Choice International Q4 FY26: ₹314 Cr Quarterly Revenue, 39% EBITDA Margin, 71.8x P/E — Growth Machine or Valuation Gymnastics?
1. At a Glance
Choice International has walked into Q4 FY26 wearing three hats: broker, lender, consultant — and now apparently, aspiring fintech empire-builder. Revenue for Q4 FY26 came in at ₹30,671 lakhs, PAT at ₹6,784 lakhs, and EBITDA margin at 39.08%, which is the kind of margin that makes software companies look twice and auditors adjust their spectacles. FY26 revenue stood at ₹1,11,913 lakhs, PAT at ₹23,789 lakhs, while the market is valuing the company at around ₹15,622 crore with a P/E of about 71.8x. So yes, the growth is real, but the valuation is not exactly sitting in the bargain bin next to rejected IPO prospectuses.
The company is scaling across broking, wealth, insurance, NBFC, advisory, investment banking, AMC, and government consulting. Basically, if money moves, Choice wants a toll booth on it.
But here is the spicy part: operating cash flow has been negative for three straight years — ₹153 crore negative in FY24, ₹294 crore negative in FY25, and ₹267 crore negative in FY26. Meanwhile, borrowings have risen to ₹908 crore, debtor days have jumped to 142, and pledged promoter holding is 11.9%. Growth is doing a dance, but cash flow is sitting in the corner asking for glucose.
So the detective question is simple: is Choice International building a serious financial services compounder, or is the market paying luxury-hotel prices for a business that still needs cash-flow room service?
2. Introduction
Choice International is not a simple stockbroking story anymore. It is trying to become a financial services supermarket for Bharat: broking for retail investors, wealth products for savers, insurance distribution, MSME lending, government advisory, investment banking, AMC, and even green energy subsidiaries.
Management’s Feb 2026 concall narrative was clear: household savings are moving from physical assets into financial markets, and this is “structural,” not cyclical. That is a powerful theme. India’s middle class is getting financially active, small-town investors are opening demat accounts, and everyone from fintech apps to neighbourhood advisors wants to become the new financial priest.
Choice is placing itself right in that zone with a phygital model: branches, franchisees, Choice Business Associates, app-based execution, advisory products, and distribution partnerships.
But investors must separate two things: business momentum and valuation comfort. The business momentum is visible. The valuation comfort? That is where the chair starts wobbling.
3. Business Model – WTF Do They Even Do?
Choice International is a diversified financial services company. Its major businesses are:
IPOs, rights issues, preferential issues, open offers
AMC
Mutual fund products including Gold ETF and index funds
In FY24, broking and distribution contributed around 65% of revenue, advisory 23%, and NBFC 12%. By Q4 FY26, the company has widened the playground with AMC, insurance acquisition, Fintoo Wealth, IPPB mandate, Ayoleeza acquisition, and government consulting orders.
In simple terms: Choice wants to acquire customers through broking, distribute products through wealth and insurance, lend through NBFC, advise governments, manage money through AMC, and earn fees from IPOs.
Very ambitious. Also very complicated. This is not a one-engine scooter; this is a financial-services jugaad spaceship.
4. Financials Overview
FY26 EPS is ₹9.77. At a current price of ₹701, recalculated P/E is:
P/E = ₹701 / ₹9.77 = 71.75x
That broadly matches the reported stock P/E of 71.8x.
Particulars
Latest Quarter Q4 FY26
Same Quarter Last Year Q4 FY25
Previous Quarter Q3 FY26
Revenue
₹30,671 lakhs
₹25,300 lakhs
₹30,336 lakhs
EBITDA
₹12,264 lakhs
₹9,829 lakhs
₹11,701 lakhs
PAT
₹6,784 lakhs
₹5,352 lakhs
₹6,562 lakhs
EPS
₹2.71
₹2.59
₹2.56
Revenue grew 21.23% YoY, EBITDA grew 24.77% YoY, and PAT grew 26.76% YoY. QoQ growth was modest, but still positive. Management had earlier said EBITDA margins should sustain and possibly expand, and Q4 EBITDA margin of 39.08% suggests they did walk the talk on margins.
But cash flow did not attend the same motivational seminar. Operating cash flow remained negative in FY26.
Reader question: would you rather own a company with strong accounting profits or strong cash flows?
5. Valuation Discussion – Fair Value Range Only
Method 1: P/E Method
FY26 EPS = ₹9.77 Sector peer median P/E in the peer table = around 16.96x Choice current P/E = around 71.8x
If we use a broad educational P/E range:
P/E Multiple
Value
35x
₹342
45x
₹440
55x
₹537
The current price is pricing in premium growth, execution, and a lot of future perfection.
On 22.3 crore shares, this gives a rough educational value range of around ₹318–₹497 per share.
Method 3: Simple DCF-style Thinking
FY26 PAT = ₹238 crore Free cash flow = negative ₹343 crore So a clean FCF-based DCF becomes messy. When free cash flow is negative, valuation must rely more on future conversion assumptions.
Assuming the company eventually converts profits better into cash, an educational broad range may sit around ₹350–₹550 depending on growth, margin sustainability, and cash-flow repair.
Educational fair value range: ₹340–₹550
This fair value range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
Choice had a busy FY26. It acquired the remaining 50% of Choice Insurance for ₹62.50 crore, making it a 100% subsidiary. It acquired 51%
