SMC Global Securities Limited (NSE: SMCGLOBAL) Q4 2025 Earnings Call dated May. 12, 2025
Corporate Participants:
Unidentified Speaker
Subhash Aggarwal — Chairman, Managing Director
Vinod Kumar Jamar — President, Group Chief Financial Officer
Ajay Garg — Chief Executive Officer, Executive Director
Analysts:
Unidentified Participant
Gautam Kothari — Analyst
Rahul — Analyst
Himanshu Gupta — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the SMC Global Securities Limited Q4 and FY25 earnings conference call. 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 the conference call, please signal an operator by pressing Star then zero on your touch tone 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 — Analyst
Thank you. Good evening everyone. Thank you for joining us on the Q4FY25 earnings conference call. Joining us today on the call are Mr. Subhashan Agarwal, Chairman and Managing Director, SMC Group. Mr. Mahesh Sri 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 securities Ltd. Mr. Anurag Bansal, Full Time Director, SMC Global securities Limited Mr. Himanshu Gupta, Director and CEO of Moneywise Financial Services Private Limited. Ms. Shruti Agarwal, Full Time Director, SMC global securities Limited and Mr. Vinod Kumar Jhamar, President and Group CFO.
Before we begin, please note that today’s discussions 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 this I now invite Mr. Subhas Agarwal to share his opening remarks. Over to you sir.
Subhash Aggarwal — Chairman, Managing Director
Good evening everyone and a warm welcome to all participants on this call. I trust you have had the opportunity to review our quarter four financial year 25 financial results and earning presentation which are available on both the Stoke exchanges and our website. Amid rising India Pakistan tensions in recent days, we express our heartfelt prayers and gratitude for the well being and safety of our armed forces who tirelessly safeguard our nation day and night. Before discussing our financial performance, allow me to provide some context on the broader industry landscape and recent developments that have shaped the business environment.
Industry Outlook the broking and financial services industry witnessed several significant developments in the last quarter driven by regulatory changes and shifting marketing market dynamics. One of the most notable industry wide development has been the moderation in derivative trading volumes following the introduction of stricter norms in the F and O segment. This combined with rising geopolitical tension has led to a visible slowdown in market participation and retail activity. Many intermediaries across the sector are navigating short term revenue pressure. As a result, India’s capital markets are currently evolving through a pilot transition shaped by regulatory shifts and global uncertainties.
One of the most significant changes has been the enforcement of new EFNDO norms coupled with heightened geopolitical tensions. India is still on a strong path but geopolitical risk remains a concern which has led to a visible slowdown in market activity. These developments have tempered trading volumes, client engagement and overall execution in the short run. However, we see this as a strategic inflection point rather than a setback. Regulatory measures often trigger initial fraction, but over time they paved the way for a more disciplined, transparent and stable market environment. This transition offers long term advantages particularly for well positioned intermediaries like Company Highlights now let me talk, let me walk you through some key performance highlights for SMC Global Scorecards.
Despite the regulatory headwinds, we reported revenue growth across all three of our core business segments Broking, Distribution and trading, Financing and Insurance Group. In quarter four financial 25 our consolidate revenue came in at rupees 421.5 crores. EBITDA stood at rupees 63 crores and PAT at rupees 4.1 crore. For the full year financial 25 revenue grew by 8.4% YoY to 1775.7 crore with EBITDA at rupees 419.4 crore and PAC at rupees 146.8 crore. Our expensive network includes 2147 authorized persons across 424 cities. Underscoring our pan India reach, we now have 6748 Panicite distributors and our mutual fund AUM stands at rupees 4178 crore.
In our NBFC operations we are active through 41 branches covering nine states, steadily expanding our leading footprint. Our insurance vertical continues to grow, operating from eight branches nationwide and supported by a strong base of 16,022 EPOD and 348 MISPs. While quarter four witnessing some revenue pressure due to external factors, we remain confident of a revival across all verticals broking, financing and insurance. As market conditions normalized and investor sentiment improve our diversified business model, expanding network and ongoing investment in technology leave us the well equipped to pursue sustainable loan growth. With that I now hand over to Mr.
