue up 29.8% YoY to INR 208.1 crore. Gross premium for the year reached INR 3,145 crore, issuing 11.39 lakh policies. A key strategic development was the upgrade from a direct broker to a composite broker, allowing expansion into the reinsurance segment, which is expected to open new growth avenues and contribute to future revenue growth.

SMC Global continued its investment in digital platforms, evidenced by an increase in online penetration within its broking client base from 61% to 72% in FY26. The company is actively pursuing cross-sell opportunities for insurance and mutual funds by integrating these capabilities into its mobile app and leveraging its B2B and B2C networks. This strategy has already yielded INR 8 crore in premium from broking cross-sell (offline) and is now focusing on deeper online penetration.

The NBFC segment maintained a well-diversified borrowing mix, with bank borrowings constituting 85% of the total in FY26. The company also raised fresh NCDs (INR 25 crore for NBFC, INR 150 crore for Broking) to diversify funding sources and reduce reliance on bank borrowing, aligning with RBI's intent. Management confirmed that proprietary arbitrage operations are sufficiently capitalized, expecting minimal to no impact from recent RBI circulars restricting leverage for capital market intermediaries.