Event Participants
Executives
9 Subhash Chand Aggarwal, Mahesh C. Gupta, D.K. Aggarwal, Ajay Garg, Anurag Bansal, Himanshu Gupta, Shruti Aggarwal, Pranay Aggarwal, Rohit Nayyar
Analysts
3 Manish Bhandari, Aditya Dhar, Yash Choudhury
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Broking Client Base (incl. Stoxkart) | 13.8 lakh accounts | Grew during Q1 FY27, reflecting continued client acquisition across core businesses |
| Broking DP AUA | ₹1,64,962 crores | Increased during the quarter, reflecting focus on quality growth |
| Mutual Fund AUM | ₹4,787 crores | Up from ₹4,294 crores in March '26 (~11.5% growth), driven by market appreciation and net mobilizations from distribution initiatives |
| Active SIPs | 92,129 | Supporting MF AUM growth |
| NBFC AUM | ₹1,025 crores | Declined from ₹1,118 crores (Mar '26) due to discontinuation of LAP ( |
| MTF & T+5 Book | ~₹900+ crores | Increased from ₹760 crores, reflecting shift toward cash/delivery-based business |
| Consolidated Operational Income | ₹515.1 crores | +21.2% YoY; supported by growth across broking, insurance, and financing segments |
| Consolidated EBITDA | ₹107 crores | +6.9% YoY, +19.3% QoQ; EBITDA margin 20.9% |
| Consolidated PAT | ₹36.7 crores | +22.3% YoY (vs ₹30 crores in Q1 FY26) |
| Standalone Operational Income | ₹273.4 crores | +11.1% YoY |
| Standalone EBITDA | ₹71.5 crores | Margin 26.2%, expansion of 100 bps YoY |
| Standalone PAT | ₹25.1 crores | +9.6% YoY |
| Broking Segment Revenue | ₹316.3 crores | +15.1% YoY; supported by stable market activity and sustained client engagement |
| Broking Segment EBIT | ₹74.3 crores | +17.6% YoY; reflects disciplined cost management and operating leverage |
| Insurance Segment Revenue | ₹167.3 crores | +44.4% YoY; robust growth driven by non-life insurance (contributes ~90% of total premium) |
| Insurance Segment EBIT | ₹1.6 crores | Moderated vs revenue growth due to investments in distribution capacity and technology for reinsurance opportunity |
| Financing Segment Revenue | ₹46.5 crores | Moderated performance reflects calibrated approach to growth |
| Financing Segment EBIT | ₹26.1 crores | Supported by predominantly secured portfolio and stable asset quality |
| Insurance Gross Premium | ₹759 crores | 2.7 lakh policies issued during the quarter |
| Insurance Distribution Network | 16,747 POS agents; 385 Motor Insurance Service Providers; 492 employees | Expanding cost network supporting distribution-led strategy |
| NBFC Branch Network | 40 branches across 7 states | Continued focus on asset quality and portfolio diversification |
Geographic & Segment Commentary
Broking, Distribution & Trading: Revenue grew 15.1% YoY to ₹316.3 crores with EBIT of ₹74.3 crores (+17.6% YoY). Growth driven by strong cash market activity (Nifty/Sensex up 6-7%), delivery-based business shift (cash market brokerage percentage increased from 45% to 55%), and MTF book expansion from ₹760 crores to ₹900+ crores. Derivative revenue saw some reduction due to regulatory measures, but diversified fee-based businesses (wealth management, distribution, advisory) are strengthening.
Insurance Broking: Revenue grew 44.4% YoY to ₹167.3 crores with gross premium of ₹759 crores and 2.7 lakh policies issued. Non-life insurance contributes approximately 90% of total premium. EBIT of ₹1.6 crores moderated due to investments in manpower (corporate and life insurance), distribution capacity, and technology infrastructure to support upcoming reinsurance opportunity following composite broker upgrade. Operating leverage expected in future quarters.
