Synopsis:
Shares rose after approval of a 1:1 bonus issue, reflecting investor optimism. Despite weak Q1 financials, diversified growth in broking, NBFC, and insurance, along with ambitious AUM targets, technology upgrades, and strong distribution, support long-term growth prospects and profitability outlook.
The shares of the prominent financial service provider gained 2 percent in the morning session after the company’s board considered and approved the issue of bonus equity shares in the ratio of 1:1.
With a market capitalization of Rs 1,573.13 crore, the shares of SMC Global Securities Ltd were trading at Rs 139.05 per share, decreasing around 1.98 percent as compared to the previous closing price of Rs 141.25 apiece.
According to the company filing, SMC Global Securities Ltd’s board of directors considered and approved the issue of bonus equity shares in the ratio of 1:1, i.e., 1 bonus equity share of face value Rs 2 each for every 1 fully paid-up equity share of face value Rs 2 each held by the members of the Company as on the Record Date.
The company reported weaker financials in Q1FY26, with revenue slipping 5 percent to Rs 425 crore and net profit plunging 43 percent to Rs 30 crore. The sharp fall in profitability signals margin pressure and rising costs, requiring stronger execution and efficiency measures to restore earnings momentum.
The company showed diversified growth across segments in Q1. Broking added 26,000+ clients with steady AUM growth in wealth and mutual funds. NBFC arm posted 25% QoQ revenue rise with stable asset quality. Insurance broking delivered strong scale with 2.32 lakh policies sold. Expanding distribution, branches, and agent network highlight robust customer reach and market presence.
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The company targets doubling mutual fund AUM to Rs 8,000 crore within a year, backed by technology upgrades, distributor expansion, and stronger marketing. It balances full-service and discount broking through dual models, while digital investments enhance efficiency. Management views regulatory changes as long-term positives, positioning the firm for sustainable growth despite short-term challenges.
Management projects steady FY26 performance, targeting 10–12% revenue growth and 15–20% profit growth. While Q1 margin gains were partly aided by one-time investment swings, operational efficiencies also contributed. Sustaining profitability will depend on consistent execution, cost control, and leveraging business diversification to drive stable earnings momentum going forward.
SMC Global Securities is a leading, diversified financial services company in India, offering a wide range of solutions, including broking, financing, and insurance services. The company’s vision is to become a global leader in financial and investment services by consistently focusing on the needs of its customers.
Written by Abhishek Singh
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