Rikhav Securities Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Rikhav Securities Ltd filed with BSE on 02 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Rikhav Securities reported H2 FY26 total income of Rs 1,604 crore, EBITDA of Rs 6.57 crore and PAT of Rs 1.20 crore, while full-year FY26 total income was Rs 1,991 crore with EBITDA of Rs 32.53 crore and PAT of Rs 18.96 crore. Management attributed the profitability decline to a loss of roughly Rs 20-23 crore on old cash market share investments and unrealized SLBM profit of Rs 4.33 crore not yet recognized. The company also discussed reduced SME segment exposure, new institutional client empanelments, and plans for branch and digital marketing expansion.
Numbers mentioned
Total income: INR1,604 crores (H2 FY26)
p. 4
“we reported total income of INR1,604 crores, EBITDA of INR6.57 crores, and PAT of INR1.20 crores with earnings per share is 0.31”
Hitesh Lakhani, page 4 of the filed PDF · View the filing
EBITDA: INR6.57 crores (H2 FY26)
p. 4
“we reported total income of INR1,604 crores, EBITDA of INR6.57 crores, and PAT of INR1.20 crores with earnings per share is 0.31”
Hitesh Lakhani, page 4 of the filed PDF · View the filing
Total income: INR1,991 crores (FY26)
p. 4
“FY26, we reported total income of INR1,991 crores, EBITDA INR32.53 crores and profit after tax of INR18.96 crores with earning per share of 4.95”
Hitesh Lakhani, page 4 of the filed PDF · View the filing
EBITDA: INR32.53 crores (FY26)
p. 4
“FY26, we reported total income of INR1,991 crores, EBITDA INR32.53 crores and profit after tax of INR18.96 crores with earning per share of 4.95”
Hitesh Lakhani, page 4 of the filed PDF · View the filing
PAT: INR18.96 crores (FY26)
p. 4
“FY26, we reported total income of INR1,991 crores, EBITDA INR32.53 crores and profit after tax of INR18.96 crores with earning per share of 4.95”
Hitesh Lakhani, page 4 of the filed PDF · View the filing
Technology investment: approximately INR5.40 crores (FY26)
p. 4
“we continue to strengthen our technology and operational infrastructure through investment of approximately INR5.40 crores towards computer software system and technology enhancement initiative”
Hitesh Lakhani, page 4 of the filed PDF · View the filing
Loss from cash market shares: around INR20 crores to INR23 crores (FY26)
p. 4
“Profitability during the year was impacted by loss from cash market shares of old investment, to be amounting to around INR20 crores to INR23 crores and volatile market condition witnessed during certain periods of the year”
Hitesh Lakhani, page 4 of the filed PDF · View the filing
Unrealized SLBM profit: INR4.33 crores (FY26)
p. 4
“unrealized profit of INR4.33 crores from SLBM transactions has not been recognized in financial statements and is expected to realize in the coming quarters”
Hitesh Lakhani, page 4 of the filed PDF · View the filing
Commodity arbitrage gross profit: around INR12 crores (FY26)
p. 7
“We have made the arbitrage means profit in commodity markets stood around INR12 crores gross profit in commodity market in arbitrage”
Hitesh Lakhani, page 7 of the filed PDF · View the filing
Active client base: around 12,500 clients (H2 FY26)
p. 9
“So current active base is -- currently active base is around 12,500 clients, plus 2,500 clients is added in this half year”
Hitesh Lakhani, page 9 of the filed PDF · View the filing
Client float: INR100 to INR120 crores
p. 9
“We have around INR100 to INR120 crores float of the client.”
Hitesh Lakhani, page 9 of the filed PDF · View the filing
Revenue per user: INR5,000 to INR6,000
p. 9
“Per user, we calculate and tell you. Around, I think so INR5,000 to INR6,000.”
Hitesh Lakhani, page 9 of the filed PDF · View the filing
Cumulative technology investment: between INR7.5 to INR10 crores (last two years)
p. 7
“It is around INR7.5 crores to INR9 crores. I don't know exact figure, but it's more than INR7.5 crores. It is between INR7.5 to INR10 crores.”
Hitesh Lakhani, page 7 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Brokerage growth — around 20% growth · FY27
stated as an aspiration by Hitesh Lakhani
p. 10
“We expect around 20% growth in brokerage and the cliental and around 20% to 25% growth in the algo trading and delta hedging income.”
Hitesh Lakhani, page 10 of the filed PDF · View the filing
Algo trading and delta hedging income growth — 20% to 25% · FY27
stated as an aspiration by Hitesh Lakhani
p. 10
“We expect around 20% growth in brokerage and the cliental and around 20% to 25% growth in the algo trading and delta hedging income.”
Hitesh Lakhani, page 10 of the filed PDF · View the filing
Revenue — around INR40 crores · FY27
stated as an aspiration by Hitesh Lakhani
p. 13
“March 27, it is a full year around INR40 crores.”
