Swastika Investm - Swastika Investm

📊 BSE: 530585 🏢 Stockbroking & Allied 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 23% YoY to INR 140.58 Cr. Segment performance: Broking and related activities grew 11.56% to INR 119.11 Cr; Merchant Banking activities grew 287.81% to INR 16.11 Cr; Insurance Broking grew 231.08% to INR 3.33 Cr; NBFC activities declined 6.29% to INR 2.32 Cr.

Geographic Revenue Split

Primarily domestic (India) with 70 branches and a presence in different sectors across the country; specific regional % splits are not disclosed.

Profitability Margins

Operating Profit Margin improved 43.03% YoY to 22.76% from 15.91%. Net Profit Margin improved 50.42% YoY to 16.35% from 10.87%. Return on Net Worth increased 22.15% to 21.05%.

EBITDA Margin

Management targets a sustainable EBITDA margin band of 28-30%, driven by growth in high-margin MTF funding and interest income which have low incremental costs.

Capital Expenditure

Strategic investments are being made in talent (IIT professionals) and technological infrastructure to support 'Swastika 2.0' centralization; specific INR Cr values for planned CapEx are not disclosed.

Credit Rating & Borrowing

Debt Equity Ratio improved from 0.14 to Nil (-100% change). Interest Coverage Ratio improved 20.57% to 5.52.

⚙️ Operational Drivers

Raw Materials

As a service-based financial firm, primary 'raw materials' are human capital (650 employees) and cost of funds for the NBFC division.

Import Sources

Sourced domestically within India.

Key Suppliers

Stock exchanges (BSE, NSE), depositories (NSDL, CDSL), and technology vendors.

Capacity Expansion

Current infrastructure supports 412,000 clients (11,000 added in Q1 FY25). Management states current technology is ready to effectively manage 2x the current customer base.

Raw Material Costs

Not applicable for services; however, employee costs and technology maintenance are primary operational expenses.

Manufacturing Efficiency

Technology-driven operations utilize in-house applications to streamline processes, reduce costs, and enhance client experience.

Logistics & Distribution

Distribution is handled via 70 physical branches and digital platforms (Swastika mobile app, Jarvis).

📈 Strategic Growth

Expected Growth Rate

23%

Growth Strategy

Growth will be achieved through 'Swastika 2.0' centralization, expanding the Merchant Banking SME IPO pipeline (28 completed to date), and the launch of 'Avisa Wealth Manager' for fund management. The company is also scaling its MTF (Margin Trading Facility) book to drive EBITDA margins.

Products & Services

Equity and Commodity Broking, SME IPO Lead Management, Insurance Broking (Life/General), NBFC Loans (MTF funding), Portfolio Management Services (PMS), and Investment Advisory.

Brand Portfolio

Swastika Investmart, Swastika Fin-mart, Avisa Wealth Manager, Jarvis (AI tool).

New Products/Services

Incorporated Avisa Wealth Manager Private Limited in Nov 2024 to enter fund management and Alternative Investment Funds (AIF).

Market Expansion

Expanding Merchant Banking and Broking branches PAN India; exploring international expansion opportunities in the global financial services market.

Market Share & Ranking

Holds approximately 0.36% of India's 11.5 crore unique demat accounts.

Strategic Alliances

Maintains relationships with marquee clients for valuation services including HDFC Securities, Yes Securities, and Krafton India.

🌍 External Factors

Industry Trends

Rapid shift from institutional (FII) to retail participation in India (11.5 Cr demat holders); increasing adoption of online trading and digital financial solutions.

Competitive Landscape

Operates in a crowded market with multiple traditional and discount brokers; differentiates through personalized service and research.

Competitive Moat

32-year legacy and trust, full-service 'one-stop' financial platform model, and in-house technology infrastructure provide a sustainable competitive advantage.

Macro Economic Sensitivity

Highly sensitive to capital market performance and retail investor sentiment; revenue is closely tied to market cycles.

Consumer Behavior

Indian customers are cautious; the company uses digital campaigns and local advertising to overcome marketing challenges and build brand awareness.

Geopolitical Risks

Global trade tensions and conflicts introduce market volatility, which can hinder retail participation and hinder growth.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by SEBI (Broking/Merchant Banking), RBI (NBFC), and IRDA (Insurance) regulations. Compliance requires ongoing resource allocation to adapt to frequent updates.