26-Oct-2026 20:09:26
GEOJIT FINANCIAL SERVICES Q2 CONCALL : RECURRING INCOME REACHES 40%, RECURRING AUM RISES TO ₹26,737 CR & MANAGEMENT TARGETS WEALTH BUSINESS EXPANSION
• MANAGEMENT AIMS TO INCREASE RECURRING INCOME CONTRIBUTION BEYOND THE CURRENT 40% OF H1 TOTAL INCOME, COMPARED WITH 25% IN FY23 • RECURRING-REVENUE AUM INCREASED 15.1% TO ₹26,737 CR FROM ₹23,230 CR AT FY26-END, SUPPORTED BY MUTUAL FUNDS, PMS, AIF & OTHER WEALTH PRODUCTS • MANAGEMENT EXPECTS EBITDA MARGINS TO REMAIN UNDER PRESSURE FOR THE NEXT 1–2 QUARTERS IF CASH-MARKET TRADING ACTIVITY REMAINS SUBDUED • COMPANY PLANS SELECTIVE HIRING & HIGHER EMPLOYEE PRODUCTIVITY, WITH GREATER FOCUS ON CROSS-SELLING RATHER THAN AGGRESSIVE HEADCOUNT EXPANSION • Q2 REVENUE UP 2.5% YOY TO ₹165.82 CR, UP 3.38% QOQ, WHILE EBITDA STOOD AT ₹36.70 CR WITH A 22.1% MARGIN • H1 REVENUE UP 6.72% YOY, WHILE EBITDA STOOD AT ₹78.23 CR; HIGHER EMPLOYEE & TECHNOLOGY EXPENSES CONTINUED TO PRESSURE PROFITABILITY • TOTAL CUSTOMER ASSETS REACHED ₹1.12 LAKH CR, WHILE CLIENT BASE INCREASED TO 17.25 LAKH WITH 61,657 NEW CLIENTS ADDED DURING H1 • MUTUAL FUND AUM STOOD AT ₹18,449 CR, WHILE MONTHLY SIP BOOK REACHED ₹156 CR ACROSS APPROXIMATELY 1.78 LAKH SIP CLIENTS • MANAGEMENT TARGETS HIGHER SIP & MUTUAL FUND PENETRATION AMONG EXISTING BROKING CUSTOMERS TO STRENGTHEN RECURRING REVENUE GROWTH • PMS & AIF AUM INCREASED APPROXIMATELY 39% TO ₹2,018 CR FROM ₹1,449 CR AT FY26-END, SUPPORTED BY STRONG WEALTH MANAGEMENT INFLOWS • Q2 ASSET MANAGEMENT NET INFLOWS REACHED ₹322 CR VS ₹71 CR YOY, WHILE H1 INFLOWS STOOD AT ₹408 CR • Q2 INSURANCE GROSS PREMIUM REACHED ₹175 CR; MANAGEMENT SEES SIGNIFICANT CROSS-SELLING POTENTIAL WITH LIFE INSURANCE PENETRATION BELOW 5% & HEALTH INSURANCE BELOW 3% • ONLY APPROXIMATELY 20% OF CLIENTS HOLD MULTIPLE PRODUCTS, PROVIDING AN OPPORTUNITY TO EXPAND MUTUAL FUND, PMS, AIF & INSURANCE DISTRIBUTION • MANAGEMENT CONTINUES INVESTING IN TECHNOLOGY, DIGITAL ONBOARDING & AUTOMATION, WITH CUSTOMER ONBOARDING SPEED REPORTEDLY IMPROVING 15% • DIFC BUSINESS REMAINS AT AN EARLY STAGE WITH APPROXIMATELY $2 MILLION AUM; MANAGEMENT MAY CONSIDER A SHARE BUYBACK IF STRATEGIC OPPORTUNITIES DO NOT MATERIALIZE, WHILE WEAK BROKERAGE ACTIVITY & HIGHER COSTS REMAIN KEY RISKS
CINDRELLA FINANCIAL SERVICES L