EMKAY - Emk.Global Fin.
📢 Recent Corporate Announcements
Emkay Global Financial Services has allotted 2,78,300 equity shares to its promoter, Krishna Kumar Karwa, following the exercise of convertible warrants. The conversion occurred at an issue price of Rs. 239.50 per share, bringing in a capital infusion of approximately Rs. 5 crore (75% balance payment). This move has increased the promoter's individual stake in the company from 20.07% to 20.92%. The total paid-up equity capital of the company has subsequently increased to Rs. 26.19 crore.
- Allotment of 2,78,300 equity shares at a total issue price of Rs. 239.50 per share
- Receipt of Rs. 4.99 crore as the 75% balance subscription amount from the promoter
- Promoter Krishna Kumar Karwa's shareholding increased from 20.07% to 20.92%
- Total paid-up equity capital rose from 2,59,10,763 to 2,61,89,063 shares
- 6,93,400 warrants remain outstanding for future conversion by the promoter
Emkay Global Financial Services has initiated a postal ballot to seek shareholder approval for the appointment of Mr. Raunak Karwa as a Whole-Time Director. The proposed tenure is for three years, effective from February 1, 2026, until January 31, 2029. The resolution includes a total monthly remuneration cap of ,00,000 and seeks permission for promoter-directors' remuneration to potentially exceed 5% of net profits. Shareholders can cast their votes electronically between February 20 and March 21, 2026.
- Appointment of Mr. Raunak Karwa as Executive Director for a 3-year term starting February 1, 2026.
- Proposed monthly remuneration capped at ,00,000, including ,50,000 basic salary and ,07,975 HRA.
- Special resolution requested to allow promoter-director remuneration to exceed 5% of the company's net profits.
- Remote e-voting period scheduled from February 20, 2026, to March 21, 2026.
- Final results of the postal ballot to be announced on or before March 24, 2026.
Emkay Global Financial Services reported a revenue of INR 2,321 Mn for the first nine months of FY26, maintaining a 3-year PAT CAGR of 19% up to FY25. The company's revenue mix is diversifying, with Capital Markets contributing 57% and Wealth Management growing to 23%. Despite a 30-year legacy and a net worth of INR 3,692 Mn, the annualized ROE for 9M-FY26 stands at a relatively low 3.79%. The firm continues to expand its global footprint with subsidiaries in Singapore and Dubai while covering over 200 companies under research.
- Achieved 9M-FY26 revenue of INR 2,321 Mn with a PAT margin of 4.09%.
- Maintained a strong 19% 3-year PAT CAGR and 7%+ Revenue CAGR as of FY25.
- Total assets reached INR 1,93,844 Mn with a net worth of INR 3,692 Mn as of December 2025.
- Research coverage includes 200+ companies, including 37 NIFTY and 28 SENSEX constituents.
- Revenue mix shows 57% from Capital Markets, 23% from Wealth Management, and 8% from Asset Management.
Emkay Global Financial Services has received trading approval from NSE and BSE for 2,78,300 equity shares issued to promoters. These shares were allotted at a price of Rs 239.50 per share following the conversion of warrants on a preferential basis. As a result, the company's total paid-up equity capital has increased to Rs 25.91 crore. The new shares will be available for trading from February 1, 2026, but are subject to a lock-in period until July 31, 2027.
- Trading approval received for 2,78,300 equity shares of face value Rs 10 each.
- Shares were issued at a total price of Rs 239.50, including a premium of Rs 229.50.
- Total listed capital increased to 2,59,10,763 fully paid equity shares.
- The newly allotted promoter shares are under lock-in until July 31, 2027.
- Trading of these shares on NSE and BSE is effective from February 1, 2026.
Emkay Global Financial Services has redesignated Mr. Raunak Karwa from a Non-Executive Director to a Whole Time Director, effective February 1, 2026. The appointment is for a fixed term of 3 years and is subject to shareholder approval. Mr. Karwa, who is the son of Managing Director Krishna Kumar Karwa, brings experience from founding FinLearn Academy and working with EY and ICICI Securities. This move indicates a strengthening of the executive leadership team and potential succession planning within the promoter family.