Hitesh Lakhani, page 13 of the filed PDF · View the filing
Cash market share investment cap — not more than INR50 crores · this year
stated firmly by Hitesh Lakhani
p. 5
“we will invest in stock market, means in a cash market not more than INR50 crores from this year”
Hitesh Lakhani, page 5 of the filed PDF · View the filing
Branch/franchise expansion — 8 to 10 branches minimum every year · annually
stated as an aspiration by Hitesh Lakhani
p. 12
“That branch expansion we expect not much, but every year about 8 to 10 branch, branch or franchises say.”
Hitesh Lakhani, page 12 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management attributed the decline to a loss on old cash market investments, unrealized SLBM profit not yet recognized, higher depreciation, and tax adjustments.
Answered by Hitesh Lakhani
Asked by Avik Bhattacharya: What are the key factors behind the pressure on PAT and margins during the period?
p. 5
“There are basically what the investment made in cash market one and half year before from that shares we booked the loss to the around of INR18 crores to INR20 crores.”
Hitesh Lakhani, page 5 of the filed PDF · View the filing
Management said SME exposure has been reduced to 30% compared to last year.
Answered by Hitesh Lakhani
Asked by Avik Bhattacharya: What is the current percentage of SME exposure?
p. 6
“Compared to last year, it is 30% only.”
Hitesh Lakhani, page 6 of the filed PDF · View the filing
Management listed recently onboarded institutional clients and stated plans to empanel with larger institutions.
Answered by Hitesh Lakhani
Asked by Avik Bhattacharya: What does the current institutional client onboarding pipeline look like?
p. 7
“We have just onboarded the Kotak Mutual Fund, Bank of India, and RBL Bank and the few FPI around 8 to 10 FPIs we have started.”
Hitesh Lakhani, page 7 of the filed PDF · View the filing
Management said there was a short-term volume impact but expects long-term benefit as retail traders redirect savings toward investing.
Answered by Hitesh Lakhani
Asked by Vidhi Purohit: What has been the tariff impact of recent SEBI regulations on derivatives volumes, profitability and client activity?
p. 10
“From the recent circular, we think there is a short-term impact on our volume, but we think it is good for the overall market condition in long term because the retail traders who lost their money in short term trading, they save the money and they invest.”
Hitesh Lakhani, page 10 of the filed PDF · View the filing
Management gave a breakdown of active vs daily trading clients.
Answered by Hitesh Lakhani
Asked by Dhanraj Tolani: How many clients are monthly active trading clients generating brokerage revenue?
p. 11
“Around 8,000 to 9,000. Actually, we have customers of the 25,000 and active means, they do the trades quarterly basis, we calculate is around 10,000 to 12,000.”
Hitesh Lakhani, page 11 of the filed PDF · View the filing
Management said they charge similar brokerage but differentiate through personal dealer relationships.
Answered by Deep Lakhani
Asked by Priya Jain: How is the company differentiating against large discount brokers with lower pricing and bigger budgets?
p. 12
“we charge the same brokerage as the discount brokers that are there, plus we give a personal touch of dealers that are associated with us”
Deep Lakhani, page 12 of the filed PDF · View the filing
Management explained an accounting change from October 2024 that reclassified prior investment turnover as purchases, making the prior year figure non-comparable.
Answered by Hitesh Lakhani
Asked by Aniket Madhwani: Why did purchase of stock-in-trade and other expenses increase this half year?
p. 14
“We have changed the accounting system since October 2024. Up to October 2024, we have shown as an investment.”
Hitesh Lakhani, page 14 of the filed PDF · View the filing
Risks flagged
Loss on old cash market share investments impacting profitability
p. 4
“Profitability during the year was impacted by loss from cash market shares of old investment, to be amounting to around INR20 crores to INR23 crores and volatile market condition witnessed during certain periods of the year.”
Hitesh Lakhani, page 4 of the filed PDF · View the filing
Industry-wide volatility and moderation in retail cash market participation
p. 4
“the industry witnessed phases of heightened volatility, moderation in retail cash market participation, tighter liquidity condition, and pressure on trading activity across several segments of the market”
Hitesh Lakhani, page 4 of the filed PDF · View the filing
Increasing competition and higher technology and compliance costs impacting profitability
p. 4
“increasing competition, higher technology and compliance cost, evolving regulatory framework, and changing investor participation trends continue to impact profitability across several broking businesses”
Hitesh Lakhani, page 4 of the filed PDF · View the filing
Market valuation impact from geopolitical event lowering Nifty
p. 6
“the market scenario on 31st March due to this US-Iran war, it is the lowest. I think so Nifty is below 23,000. That's why our result is affected minimum INR8 crores to INR10 crores because of the valuation.”
Hitesh Lakhani, page 6 of the filed PDF · View the filing
Risk in branch/franchise expansion due to compliance and promises made by branch managers or sub-brokers
p. 13
“Because whatever the branch manager or the sub-broker is promised to his client that we have to risk for that promises and so the expansion in a branch network is a very risky business.”
Hitesh Lakhani, page 13 of the filed PDF · View the filing
AI adoption risk of hallucination affecting audit and credibility
p. 10
“we have started it, but not engaged it thoroughly just because we need a vetting of human intervention to have a proper response through it”
Deep Lakhani, page 10 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.