1. Opening Hook
In a world where discount brokers fight over ₹20 trades, Rikhav Securities quietly decided to act like it’s running Goldman Sachs—just with fewer people and more enthusiasm. The company, a 30-year-old name in broking and SME market making, reported a flashy 300% revenue surge but a reality-check on profits.
The management, led by the ever-upbeat Hitesh Lakhani, painted a picture of “digital transformation” where the app has1,800 users—not exactly Zerodha numbers, but hey, it’s progress. They even promised ₹100 crore PAT in five years. That’s either ambition or caffeine talking. Read on; it only gets spicier. ☕
2. At a Glance
- Revenue ₹386.7 Cr (H1 FY26):Tripled YoY—mostly trading turnover magic.
- EBITDA ₹25.96 Cr:Margins thinner than bid-ask spreads.
- PAT ₹17.75 Cr:Profits stayed steady despite hyperactive turnover.
- MTF Book ₹10 Cr:Growing 30–40% every six months—leverage meets optimism.
- Digital App Users ~1,800:Small but “paperless and seamless,” says tech head proudly.
- SME Market Making:40–45 IPOs annually—keeping small caps liquid and lively.
3. Management’s Key Commentary
“Our total income stood at ₹386.67 crore; EBITDA ₹25.96 crore; PAT ₹17.75 crore.”(Translation: We trade a lot; profit’s still modest, but volume looks sexy 😏)
“MTF book is ₹10 crore, expected to grow 30–40% every half year.”(Because nothing says ‘financial stability’ like more leverage.)
“Our app now has 1,500–1,800 active users.”(One small tap for man, one giant leap for Mulund.)
“We expect 20–25% growth annually and ₹100 crore PAT in five years.”(Manifestation goals: active.)
“We’ve reduced exposure to SME market making.”(Translation: we learned that illiquid stocks are scarier than horror films.)
“Cyber audits every three months, no breaches yet.”(Probably because hackers can’t find us in the SME segment.)
“Prop trading drives most profits currently.”(Because clients come and go, but your own trades never argue.)
4. Numbers Decoded
| Metric | H1 FY26 | H1 FY25 | Change | Commentary |
|---|---|---|---|---|
| Total Income (₹ Cr) | 386.7 | 97.2 | +298% | Turnover heroics, not margin magic. |
| EBITDA (₹ Cr) | 25.96 | 18.4 | +41% | Operating leverage kicking in. |
| PAT (₹ Cr) | 17.75 | 14.9 | +19% | Profits didn’t match revenue hype. |
| MTF Book (₹ Cr) | 10 | — | — | New toy, growing fast. |
| App Users (Nos) | ~1,800 | — | — | Still in beta reality. |
| SME IPOs Supported | 40–45/year | 42/year | Flat | Keeps liquidity alive. |
TL;DR:Revenue inflated by turnover, not fundamentals. Margins behave like a day trader—nervous but alive.
5. Analyst Questions
Q:“Expected return on capital from MTF?”A:“15–20%.”(Assuming markets behave like spreadsheets.)
Q:“App user count?”A:“1,800.”(Zerodha sneezes more downloads in a minute.)
Q:“Why profit margins dipped despite 300% revenue jump?”A:“Prop trading turnover inflated revenue; profit is real metric.”(CFO schooling retail investors in accounting 101.)
Q:“Any plans for merchant banking?”A:“No. Too much paperwork.”(Fair.)
Q:“How do you pick SME IPOs?”A:“We trust known merchant bankers… sometimes we even visit factories.”(Due diligence, Bollywood style.)
Q:“Cybersecurity?”A:“Regular patches, firewall tunnels, no breaches.”(Because no hacker targets illiquid microcaps anyway.)
6. Guidance & Outlook
Rikhav’s five-year dream involves scaling from ₹17.7 crore PAT to ₹100 crore—because why not? Management expects:
- 20–25% annual growthdriven by prop trading, MTF expansion, and franchise network.
- MTF bookto double every year until SEBI frowns.
- App