- Mr. Raunak Karwa redesignated as Whole Time Director (Executive Director) effective February 1, 2026.
- The appointment is for a tenure of 3 years, subject to approval by company members.
- Mr. Karwa has been the MD & CEO of Finlearn Edutech Private Limited since 2021.
- He is the son of Mr. Krishna Kumar Karwa, the current Managing Director of Emkay Global.
- The appointee has prior advisory and corporate finance experience at Ernst & Young and ICICI Securities.
Emkay Global Financial Services has amended its internal Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information (UPSI) as of January 27, 2026. The update, approved by the Board and Audit Committee, aligns the company's policies with SEBI's Prohibition of Insider Trading Regulations. The policy designates the Managing Director as the Chief Investor Relations Officer to ensure uniform dissemination of material information to the market. This is a routine governance update aimed at strengthening transparency and preventing selective disclosure.
- Board of Directors approved the amended Fair Disclosure Code on January 27, 2026, following Audit Committee recommendations.
- The Managing Director is designated as the Chief Investor Relations Officer (CIRO) to oversee all UPSI dissemination.
- The updated code expands the definition of UPSI to include forensic audit initiations, rating changes, and defaults by promoters or KMPs.
- Mandates that transcripts or recordings of analyst meetings and earnings calls be posted on the company website within prescribed timelines.
- Includes a formal 'Policy for Determination of Legitimate Purposes' for sharing sensitive data with auditors, lenders, and consultants.
Emkay Global Financial Services demonstrated resilient growth in Q3 FY26, with its Asset Management AUM for Capital Builder strategies surpassing ₹5,300 mn. The company recorded total inflows of over ₹1,400 mn during the quarter, significantly bolstered by the Emkay SMID strategy which raised ₹1,300 mn. Strategic milestones included acting as Merchant Banker for an ₹11,000 mn QIP and upgrading clearing memberships on NSE and BSE. Furthermore, the conversion of 2,78,300 promoter warrants into equity shares indicates strong internal confidence in the company's long-term value.
- Asset Management AUM for Capital Builder PMS and AIF strategies exceeded ₹5,300 mn as of Dec 2025.
- Total quarterly inflows reached over ₹1,400 mn, with the SMIDCap strategy alone raising ₹1,300 mn.
- Promoter and Managing Director exercised 2,78,300 warrants, strengthening the equity base.
- Successfully acted as Merchant Banker for Anant Raj Limited's ₹11,000 mn Qualified Institutional Placement.
- Upgraded clearing capabilities on NSE and BSE to provide end-to-end settlement and diversify revenue.
Emkay Global reported a standalone net profit of ₹3.13 crore for Q3 FY26, marking a recovery from a loss of ₹2.11 crore in the previous quarter, though it remains significantly lower than the ₹9.86 crore profit recorded in Q3 FY25. Revenue from operations grew 25% quarter-on-quarter to ₹79.48 crore, primarily driven by a rise in fees and commission income. The company also announced the appointment of Raunak Karwa as Executive Director for a three-year term starting February 2026. Furthermore, the firm successfully raised ₹44.20 crore through the issuance of unsecured NCDs during the quarter.
- Standalone Net Profit stood at ₹313.08 Lakhs for Q3 FY26, recovering from a loss of ₹210.64 Lakhs in Q2 FY26.
- Total Revenue from Operations increased to ₹7,948.25 Lakhs, a 25% growth over the preceding quarter.
- Fees and Commission Income rose to ₹7,105.17 Lakhs, up from ₹5,845.15 Lakhs in the previous quarter.
- Successfully allotted 4,420 unsecured NCDs aggregating to ₹44.20 Crores on a private placement basis.
- Mr. Raunak Karwa appointed as Whole Time Director for a 3-year term effective February 1, 2026.
