SMC Global Securities Q2 FY26 Concall Decoded: Margin Blues & Regulatory Hangovers

1. Opening Hook

In a quarter where traders prayed harder than analysts, SMC Global’s management looked like they’d seen both volatility and virtue. With SEBI’s rulebook rewriting the derivative game and the NBFC arm nursing its fair value hangover, this call felt like a yoga class—stretching optimism while trying not to pull a fiscal muscle.

Yet, like theBhagavad Gitareminds us:“Action is thy duty, reward not thy concern.”The management surely acted—whether the reward follows is another chart to watch.

Stick around—things get spicier as we decode what the CFOreallymeant when he said “temporary moderation.”

2. At a Glance

• Revenue – ₹440.3 Cr (↑3.6% QoQ):Broking slowdown be damned, insurance came to the rescue.
• EBITDA – ₹84.4 Cr (↓ QoQ):Margins slipped to 19.2%; cost gremlins back in business.
• PAT – ₹21 Cr (↓54% YoY):Profit took the elevator down, blamed SEBI and market mood.
• NBFC AUM – ₹1,088 Cr:Holding steady, but growth seems on coffee break.
• Insurance Revenue – ₹162.5 Cr (↑21% YoY):The lone warrior in a portfolio of fatigue.
• Online Trading – 67% of Turnover:Retail investors clearly prefer clicks over calls.
• Collection Efficiency – 98.47%:Borrowers behaving—finally, some good news.

3. Management’s Key Commentary

Subhash Chand Aggarwal:“The broking industry is in a consolidation phase, but the future looks promising.”(Translation: SEBI’s rules hit like a ton of bricks, but we’ll call it a ‘transition.’)😏

Vinod Kumar Jamar:“Revenue rose 3.6% QoQ, supported by our insurance business.”(Translation: The only thing rising faster was our blood pressure watching trading volumes drop.)

Aggarwal (continued):“The NBFC sector is stabilizing, asset quality remains healthy.”(Translation: Growth may be dead, but at least our loans aren’t dying yet.)

Vinod Kumar Jamar:“PAT stood at ₹21 Cr, impacted by fair value changes and lower commissions.”(Translation: Markets misbehaved,