Rikhav Securities FY26: ₹1,976 Cr of Revenue, ₹19 Cr of Profit, and a Word That Changed Meaning

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1 — At a Glance

Rikhav Securities reported FY26 revenue of ₹1,976 Cr, up from ₹328 Cr a year earlier — a sixfold jump. Net profit for the same year: ₹19.04 Cr, down from ₹23.93 Cr. Revenue multiplied; profit shrank. That gap is the entire story, and it resolves into a single accounting decision rather than a business explosion.

The operating margin tells the same tale from the other side: 0.86% for the full year, against 11% the year before and 50% two years before that. A brokerage does not usually run a sub-1% margin. A firm booking the gross value of traded stock as revenue does.

Underneath sits a balance sheet holding ₹237 Cr of cash and bank balances against ₹7.89 Cr of borrowings, and a market capitalisation of ₹178 Cr — smaller than the cash pile. A promoter open offer for 26% of the company landed in April 2026. A credit rating went on negative watch in February. The numbers are loud; several of them are describing the same few events twice.

2 — Introduction

Rikhav Securities Limited was incorporated in 1995 as Brijmohan Sagarmal Finance Limited and renamed in 2006. It is a SEBI-registered broker with memberships across BSE, NSE and MCX, offering equity broking, derivatives, currency, commodities, depository services, market-making for SME IPOs, mutual fund distribution and a margin trading facility. It listed on the BSE SME platform on January 22, 2025, raising ₹88.82 Cr.

The recent chapter is busy. FY26 audited results were approved on May 23, 2026. In April 2026 the promoter group announced an open offer for up to 26% of the company. In February 2026, Infomerics placed the firm’s short-term bank facility ratings on watch following an RBI draft circular affecting funding for proprietary trading.

That last point matters more than it looks. Per the Infomerics report, roughly 92% of the company’s FY25 revenue came from proprietary trading and investment activities, with brokerage contributing 4.41%. This is a broker whose broking is a rounding error next to its own trading book.

3 — Business Model: WTF Do They Even Do?

On paper, Rikhav is a full-service financial platform: equity and F&O broking, currency, commodities, depository services via CDSL, MTF, mutual fund distribution, and IPO market-making for SMEs. The Rikhav Plus app, Aadhaar e-KYC onboarding, a VaR-based risk framework — the full modern-broker starter kit is present and accounted for.

But the revenue mix, per the presentation, is blunt: FY25 business and investment activities were 92.00% of income, brokerage and commission 4.41%, demat and other income 3.59%. The customer-facing broking business — the app, the client base, the 99% retention the marketing loves — sits on top of what is functionally a proprietary trading desk that also happens to have retail plumbing.

The prop desk runs algorithm-driven arbitrage, delta-hedging and short-term strategies on the firm’s own capital, aiming, in the presentation’s words, for disciplined mid-teens returns. Market-making supports around 46 SME IPOs a year, providing two-way quotes to keep newly listed small-caps liquid.

So the answer to “what do they do” is: they trade their own book, and they run a broker on the side. The presentation calls this diversified. A stricter reading calls it concentrated in one line with several hobbies. When 92% of revenue leans on prop trading, does the client-facing platform describe the business — or decorate it?

4 — Financials Overview

Figures are standalone, in ₹ crore. The reporting cadence is half-yearly; the latest period is H2 FY26 (the six months to March 2026).

The second half swung to a razor-thin ₹1.18 Cr profit from a ₹26.85 Cr loss a year earlier — an improvement, though on a revenue line that grew sevenfold in the same window.