Emkay Global Financial Services reported a standalone profit of ₹3.13 crore for Q3 FY26, marking a recovery from a loss of ₹2.11 crore in the preceding quarter. However, on a year-on-year basis, the profit is significantly lower than the ₹9.86 crore reported in Q3 FY25. For the nine-month period ending December 2025, the company's standalone PAT saw a sharp decline to ₹3.78 crore from ₹47.96 crore in the previous year. The company also announced the appointment of Raunak Karwa as a Whole Time Director and successfully raised ₹44.20 crore through NCDs.
- Standalone Q3 FY26 PAT stood at ₹313.08 Lakhs, recovering from a loss of ₹210.64 Lakhs in Q2 FY26.
- 9-month standalone PAT dropped by over 92% to ₹378.32 Lakhs compared to ₹4,795.59 Lakhs in the previous year.
- Total Revenue for Q3 FY26 increased to ₹84.15 Crore from ₹78.85 Crore in the same quarter last year.
- Allotted 4,420 Senior Unsecured NCDs aggregating to ₹44.20 Crores on a private placement basis.
- Appointed Mr. Raunak Karwa as Whole Time Director for a 3-year term effective February 1, 2026.
Emkay Global Financial Services has secured in-principle listing approval from NSE and BSE for 2,78,300 new equity shares. These shares were issued to promoters upon the conversion of warrants that were originally granted on a preferential basis. The face value of each share is Rs. 10, and the approvals were received between January 16 and January 19, 2026. This procedural step marks the finalization of the warrant conversion process into tradable equity.
- Approval for listing of 2,78,300 equity shares of Rs. 10 face value
- Shares issued to promoters following conversion of preferential warrants
- NSE approval dated Jan 19, 2026; BSE approval dated Jan 16, 2026
- New shares carry distinctive numbers from 25632464 to 25910763
Shareholders of Emkay Global Financial Services have overwhelmingly approved the appointment of Mr. Ajay Mahajan as an Independent Director via a postal ballot. The special resolution received 99.9994% of the valid votes cast, reflecting near-unanimous support from all shareholder categories. A total of 1.87 crore votes were cast in favor, while only 116 votes were recorded against. This appointment is expected to enhance the company's board-level expertise and independent oversight.
- Special resolution for Ajay Mahajan's appointment as Independent Director passed with 99.9994% majority.
- Promoter group and Public Institutions both voted 100% in favor of the appointment.
- A total of 1,87,98,315 votes were cast in favor out of 1,87,98,431 total valid votes.
- The voting process concluded on January 9, 2026, with 94 members voting in favor and 4 against.
Emkay Global Financial Services Limited has successfully passed a special resolution to appoint Mr. Ajay Mahajan as an Independent Director. The postal ballot process, which concluded on January 9, 2026, saw a total of 1,87,98,431 votes polled, representing 73.34% of the total outstanding shares. The resolution received overwhelming support from shareholders, with 99.9994% of the votes cast in favor. This appointment is part of the company's efforts to strengthen its board governance and independent oversight.
- Special Resolution for the appointment of Mr. Ajay Mahajan as Independent Director passed with requisite majority.
- Total of 1,87,98,315 votes (99.9994%) were cast in favor of the appointment.
- Only 116 votes (0.0006%) were cast against the resolution.
- The total voter turnout represented 73.34% of the company's 2,56,32,463 outstanding shares.
- Promoter and Promoter Group showed 100% support for the resolution with 1,78,53,984 votes in favor.
Emkay Global Financial Services has filed its quarterly compliance certificate under Regulation 74(5) of SEBI Regulations for the period ending December 31, 2025. The company's Registrar and Transfer Agent, MUFG Intime India Private Limited, confirmed that all dematerialization requests were processed and listed on exchanges within prescribed timelines. The report confirms that security certificates were duly mutilated and cancelled after verification. Notably, the company reported zero requests for rematerialization during this quarter.
