SMC Global Securities Limited (NSE: SMCGLOBAL) Q3 2026 Earnings Call dated Feb. 03, 2026
Corporate Participants:
Unidentified Speaker
Gautam Kothari — NA
Subhash C. Aggarwal — Chairman & Managing Director
Vinod Kumar Jamar — President and Group Financial Officer
Ajay Garg — Director and Chief Executive Officer of SMC Global
Ayush Aggarwal — Chief Investment Officer
Pravin Agarwal — Whole Time Director, SMC Insurance Brokers Pvt. Ltd.
Mahesh Gupta — Vice Chairman
Analysts:
akashay metha — Analyst
Riya Mehta — Analyst
Presentation:
operator
Ladies and gentlemen, Good day And welcome to Q3 and 9M FY26 earnings conference call of SMC Global Securities Limited hosted by XB4 Advisory. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Start then zero on your touchstone phone.
Please note that this conference is being recorded. I now hand the conference over to Mr. Gautam Kothari from XB4 Advisory. Thank you. And over to you sir.
Gautam Kothari — NA
Thank you. Good evening everyone and thank you for joining us on the Q3 and 9:00am FY26 earnings conference call. Joining us today on the call are Mr. Subhash Chandrawal, Chairman and Managing Director, SMC Group. Mr. Mahesh C. Gupta, Vice Chairman and Managing Director, SMC Group. Dr. D.K. agarwal, Chairman and Managing Director, SMC Capitals Ltd. Mr. Ajay Gar, Director and CEO, SMC Global. Mr. Anurag Bansal, Full Time Director, SMC Global Ms. Ruthie Agarwal, Full Time Director, SMC global Mr. Pranay Agarwal, Director and CEO, Stocks Card Moneywise Invest Ltd. Mr. Vinod Kumar. Before we begin, please note that today’s discussion may include forward looking statements which reflect the company’s current views and expectations. These statements are subject to risks and uncertainties and actual results may differ materially. A detailed safe harbor statement is provided on the second last page of our earnings presentation which is available on the stock exchanges and the company’s website. With that, I now invite Mr. Subhashtra Diwal to share his opening remarks. Over to you sir.
Subhash C. Aggarwal — Chairman & Managing Director
Good evening everyone and a warm welcome to all participants on this call. We hope you have had the opportunity to review our Q3 and 9 months for FY26 financial results and the accompanying earning presentation. Both of which are available on the Scope Exchange and on our website. Before we move into our financial results, let me first outline the prevailing industry dynamics and the key developments that have shaped the operating environment during the period. Starting with the broking industry, the capital market environments during the period remains broadly constructive. Market participation continue to stay healthy supported by sustained retail engagement, steady institutional flows and stable levels of market volatility.
Trading activity across cash and derivative segments remained resilient even amid phases of market consolidation, reflecting deeper investor participation and improved market depth. The ongoing adoption of digital platforms, increasing multi product engagement by clients and a stable regulatory framework have together contributed to more predictable operating conditions for the industry overall. These trends point to a structurally stronger broken growth system where scale, technology and diversification are increasingly supporting consistency and durability in performance. Turning to the insurance broking industry, the sector continued to exhibit steady momentum underpinned by improving insurance penetration, rising customer awareness and sustained demand across life, health and general insurance products.
Industry growth was supported by a favorable shift toward protection oriented offerings, strong renewal trends and broader coverage across both retail and commercial segments. At the same time, the industry has been witnessing a gradual transition towards advisory led distribution models and greater use of digital processes, enhancing efficiency and customer engagement. While certain margin pressures persisted at the insurer level. Overall industry volumes remain healthy, providing a stable and supportive environment for insurance intermediaries and reinsuring the long term structural growth outlook to the sector. Finally, with respect to the financing and NBFC segment, the operating environment during the quarter was relatively more challenging.
The industry navigated a phase of moderated credit growth, tighter underwriting standards and heightened focus on risk management across select borrowing borrower segments. Although policy measures towards the latter part of the period aim to improve liquidity and funding conditions, the benefit of these measures have been gradual in translating into balance sheet expansion and earning recovery. Asset quality considerations and a cautious approach to disbursements continue to shape industry performance resulting in uneven outcomes across participants. As a result, the near term outlook for the financing segment remains measured with performance closely linked to credit stream funding stability and evolving macroeconomic conditions.
