💰 Financial Performance

Revenue Growth by Segment

Total segment revenue for H1 FY26 was INR 219.21 Cr, a decrease of 11.06% YoY. The Broking segment revenue fell 19.17% to INR 164.39 Cr, while the Wholesale Debt Market (WDM) segment grew 28.01% to INR 53.33 Cr. Other segments contributed INR 1.49 Cr, up 3.03% YoY.

Geographic Revenue Split

Not disclosed in available documents, though the company operates through 41 branches and 793 franchisees across India as of September 30, 2025.

Profitability Margins

Net profit margin for H1 FY26 was 11.64%, a significant decline from 17.68% in H1 FY25. For the full fiscal year 2025, the company reported a net profit of INR 74.19 Cr, representing a 40% increase from INR 52.97 Cr in FY24.

EBITDA Margin

Operating profit before working capital changes for H1 FY26 was INR 101.24 Cr, down 15.4% from INR 119.67 Cr in H1 FY25. The core profitability margin (operating profit/total income) stood at approximately 46% for H1 FY26.

Capital Expenditure

Capital expenditure for H1 FY26 was INR 4.46 Cr, an increase of 63.9% from INR 2.72 Cr in H1 FY25, primarily for property, plant, and equipment including CWIP.

Credit Rating & Borrowing

CRISIL reaffirmed its 'CRISIL A1+' rating for the commercial paper programme, with the rated amount enhanced to INR 2,350 Cr in November 2025. Borrowings are primarily via commercial paper with INR 1,850 Cr outstanding as of October 31, 2025.

⚙️ Operational Drivers

Raw Materials

Not applicable for financial services; however, interest expense is the primary operational cost, totaling INR 61.59 Cr in H1 FY26, representing 28% of total revenue.

Import Sources

Not applicable for financial services.

Key Suppliers

Not applicable for financial services.

Capacity Expansion

Current physical capacity includes 41 branches and 793 franchisees as of September 30, 2025. Planned expansion details are not disclosed.

Raw Material Costs

Interest costs rose 4.5% YoY to INR 61.59 Cr in H1 FY26. Procurement of funds is managed through commercial paper and bank lines.

Manufacturing Efficiency

Not applicable; the company maintains an active client market share of approximately 0.08% with 39,524 active customers as of September 30, 2025.

Logistics & Distribution

Not applicable for financial services.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is driven by leveraging the Aditya Birla brand and parent ABCL's ecosystem to expand the distribution of mutual funds, insurance, and loans. The company is also scaling its Wholesale Debt Market segment, which grew 28% YoY in H1 FY26.

Products & Services

Equity broking, commodity broking, depository services, margin trade funding, Portfolio Management Services (PMS), and distribution of mutual funds, insurance, and loans.

Brand Portfolio

Aditya Birla Money

New Products/Services

PMS and distribution of Aditya Birla group company products like loans and insurance are key growth areas.

Market Expansion

Expansion through a network of 793 franchisees and 41 branches across India.

Market Share & Ranking

Active client market share is approximately 0.08% as of September 30, 2025.

Strategic Alliances

Strong parentage support from Aditya Birla Capital Ltd (ABCL), which holds a 73.53% stake.

🌍 External Factors

Industry Trends

The broking industry is facing a dynamic regulatory environment with SEBI focusing on transparency and safeguarding investor funds, which increases compliance costs for brokers.

Competitive Landscape

Highly competitive and fragmented market; ABML competes with both traditional and discount brokers with a 0.08% market share.

Competitive Moat

Durable advantage stems from the 'Aditya Birla' brand name and strong moral and financial support from parent ABCL (rated CRISIL AAA), which ensures liquidity and credit stability.

Macro Economic Sensitivity

Highly sensitive to capital market cycles; revenue is inherently volatile due to dependence on trading volumes.

Consumer Behavior

Increasing demand for transparent and technology-driven depository and broking services.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with SEBI Listing Regulations and Indian Accounting Standards (Ind AS). SEBI's objective of limiting misuse of funds requires continuous adaptation of business models.

Environmental Compliance

ESG initiatives include the elimination of non-recyclable plastic in offices and monitoring air conditioning equipment to reduce energy consumption.

Taxation Policy Impact

Direct taxes paid (net of refunds) were INR 12.94 Cr in H1 FY26, up 3.8% from INR 12.47 Cr YoY.

⚠️ Risk Analysis

Key Uncertainties

Revenue volatility due to 75% exposure to capital market-related broking income. Regulatory changes could further increase compliance costs and impact business model viability.

Geographic Concentration Risk

Not disclosed, though operations are spread across India via 41 branches.

Third Party Dependencies

Dependency on parent ABCL for liquidity support and brand equity.

Technology Obsolescence Risk

The company has implemented real-time monitoring and voice logs to mitigate operational risks and keep pace with digital transformation.

Credit & Counterparty Risk

Credit exposure in margin trade funding is mitigated by underlying security and automatic square-off triggers.