- Compliance certificate filed for the quarter ended December 31, 2025
- MUFG Intime India Private Limited confirmed processing of all dematerialization requests
- All processed securities are listed on the respective stock exchanges
- Zero rematerialization requests were received during the reporting period
Emkay Global Financial Services has announced the closure of its trading window effective January 1, 2026, in compliance with SEBI Insider Trading regulations. This closure is ahead of the declaration of the company's standalone and consolidated un-audited financial results for the quarter and nine-month period ending December 31, 2025. The window will remain closed until 48 hours after the financial results are made public. As per SEBI mandates, the PANs of all designated persons, directors, and promoters will be frozen to restrict trading during this period.
- Trading window closure starts on January 1, 2026, for all designated persons and promoters.
- Closure is related to the upcoming Q3 and nine-month financial results ending December 31, 2025.
- The restriction will be lifted 48 hours after the official announcement of financial results.
- PAN-level freezing implemented in compliance with SEBI circulars dated July 19, 2023, and April 21, 2025.
Emkay Global Financial Services has approved the allotment of 4,420 Senior Unsecured Non-Convertible Debentures (NCDs) on a private placement basis. Each NCD has a face value of ₹1,00,000, resulting in a total fundraise of ₹44.20 crore. These instruments have a tenure of two years and are slated for listing on the Wholesale Debt Market segment of the BSE. The capital raised is intended to support the company's general corporate purposes and ongoing working capital requirements.
- Allotment of 4,420 Senior Unsecured, Rated, Redeemable NCDs completed on December 18, 2025.
- Total aggregate value of the debt issuance is ₹44.20 crore with a face value of ₹1 lakh per unit.
- The NCDs carry a maturity period of 2 years from the date of allotment.
- Proceeds are earmarked for general corporate purposes and meeting working capital requirements.
- The securities will be listed on the WDM segment of the BSE Limited.
Financial Performance
Revenue Growth by Segment
Net Operating Income (NOI) grew 30% YoY to INR 297.9 Cr in FY2025 from INR 229.1 Cr in FY2024. Broking and advisory services are the primary drivers, contributing 73% of total NOI. Investment banking and other fee-based income saw significant traction in H1 FY2025, though revenues moderated in H2 FY2025.
Geographic Revenue Split
While specific percentage splits are not disclosed, the company operates primarily in India with a physical footprint in Mumbai (25,000 sq ft office). It has expanded globally with subsidiaries in Singapore and Dubai, and services extending to the US, UAE, Europe, and Hong Kong.
Profitability Margins
Net Profit Margin (PAT/NOI) improved to 19.1% in FY2025 from 14.1% in FY2024. Return on Equity (RoE) increased to 20.9% in FY2025 compared to 14.4% in FY2024 and 6.8% in FY2023, driven by higher broking volumes and merchant banking fees.
EBITDA Margin
Core operating profitability (PBT excluding mark-to-market gains) averaged INR 39 Cr during FY2024-FY2025. However, the cost-to-income ratio remains elevated at over 80% due to high employee-related expenses in institutional equities and investment banking.
Capital Expenditure
The company recently invested in a 25,000 sq ft office space in Mumbai to consolidate operations. Specific planned capital expenditure for future periods is not disclosed in the documents.
Credit Rating & Borrowing
The company holds an [ICRA]BBB+ (Positive) rating for its INR 100 Cr NCD programme and [ICRA]A2+ for its INR 300 Cr short-term bank lines. Borrowing is primarily for working capital with a low gearing of 0.2 times as of March 31, 2025.
Operational Drivers
Raw Materials
As a service-based financial firm, the primary 'raw material' is human capital; employee-related expenses represent the largest cost component, contributing to a cost-to-income ratio exceeding 80%.
Import Sources
Not applicable for financial services; however, technology infrastructure is a critical operational dependency sourced globally.
Key Suppliers
Not applicable; the company relies on Market Infrastructure Institutions (NSE, BSE, MCX, NCDEX) for trade execution and technology vendors for digital platforms.
Capacity Expansion
The company caters to 12,472 active NSE clients and over 300 institutional clients. Expansion is focused on scaling the wealth management and asset management divisions to stabilize volatile broking revenues.
