SECMARK - Secmark Consult.

📊 NSE: SECMARK 🏢 Computers - Software - Medium / Small 📅 Last Updated: 12/14/2025 12:58

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment, Software Consultancy and Technology Services, which generated INR 36.01 Cr in FY25, representing a growth of 42.38% compared to INR 25.28 Cr in FY24.

Profitability Margins

The company achieved a Net Profit Margin of 11.8% in FY25 (INR 4.25 Cr profit) compared to a net loss in FY24. However, H1 FY26 showed a net loss of INR 0.04 Cr, indicating a recent decline in profitability.

EBITDA Margin

EBITDA margin significantly improved to 28.9% in FY25 (INR 10.16 Cr) from 7.8% in FY24 (INR 1.93 Cr), driven by a 42% increase in topline revenue while controlling other expenses.

Capital Expenditure

Historical investment is reflected in depreciation on software applications, which amounted to INR 3.90 Cr in FY25 and INR 1.96 Cr in H1 FY26.

Credit Rating & Borrowing

The company repaid INR 6.56 Cr of borrowings in H1 FY26. Interest expenses for H1 FY26 were INR 0.07 Cr, down from INR 0.26 Cr in H1 FY25, reflecting reduced borrowing costs.

⚙️ Operational Drivers

Raw Materials

As a service-based consultancy, the primary 'raw material' is human capital. Employee costs represented 21.9% of total revenue in FY25, amounting to INR 7.88 Cr.

Import Sources

Not applicable (Service Industry).

Key Suppliers

Not applicable (Service Industry).

Capacity Expansion

Current capacity is defined by its workforce of 78 employees as of March 31, 2025. Specific physical capacity expansion is not applicable.

Raw Material Costs

Employee costs increased by 18.5% YoY to INR 7.88 Cr in FY25, up from INR 6.65 Cr in FY24, to support a 42% growth in revenue.

Manufacturing Efficiency

Not applicable (Service Industry).

📈 Strategic Growth

Growth Strategy

The company plans to achieve growth by adding new clients, increasing revenue from existing clients, and introducing more products at opportune times within the financial market services space.

Products & Services

Software consultancy and technology services provided to stock exchanges, brokers, depository participants, portfolio managers, AIFs, investment advisors, and research analysts.

Brand Portfolio

SecMark.

New Products/Services

The company intends to add more products to its portfolio, though specific revenue contributions are not yet disclosed.

Market Share & Ranking

The company identifies as one of the leaders in offering services to financial market participants.

🌍 External Factors

Industry Trends

The industry is seeing a positive trend with an increasing number of financial market participants in India, driven by strong economic performance and a 7% GDP growth rate.

Competitive Moat

The company's moat is built on its specialized leadership and expertise in the highly regulated financial market services niche, which creates high switching costs for clients.

Macro Economic Sensitivity

Highly sensitive to India's GDP growth (currently ~7%) and financial market performance, as these drive the addition of new market participants and business growth for existing clients.

Geopolitical Risks

Global turbulence is cited as a factor that can percolate into the performance of local financial markets, affecting the company's service demand.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by data security and privacy standards, as the company processes sensitive financial and personal information for its clients.

Taxation Policy Impact

The company provided INR 1.38 Cr for deferred tax in FY25. Current tax was nil in FY25, likely due to the utilization of previous years' losses.

⚠️ Risk Analysis

Key Uncertainties

Data security breaches represent a key risk, with potential impacts including legal penalties and loss of intellectual property.

Technology Obsolescence Risk

The company faces risks related to unauthorized access or security compromises of its technology systems, which are critical for processing client data.