1.At a Glance

Centrum Capital Ltd (CCL), the 35-rupee wonder with a ₹1,600 crore market cap, is the financial equivalent of a Bollywood family — it’s everywhere, doing everything, and still somehow always in debt. From investment banking to wealth management to lending, broking, insurance, and even running a small finance bank, Centrum’s business bouquet looks like a buffet at a Gujarati wedding. And yet, the aftertaste of its financials? Let’s just say “debt-heavy dessert”.

For Q2 FY26 (quarter ended September 2025), Centrum posted consolidated revenue of ₹823 crore but a net loss of ₹8.5 crore — a drastic YoY decline of-72.9%. The stock trades at ₹34.8, with promoters holding a “modest” 34.8% and pledging almost half of it (49.9%). The firm’s return on equity? A chilling-57.6%, enough to make even your worst-performing SIP feel like Warren Buffett.

Sales are up by 5.02% QoQ, but profits fell faster than an IPO on listing day. And with ₹16,943 crore of debt, this financial services player is clearly leveraging optimism harder than any retail trader with a margin account.

You ready to find out if Centrum Capital’s “Unity Bank” venture can actually unify its balance sheet or if this ship’s just too heavy with liabilities to float? Let’s dig in.

2.Introduction

Centrum Capital is what happens when a finance company collects too many business cards. Founded as a merchant banker, it has now morphed into a multi-headed financial hydra — investment banking, wealth management, broking, lending, insurance, and even a full-fledgedSmall Finance Bankunder the “Unity” brand. It’s like the dream version of HDFC — if that dream had a few nightmares in the footnotes.

Despite a vast footprint across 142 Indian cities and even Singapore, Centrum’s performance looks like the report card of a student who took too many subjects and flunked a few. With₹3,663 crorein FY25 revenue, it’s clear that business activity is robust — but translating that activity into actual profit remains elusive.

The most eyebrow-raising aspect? Adebt-to-equity ratio of 37.5, and negative returns across every meaningful metric. The promoters have steadily diluted their holding while pledging almost half of it — always a red flag in the financial world, because if your own house is half-mortgaged, maybe you shouldn’t be selling housing loans.

And yet, this same company holds licenses, runs funds, manages ₹35,000 crore in wealth, and now even controls a bank (Unity SFB). The contrast between grand ambition and balance-sheet fragility makes Centrum a fascinating case — like a banker version of “Jekyll & Hyde.”

3.Business Model – WTF Do They Even Do?

Centrum Capital Limited is one of those rare financial firms that’s managed to spread itself across nearly every corner of India’s financial ecosystem. Here’s the buffet:

• Institutional Business:This is where Centrum earns transaction-based fees frominvestment banking,bond trading, andinstitutional broking. Essentially, they’re the middlemen in big-ticket corporate deals, but lately, those deals seem to be mostly about refinancing their own.
• Wealth Management:Centrum has an AUM of ₹35,000 crore, offering portfolio management, advisory, and retail broking. Translation? They tell rich people where to invest — though if you look at their own ROE, you might think twice before following their advice.
• Lending:This includes SME, MSME, Microfinance, and Affordable Housing loans. Centrum’s total loan book stood at ₹2,184 crore in FY22.
  • SME & MSME Loans: ₹861 crore
  • Microfinance: ₹413 crore
  • Housing Finance: ₹584 crore
  The lending division has scale, but the debt behind it makes even credit cards look responsible.
• Alternative Investments:Private debt, venture capital, and real estate advisory. The Private Credit Fund has made ₹1,460 crore worth of investments so far — not bad, unless you realize most of them are likely illiquid.
• Insurance:Offers life, health, and general insurance. A noble diversification, though with Centrum’s financials, the only thing that might need insuring is their P&L.
• Broking & Distribution:Services FIIs, pension funds, and HNIs — focused on niche midcaps (read: risky, illiquid names, just how we like them).

In short, Centrum is everywhere — but profit seems to be nowhere. The irony? A company that advises clients on managing leverage seems to be running a masterclass on