Let me now walk you through the key highlights of our performance for the quarter. In Q3 FY26 our consolidated operational income stood at 494.8 crores reflecting a sequential improvement over the previous year driven by a balanced contribution across our core business lines. EBITDA for the quarter was 102.1 crore translating into an EBITDA margin of 20.6% while profit after tax stood at 30.8 crores. Within our broking distribution trading business, the quarter witnessed continued expansion in our client engagement and geographic footprint despite periods of market recalibration during the year. As of the end of the period, Our network comprised 2154 authorized persons across 413 cities supported by 6485 financial distributor nationwide, reinforcing our Pan India reach.
Our broking DPAUA reached 1 lakh crore, 1 lakh Chosat Doso Sushatra crore while mutual fund AUM stood at rupees 4768 crores as of nine months. Financial 26 Supported by steady investor participation and sustained SIP equity, the segment continued to benefit from increasing digital presentation and deeper client engagement across multiple classes multiple asset classes. Our financing business operating through 38 branches across seven state maintained a strong focus on asset quality and portfolio diversification. As of nine months financial 26 AUM stood at 1107 crore with a skewed portfolio ratio of 69.42% and collection efficiency of 97.96%. The business reported a net worth of rupees 487.51 crore ROA of 2.42% and NNPA level of 1.99%.
Reflecting discipline, underwriting and product risk management, the lending portfolio remains well diversified across SME Asset lab, working capital, term loans, Gold loans and supply chain financing supporting stability across credit cycles. In our insurance business, growth momentum remained steady supported by rising policy volumes and expanding distribution capabilities. As of 9 months FY26 the business had issued 8 25,638 policies, generated gross premium of Rupees 2,236 crore and operated through 8 branches nationwide. Supported by a workforce of 49 employees, a network of 16,420 POSE agents and 381 MSEs. Continued investment in digital platforms and advisory led distribution have announced which across both retail and institutional segments.
Strengthening customer acquisition intention overall. While the operating environment during the year presented challenges in terms of margin pressures and funding cost, our diversified business model, strong national distribution network and continued investment in technology and risk management position us well to navigate near term volatility and build sustainable long term value. With that I now hand over to Mr. Vinod Kumar Jamar, our President Group CFO to take you through a more detailed overview of our financial performance. Over to Vinod Jamarji.
Vinod Kumar Jamar — President and Group Financial Officer
Thank you Subhash sir and good evening to everyone on the call. I will now take you through our financial and operational performance for Q3FY26 and nine months ended FY26 on a consolidated basis. For the quarter ended December 25, our operational income stood at 494.8 crores representing a quarter on quarter growth of 12.4%. EBITDA for the quarter was 102.1 crores with an EBITDA margin of 20.6% reflecting a 140 basis point quarter on quarter sequential improvement profit after tax came at rupees 30.8 crores marking a 46.7% quarter on quarter increase with pet margin of 6.2%. On a nine month basis we reported consolidated revenue of rupees 1360 crores, EBITDA of 286.7 crores and pet of rupees 81.8 crore.
Margins during the period were influenced by funding cost and a calibrated growth approach in the financing segment while fee based and distribution led businesses continue to provide stability to the overall performance. Turning to segment wise performance in the broking distribution and trading segment Q3FY26 revenue grew by 17.3% year on year to Rs. 286.6 crores. Segment EBIT increased by 13.9% year on year to 66.4 crores reflecting overall operating leverage despite periods of market recalibration during the quarter. In the financing NBFC segment Q3FY26 revenue stood at rupees 48.4 crores compared to rupees 71.2 crores in Q3FY25. As of nine months FY26 AUM was 1107 crore with a secured portfolio ratio of 69.42% and collection efficiency of 97.96%.
The business reported a net worth of rupees 487.51 crore ROA of 2.42% and NNPA level of 1.99% underscoring continued focus on balance sheet quality and risk discipline. In the Insurance Broking segment Q3FY26 revenue increased by 22.2% year on year to rupees 181.1 crores on a nine month basis. Segment revenue grew by 12.1% year on year to rupees 459.4 crores while segment EBIT for the quarter rose by 52.4% year on year to rupees 3.2 crores reflecting improved operating efficiencies. Overall. Our performance for the quarter and nine month period reflect a balanced contribution across business lines with growth in fee based segments helping offset cyclicity in capital intensive businesses.
