Abans Financial Services Ltd Q2 FY26 – From Commodities to Capital, This Ex-Trader Is Now Playing Every Financial Game in Town (and Still Making Money Doing It)
1. At a Glance
Ladies and gentlemen, meet Abans Financial Services Ltd (AFSL) — the once humble commodities trader that now moonlights as a financial Swiss Army knife. As of November 2025, the stock sits at ₹214, giving it a market cap of ₹1,084 crore, while the book value is ₹233. Translation? The market values this financial circus at just 0.91x its book, meaning investors think there’s more dust than diamonds inside.
In the September 2025 quarter, revenue exploded to ₹6,832 crore, up a mind-melting 965% YoY, while PAT stood at ₹38.2 crore, up 50.4%. Sales up 965%? Either they discovered alchemy or reclassified revenue in every creative way imaginable. The EPS for the quarter came in at ₹7.55, up from ₹5.92 last quarter — a quarterly growth that makes PSU banks blush.
Despite no dividend, no free samosa, and a 41% price drop over the last year, AFSL still manages to flex a ROE of 10.2% and ROCE of 9.71% — not fireworks, but not dumpster fire either. With a P/E of 8.85, Debt-to-Equity of 0.62, and a Debt pile of ₹735 crore, this is one finance company that’s juggling everything from asset management to arbitrage, with global operations in Dubai, Shanghai, London, and Mauritius.
A financial house from Mumbai playing in five countries, 750k UK licenses, 10.4% promoter pledging, and 3,716 crore in assets — tell me that doesn’t sound like the plot of a Netflix finance drama called The Arbitrage Empire.
2. Introduction – The Rise of the Financial Shape-Shifter
Once upon a time, Abans Financial Services was knee-deep in commodities trading — buying and selling sugar, metals, and other shiny things. Fast-forward to 2025, and they’ve morphed into a multi-asset, multinational financial organism that does everything short of selling pani puri on Dalal Street.
Their evolution feels like someone took a commodities trader, gave it an MBA, sprinkled in some SEBI registrations, and said, “Go conquer the financial world.” Today, AFSL runs Agency, Finance, and Capital businesses — a fancy way of saying broking, lending, and proprietary trading.
The Agency Business offers institutional trading, wealth management, and private broking for corporates and HNIs. The Finance arm lends money to SMEs and individuals (both secured and unsecured), while the Capital arm is where the internal trading magic happens — from foreign exchange and commodities to dividend income.
And just in case you thought they’d stop there, in April 2025, they amended their charter to include Asset Management, Trustee Services, and Merchant Banking. Because why just manage your own funds when you can manage everyone else’s too?
So what started as a commodities trader now wears the hats of a broker, lender, fund manager, trustee, advisor, and global arbitrageur. The question is: can a single entity do all this efficiently, or is Abans just cosplaying as a financial conglomerate?
3. Business Model – WTF Do They Even Do?
Let’s decode this multi-headed financial hydra:
Agency Business: This is Abans’ “respectable” arm. It provides global institutional trading in equities, commodities, and currencies. Through Abans International Ltd, they manage a fund with ₹909 crore AUM, called The Global Arbitrage Fund. If that doesn’t scream “Wall Street Mumbai Edition,” nothing will.
Finance Business: Think of it as a lending cousin who loans money to small businesses and individuals — sometimes secured, sometimes not. About 61% of its lending book is Agri-commodity backed, because farmers apparently make great collateral these days.
Capital Business: The mysterious “Capital” division is essentially the in-house trading desk and treasury operations. Around 90% of AFSL’s FY24 revenue came from this segment alone — so while the other arms wear suits, this one probably trades in hoodies.
Revenue mix for FY24? Commodities 84%, Services 6%, Fair value gains 3%, Loan interest 3%, Investment interest 4%. Basically: they trade stuff, make a small cut from services, and occasionally book some fair-value joyrides.
Geographically, 56% of revenue is from overseas. So when you buy AFSL stock, you’re also getting exposure to London, Dubai, Shanghai, and probably a couple of sleepless traders somewhere in Mauritius.
And guess what? They have partnerships with Bajaj Capital, Choice Broking, and Equirus Wealth, plus distributors across GCC and East Africa. Because Abans doesn’t just sell financial products — it exports confusion and liquidity globally.
4. Financials Overview
Metric
Latest Qtr (Sep’25)
YoY Qtr (Sep’24)
Prev Qtr (Jun’25)
YoY %
QoQ %
Revenue (₹ Cr)
6,832
641
1,894
965%
261%
EBITDA (₹ Cr)
48
46
51
4%
-6%
PAT (₹ Cr)
42
27
33
55%
27%
EPS (₹)
7.55
5.06
5.92
49%
27%
Annualised EPS = ₹7.55 × 4 = ₹30.2, giving an implied P/E of ~7.1x at CMP ₹214.
Commentary: The sales jump looks like someone merged 10 subsidiaries into one income statement overnight. EBITDA barely budged, meaning most of the revenue explosion got eaten up by costs. But still, PAT jumped — proving that Abans’ treasury desk knows how to mint money even when margins are tighter than a budget airline seat.
5. Valuation Discussion – The Fair Value Range
Let’s crunch some non-boring numbers:
P/E Method: EPS (annualised) = ₹30.2 Industry P/E = 21.3 Fair Value Range = ₹30.2 × (8x–14x) = ₹240 – ₹425
EV/EBITDA Method: EV = ₹1,386 Cr, EBITDA (TTM) = ₹198 Cr → EV/EBITDA = 7x If valued at 6–9x range → Fair Value = ₹210 – ₹315
DCF (simplified): Assume 15% growth for 5 years, terminal 4%, discount 12% → ₹280–₹360
Fair Value Range (Educational Estimate): ₹240 – ₹380 This fair value range is for educational purposes only and is not investment advice.
