Rikhav Securitie - Rikhav Securitie

📊 BSE: 544340 🏢 Stockbroking & Allied 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total income grew 196.8% from INR 110.45 Cr in FY24 to INR 327.87 Cr in FY25. For H1 FY26, total income reached INR 386.67 Cr. Growth is driven by diversified operations including retail/institutional broking, proprietary trading, and market making.

Geographic Revenue Split

Currently concentrated in Maharashtra and Gujarat; however, the company is expanding nationwide through digital channels and franchise models to diversify regional revenue contribution.

Profitability Margins

FY25 Net Profit stood at INR 28.28 Cr (implied from EPS). H1 FY26 PAT was INR 17.75 Cr on INR 386.67 Cr income, representing a net margin of 4.59%. Profitability is influenced by the high volume of stock-in-trade purchases required for proprietary trading.

EBITDA Margin

H1 FY26 EBITDA was INR 25.96 Cr, resulting in an EBITDA margin of 6.71%. Core profitability is driven by operational excellence and disciplined risk management in trading activities.

Capital Expenditure

The company raised INR 88.82 Cr through its BSE SME IPO on January 22, 2025. These funds are primarily allocated for working capital requirements to support proprietary trading and Margin Trading Facility (MTF) expansion.

Credit Rating & Borrowing

Liquidity is rated as 'Adequate' by Brickwork Ratings. The company has no long-term borrowings. Historical gearing (D/E) was 1.76x in FY20, but the recent capital infusion from the IPO has significantly strengthened the capital structure.

⚙️ Operational Drivers

Raw Materials

As a financial services firm, 'raw materials' consist of capital for proprietary trading and stock-in-trade. Purchases of stock-in-trade reached INR 364.45 Cr in FY25, representing 111% of total income.

Import Sources

Not applicable as the company provides financial services and trades on Indian exchanges (NSE, BSE, MCX).

Key Suppliers

Primary 'suppliers' are the national exchanges (NSE, BSE, MCX) which provide the trading infrastructure and liquidity for market-making activities.

Capacity Expansion

Current team size is 195+ members. Expansion is focused on digital infrastructure and quantitative strategy development to handle higher trading volumes and a larger client base.

Raw Material Costs

Stock-in-trade purchase costs were INR 364.45 Cr in FY25. These costs are highly volatile as they depend on market opportunities and proprietary trading strategies.

Manufacturing Efficiency

Maintains a high client retention rate of 99% and an ARPU of INR 28,900+, indicating high operational efficiency in client management.

Logistics & Distribution

Distribution is handled digitally via the 'Rikhav Plus' mobile application and a network of franchise partners.

📈 Strategic Growth

Expected Growth Rate

20-25%

Growth Strategy

Growth will be achieved by expanding beyond Maharashtra and Gujarat via digital marketing and franchise models. The company is scaling its Margin Trading Facility (MTF) and targeting institutional brokerage empanelment with FDIs and banks. Proprietary trading will focus on algorithm-driven arbitrage and delta-hedging for consistent returns.

Products & Services

Equity and derivatives trading, Mutual Fund distribution, IPO application services, Margin Trading Facility (MTF), and Depository services.

Brand Portfolio

Rikhav Securities, Rikhav Plus (Online trading application).

New Products/Services

Recently launched Margin Trading Facility (MTF) and paperless KYC portal; MTF is expected to be a major revenue contributor by providing interest income on client leverage.

Market Expansion

Targeting nationwide retail participation through digital channels and sub-broker networks, moving beyond its core Maharashtra and Gujarat markets.

Market Share & Ranking

Registered market maker supporting approximately 46 new IPOs annually on the exchanges.

Strategic Alliances

Expanding through franchise partnerships and sub-broker networks to drive retail participation.

🌍 External Factors

Industry Trends

The industry is seeing a 20% CAGR in retail participation and a rapid shift toward mobile-first, algorithm-driven trading platforms. Rikhav is positioning itself as a digitally enabled provider to capture this shift.

Competitive Landscape

Faces intense competition from discount brokers (e.g., Zerodha, Groww) and traditional bank-led brokerages.

Competitive Moat

Moat is built on 30+ years of experience, a 99% client retention rate, and a niche in IPO market making. These advantages are sustainable due to high switching costs for active traders and established exchange relationships.

Macro Economic Sensitivity

Highly sensitive to Indian capital market cycles and retail investor sentiment, which is currently supported by 150 million+ demat accounts.

Consumer Behavior

Shift toward DIY digital investing and increased demand for leverage through MTF products.

Geopolitical Risks

Global geopolitical tensions can cause sudden market volatility, impacting proprietary trading margins and client trading activity.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by SEBI Stock Broker Regulations 1992, PMLA guidelines (monitored via Trackwhizz), and exchange-specific compliance norms for market making.

Environmental Compliance

Minimal ESG compliance costs as a service-based financial entity.

Taxation Policy Impact

Subject to standard Indian corporate tax rates; fiscal policy changes regarding STT (Securities Transaction Tax) directly impact trading volumes.

Legal Contingencies

No major concerns or observations were raised by the previous statutory auditor upon resignation. Secretarial audit for FY25 confirmed compliance with all applicable statutory provisions.