1. At a Glance
Hybrid Financial is like that quiet cousin in finance who never makes a scene — until you realize they’ve been consistently profitable, barely owe anything, and somehow merged with another company without anyone noticing. Q1 FY26 net profit: ₹0.74 Cr. Market cap: ₹48 Cr. That’s smaller than the marketing budget of a fintech ad campaign.
2. Introduction with Hook
If Motilal Oswal is the Wall Street Wolf, Hybrid Financial is the financial tortoise that stopped midway to sip chai.
This 1986-born firm has seen more economic cycles than your retired uncle and now deals in equipment leasing, merchant banking, tax advisory, and post-merger broking through Maximus Securities.
But Q1 FY26 results?
Revenue: ₹1.48 Cr | Net Profit: ₹0.74 Cr
Basically — a profitable neighborhood kirana store, but in a suit.
3. Business Model (WTF Do They Even Do?)
Hybrid Financial isn’t just financial — it’s all over the financial map:
- Equipment leasing & hire purchase (old-school lending)
- Merchant banking (IPO filing, advisory, etc.)
- Financial, tax, legal, and corporate consultancy
- Through Maximus Securities, now into:
- Stock broking
- Investment products
- Depository services
So yeah… a one-stop finance shop — minus the neon lights and Fintech jargon.
4. Financials Overview
Q1 FY26 (Jun 2025):
| Metric | Value | YoY Change |
|---|---|---|
| Revenue | ₹1.48 Cr | +63% YoY |
| Operating Profit | ₹0.74 Cr | Flat |
| Net Profit | ₹0.74 Cr | From ₹1.34 Cr YoY |
| OPM | 50% | Still fat |
| EPS | ₹0.25 | From ₹0.46 |
Commentary:
Revenues are up, but profit halved. Broking income likely volatile. Margins are chunky though — this company could teach new-age fintechs how to be lean.
5. Valuation
CMP: ₹16.4
P/E: 14x
Book Value: ₹13.3
P/B: 1.23x
Fair Value Range:
- P/E Method: Assuming sustainable EPS of ₹1.10, 10–15x gives ₹11–₹16.5
- P/B Method: Industry trades ~2x BV for niche players. Here, even 1.5x BV = ₹20.
Verdict: Stock seems fully priced for now. If Maximus merger truly kicks in, ₹20 isn’t far. If not… expect slow motion.
6. What’s Cooking – News, Triggers, Drama
- Maximus Merger:
Completed. Now a hybrid Hybrid. Expect stockbroking income to lift results eventually. - Zero Dividends:
Despite steady profits, no love letter to shareholders yet. - Contingent Liabilities:
Rs. 14.7 Cr — not a dealbreaker, but not peanuts either. - Court Refund Received (Jun 2024):
Legal case settled in their favour. Probably why the cash flow graph isn’t a horror story.
7. Balance Sheet
| Item | Mar 2025 (₹ Cr) |
|---|---|
| Equity Capital | 14.72 |
| Reserves | 24.48 |
| Borrowings | 1.40 |
| Total Assets | 49.87 |
Takeaways:
- Almost debt-free.
- Book value improved significantly.
- Investments doubled over 2 years = bullish?
Honestly, it’s cleaner than most venture-funded cap tables.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | ₹0.00 | ₹0.90 | ₹–0.03 | ₹0.86 |
| FY24 | ₹0.79 | ₹1.51 | ₹–0.03 | ₹2.28 |
| FY25 | ₹–3.64 | ₹1.65 | ₹–0.73 | ₹–2.71 |
Observations:
- FY25 cash ops dipped (likely due to legal refund outflow).
- Investing: steady.
- Financing: negligible.
- Net CF took a hit last year, but nothing panic-worthy.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 11.17% |
| ROE | 11.65% |
| P/E | 14.02x |
| OPM | 53.46% |
| D/E | 0.06 |
Commentary:
- ROE of 11.6% is decent for a ₹48 Cr stock.
- OPM of 53% is elite-tier — even SaaS bros will be jealous.
- Valuation reasonable. Just needs a growth kicker.
10. P&L Breakdown – Show Me the Money
| Year | Revenue (Cr) | EBITDA (Cr) | PAT (Cr) |
|---|---|---|---|
| FY23 | 3.48 | 1.07 | 0.51 |
| FY24 | 5.09 | 2.26 | 1.94 |
| FY25 | 6.42 | 3.40 | 3.84 |
Comment:
- Revenue nearly doubled in 2 years.
- PAT up 7x in the same time.
- Looks like the merger with Maximus has been silently doing zabardast things.
11. Peer Comparison
| Company | Rev (Cr) | PAT (Cr) | P/E | ROE (%) |
|---|---|---|---|---|
| Angel One | 4,973 | 994 | 25 | 27.1 |
| Monarch Networth | 339 | 154 | 19 | 26.1 |
| Hybrid Financial | 6.5 | 3.84 | 14 | 11.7 |
Basically:
Small fish in a big pond — but this fish is profitable, debt-free, and swimming confidently.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2025 |
|---|---|
| Promoters | 64.01% |
| DIIs | 0.70% |
| Public | 35.28% |
| Shareholders | 54,165 |
Notes:
- Promoter stake has been static for 12+ quarters.
- Public holding stable.
- Zero anchor drama, no dilution, no FPO hangover. Clean.
Also: no boardroom soap operas. Sanskaari scrip.
13. EduInvesting Verdictâ„¢
Hybrid Financial is what happens when a tiny financial firm decides to grow slowly, cleanly, and without throwing money at IPL ads. Add the Maximus merger, steady profits, fat margins, and zero debt — and you’ve got a microcap that could become a midcap… someday.
Definitely a hybrid. Not flashy. But quietly getting sh*t done.
Metadata:
Written by EduInvesting Team | 25 July 2025
Tags: Hybrid Financial Services Ltd, Maximus Merger, Stock Broking, EduInvesting Premium, Q1 FY26, Financial Services