Vinod Kumar Jammar, our President Group CFO for a detailed overview of our financial performance. Over to you Vinodji.
Vinod Kumar Jamar — President, Group Chief Financial Officer
Thank you Subhash sir and good evening to everyone on the call. Let me now take you through financial performance for Q4FY25 and the full financial year on a consolidated basis. For Q4 FY25 operating income stood at Rs. 421.5 crores. Operating EBITDA was approximately rupees 63 crores. EBITDA margin came at 14.9%. PAT stood at rupees 4.1 crores with PET margin of 1% for full year. FY25 operating income reached 1,775.7 crore marking an 8.4% YoY growth. Operating EBITDA stood at 409.4 crores showing a slight decline of 1.5%. Yay. EBITDA margin was at 23.6%. PAT stood at 146.8 crores with PAT margin of 8.3%. Segment wise performance in the Broking distribution and trading segment Q4 FY revenue was rupees 240.5 crores. FY25 revenue was 1044.5 crores up by 8.6%. YUI branch network expanded to 208 from 188 in FY24 in broking DPAUA asset under administration we added Rs. 36,413 crores in our DPAUA during FY25 marking a 46% growth over 1 lakh. New demat accounts were opened. Wealth advisory AUM reached rupees 948 crores, a 4.4% increase. YOY Mutual Fund AUM rose to 4178 crore up 9.9%. YOY. We added 13,930 new SIPs in FY25.
Corporate FD procurement also showed marginal growth in the financing segment. Q4 revenue was rupees 40.9 crores. FY25 revenue stood at rupees 220.6 crores reflecting an 8.2% YUI increase. NBFC AUM reached Rs. 1291 crores up by 4.2%. YOY ZNPA and NPA were 3.6% and 2.2% respectively. In the insurance booking division Q4 FY revenue stood at rupees 160.3 crores. FY20 revenue was rupees 570 crores. Registering 7.9 YOY growth. Total insurance policies sold cross rupees the 10 lakh mark in FY25. With this we conclude our remarks and open the floor. Q and A. Thank you.
Questions and Answers:
operator
Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch. Don’t telephone. If you wish to withdraw yourself from the question queue, please press star and 2. Participants are requested to use handsets only while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. I repeat, if you wish to ask a question, you may press star and one. We have a first question from the line of Rahul, an individual investor. Please go ahead.
Rahul
Yeah, hi. Good evening everyone. Yeah, I have a question regarding the NBFC segment. We understand that nbfc, the entire NBFC market is going to a bad pace. And as far as our SNC is concerned, our GNPA is increasing and NPFC is increasing along with the credit cost. The NDFC AUM has increased only by 4 or 5% mainly on the year to year basis. So have we seen a rock bottom, we can say by the end of this quarter? Can we expect a new beginning from this quarter itself?
Himanshu Gupta
Yes. Hi Rahul, this is Himanshu Gupta. So as you rightly mentioned, you know, this year was a bad phase for the industry as a whole and we were very cautious in terms of new lending. So we in fact had tightened our underwriting policies during the year. And as a result, you know, we were able to grow just by about 4 to 5% of the year. And as you rightly also said, the GNPA numbers for us also, you know, increased to 3.55% as compared to around 2.22% last year. So but if you compare it with the industry, you know, our delinquencies and the credit quality, you know, is much better than, you know, many other players in the industry who are operating in the same segment.
So we are in a much better position first of all. And you know, we are also very hopeful and confident about having this year FY26 will be, you know, much better year for us in terms of the EVM growth as well as, you know, the quality of our portfolio. And also, you know, in addition to that we expect, you know, our spread or margins to be better because you know we are working on increasing our yield on our asset book as well as you know there are certain tailwinds in terms of the cost of finance which is available for the NBSPs due to the reduction in interest rate and you know division in RBI stand on with loan to LBs.
So as a whole we expect this year to be much better as compared to FY25.
