Choice International Q2 FY27 results: net profit up 23.0% to ₹69.47 crore, revenue up 35.9%

How did Choice International perform in Q2 FY27?

Choice International reported consolidated revenue of ₹372.87 crore for Q2 FY27, up ₹98.44 crore or 35.9% from ₹274.43 crore in Q2 FY26. Against Q1 FY27, revenue rose ₹63.08 crore or 20.4% from ₹309.79 crore. Total income was ₹379.02 crore, compared with ₹284.10 crore a year earlier and ₹319.02 crore in the previous quarter.

Consolidated PAT for Q2 FY27 was ₹69.47 crore, up ₹13.01 crore or 23.0% from ₹56.46 crore in Q2 FY26 and ₹8.86 crore or 14.6% from ₹60.61 crore in Q1 FY27. Basic EPS was ₹3.12, against ₹2.75 and ₹2.72, respectively. The PAT margin was 18.6%, compared with 20.6% a year earlier and 19.6% in Q1 FY27.

The board also approved the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026. On the standalone basis, revenue was ₹13.42 crore, compared with a loss before tax of ₹0.74 crore, while PAT was ₹7.18 crore. No consolidated EBITDA or EBITDA margin was reported in the filing data.

What changed in Choice International's costs and profit?

Total expenses increased ₹75.52 crore or 36.0% year on year to ₹285.21 crore. Employee benefit expense rose ₹34.92 crore or 45.2% to ₹112.14 crore, finance costs increased ₹10.04 crore or 48.7% to ₹30.64 crore, depreciation and amortisation expenses rose ₹2.21 crore or 55.8% to ₹6.17 crore, and other expenses increased ₹28.35 crore or 26.3% to ₹136.25 crore.

Other income fell ₹3.51 crore or 36.3% to ₹6.16 crore from ₹9.67 crore. Profit before tax nevertheless rose ₹19.40 crore or 26.1% to ₹93.81 crore from ₹74.41 crore. Tax expense increased ₹6.40 crore or 35.7% to ₹24.35 crore from ₹17.95 crore, and PAT rose to ₹69.47 crore from ₹56.46 crore.

Against Q1 FY27, total expenses rose ₹46.11 crore or 19.3% to ₹285.21 crore, led by other expenses of ₹136.25 crore and employee benefit expense of ₹112.14 crore. Other income fell ₹3.08 crore or 33.3% to ₹6.16 crore, while PBT rose ₹13.89 crore or 17.4% to ₹93.81 crore. There was no exceptional item in either comparison quarter.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹682.65 crore, up ₹173.59 crore or 34.1% from ₹509.06 crore in H1 FY26. Total income rose ₹175.99 crore or 33.7% to ₹698.05 crore from ₹522.06 crore, while PBT increased ₹36.44 crore or 26.5% to ₹173.74 crore.

H1 FY27 PAT was ₹130.08 crore, compared with ₹104.42 crore in H1 FY26, an increase of ₹25.66 crore or 24.6%. Basic EPS rose by ₹0.71 or 13.8% to ₹5.84 from ₹5.13.

What do the balance sheet and cash flow show?

At 30 September 2026, consolidated total assets were ₹4142.78 crore, compared with ₹3565.99 crore at 31 March 2026. Total equity rose to ₹1965.47 crore from ₹1823.75 crore, while borrowings increased to ₹1188.61 crore from ₹883.82 crore and cash and cash equivalents to ₹320.49 crore from ₹194.45 crore.

Trade receivables increased to ₹519.88 crore from ₹436.68 crore, while trade payables fell to ₹33.27 crore from ₹50.28 crore. H1 FY27 operating cash flow was negative ₹281.18 crore, compared with negative ₹66.66 crore in H1 FY26. Investing cash flow was positive ₹32.09 crore, compared with negative ₹70.97 crore.

Financing cash flow for H1 FY27 was positive ₹249.63 crore, against positive ₹133.64 crore in H1 FY26, while capital expenditure was ₹33.52 crore compared with ₹6.46 crore.

