SMC Global Securities Q2 FY27 results: net profit down 44.6% to ₹28.23 crore, revenue down 38.5%

How did SMC Global Securities perform in Q2 FY27?

On the consolidated basis, SMC Global Securities reported Q2 FY27 revenue of ₹532.45 crore, other income of ₹2.41 crore and EBITDA of ₹101.49 crore. The EBITDA margin was 19.1%. Profit before tax was ₹37.88 crore, tax was ₹9.65 crore and net profit was ₹28.23 crore, with basic EPS of ₹1.33.

Against Q2 FY26, revenue fell ₹332.75 crore, EBITDA fell ₹83.02 crore, profit before tax fell ₹28.31 crore and net profit fell ₹22.72 crore. The EBITDA margin was lower by 2.2 percentage points and the profit margin by 0.6 percentage points. Against Q1 FY27, revenue rose ₹17.37 crore, but EBITDA fell ₹5.45 crore and net profit fell ₹8.51 crore; the EBITDA margin declined 1.7 percentage points.

On a standalone basis, revenue was ₹256.65 crore, with growth of 18.5%. Profit before tax was ₹6.34 crore and net profit was ₹9.48 crore. For the first half, consolidated revenue was ₹1,047.53 crore, total income was ₹1,050.46 crore, profit before tax was ₹84.46 crore, net profit was ₹64.96 crore and EPS was ₹3.08.

What changed in SMC Global Securities' costs and profit?

Total expenses were ₹496.98 crore, lower by ₹304.67 crore from Q2 FY26 but higher by ₹27.96 crore from Q1 FY27. Employee cost fell ₹78.53 crore year on year to ₹100.25 crore, finance costs fell ₹46.93 crore to ₹60.34 crore, depreciation fell ₹8.01 crore to ₹5.69 crore and other expenses fell ₹20.41 crore to ₹43.82 crore. There was no exceptional item.

Other income was ₹2.41 crore, down ₹0.23 crore from Q2 FY26 and up ₹1.89 crore from Q1 FY27. Tax was ₹9.65 crore, down ₹5.59 crore from Q2 FY26 and down ₹0.20 crore from Q1 FY27. Sequentially, higher total expenses, finance costs and other expenses coincided with lower profit before tax and net profit.

The filing did not state a reason for the year-on-year decline in reported consolidated revenue or profit. Its earnings presentation showed different operational-income comparisons for Q2 FY26, including revenue of ₹440.3 crore, EBITDA of ₹84.4 crore and profit after tax of ₹21.0 crore.

What do the balance sheet and cash flow show?

Total assets were ₹5,700.65 crore as on 30 September 2026, compared with ₹5,743.64 crore as on 31 March 2026. Total equity was ₹1,360.32 crore, compared with ₹1,306.11 crore, while cash and cash equivalents were ₹191.52 crore, compared with ₹152.85 crore. Inventories were ₹6.89 crore, compared with ₹4.63 crore; borrowings were not specified.

For the first half of FY27, net cash used in operating activities was ₹9.23 crore, compared with ₹211.97 crore in H1 FY26. Net cash used in investing activities was ₹33.22 crore, compared with ₹14.57 crore, while financing cash flow was ₹78.65 crore, compared with ₹187.06 crore. Capital expenditure was ₹35.03 crore, compared with ₹15.34 crore.

How has SMC Global Securities done over the last 8 quarters?

Revenue reached its highest level in the reported series at ₹865.2 crore in Q2 FY26 and its lowest at ₹421.47 crore in Q4 FY25. It was ₹532.45 crore in Q2 FY27, higher than ₹515.08 crore in Q1 FY27 but below the prior-year peak.

Net profit peaked at ₹50.95 crore in Q2 FY26 and bottomed at ₹4.09 crore in Q4 FY25. It was ₹28.23 crore in Q2 FY27, lower than ₹36.74 crore in Q1 FY27. The EBITDA margin was 19.1%, above the 17.4% low in Q4 FY26 but below the 24.5% peak in Q3 FY25 and the 20.8% recorded in Q1 FY27.

Which businesses drove the quarter?

Broking, Distribution and Trading reported revenue of ₹288.29 crore and EBIT of ₹56.07 crore, with an EBIT margin of 19.4%. Revenue was down 44.1% from ₹515.86 crore in the supplied segment data and EBIT was down from ₹112.02 crore.

Insurance Broking reported revenue of ₹193.8 crore, EBIT of ₹4.51 crore and an EBIT margin of 2.3%. No year-ago segment revenue or EBIT comparison was provided in the structured data. Financing activities reported revenue of ₹62.02 crore, down 36.2% from ₹97.27 crore, and EBIT of ₹37.65 crore, down from ₹54.86 crore; its EBIT margin was 60.7%.

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, together with the limited review report. It also approved the unaudited statements of assets and liabilities and the cash-flow statements for the first half.

The same-day filings did not announce a dividend, fund raise or appointment. The company filed an earnings presentation on 27 October 2026. The trading window for designated persons and their immediate relatives was to reopen after 48 hours from the declaration of the financial results.

What did SMC Global Securities' management say?

Management said the FY27 NBFC AUM expectation had been lowered to ₹1,125-1,150 crore from approximately ₹1,300 crore as the runoff of older lending products accelerated. The company expects focus-product growth to become clearer in coming quarters, while the NBFC’s unsecured-loan share is expected to fall below 15% in about a year and then remain at 10-15%.

Management said StoxKart targets more than ₹100 crore of revenue during FY27 but does not expect break-even this year. It plans an additional ₹50 crore of investment, primarily to expand the margin-to-funding book, while keeping the current loss and burn rate broadly flat and seeking better bottom-line potential next year.

Management said more than 90% of NBFC debt was floating and expected borrowing cost to rise by around 20 bps as loans reset, with negligible NIM impact. It also said the ₹150 crore NCD issue was oversubscribed and retained in full, strengthening liquidity and diversifying funding. Risks identified included repo-rate transmission, faster legacy-loan runoff, IRDAI distribution-economics proposals, exchange-mechanism changes and continued StoxKart losses.

How did SMC Global Securities shares react?

After the filing, SMC Global Securities rose 1.8% in five minutes and 5.8% in 15 minutes, before moving 0.3% after 30 minutes. The reaction-day close was 1.6% below the previous close. By the next day’s close, the stock was down 3.7% from the pre-results close, and by five sessions it was down 3.9%.

The Stockbroking & Allied industry median was up 1.0% on the reaction day, 1.2% by the next close and 2.5% by five sessions. SMC Global Securities underperformed that median by 2.6 percentage points on the reaction day, 4.9 percentage points by the next close and 6.4 percentage points by five sessions. Earlier reaction-day moves included 1.1% on 26 July 2026, 2.5% on 2 February 2026 and 8.9% below the close on 25 October 2024.

How did other Stockbroking & Allied companies do?

Among 27 other Stockbroking & Allied companies that had filed for the quarter, the median revenue growth was 16.8%. Two peers grew more slowly than SMC Global Securities and 25 grew faster. Of the 26 peers for which profit was compared, 16 reported higher profit.