SMC Global Securities Reports Mixed Q2 Results with Revenue Growth but Declining Profits

SMC Global Securities Limited , a prominent player in the Indian financial services sector, has announced its financial results for the quarter ended September 30, 2025, revealing a mixed performance characterized by revenue growth but declining profits.

Revenue Growth Amidst Profit Decline

For the quarter ended September 30, 2025, SMC Global Securities reported:

Metric	Q2 FY2026 (₹ in lakhs)	Change (YoY)
Total Revenue from Operations	44,026.86	↑
Profit After Tax	2,099.98	↓

The company witnessed an increase in its total revenue from operations, indicating robust business activity across its segments. However, the profit after tax saw a decline compared to the same period last year.

Half-Year Performance

The half-year results painted a similar picture:

Metric	H1 FY2026 (₹ in lakhs)	Change (YoY)
Total Revenue	86,519.94	↓
Profit After Tax	5,094.99	↓

Segment-wise Performance

SMC Global Securities operates through three main business segments:

Broking, distribution, and trading
Insurance broking services
Financing activities

While specific segment-wise data for the quarter was not provided, the diversified nature of SMC's operations likely contributed to its overall revenue growth despite challenging market conditions.

Strategic Initiatives

Bonus Share Issue

The Board of Directors has approved a 1:1 bonus issue of 10.47 crore equity shares, subject to shareholder approval. This would effectively double the company's paid-up equity share capital to ₹4,188 lakhs.

Non-Convertible Debentures (NCDs) Issuance

SMC Global Securities has successfully raised ₹13,385.86 lakhs through Non-Convertible Debentures (NCDs). The NCDs come with interest rates ranging from 10% to 10.50% and varying maturity periods from 2026 to 2030, indicating the company's focus on long-term capital raising to support its growth initiatives.

Outlook

While SMC Global Securities has shown resilience in its revenue generation, the decline in profitability may be a concern for investors. The company's efforts to strengthen its capital base through bonus shares and NCD issuance suggest a focus on long-term growth and financial stability.

As the financial services landscape continues to evolve, SMC's diversified business model and strategic capital raising initiatives may position it well to navigate market challenges and capitalize on emerging opportunities in the Indian financial sector.

Corporate Governance Update

In a separate announcement, the company disclosed that its Board of Directors has approved amendments to the Object Clauses of its Memorandum of Association. These changes aim to explicitly incorporate certain activities already covered in principle within the existing business objects and to include the business of providing custodian services in accordance with SEBI regulations. This move aligns with SMC's strategic objective of expanding into the custodian services business and ensures compliance with applicable regulatory frameworks.

These developments underscore SMC Global Securities' commitment to diversifying its service offerings and adapting to the evolving regulatory landscape in the financial services sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.80%	-1.07%	-3.51%	+22.57%	-4.33%	+41.36%

SMC Global Securities Limited , a prominent player in India's financial services sector, has reported a decline in its second-quarter profits while simultaneously announcing strategic moves to expand its service offerings.

Q2 Financial Performance

For the quarter ended September 30, SMC Global Securities reported:

Financial Metric	Q2	Q2 Previous Year	YoY Change
Consolidated Net Profit	₹206.60 crore	₹453.00 crore	-54.4%
Revenue	₹4,400.00 crore	₹4,500.00 crore	-2.2%
EBITDA	₹843.80 crore	₹1,190.00 crore	-29.1%
EBITDA Margin	19.17%	26.38%	-720 bps

The company experienced a significant year-over-year decline in profitability, with net profit dropping by more than half. Revenue saw a marginal decrease, while EBITDA and EBITDA margin both contracted substantially.

Strategic Charter Amendment

In a move to align with evolving market trends, SMC Global Securities has amended its memorandum object clauses to include:

Technology-enabled financial services
SEBI-approved custodian business

This strategic shift is aimed at:

Enhancing the company's integrated capital market infrastructure
Ensuring regulatory compliance
Fostering growth in digital and institutional segments

Debt Issuance

Concurrent with these developments, SMC Global Securities has successfully completed a public issue of non-convertible debentures (NCDs):

Total allotment: 13,38,586 NCDs
Face value: ₹1,000 per NCD
Total amount raised: ₹133.86 crore
Purpose: The funds are likely to support the company's expansion into new service areas

The NCDs offer various interest payment options, including annual, cumulative, and monthly schedules, with tenures ranging from 24 to 60 months and interest rates between 9.75% and 10.25% per annum.

Market Implications

The company's strategic amendments and debt issuance suggest a proactive approach to navigating the challenging market conditions reflected in its Q2 results. By expanding into technology-enabled services and strengthening its capital base, SMC Global Securities appears to be positioning itself for future growth opportunities in the evolving financial services landscape.

Investors and market watchers will likely keep a close eye on how effectively the company leverages these new capabilities to improve its financial performance in the coming quarters.

As the financial services sector continues to undergo digital transformation, SMC Global's moves to integrate technology-enabled services could be crucial in maintaining its competitive edge and potentially reversing the recent profit decline.