How has Choice International done over the last 8 quarters?

Revenue increased in each of the last eight quarters on a year-on-year basis, while PAT increased in each of the last seven quarters. Over the reported series, revenue reached ₹372.87 crore in Q2 FY27, up from ₹209.34 crore in Q3 FY25, while PAT reached ₹69.47 crore, compared with ₹30.74 crore at the earlier end of the series.

The direction in the latest quarter was higher: revenue rose from ₹309.79 crore in Q1 FY27 to ₹372.87 crore in Q2 FY27, and PAT rose from ₹60.61 crore to ₹69.47 crore. The filing data did not provide EBITDA margins for the quarterly trend, so a margin peak or trough cannot be identified from these figures.

Which businesses drove the quarter?

Broking Services reported revenue of ₹178.24 crore in Q2 FY27, up 10.9% from ₹160.73 crore in the year-ago quarter. Segment EBIT was ₹42.19 crore, compared with ₹42.68 crore, and the reported EBIT margin was 23.7%.

Advisory Services reported revenue of ₹144.53 crore, up 82.8% from ₹79.05 crore in Q2 FY26. EBIT rose to ₹45.33 crore from ₹27.72 crore, with a reported EBIT margin of 31.4%. NBFC Services revenue was ₹46.25 crore, up 7.9% from ₹42.87 crore, while EBIT was ₹3.65 crore against ₹4.01 crore.

Unallocable revenue was ₹27.61 crore, compared with ₹8.12 crore in the year-ago quarter, and EBIT was ₹2.65 crore, with a reported EBIT margin of 9.6%.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026 and noted the auditor’s limited review report. It also approved a 1:1 bonus issue, providing 1 equity share of ₹10 each for every existing equity share of ₹10 held on the record date, subject to shareholder approval.

What did Choice International's management say?

Management said the main growth levers were the ₹900 crore NHIS investment in Choice Equity Broking, expansion of India Post Payments Bank distribution and NBFC expansion. Management also said the India Post partnership was moving from a 38-day pilot toward nationwide digital mutual-fund distribution, while its digital roadmap includes Account Aggregator net-worth consolidation, FinX portfolio analytics, NSE commodity derivatives and AI-based insights.

Management set 2030 targets of ₹10 Bn Green Finance AUM and ₹25 Bn MSME Finance AUM. It said Choice AMC’s first active scheme, a Large and Mid Cap fund, had launched, while a Gold FoF was planned; the Gold FoF new fund offering period was 20 October 2026 to 3 November 2026. The H1 FY27 revenue mix was 55% broking and distribution, 32% advisory and 12% NBFC.

Management identified a watchpoint around NBFC asset quality: GNPA was 3.22%, NNPA was 2.44% and provision coverage was 24.73%. NBFC net interest margin was 10.76% in Q2 FY27, and the presentation labelled its direction as “Reduced by 49bps”. It also said the ₹9,000 Mn NHIS infusion was structured as compulsory convertible preference shares, with conversion and dilution terms not disclosed in the presentation text.

How did Choice International shares react?

After the filing, the stock fell 0.7% within five minutes, 0.2% after 15 minutes and 1.0% after 30 minutes. It closed 1.0% below its pre-results close on the reaction day, and by the next day’s close it was down 0.8% from that pre-results close. No five-day move was available.

The Holding Company industry’s median move was 0.4% on the reaction day and 1.7% by the next day’s close. Choice International’s corresponding excess performance was negative 1.4 percentage points on the reaction day and negative 2.5 percentage points by the next day’s close.

Earlier results-day moves were mixed: the stock fell 2.4% on 10 August 2026 and 3.1% on 23 April 2026, rose 7.2% on 22 April 2025 and 2.2% on 22 October 2024. Other reactions were negative 0.5% on 16 October 2025, positive 0.1% on 3 February 2026, positive 0.3% on 29 January 2025 and negative 1.6% on 18 July 2024.