Financing & NBFC: Revenue of ₹46.5 crores with EBIT of ₹26.1 crores. AUM declined to ₹1,025 crores from ₹1,118 crores (Mar '26) due to strategic product mix shift—discontinued LAP (₹50 cr decline) and tightened unsecured business loans (₹40 cr decline). Focus shifting to secured retail products (Micro LAP, Gold Loan); secured book now constitutes 75% of AUM (+5% YoY). Weighted cost of funds reduced by ~25 bps during the quarter; NIM expected to grow gradually with improving yield mix.
Company-Specific & Strategic Commentary
AI & Technology Investments: Company has built a complete AI enablement base over the last six months. Launched an AI-based Chatbot using proprietary low-language model and AI agent (cost-efficient chat layer), an AI-based Algo platform, and is integrating AI-generated insights into mobile app (script analysis, comparing scripts, trend on indexes) currently in testing mode. Significant investment in technology, AI automation, and infrastructure.
Stoxkart Growth: Online discount brokerage arm quadrupled revenue YoY, contributing ~₹20 crores in Q1 FY27. Opened ~26,000 subscription clients during the quarter through the "Smart Trader Plan"—an upfront subscription model for trading software, mimicking subscription culture. Management expects this to become a sizable business contributing significantly to overall revenues.
Distribution & Cross-Selling: Renewed strategic focus on mutual fund distribution with enhanced product training, investor awareness initiatives, and adoption of digital distribution platform "Easy Invest." MF AUM grew 11.5% to ₹4,787 crores. Products being integrated on broking mobile app (Mutual Funds already live, others in pipeline) to unlock cross-selling potential. Increased focus on HNIs and family offices with tie-ups with quality third-party manufacturers.
GIFT City Expansion: Management highlighted GIFT City as a major growth opportunity, with SMC positioned as a major player. Expanding investment banking and other product offerings.
Distribution Network Expansion: Insurance distribution network expanded to 16,747 POS agents, 385 Motor Insurance Service Providers, and 492 employees, reflecting continued traction in distribution-led strategy.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| NBFC AUM (FY27) | ₹1,250-1,300 crores by year-end | Q1 was slow due to rub-off effect from discontinued products (LAP, unsecured business loans); focus products (Micro LAP, Gold Loan) picking up; expects gradual NIM improvement with high-yielding retail product mix |
| NBFC AUM CAGR (5-year) | 20-25% CAGR target | Management expects to achieve this after 1-2 years once rub-off effect from discontinued products subsides |
| Consolidated Revenue Growth (5-year) | ~20% CAGR; revenue of ₹6,000-8,000 crores in 5 years | Based on current revenue of ~₹2,000+ crores; Chairman expressed confidence in growth trajectory |
| Consolidated PAT (FY27) | ~₹170 crores (expectation) | Compared to ₹103 crores last year; management noted figures are directional, not formal guidance |
| Insurance Operating Leverage | Expected in future quarters | Investments in manpower and technology for reinsurance opportunity expected to yield results in coming quarters |
| Q2 FY27 Outlook | "Q2 might be much better" | Based on improving market conditions, settling geopolitical crisis, declining crude prices, and strong cash market activity |
Risks & Constraints
| Risk | Context |
|---|---|
| NBFC Asset Quality & Product Transition | Strategic shift away from LAP and unsecured business loans caused AUM decline of ~₹90 crores in Q1. Management is cautiously optimistic on growth outlook, prioritizing portfolio quality over growth. Secured book at 75% of AUM provides some cushion, but transition period may continue to impact near-term growth metrics. |
| Regulatory Impact on Derivatives | Derivatives segment continues to reflect impact of regulatory measures implemented over past year. Industry-wide shift toward balanced business models; SMC has seen reduction in derivative revenue but mitigated through cash market growth. |
| Geopolitical & Macro Uncertainty | US-Iran tensions and crude price volatility created intermittent uncertainties during the quarter. FPI outflows of ~₹1.5 lakh crores were offset by DII buying of ₹2+ lakh crores. Management noted these as "hindrances" but expressed confidence in Indian market strength. |
