SMC Global Securities Limited — Q4 FY26 earnings call

Call held 8 May 2026

Management summary

SMC Global Securities reported a strong Q4 FY26 with consolidated operational income up 22.6% YoY and PAT significantly higher at INR 21.5 crore. However, full-year consolidated margins compressed due to elevated finance costs and a strategic calibration in the NBFC segment, which saw AUM and EBIT decline. The company is focusing on financial discipline and digital scaling for FY27, with strong growth in its fee-based businesses.

Highlights

  • Q4 FY26 Consolidated Operational Income grew 22.6% YoY to INR 516.9 crore.

  • Q4 FY26 Consolidated EBITDA grew 42.6% YoY to INR 89.7 crore, with EBITDA margin expanding 250 bps YoY to 17.4%.

  • Q4 FY26 Consolidated PAT significantly increased to INR 21.5 crore from INR 4.1 crore in Q4 FY25.

  • Stoxkart, the digital broking arm, achieved 150% revenue growth and added 100,000 clients in FY26.

  • Insurance Broking segment revenue grew 17.1% YoY in FY26 to INR 667.5 crore, with Q4 revenue up 29.8% YoY.

Concerns

  • Full Year FY26 Consolidated EBITDA was lower by 10.3% YoY and PAT by 29.9% YoY.

  • Full Year FY26 Consolidated margin compressed due to sustained finance costs (INR 221.3 crores) and calibrated approach in the financing business.

  • NBFC AUMs declined to INR 1,119 crore as of March 2026, down from INR 1,291 crore a year ago.

  • NBFC Full Year Segment EBIT declined 26.2% YoY to INR 102.2 crores, and PAT moderated to INR 24.6 crores from INR 46.3 crores in FY25.

Key financials

2 periods

Headline

  • Consolidated Operational Income
    ₹516.9 Cr
    YoY +22.6% QoQ +4.5%
  • Consolidated EBITDA
    ₹89.7 Cr
    YoY +42.6%
  • Consolidated EBITDA Margin
    17.4%
  • Consolidated PAT
    ₹21.5 Cr
  • Consolidated PAT Margin
    4.2%

FY26

  • Consolidated Operational Income
    ₹1,876.9 Cr
    YoY +5.7%
  • Consolidated EBITDA
    ₹376.4 Cr
    YoY -10.3%
  • Consolidated EBITDA Margin
    20.1%
  • Consolidated PAT
    ₹103.2 Cr
    YoY -29.9%
  • Basic & Diluted EPS
    ₹4.87
  • Consolidated Finance Costs
    ₹221.3 Cr
  • Consolidated Net Worth
    ₹1,304 Cr
  • Consolidated Debt-to-Equity Ratio
    1.53×

What they filed

Q1 FY27: revenue up 21.2%, net profit up 23.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue451 455 421 425 440 −2%495 +9%517 +23%515 +21%
EBITDA119 112 63 100 84 −29%102 −9%90 +43%107 +7%
Net profit46 44 4 30 21 −54%31 −30%21 +425%37 +23%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Q4 FY26 Revenue
₹538.2 Cr Total
  • Broking, Distribution & Trading ₹286.8 Cr 53.3%
  • Insurance Broking ₹208.1 Cr 38.7%
  • Financing NBFC ₹43.3 Cr 8.0%

Capital allocation

high confidence
  • Debt Debt disclosed
    • New borrowing NBFC raised fresh NCDs ₹25 Cr
    • New borrowing Broking Entity raised fresh NCDs ₹150 Cr
    NBFC raised about INR 25 crores of fresh NCDs, while Broking Entity raised about INR 150 crores of fresh NCDs for diversification of borrowing and reduce the reliance on the bank borrowing and this is also in line with the RBI's intent wherein they want corporates to reduce their dependency on bank borrowing.
  • Liquidity Liquidity disclosed Sufficient funds available for current level of arbitrage operations, company is sufficiently capitalized.
    whatever funds are required for our current level of arbitrage, those funds are available with us as we are sufficiently capitalized.

Guidance & targets

NBFC AUM

  • AUM Growth NBFC AUM · FY27 · High confidence 15-20%
    AUM, we expect to grow at around 15% to 20% during the year.

    — Himanshu Gupta

  • AUM Growth from New Products NBFC AUM · FY28-29 · Medium confidence good growth
    from the next year, FY28-29, once the older products are reduced to a larger extent, then we would see good growth from the new product lines.

    — Himanshu Gupta

NBFC Disbursements

  • Disbursement Growth (excl. LAP/Unsecured) NBFC Disbursements · FY27 · High confidence above INR 800 crores

    From INR 614 crores today

    we expect growth in the disbursement from this INR 614 crores, we expect it to go above INR 800 crores.

    — Himanshu Gupta

Insurance Broking Revenue

  • Revenue Growth Insurance Broking Revenue · FY27 · High confidence 15%
    we expect basically a 15% growth over the next financial year as well

    — Sakshi Mehta

Overall Profitability

  • Return Metrics Overall Profitability · FY27 · Medium confidence progressively rebuilding
    progressively rebuilding return metrics as we move into FY27.

    — Vinod Kumar Jamar

What to watch in Q1 FY27

NBFC AUM Growth

FY27
Current INR 1,119 crore (down from INR 1,291 crore YoY)
Target 15-20% growth

Why it matters

This will indicate the recovery and growth trajectory of the strategically recalibrated NBFC segment.