Raw Material Costs
Employee expenses are the primary cost driver, particularly in the investment banking and institutional broking segments, which maintain an elevated cost structure despite record revenues.
Manufacturing Efficiency
Not applicable; operational efficiency is measured by the cost-to-income ratio, which currently stands at >80%, indicating a need for better scale to absorb fixed employee costs.
Logistics & Distribution
Distribution of financial products is handled through its wealth management and digital platforms, with a focus on HNIs, family offices, and corporate clients.
Strategic Growth
Expected Growth Rate
30%
Growth Strategy
Growth is targeted through a pipeline of merchant banking deals projected to generate INR 100 Cr (INR 1,000 Mn) over the next 24 months. The strategy includes scaling non-broking businesses like wealth and asset management to provide revenue stability and leveraging its 30-year institutional track record.
Products & Services
Equity broking, currency and commodity derivatives, investment banking (IPOs, QIPs), wealth management, portfolio management services (PMS), and margin trade financing.
Brand Portfolio
Emkay Global, Emkay Investment Managers Limited (EIML), Emkay Wealth Advisory, Emkay Emerging Stars Fund.
New Products/Services
Expansion of the 'Emkay Emerging Stars Fund' series and enhanced estate/succession planning services through Emkay Wealth Advisory.
Market Expansion
Strategic expansion into Singapore and Dubai to capture offshore capital flows and NRI investments.
Market Share & Ranking
Emkay is a prominent mid-market focused investment bank; it was the BRLM for 6 out of 28 QIPs in FY2022.
Strategic Alliances
Not specifically disclosed, though the company maintains relationships with over 300 institutional clients including mutual funds and hedge funds.
External Factors
Industry Trends
The industry is seeing increased 'financialization of savings' (growing) but faces disruption from discount brokers and tightening SEBI regulations on index derivatives and margin requirements.
Competitive Landscape
Intense competition from both traditional full-service brokers and new-age discount brokers, leading to industry-wide pricing pressure.
Competitive Moat
Durable moat built on a 30-year track record and a strong institutional research desk. This is sustainable because institutional clients prioritize execution quality and research over low-cost brokerage.
Macro Economic Sensitivity
Highly sensitive to capital market cycles; a market downturn would impact the 73% of revenue tied to broking and advisory, as well as the 8% of net worth invested in AIFs.
Consumer Behavior
Shift toward professional wealth management and diversified asset allocation among HNIs and family offices, benefiting Emkay's non-broking segments.
Geopolitical Risks
Global market volatility affects institutional investor sentiment, which could impact the 50% of NOI derived from the institutional segment.
Regulatory & Governance
Industry Regulations
Impacted by uniform exchange charges and measures to curb exuberance in the F&O segment, including increased margins on expiry days introduced between late 2024 and early 2025.
Environmental Compliance
Environmental risks are deemed not material as lending operations are focused on capital market-related lending with short-to-medium term durations.
Taxation Policy Impact
The hike in Securities Transaction Tax (STT) and changes in capital gains tax impact market volumes and investor behavior.
Legal Contingencies
No specific non-capital market legal contingencies or High Court/Supreme Court cases with INR values were disclosed in the provided documents.
Risk Analysis
Key Uncertainties
High dependence on volatile capital markets (73% of NOI) and regulatory shifts in the derivatives framework pose significant risks to sustained profitability.
Geographic Concentration Risk
Revenue is primarily concentrated in the Indian capital markets, making the company vulnerable to domestic economic cycles.
Third Party Dependencies
Dependence on technology vendors for trading platforms and exchanges (NSE/BSE) for operational continuity.
Technology Obsolescence Risk
High risk; the company must continuously invest in technology to compete with discount brokers and ensure uninterrupted service to its 12,472+ active clients.
Credit & Counterparty Risk
Lending operations are primarily focused on capital market-related lending (margin funding), which is collateralized by shares, mitigating credit risk.