We remain focused on maintaining financial discipline, optimizing our cost structure and strengthening return metrics as we progress through the remainder of the financial year. With this we conclude our remarks and the session is open for a question and answer session.
Questions and Answers:
operator
Thank you, thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants who wish to ask a question may press star and one on their touchstone telephone. The first question is from the line of action meta from J Investments.
Please go ahead.
akashay metha
Hello. Am I audible?
Subhash C. Aggarwal
Yeah, audible.
akashay metha
Yes sir. So, had a question regarding the broking division. So.
Subhash C. Aggarwal
Hello, you. But your name? Chan Mehta.
akashay metha
Hello. Yeah. So my question was that sir, we saw a growth of around 17.3% on a year on year basis in the broking and distribution segment on the top line. So just wanted to know what was the basis of this growth and coming forward? Basically what is the growth we expect for the full financial year?
Ajay Garg
Broking business is increasing day by day and even we have seen like good traction into commodity business as well. So we have seen that good percentage earlier. We used to have around 4% share from commodity. Now it is increasing towards 10%. So overall like growth would be there in tune of 10 to 14%.
And we have to see even the in this budget the STD has been increased. So our major focus would be there in increasing cash market business and commodity business in time to come.
akashay metha
Understood sir. So basically on the brokerage division itself, sir, could you just elaborate on what would be the difference between the online and offline channels margins and how does this basically impact on our blended segment profitability? What is the second question? So basically the question is that what is the major difference between the online and the offline channels and how will this basically impact our blended segmental profitability or segmental margins?
Ajay Garg
You see from full broking 70, 60% of our revenue comes from online business and in discount almost 100% is online. So in totality around 70% business comes from online. And we are even focusing on algorithm based trading. So recently Sebi had allowed algo trading to the retail players. So we are going to integrate algo trading into our mobile trading. So we see good traction even into that good business. Because algo players do a lot of trading and business would be huge. So online penetration would increase day by day.
akashay metha
Hello. Yeah, yeah. So could you just also tell me what would be the marginal difference or margin difference sir? Basically from the online how much margins would be generating and from the offline channels
Ajay Garg
60% revenue, even number of clients and revenue it is almost same is coming from Online.
Subhash C. Aggarwal
So the margin is same whether you are in offline or online. Your brokerage will not have any difference. Except in discount brokerage. Brokerage model is different.
Subhash C. Aggarwal
Hi, I. Actually I think your question is regarding to the discount broking arm of smc, right? You mean by online the discount broking arm stocks card. So in stock card so you know our arpu is around 10,000 rupees if you see per year if a. For an active client. Right. And that is somewhat. I think in SMC our arpu is around 20,000. Right. But the thing being that discount broking is 100% online.
There is no brick and mortar cost involved. So when it. When the discount broking will scale to a certain level the margins will be even better than the full service broking. But currently we are spending a lot to. You know, to market the services. And currently we are in that gestation period. We are opening around 12,000 accounts per month. And for that we are spending a lot on marketing. And once that rationalizes we will see a good margin.
akashay metha
Understood. And the last question was regarding the mutual fund aum. We saw a decent increase in the AUM for the current period into FY26. So just wanted to know what is the proportion of this growth coming from SIP versus the other segments of the business and what is the expectations for the closing the AUM by the end of FY27.
Ayush Aggarwal
Hi. Akshay Anuragi. So to answer to your first question, approximately 21% of net inflows are coming from SIP. And interesting data point is out of total aum of ours, 80% is equity. And we plan to close.
See we plan to grow at around 2025% for next couple of years in terms of AUM. So if I give a number to it we can reasonably expect it to close above 6000 crores at the end of FY27.
akashay metha
That’s true, sir. Thank you for the answers. I would join back the crew.
operator
Thank you. Participants who wish to ask a question may press star and one on the touchstone telephone. The next question is from the line of Riya Mehta, an individual investor. Please go ahead.
Riya Mehta
Good evening. Thank you for the opportunity. So my first question is that around what percentage of policies are sourced via digital channels versus the physical pos. And how does this affect the cost to acquire per policy basis?
