Pune e - Pune e

📊 BSE: 544141 🏢 Stockbroking & Allied 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Standalone Profit After Tax (PAT) grew by 30% YoY to reach INR 15.05 Crores in FY25. Revenue is heavily driven by interest income from Margin Trading Facility (MTF), lending, and fixed deposits, which contribute 40-50% of the net revenue base. Proprietary trading income contributes 8-10%, while core broking income from the cash segment remained stable. However, the derivatives segment saw a volume contraction of approximately 50% due to regulatory changes in weekly index options.

Geographic Revenue Split

The company operates through physical hubs in 3 major cities (Mumbai, Ahmedabad, and Delhi) and maintains a presence in 15 additional cities through its sub-broker network. Specific percentage contribution per region is not disclosed, but the focus is on expanding reach through a Category III Alternative Investment Fund (AIF) and IFSC operations in Gift City, Gandhinagar.

Profitability Margins

The company achieved a consolidated PAT of INR 19 Crores in FY25. For H1 FY2026, it reported a consolidated PAT of INR 10 Crores. Profitability is supported by a strategic pivot toward high-margin funding (MTF) and proprietary trading, which offsets the pricing pressure in the discount-broking retail segment.

EBITDA Margin

Not explicitly disclosed as a percentage, but the standalone PAT increase of 30% suggests strong operational efficiency. The company is focusing on digital transacting to further reduce operating costs and improve core profitability margins.

Capital Expenditure

The company strengthened its capital base through a public offer of INR 41 Crore in March 2024 and a preferential issuance of convertible share warrants amounting to INR 9 Crore in September 2025. Planned expenditure is focused on technology platforms (API-based solutions, Algos) and obtaining new licenses (Merchant Banking, Insurance Broking).

Credit Rating & Borrowing

Assigned a credit rating of [ICRA]BBB- (Stable) for proposed Non-Convertible Debentures (NCDs) of INR 50.0 Crore. The company maintains a low gearing of 0.3 times as of September 30, 2025, with limited reliance on external debt, primarily using bank guarantees for exchange margins.

⚙️ Operational Drivers

Raw Materials

Not applicable as the company is a financial services provider. The primary 'input' is capital for margin funding and exchange deposits. The MTF loan book stood at approximately INR 21 Crore under the Pune Finvest subsidiary as of September 2025.

Import Sources

Not applicable for service-based fintech operations.

Key Suppliers

Not applicable. Key operational partners include BSE and NSE for trading, and SEBI/IRDAI for regulatory licensing.

Capacity Expansion

Current operations span 3 primary cities and 15 sub-broker locations. Expansion plans include the establishment of a Category III AIF, obtaining a Merchant Banking license from SEBI, and an Insurance Broking license from IRDAI to diversify fee-based income.

Raw Material Costs

Not applicable. Operational costs are driven by technology infrastructure and regulatory compliance. Employee benefit expenses include salaries for key personnel like the CMD (INR 21.36 Lakhs) and WTD (INR 14.69 Lakhs).

Manufacturing Efficiency

Not applicable. Operational efficiency is measured by the shift to digital transacting and the successful management of proprietary trading, which contributes 8-10% of revenue with disciplined position management.

Logistics & Distribution

Distribution is handled through a digital platform and a network of sub-brokers across 15 cities.

📈 Strategic Growth

Expected Growth Rate

30%

Growth Strategy

Growth will be achieved by diversifying from pure equity broking into a full-service financial house. This includes scaling the MTF book (which grew 38% YoY for the top 10 industry players), launching an AIF, entering Merchant Banking, and distributing insurance products. Technology leverage through API-based institutional trading and robo-advisory is intended to capture high-value clients.

Products & Services

Retail equity broking (Cash and F&O), Margin Trading Facility (MTF), Proprietary Trading, Depository Services, Unsecured Lending, and Mutual Fund/AIF distribution.

Brand Portfolio

Pune E-Stock Broking (PESB), Pune Finvest, Pune Asset Management, PESB Insurance Broking.

New Products/Services

Category III Alternative Investment Fund (AIF), Merchant Banking services, and Insurance Broking, expected to significantly increase the share of fee-based income over the medium term.

Market Expansion

Expansion into Gift City (IFSC) with an investment of INR 1.2 Crore and UIN approval from RBI received in April 2024.

Market Share & Ranking

Maintained market share in key trading centers despite volatility. The industry is seeing consolidation among top brokers, and PESB is positioning itself as a technology-enabled niche player.

Strategic Alliances

Maintains a network of sub-brokers in 15 cities to extend market reach without heavy capital expenditure on physical branches.

🌍 External Factors

Industry Trends

The industry is shifting from volume-based brokerage to value-added services. Margin-funding AUM for top brokers grew 38% YoY to INR 19,000 Crore, reflecting a broader pivot toward leveraged cash products as F&O regulations tighten.

Competitive Landscape

Intense competition from discount brokers and new fintech entrants is leading to pricing pressure and necessitating high technology spend.

Competitive Moat

Moat is built on a diversified revenue mix (less than 50% from pure brokerage) and a strong capital base (INR 170 Cr net worth). Sustainability depends on the successful scaling of the new AIF and Merchant Banking arms to reduce concentration risk.

Macro Economic Sensitivity

Highly sensitive to capital market performance; BSE Sensex gained 13% in FY25, supporting a 30% growth in PAT. A market downturn would directly reduce trading volumes and the value of MTF collateral.

Consumer Behavior

Increasing 'financialisation of savings' in India and a shift toward digital transacting are driving demand for integrated financial platforms.

Geopolitical Risks

Foreign Portfolio Investment (FPI) outflows are a risk, though currently cushioned by strong domestic institutional participation and SIP-oriented retail flows.

⚖️ Regulatory & Governance

Industry Regulations

Subject to SEBI (Stock-Brokers) Regulations 1992 and SEBI (Prohibition of Insider Trading) Regulations 2015. New SEBI norms on derivatives (increased margins on expiry days) have significantly altered the volume dynamics of the F&O segment.

Environmental Compliance

CSR obligation of INR 16.54 Lakhs was met with an actual spend of INR 18.00 Lakhs in FY25, focusing on inclusive growth and social wealth creation.

Taxation Policy Impact

Impacted by the hike in Securities Transaction Tax (STT) on options and the rationalisation of weekly index derivatives, which increases the cost of trading for clients.

Legal Contingencies

The Secretarial Audit report for FY25 did not highlight any major pending litigation or non-compliance issues, noting that Buyback and Delisting regulations were 'Not Applicable' during the period.

⚠️ Risk Analysis

Key Uncertainties

Regulatory risk is the primary uncertainty; further restrictions on derivatives or changes in margin requirements could impact 50% of trading volumes. Market volatility could erode the INR 21 Crore MTF collateral value.