Indo Thai Securities Ltd Q2 FY26 – The Stockbroker That Became the Stock
1. At a Glance
Some brokers help you make money; others become your multibagger. Indo Thai Securities Ltd (ITSL) has decided to do both. Once a sleepy Indore-based brokerage, now a ₹5,414 crore rocket ship, this company has turned the “broker makes all the money” meme into a live demo.
At ₹443 a share (20 Oct 2025), it’s up 350% in one year and 122% in the last 3 months — the kind of return that makes even Angel One feel like an angel investor gone wrong.
Q2 FY26 is pure fireworks: Revenue ₹23.7 Cr (+154% YoY), PAT ₹14.4 Cr (+218% YoY), EPS ₹1.19, Operating Margin 84%. But wait — P/E 253×, Price-to-Book 24.7×, and ROE 6.5%. Translation: the market’s paying Louis Vuitton prices for Bata returns.
The demerger saga, preferential allotments, and mysterious capital restructuring make this one of the most entertaining “brokered bubbles” in smallcap history.
2. Introduction – When a Broker Becomes a Celebrity
Incorporated in 1995, Indo Thai Securities Ltd (of Indore, not Bangkok fame) is the flagship of the Indo Thai Group, a web of 16 entities that make Dalal Street look like a family WhatsApp group. They offer everything — equity, derivatives, PMS, mutual funds, NCDs, bonds, algo trading, co-working spaces, and probably WiFi with brokerage accounts.
But lately, they’ve been offering something new: drama.
Over the last 12 months, ITSL has launched more corporate actions than SEBI circulars — bonus rumours, demerger, stock split, preferential issues, warrant conversions, and most recently, a 1:1 demerger of the Broking & Distribution unit into ITFSL.
In plain English: they’re splitting themselves to “unlock value.” Translation: same assets, twice the ticker.
Every quarter, the board meets not just to discuss financials but to announce something — a dividend, a split, or a subsidiary with mysterious “future synergies.” No wonder retail investors are hooked; it’s like watching Scam 1992: The Indore Edition.
3. Business Model – WTF Do They Even Do?
Indo Thai Securities basically sells “trust” — you give them money, they execute trades, and everyone hopes NSE servers don’t crash.
Their services include:
Equity & Derivative Broking (the core bread)
Commodities & Currency Derivatives (the butter)
Depository Services (CDSL) (the vault)
Portfolio Management, IPOs, Mutual Funds (the jam)
Insurance & Wealth Management (the garnish)
Co-Working Spaces (because why not)
They earn from:
Brokerage & Commission: 64% of FY23 revenue
Interest income: 21%
Dividends & Other income: 10%
Essentially, 80% comes from you trading nervously on their app while they quietly charge you for it.
But here’s the twist — for a ₹49 crore annual revenue company to sport a ₹5,400 crore market cap, there must be some magic. Or margin funding. Or madness.
4. Financials Overview
Source table
Metric
Latest Qtr (Sep 25)
YoY Qtr (Sep 24)
Prev Qtr (Jun 25)
YoY %
QoQ %
Revenue
₹23.7 Cr
₹9.3 Cr
₹14 Cr
154%
69%
EBITDA
₹20 Cr
₹6 Cr
₹10 Cr
233%
100%
PAT
₹14.4 Cr
₹4.5 Cr
₹9 Cr
218%
60%
EPS (₹)
1.19
0.45
0.72
164%
65%
Operating Margin = 84%. Annualized EPS = ₹4.8 → P/E = 92× (but Screener says 253× because math dies when splits happen).
Profit margin up 218% YoY — or as brokers call it, “client losses finally paying off.”
5. Valuation Discussion – When P/E Becomes Poetry
Method 1: P/E Approach Industry average ≈ 25×. EPS annualised = ₹4.8. Fair Value = ₹4.8 × (20–30) = ₹96 – ₹144.
Method 3: DCF (assuming logic still exists) Assume FCF ₹20 Cr, growth 10%, WACC 12%. Fair range = ₹90–₹120/share.
🧾 Educational Fair Value Range: ₹90 – ₹150/share At ₹443, this stock is living in another dimension. Disclaimer: Educational only. Don’t mortgage your flat to chase it.
6. What’s Cooking – News, Triggers, Drama
Where do we start?
16 Oct 2025: Allotment of 15.73 lakh shares via preferential issue. Proceeds ₹5.9 Cr (75% received).
13 Oct 2025: Board approved 1:1 demerger of Broking & Distribution business into ITFSL. Separate listing planned.
29 Aug 2025: 10,10,000 shares allotted via warrant conversion. Proceeds ₹3.78 Cr.