AUM, we expect to grow at around 15% to 20% during the year.

Risks & concerns

  • Heightened Market Volatility

    medium

    Equity markets witnessed a sharp correction in March 2026 against a backdrop of global trade-related uncertainty and geopolitical events, impacting Q4 EBITDA and PAT.

    Management acknowledged

  • Sustained High Funding Costs

    medium

    Sustained funding costs at the consolidated level, with finance costs rising, contributed to full-year margin compression.

    Management acknowledged

  • Elevated Delinquencies in Unsecured Lending

    medium

    Unsecured personal lending and microfinance segments saw elevated delinquencies, leading to a deliberate calibration of disbursements and tighter underwriting standards.

    Management addressed

  • Regulatory Changes on Bank Exposure to Capital Markets

    medium

    RBI's recent direction on bank exposure to capital markets intermediaries is reshaping the funding and compliance landscape, though SMC is well-placed with diversified borrowing.

    Management acknowledged

  • Elevated GNPA in NBFC Segment

    medium

    GNPA is elevated compared to FY24 due to certain large secured accounts, but sufficient security is available, and legal processes are underway with adequate provisions made.

    Analyst acknowledged

  • Technical Disruption in Market Infrastructure

    low

    The industry experienced a technical disruption at the market infrastructure level during Q4, temporarily affecting trading activity.

    Management acknowledged

Q&A highlights

8 direct
Broking Segment Mix and Commodity Business Growth Direct
brokerage share was around 50%, future option was around 40%, and commodity was 10%. So, we have seen like earlier the commodity ratio was around 4% to 5%, now it has grown up to 10% and even in future, we foresee a good growth into commodity business.

Reveals the current segment-wise brokerage contribution and management's positive outlook on commodity segment growth, supported by regulatory environment and new products.

Asked by Manohar Rajput

NBFC Disbursement Strategy and Product Mix Direct
within the SME lending, we have increased our focus on certain products while consciously reducing exposures on others. For example, the LAP product, which is our larger ticket size product, therein we have actually discontinued fresh disbursement... Focus remains on secured products like micro-LAP and gold loan and asset finance.

Explains the strategic shift in the NBFC segment towards secured lending and away from higher-risk products, clarifying the reason for lower overall disbursements and AUM decline.

Asked by Manohar Rajput

Stoxkart Performance and Client Acquisition Direct
we opened 100,000 clients during the year. And even when you see the NSE data, we are placed on fourth number in terms of contribution to NSE in terms of active clients. So, we are in the ranks, we are fourth in the year 2025-26. And also, as you asked about the growth in terms of revenue and all, we have grown 150% in terms of revenue alone.

Highlights the strong performance and market share gains of Stoxkart, the company's digital broking platform, indicating successful digital strategy execution.

Asked by Tejpal Singh

Strategic Intent Behind NCD Diversification Direct
NBFC raised about INR 25 crores of fresh NCDs, while Broking Entity raised about INR 150 crores of fresh NCDs for diversification of borrowing and reduce the reliance on the bank borrowing and this is also in line with the RBI's intent wherein they want corporates to reduce their dependency on bank borrowing.

Clarifies the rationale behind raising NCDs as a strategy for funding diversification and reducing dependence on bank borrowings, aligning with regulatory trends.

Asked by Tejpal Singh

Insurance Cross-Sell to Existing Demat Account Holders Direct
we have integrated insurance and mutual funds capability into our mobile app as well. And we are doing cross-sell through B2B and B2C network. So, we are generating a lot of point-of-sale in insurance through our Broking network. So, last year, I think, more than INR 8 crores of premium we have done from Broking as far as insurance is concerned.

Details the company's initiatives to leverage its large client base for cross-selling insurance products, including digital integration and existing offline success.

Asked by Tejpal Singh

NBFC AUM Growth and Product Mix Roadmap Direct
we are targeting 15%-20% growth in AUM and I think from the next year, FY28-29, once the older products are reduced to a larger extent, then we would see good growth from the new product lines.

Provides specific AUM growth guidance for the next year and a longer-term outlook on growth drivers as the portfolio mix shifts.

Asked by Mahesh Kumar

Impact of RBI Circular on Proprietary Trading P&L Direct
whatever funds are required for our current level of arbitrage, those funds are available with us as we are sufficiently capitalized. So, there would be minimal impact or rather very negligible impact or maybe no impact on our operations.

Reassures investors that recent RBI regulations restricting leverage for proprietary trading will have minimal impact on SMC Global's operations due to sufficient capitalization.

Asked by Mahesh Kumar

Monthly SIP Flow and Book Size Direct
on a monthly basis, we are sourcing around 1900 to 2000 SIPs. Live SIPs are 94,392 with an average of INR 2,722 per SIP, contributing around INR 25.69 crores per month.

Provides granular, quantitative data on the company's SIP business, indicating the scale and contribution of its distribution efforts.

Asked by Aman Singh

3 min read 6 chapters

Detailed narrative

Overall Financial Performance and Margin Compression

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.

Broking and Distribution Segment Resilience

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.

Strategic Shift in NBFC Lending and Asset Quality Focus

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%.

Insurance Broking Momentum and Reinsurance Expansion

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.

Digital Adoption and Cross-Sell Initiatives

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.

Funding Strategy and Regulatory Compliance

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.

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