THEINVEST - The Invest.Trust

📊 NSE: THEINVEST 🏢 Finance & Investments 📅 Last Updated: 12/14/2025 14:19

💰 Financial Performance

Revenue Growth by Segment

Total segment revenue grew 18.7% to INR 386.18 Cr. Growth was led by Financing activities (up 85.1% to INR 111.10 Cr), Investment and Advisory services (up 28.8% to INR 61.49 Cr), Asset Management (up 15.4% to INR 24.85 Cr), and Broking (up 11.5% to INR 188.68 Cr). Trading activities declined 99.8% to INR 0.06 Cr.

Geographic Revenue Split

Not specifically disclosed in available documents, though operations are centered in India with 63 gold loan branches as of March 2025.

Profitability Margins

Net income from operations grew 19.4% to INR 364.99 Cr. Consolidated Profit Before Tax (PBT) margin improved significantly from 10.1% in FY24 to 15.4% in FY25, driven by a turnaround in the financing business.

EBITDA Margin

Consolidated PBT grew 82.2% YoY to INR 56.17 Cr. Core profitability in the Financing segment surged 177.9% to INR 44.21 Cr, while Broking PBIT grew 19.9% to INR 60.60 Cr.

Capital Expenditure

Not disclosed in absolute INR Cr for future periods, though the company is expanding its physical footprint, having reached 63 gold loan branches by March 2025.

Credit Rating & Borrowing

Finance costs increased 37% to INR 37.03 Cr in FY25 compared to INR 27.02 Cr in FY24, reflecting higher borrowing to support the 85% growth in financing assets.

⚙️ Operational Drivers

Raw Materials

Not applicable as THEINVEST is a financial services provider; the primary 'raw material' is capital/cost of funds.

Import Sources

Not applicable for financial services.

Key Suppliers

Not applicable; however, external audit services are provided by MAKK & Co. Chartered Accountants.

Capacity Expansion

Gold loan business expanded to 63 branches as of March 31, 2025. Financing segment assets grew 45% from INR 566.57 Cr to INR 822.17 Cr.

Raw Material Costs

Finance costs represent 10.1% of total segment revenue, increasing 37% YoY due to expanded lending operations in Gold and Vehicle finance.

Manufacturing Efficiency

Not applicable; however, Asset Management efficiency is reflected in AUM crossing INR 9,242.25 Cr.

Logistics & Distribution

Distribution is driven by 63 branches and tech-led innovation to deepen presence in existing segments.

📈 Strategic Growth

Expected Growth Rate

35-40%

Growth Strategy

Growth will be achieved through a 35-40% targeted increase in AUM for Gold Loan and Vehicle Finance businesses, leveraging improved asset quality and expanded geographic reach. The company is pivoting toward Margin Trading Facility (MTF) to offset regulatory impacts on F&O trading and is investing in technology-led innovation to increase wallet share.

Products & Services

Securities broking, DP services, Microfinance loans, Merchant banking, Asset management, Gold loans, Vehicle finance, and Investment banking advisory.

Brand Portfolio

ITI Group, ITI Securities Broking, ITI Credit, Antique Stock Broking, ITI Capital, ITI Mutual Fund, ITI Gilts.

New Products/Services

Expansion into Margin Trading Facility (MTF) and debt syndication/ESG advisory in investment banking to diversify revenue streams.

Market Expansion

Deepening presence in existing segments with a focus on the 63-branch gold loan network and expanding vehicle finance reach.

Market Share & Ranking

Not disclosed; however, industry-wide MTF assets rose to INR 81,300 Cr by Jan 2025, a segment where the company is actively pivoting.

Strategic Alliances

Maintains an associate entity, ITI Finance Limited (formerly Fortune Integrated Assets Finance Limited), for vehicle finance.

🌍 External Factors

Industry Trends

The broking industry is transitioning from F&O-heavy revenue to MTF and fee-based streams due to a 70% drop in index options volumes following SEBI policy measures. The NBFC sector is seeing moderated growth of 13-15% due to higher borrowing costs.

Competitive Landscape

Listed brokerage firms are exhibiting earnings weakness due to stringent regulations and slower IPO issuance; THEINVEST is countering this through its turnaround in financing.

Competitive Moat

Moat is built on a diversified financial services platform (ITI Group) and a strong research team in equities/derivatives, which differentiates it from competitors through insightful business fundamentals.

Macro Economic Sensitivity

Highly sensitive to interest rate cycles and disposable income levels; growing disposable income presents a substantial opportunity for product diversification.

Consumer Behavior

Increasing retail participation in capital markets and formalization of credit are driving demand for the company's lending and broking products.

Geopolitical Risks

Economic and political stability are cited as factors that could materially impact operations.

⚖️ Regulatory & Governance

Industry Regulations

Impacted by SEBI measures including increased Securities Transaction Tax (STT) on derivatives and larger F&O contract sizes, which reshaped profitability trends in the broking segment.

Environmental Compliance

Investment banking division is expanding into advisory for ESG and sustainability-linked instruments.

Taxation Policy Impact

Effective tax rate for the half-year ended Sep 2025 was approximately 32.8% (INR 83.07 Lakhs tax on INR 253.25 Lakhs PBT).

Legal Contingencies

The company maintains an internal audit program with MAKK & Co. to ensure compliance; no specific high-value pending court cases were quantified in the provided text.

⚠️ Risk Analysis

Key Uncertainties

Regulatory volatility in the broking sector (70% volume risk) and credit risk in the microfinance/vehicle finance segments are the primary uncertainties.