SECURCRED - SecUR Credential

📊 NSE: SECURCRED 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 12:58

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 10.1% YoY from INR 10.97 Cr in Q3 FY22 to INR 12.08 Cr in Q3 FY23. Historical growth was significantly higher, with operating income rising 270.7% from INR 10.16 Cr in FY17 to INR 37.67 Cr in FY18.

Geographic Revenue Split

The company is domiciled and incorporated in India with its registered office in Mumbai; 100% of operations appear to be India-centric based on the service lines for domestic BFSI and IT/ITES sectors.

Profitability Margins

Net profit margin improved significantly from 2.46% in Q3 FY22 to 30.46% in Q3 FY23. Historical PAT margin was 13.70% in FY18 compared to 17.78% in FY17.

EBITDA Margin

EBITDA margin stood at 54.05% in Q3 FY23, a massive expansion from 10.48% in Q3 FY22. Core profitability is driven by high-margin verification services for the BFSI sector.

Credit Rating & Borrowing

The company maintained a 'Stable' outlook historically, though risks of a revision to 'Negative' were noted if working capital deteriorated. Total Debt/Tangible Net Worth was low at 0.13 times in FY18.

⚙️ Operational Drivers

Raw Materials

As a service-based background verification (BGV) firm, the primary 'raw material' is human capital (160 employees) and data access fees, representing the bulk of service delivery costs.

Import Sources

Not applicable as the company provides verification services within India.

Capacity Expansion

Current capacity is defined by a workforce of 160 employees serving 208 clients. Expansion is focused on new service lines like Loan Verification and IT Solutions.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but employee costs are the primary operational driver for the 160-member team.

Manufacturing Efficiency

Not applicable for service-based BGV model.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth is targeted through diversification into Loan Verification and IT Solutions, alongside deepening relationships with the BFSI sector, recently winning a contract with one of India's 3 largest private sector banks.

Products & Services

Employee Background Verification (BGV), Supplier Due Diligence, Loan Verification, and IT Solutions.

Brand Portfolio

SecUR

New Products/Services

Loan Verification and IT Solutions are the primary new service launches intended to diversify revenue beyond standard employee BGV.

Market Expansion

Targeting expansion within the RCM (Retail, Consumer, Manufacturing), BFSI, IT/ITES, and Infrastructure sectors in India.

🌍 External Factors

Industry Trends

Increasing regulatory and compliance requirements for employee and supplier vetting are driving industry growth, though the sector is becoming more competitive and technology-driven.

Competitive Landscape

Operates in a fragmented market with competition from both boutique verification firms and large global compliance entities.

Competitive Moat

Moat is based on established relationships with 208 clients and integration into the HR/compliance workflows of large banks; however, this is threatened by regulatory actions.

Macro Economic Sensitivity

Highly sensitive to corporate hiring trends in India, particularly in the IT and BFSI sectors which drive demand for BGV services.

Consumer Behavior

Shift toward digital-first and AI-driven verification processes to reduce turnaround time for corporate clients.

Geopolitical Risks

Low, as operations are primarily domestic within India.

⚖️ Regulatory & Governance

Industry Regulations

Subject to the Companies Act 2013 and SEBI (Prohibition of Insider Trading) Regulations 2015.

Environmental Compliance

Not applicable for service-based BGV model.

Taxation Policy Impact

The company operates under Indian tax jurisdictions; significant judgments are involved in estimating advance tax and determining provisions.

Legal Contingencies

The company faces a major regulatory hurdle with a SEBI Confirmatory Order issued in 2024-25 against the company and Rahul Belwalkar, which is expected to adversely impact financial performance.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the quantifiable impact of the SEBI order on the company's ability to retain and win new contracts in the highly regulated BFSI sector.