LKP Securities - LKP Securities

📊 BSE: 540192 🏢 Stockbroking & Allied 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total revenue increased by 15.19% YoY to INR 116.58 Cr, primarily driven by growth in brokerage income, distribution income, and other advisory services.

Geographic Revenue Split

Not disclosed in available documents, though the company highlights expansion into Tier II and Tier III cities to diversify its retail client base.

Profitability Margins

Net Profit Margin improved to 11.33% from 9.77% (a 16% favorable YoY change). Operating Profit Margin slightly declined to 17.25% from 17.50% (a 1.47% adverse change) due to increased operational costs.

EBITDA Margin

Operating Profit Margin stands at 17.25%, reflecting core profitability after managing cost optimizations and digital transformation expenses.

Capital Expenditure

Not disclosed in absolute INR Cr, but the company is actively investing in technology upgrades, digital infrastructure, and advanced trading tools to enhance business scalability.

Credit Rating & Borrowing

The company has secured borrowings of INR 13.50 Cr. The Debt-Equity ratio increased by 50% YoY to 0.15:1 following the issuance of Non-Convertible Debentures (NCDs).

⚙️ Operational Drivers

Raw Materials

As a financial services firm, primary inputs are Technology Infrastructure (trading platforms) and Human Capital (362 employees).

Import Sources

Not applicable for a brokerage firm; services are delivered through domestic digital infrastructure and a network of branches/franchisees.

Key Suppliers

IDBI Trusteeship Services Limited serves as the Debenture Trustee for the company's redeemable secured NCDs.

Capacity Expansion

Current workforce of 362 employees as of March 31, 2025. Expansion is focused on digital onboarding (KYC) and growing the business partner network to accelerate client acquisition.

Raw Material Costs

Employee remuneration is a major cost driver; median salaries for non-managerial staff increased by 22.33% YoY, while managerial remuneration increased by 20%.

Manufacturing Efficiency

Not applicable; operational efficiency is measured by the Debtors Turnover ratio, which improved 8.26% YoY to 1:5.86.

Logistics & Distribution

Distribution of services is handled through a hybrid model of physical branches/franchisees and digital channels targeting Tier II and Tier III cities.

📈 Strategic Growth

Expected Growth Rate

15.19%

Growth Strategy

Growth will be achieved through scaling operations via digital innovation, expanding the partner and client base in Tier II/III cities, and diversifying into high-yield wealth management and advisory-led engagement.

Products & Services

Research-driven equity advisory, equity trading services, distribution of third-party financial products (mutual funds, insurance), and wealth management solutions.

Brand Portfolio

LKP Securities

New Products/Services

AI-driven advisory tools, automated investing platforms, and personalized wealth management services integrated through open architecture.

Market Expansion

Targeting Tier II and Tier III cities to capitalize on the financialization of household savings and rising smartphone penetration.

Strategic Alliances

Maintains an extensive network of franchisees and business partners across major Indian cities to maintain a de-risked and scalable business model.

🌍 External Factors

Industry Trends

The industry is shifting toward digital-first models with 100% digital KYC journeys; full-service brokers are realigning toward value-added research to counter discount broker margin pressure.

Competitive Landscape

Intense competition from digital-first discount brokers who dominate new client acquisitions through low-cost models.

Competitive Moat

Moat is built on research-driven advisory and a hybrid distribution network (physical + digital), which is sustainable due to the high-touch requirements of HNI and wealth management segments.

Macro Economic Sensitivity

Highly sensitive to capital market performance and GDP growth; rising equity allocations in household savings provide a structural tailwind.

Consumer Behavior

Younger, tech-savvy investors are demanding seamless, personalized mobile trading experiences and DIY onboarding.

Geopolitical Risks

Indirect impact through global market volatility affecting domestic trading volumes and investor sentiment.

⚖️ Regulatory & Governance

Industry Regulations

Subject to SEBI Listing Obligations and Disclosure Requirements (LODR) and SEBI (Prohibition of Insider Trading) Regulations; compliance is monitored by an Audit Committee.

Environmental Compliance

CSR expenditure for the year was INR 22.50 Lakhs, focused on community development and equitable growth.

Taxation Policy Impact

The company incurred a tax expense of INR 4.85 Cr for the fiscal year ended March 31, 2025.

Legal Contingencies

The secretarial audit reports compliance with all material applicable acts; no specific pending court case values were disclosed in the provided documents.