Ajay Garg
I think Praveenji from insurance can take this up.
Pravin Agarwal
Hello. Hello. Hello Riya. Good evening. Actually our digital presence is sourcing business through. Digital presence is. Is the very minimum is a 0.01% only. We don’t acquire B2C business but we don’t do B2C business. All business through our POS and MIC business using digital media digitally. Your second question. Your second question is how is the ticket size? What was, what was the.
Riya Mehta
How does this affect the cost to acquire?
Pravin Agarwal
Our cost is roughly acquiring cause is very minimal because we are not targeting post model and our average post equation cost is roughly 1,000.
Riya Mehta
Okay, got it. So my next question is that do you see any pricing pressure on the broker commissions mostly in the motor and group health segments. And if so then how are you protecting the margins?
Pravin Agarwal
No ma’, am, actually we are not seeing any commission structure, reducing commission structure. And yes we are rumors on in the market conditions are reducing. But we are not saying this and we are just. We have taken impact of group life or sorry health and life insurance and GSC impact in October quarter. We referred from 1st of October. Right?
Riya Mehta
Okay. Yeah.
Pravin Agarwal
We have already taken 50.25% GST impact. So we are already impacted. But we are already surgized our business model.
Riya Mehta
Okay.
Pravin Agarwal
This quarter only.
Riya Mehta
I have a few more questions. So the AUM stood at 1106.99 crores in the 9M FY26 and it was 1291 in FY25. So is this a strategic slowdown or it is driven by funding constraints or demand softness. And this question is for nvfc.
Pravin Agarwal
Sorry, this question. Yeah, yeah.
Unidentified Speaker
Hi Riya. Thanks for the question. I’m looking for money. This is a conscious decision by the management to churn the portfolio. Earlier we were doing lab portfolio which constituted around 30% of my loan book. Last one and a half years we have moved from lab to micro lab and that’s driving the portfolio now. Currently we stand at 80 crores of microlab portfolio and we plan to increase it to 125cr by March end FY26 which will constitute around 10% of my portfolio. And one more chain management has done. We have stopped doing the surrogate programs in the unsecured portfolio and now we are doing only the VRINA programs.
So when this happens, your portfolio is going down. But this is a temporary phenomenon. Once these two things stabilizes, we expect the AUM to again start happy traction itself.
Riya Mehta
Okay, so I have one more question. So the cost of borrowing is at 10.57% and return on asset at 2.4%. So how much headroom do you think exists to expand the NIM if like policy rates is more further.
Unidentified Speaker
Okay, so Riya, just a brief background the repo rates have increased reduced by five times the last one year. So normally it takes six months to one year’s time for actually the rates to come down and actually pass on to the borrowers. So in our case what we have seen around 5 to 10 paisa every month that reduction is happening. Currently we are 10.57. I expect another 15 to 20 basis point reduction in the next six months and from there on I don’t think policy there may be one repo rate cut but during next one financial year I think the rates would largely remain same.
Largely. And plus in our case some or most of my loans are on MCLR based. So when the repo rate goes down some of my loans are already locked. Say if you take a one year MCLR and I’ve taken a loan in March 2025 that that impact will come to me in March 2026. So couple of my big ticket size loans they are the repurried is likely to come down for me in the month of March itself. So probably by in the June quarter I’ll have the impact of 10 to 20 basis point which we chat.
Riya Mehta
Okay, got it sir. Thank you so much.
Unidentified Speaker
Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on the touchstone telephone. Ladies and gentlemen, if you wish to ask a question, you may press star and one on your touchstone telephone. Ladies and gentlemen, if you wish to ask a question, you may press star and one on your touchstone telephone. Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to Mr. Mahesh T. Gupta for the closing comments.
Mahesh Gupta
Thank you for joining us today. We trust this session has helped address your questions and provide clarity on our performance.
operator
Yes sir. You can continue.
Mahesh Gupta
For any additional information or follow ups, please feel free to reach out to our investor relations partners at XB4 Advisory. We appreciate your continued engagement and look forward to connecting with you again in the next quarter. So thank you very much. Stay healthy and safe.
operator
On behalf of SMC Global securities limited that concludes this conference. Thank you for joining us. You may now disconnect your lines.