Transcript of H2 FY26 results conference call
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Rikhav Securities held its H2 & FY26 earnings call on May 29, 2026. For FY26, the company reported total income of INR1,991 crores, EBITDA of INR32.53 crores, and PAT of INR18.96 crores (EPS of INR4.95). H2 FY26 results were weaker with PAT of just INR1.20 crores, dragged by INR18-20 crore losses from legacy cash market investments and market volatility tied to the US-Iran war that pushed Nifty below 23,000 on March 31. Management highlighted INR12 crore gross profit from commodity arbitrage, unrealized SLBM profit of INR4.33 crores awaiting realization, and INR5.40 crore spent on technology in FY26. The company has actively onboarded institutional clients including Kotak MF, Bank of India, RBL Bank, and 8-10 FPIs, with plans to empanel SBI and LIC. Management guided FY27 PAT of around INR40 crores, with brokerage growth of ~20% and algo/delta hedging income growth of 20-25%.
The FY27 PAT guidance of ~INR40 crores (roughly doubling from FY26) signals aggressive growth expectations, but credibility hinges on whether legacy investment losses are cleaned up and float/institutional revenues scale up. Investors should note the company's plan to cap cash market investments at INR50 crore and shift toward institutional brokerage and algo-led proprietary trading, which could re-rate the business but execution risk remains high given competitive pressure from discount brokers.