1.At a Glance
Systematix Corporate Services Ltd – the broking house turned advisory empire – just posted another quarter that made even mutual fund managers quietly close their Excel sheets and whisper, “Not bad.” With amarket cap of ₹2,216 croreand acurrent price of ₹162(post share split), this company is the slick, suit-wearing version of Indore’s financial brainpower gone national.
Despite a -41% 1-year return hangover, the stock has made a 31% comeback in the last 3 months – the kind of comeback story Bollywood scripts dream about. Thestock trades at a P/E of 47.3, which means investors are willing to pay premium prices for premium chaos.ROE sits at 20.4%,ROCE at 25.1%, and thecompany is nearly debt-free (Debt-to-Equity = 0.06)– a rare clean-sheet scorecard in Indian financial services.
In Q2FY26, it clockedSales of ₹55.7 crore, up52% YoY, butPAT slipped 34.5% to ₹14.5 crore, proving that even great brokers sometimes miss a trade. EPS dropped to ₹1.06, but management’s confidence remains as tall as their Indore headquarters.
With 453 touchpoints across 100 cities, Systematix isn’t just broking deals—it’s broking records. Let’s dive into the financial soap opera that makes up this surprisingly muscular small-cap.
2.Introduction – The Silent Shark of Dalal Street
If broking were a Bollywood genre, Systematix would be that underrated supporting actor who slowly steals every scene. Founded in 1985 (when “stock market” still meant paper slips and pagers), Systematix has quietly grown into one of India’s most profitable mid-tier financial services firms—offering everything from broking to merchant banking to PMS and wealth management.
Think of them as the multitasker friend who’s both your mutual fund advisor and the one who helps you pick your wedding photographer – except here, the “wedding” is an IPO, and the “photos” are quarterly presentations with EBITDA margins.
Their rise has been slow and methodical. Unlike the “YOLO” style of newer fintechs, Systematix grew like a disciplined marathon runner: from ₹55 crore revenue in FY21 to ₹167 crore in FY25. That’s a 3x growth in topline, withprofit CAGR of 65% over 5 years.
But FY25 and early FY26 were a different flavor – new NSE listing, fresh fund raise of ₹250 crore, and a share split from ₹10 to ₹1. The management has been on an aggressive growth mission, even as SEBI slapped their subsidiary Systematix Commodities for past sins (because every family has that one rebellious cousin).
In essence, Systematix is not your everyday broker. It’s a broking-banking-financing hybrid that learned to turn advisory gigs into steady cash cows while keeping debt lower than the RBI’s interest rate corridor.
3.Business Model – WTF Do They Even Do?
Systematix is a full-stack financial powerhouse that does everything short of printing its own currency. Here’s the breakdown:
1. Broking (63% of Q1FY25 revenue)This is their bread, butter, and occasional caviar. With 240+ institutional clients, including HDFC MF, UTI, and IDFC MF, they play in both cash and derivatives. Their research desk covers 240 companies across 17 sectors—basically, they’ve analyzed everything from auto ancillaries to your neighbor’s IPO. The broking division grew42% between FY22 and FY24, showing it’s not just riding bull markets but actually steering them.
2. Merchant Banking & Investment Banking (33%)This segment is where Systematix turns into the deal whisperer. In FY24–Q1FY25, they closed 4 M&A transactions, 8 block deals, 4 preferential issues, 4 QIPs, 1 IPO, 1 open offer, and 1 delisting. That’s not a performance—it’s a resume. The segment grew82% over FY22–FY24, showing they’re now a legit boutique investment bank.
3. Financing, Wealth & PMS (4%)Their wealth arm manages over₹750 crore AUMwith 1,600 clients. The Systematix DIP PMS delivered19% returns in Q1FY25, placing it among the top in the industry. Add financing against shares and margin funding, and you get a mini NBFC setup hiding inside a brokerage house.
So what do they really do?
Everything that makes money from money.
4.Financials Overview
| Metric (₹ Cr) | Latest Qtr (Q2FY26) | YoY Qtr (Q2FY25) | Prev Qtr (Q1FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 55.7 | 36.6 | 39.0 | +52.0% | +43.0% |
| EBITDA | 21.0 | 22.0 | 16.0 | -4.5% | +31.3% |
| PAT | 14.5 | 22.1 | 10.0 | -34.5% | +45.0% |
| EPS (₹) | 1.06 | 1.71 | 0.77 | -38.0% | +37.7% |
Commentary:YoY, revenue is flexing muscles, but PAT took a knock – classic case of rising costs eating into that delicious OPM. QoQ recovery looks strong though, and with EBITDA margins steady around 37%, Systematix still outperforms most peers in efficiency. EPS decline post share split looks alarming, but it’s more arithmetic than apocalypse.
5.Valuation Discussion – The Fair Value Range
Method 1: P/E Approach
- EPS (annualized Q2FY26): 1.06 × 4 = ₹4.24
- Industry P/E (Financial Services peers): ~20.8
- Fair Range = ₹4.24 × (35–50) = ₹148 – ₹212
Method 2: EV/EBITDA Approach
- EV = ₹1,970 Cr; EBITDA (FY25): ₹59 Cr → EV/EBITDA = 33.4×
- Fair Range (based on peer average 20–28×) = ₹1,180 – ₹1,650 Cr EV → implying ₹97 – ₹182 per share
Method 3: DCF Approach (Simplified)Assume free cash flow growth 20% for 3 years, terminal growth 5%, discount rate 12% →Fair Value ≈ ₹150 – ₹200 per share
✅Educational Fair Value Range: ₹148 – ₹212(Disclaimer: This range is for educational purposes only and not investment advice. Your wallet, your risk.)
6.What’s Cooking – News, Triggers, and Drama
If you thought Systematix was just crunching spreadsheets, think again. FY25–FY26 was peak drama:
- Jan 2024:Board approved a ₹250 Cr fund raise. Translation: “We’re going shopping for deals.”
- Aug 2024:Share split from ₹10 to ₹1 – retail investors celebrated like they got 10x richer overnight.
- Sep 2024:Preferential issue worth ₹103 Cr to expand business lines.
- Oct 2025:NSE listing – because BSE-only was too middle-class.
- Nov 2025:Appointed Bhaskar Hazra & Partha Sengupta as Joint MD & CEO for Private Wealth.
But not all press releases were cheerful – theSystematix Commoditiesarm got hit by SEBI for legacy NSEL violations. The company distanced itself faster than a CA disowning creative accounting.
Despite