Rahul
So if you want to give the numbers on the guidance basis for AUM group parameters which normal industry look forward to.
Himanshu Gupta
So you know we expect this year the AUM to grow by around 20% but you know we would have better visibility as we you know go down the year quarter on quarter.
Rahul
And what about GNP and NPN credit cost about this first quarter like already 40 days to 45 days has been passed on what I’ve been experiencing in terms of GNP and all about the state call.
Himanshu Gupta
So there are certain large accounts which are included in the GMPA and we are closely monitoring the recoveries in those accounts as and when there is no recovery in one or two accounts we would see the number going down. So we are closely working on that. It is very difficult to comment whether it would happen in quarter one but we are expecting the recovery during the year.
Rahul
And another thing I noticed that your secured loan percentage revolves around in the last four. In the last Q4 around 61.5% and if I compare with the Q3 basis the secured loan percentage goes around 65% basis. And if I remember your Q3 basis you were saying we will we are looking for increasing the secured loans. So are we going against the trend what we were giving in the guidance.
Himanshu Gupta
So currently I think by end of this year it was about 64% roughly and no in the next three to four years we are our plan is to increase the secured AUM to 75% and we are working on that.
Rahul
Okay. And another question from the stock working segment. Like how do you people see in the stock working segment. How will. How will we perform like that when the segment has certain regulations with respect to increased margins. How are we seeing this year is in terms of new clients VMAT account and the volume of volume growth.
Ajay Garg
Hi Rahul Ajay got this slide. So at least stockbroking certain regulatory changes had come under the earlier where the weekly options has been restricted to only nifty and Sensex. Earlier we used to have five other content weekly option. You were there and even the expiry has been restricted to only one expiry per exchange. So and certain margins on expiry have increased so and coupled with this lot of SPI selling was there in October. So in cash market as well as the market we saw a drastic decrease in volume. But now like India, Pakistan thing has been sorted out and even FBI have stopped their selling and they are now positive for last two months and continuously di buying SIP of more than 25,000 crore every month is coming.
So things seems to be much better way ahead and the new chairman Sebi seems to be very friendly and he’s open to review the policies and we feel that it would be positive for the market and certain keys will be done as far as the regulation is concerned. Certain things has already come as far as say limit on FNDO circular has already come and you see India is a fastest growing economy in the world and stock market still is very under penetrated. So there is a huge scope and we are very bullish and positive about it.
Rahul
Okay, kind of. Okay. Yes, that’s it from Isaac. Thank you.
Ajay Garg
Thank you.
operator
Thank you. A reminder to all participants, if you wish to ask a question you may press star and 1. I repeat if you wish to ask a question you may press star and one on your touchstone phone. A reminder to all participants, you may press star and one to ask a question. Participants who wish to ask a question may press star and 1. We have a follow up question from the line of Rahul, an individual investor. Please go ahead.
Rahul
Yeah, one more question. I am able to see there is a -9.32 loss in the net gain of fair value changes. Is this a one time activity? Like if you can explain me what is the scenario behind it?
Himanshu Gupta
Yeah. This fair value changes reflects the mark to market changes in our investment portfolio. So since markets are down in March there is some negative balances. But as the market improves this will be better in future.
Rahul
Thank you so much.
operator
Thank you. A reminder to all participants, if you wish to ask a question you may press star and one. Participants who wish to ask a question may press star and one on the touchstone telephone. A reminder to all participants if you wish to ask a question you may press star and one. Participants who wish to ask a question may press star and one on the touch tone telephone. Participants who wish to ask a question you may press star and 1. As there are no further questions, I would now like to hand the conference over to the management for closing comments.
Subhash Aggarwal
Thank you all for joining today’s earning call. We trust we were able to address your queries effectively. Should you have any further questions or need more information about the company, please Feel free to reach out to our investors relations advisors at XB4 Advisory. Stay safe and healthy. Thank you very much to all.
operator
Thank you very much, sir. On behalf of SMC Global securities limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines. It.