💰 Financial Performance

Revenue Growth by Segment

Consolidated operating income grew 39% YoY to INR 8.70 Cr in FY24 from INR 6.26 Cr in FY23. However, the Institutional Dealing Desk revenue saw a significant decline of 30.48% in FY25, falling to INR 14.45 Lakhs from INR 110.78 Lakhs in FY24. Feebased operations segment assets grew 27.4% to INR 3,471.44 Lakhs by September 2025 from INR 2,723.45 Lakhs in March 2025.

Geographic Revenue Split

Not disclosed in available documents, though the company is headquartered in Mumbai and targets expansion into smaller Indian cities.

Profitability Margins

Consolidated PAT margin compressed significantly from 7.08% in FY23 to 2.00% in FY24. Standalone PAT margin was 7.09% in FY23, up from 1.94% in FY22, indicating high volatility in profitability linked to market cycles.

EBITDA Margin

Standalone PBDIT/Interest ratio improved to 3.35x in FY23 from 1.49x in FY22, reflecting better coverage of interest obligations despite a modest scale of operations.

Capital Expenditure

Property, Plant and Equipment increased by INR 4.85 Lakhs, reaching INR 153.31 Lakhs as of September 30, 2025, compared to INR 148.46 Lakhs as of March 31, 2025.

Credit Rating & Borrowing

The company holds an ACUITE A4 rating on INR 4.00 Cr bank facilities, which was downgraded to 'Issuer Not-Cooperating' due to information risk and failure to provide No Default Statements (NDS).

⚙️ Operational Drivers

Raw Materials

Not applicable as KHANDSE is a financial services provider; its primary 'inputs' are human capital and financial liquidity.

Import Sources

Not applicable for financial services operations.

Key Suppliers

Not applicable; the company relies on financial exchanges (BSE, NSE) and technology providers for its brokerage and advisory infrastructure.

Capacity Expansion

Not applicable in manufacturing terms; however, the company is expanding its reach into smaller cities to drive the next wave of wealth management growth.

Raw Material Costs

Not applicable; operating expenses are primarily driven by employee costs and technology infrastructure for trading platforms.

Manufacturing Efficiency

Not applicable; efficiency is measured by the Institutional Dealing Desk's ability to execute transactions, which contributed INR 14.45 Lakhs in FY25.

Logistics & Distribution

Not applicable; services are distributed digitally through trading platforms and advisory offices.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

KSL aims to achieve growth by transitioning from financial inclusion to financial empowerment, focusing on wealth management, deeper penetration into Tier-2 and Tier-3 cities, and leveraging technology to democratize access to capital market products.

Products & Services

Investment banking (IPOs, M&A, Private Equity), Institutional Equities (sales, research), Broking and Distribution (equity, insurance, mutual funds), and Investment Advisory (portfolio management, wealth management).

Brand Portfolio

Khandwala Securities Limited (KSL).

New Products/Services

Expansion of the Investment Advisory business focusing on private and corporate wealth management is expected to provide more stable revenue compared to volatile brokerage fees.

Market Expansion

Targeting smaller cities in India to capitalize on rising affluence and expanding financial literacy.

Market Share & Ranking

Not disclosed; company is characterized as a 'modest scale' player competing against larger brokerages and new-age digital firms.

🌍 External Factors

Industry Trends

The wealth management industry is growing due to rising affluence and technology-driven access, but is being disrupted by digital-only brokers offering low-cost trading.

Competitive Landscape

Intense competition from established large brokerages and technology-focused new entrants (digital discount brokers) which impacts sustainable brokerage revenue growth.

Competitive Moat

Moat is based on 25+ years of operational experience and high-quality research recognized by international agencies; however, this is challenged by the capital strength of new global and corporate entrants.

Macro Economic Sensitivity

Highly sensitive to Indian GDP growth and industrial production; a slowdown in economic growth would reduce corporate fund-raising mandates and investor participation.

Consumer Behavior

Shift toward financial empowerment and increased financial literacy among retail investors in smaller cities is driving demand for advisory services.

Geopolitical Risks

Political climate changes and global economic factors directly influence investor sentiment and capital market volatility, impacting KSL's transaction-based revenue.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 (specifically Section 134 and 149 regarding board reports and independent directors) and general corporate governance standards.

Environmental Compliance

Not applicable for financial services; ESG focus is primarily on business ethics, anti-fraud measures, and board compensation.

Taxation Policy Impact

The company maintains a Deferred Tax Asset of INR 37.74 Lakhs as of September 2025.

⚠️ Risk Analysis

Key Uncertainties

Liquidity risk poses a potential impact where client defaults on financial commitments could significantly affect cash flow; market volatility remains the primary driver of revenue uncertainty.

Geographic Concentration Risk

Operations are primarily concentrated in the Indian capital markets, with a focus on the Mumbai financial hub.

Third Party Dependencies

High dependency on market intermediaries and financial information providers like Bloomberg and Thomson-Reuters for research ranking and market data.

Technology Obsolescence Risk

Risk from 'new age digital share broking companies' which utilize superior technology to offer lower costs, potentially making traditional brokerage models obsolete.

Credit & Counterparty Risk

KSL exercises prudence in client selection and internal audits to manage credit extension and counterparty risk.