| Competitive Pressure in Broking | Peers developing AI-enabled automation models and digital ecosystems. SMC is investing in AI capabilities (Chatbot, Algo platform, AI insights) to remain competitive, but execution risk exists in technology adoption and user experience. |
Q&A Highlights
NBFC AUM Decline & Growth Strategy
Question: Previous guidance suggested ~25% growth in NBFC AUM; what caused the variance and when will it materialize? (Manish Bhandari)
Answer: AUM closed at ₹1,025 crores vs ₹1,118 crores (Mar '26). Decline driven by discontinued LAP (
₹50 cr) and tightened unsecured business loans (₹40 cr). Focus shifting to secured retail products (Micro LAP, Gold Loan). Full-year target remains ₹1,250-1,300 crores. Q1 is typically slow in lending. (Himanshu Gupta)Question: What is the 5-year AUM growth target? (Manish Bhandari)
Answer: Aiming for 20-25% CAGR, but rub-off effect from discontinued products will persist for 1-2 years before that growth rate is visible. (Himanshu Gupta)
Question: Which loan category is performing well? (Manish Bhandari)
Answer: Book is shifting more granular, more retail, and toward higher proportion of secured loans. Secured book now 75% of AUM, up 5% YoY. Yields and margins are increasing with the mix change. (Himanshu Gupta)
Insurance Growth Drivers
Question: What factors drove the strong insurance revenue growth? (Manish Bhandari)
Answer: Non-life (general) insurance was the major factor for YoY growth. (Sakshi Mehta)
Question: When will operating leverage improve given investments in technology, people, and distribution? (Aditya Dhar)
Answer: Primarily investing in manpower—corporate and life insurance manpower costs are increasing. Operating leverage expected in future quarters. (Sakshi Mehta)
Question: Which product segments contributed most to gross premium growth? (Aditya Dhar)
Answer: Non-life insurance contributes approximately 90% of total premium. (Sakshi Mehta)
Broking Growth Drivers
- Question: What drove broking revenue growth despite moderated derivative environment? (Aditya Dhar)
- Answer: Nifty/Sensex grew 6-7%; DII bought ₹2+ lakh crores offsetting FPI sales of ₹1.5 lakh crores; geopolitical crisis settling; crude prices declined. Cash market business increased—delivery-based business and MTF book grew from ₹760 crores to ₹900+ crores. Cash market brokerage percentage increased from 45% to 55%. Derivative revenue reduced but segmental shift from derivatives to cash market occurred. Q2 and coming year expected to be better. (Ajay Garg)
Mutual Fund & Wealth Management Expansion
- Question: What initiatives drove MF AUM growth? (Aditya Dhar)
- Answer: Renewed strategic focus on MF distribution—enhanced product training, investor awareness initiatives, and adoption of digital distribution platform "Easy Invest." MF AUM grew from ₹4,294 crores (Mar '26) to ₹4,787 crores (Jun '26), ~11.5% growth. Growth driven by both market appreciation and net mobilizations. Increased focus on HNIs and family offices with third-party manufacturer tie-ups. (Anurag Bansal)
AI & Technology Initiatives
- Question: Do we have plans for AI-enabled automation similar to peers? (Manish Bhandari)
- Answer: Created complete AI enablement base over last six months. Launched AI-based Chatbot using proprietary low-language model and AI agent (cost-efficient chat layer), AI-based Algo platform, and integrating AI-generated insights into mobile app (script analysis, comparing scripts, trend on indexes)—currently in testing, launching soon. (Shruti Aggarwal)
Stoxkart Performance
- Question: Update on Stoxkart performance and contribution? (Aditya Dhar)
- Answer: Quadrupled revenue YoY—contributed ~₹20 crores in Q1 FY27. Opened ~26,000 subscription clients in the quarter through "Smart Trader Plan" (upfront subscription for trading software). Model is new to industry, mimicking subscription culture. Expected to become sizable business contributing significantly to SMC's overall revenues. (Pranay Aggarwal)
Cross-Selling Opportunities
- Question: What opportunities exist for cross-selling across broking, wealth management, and insurance? (Aditya Dhar)
- Answer: Continuously working on improving cross-selling. Integrated some products on broking mobile app (e.g., Mutual Funds); other products in pipeline. Integration expected to unlock