SMC Global Sec. Q2 FY27 Earnings Call — Analysis (NSE: SMCGLOBAL)

SMC Global reported consolidated revenue growth of 20.9% YoY to ₹532.5 Cr in Q2FY27, but lowered its FY27 NBFC AUM target to ₹1,125–₹1,150 Cr due to accelerated runoff of legacy lending books.

3 Nov 2026 · Analysis by Alpha Inflection

Result quality: stable — Results context unavailable. Management sentiment: neutral.

The take

Q2FY27 Consolidated Operational Income ₹532.5 Cr ( +20.9% YoY ) . New guidance — FY27 stoxkart revenue more than ₹100 Cr . New story: NBFC Lending Portfolio Transition .

Results

Q2FY27 consolidated revenue rose 20.9% YoY to ₹532.5 Cr with PAT growing 34.4% YoY to ₹28.2 Cr (though PAT fell sequentially due to regulatory impacts on F&O closing sessions and proprietary arbitrage).

Financial highlights

Guidance

FY27 NBFC AUM target was cut from ₹1,300 Cr to ₹1,125–₹1,150 Cr, while Stoxkart aims for >₹100 Cr revenue this fiscal year with an additional ₹50 Cr investment planned.

What management committed to

• [NBFC AUM] by the end of the year, we expect to be around Rs. 1125 to Rs. 1150 crores. — Rs. 1125 to Rs. 1150 crores, Q4FY27
• we at least aim for more than Rs. 100 crores revenue [in Stoxkart] this year [FY27] — more than Rs. 100 crores, FY27
• we expect to invest Rs. 50 crores more in Stoxkart, which will primarily be used for our increase in MTF business. — Rs. 50 crores, FY27
• So we expect [the unsecured loan book] to be, you know, below 15% in about a year or so. And we want to maintain it, you know, at 10 to 15% level. — below 15%, Q2FY28
• given the recent RBI rate increase, we expect there would be almost negligible impact on our net interest margin. — almost negligible impact, H2FY27

Key themes

NBFC portfolio reshaping and digital expansion

How the narrative shifted

• NBFC Lending Portfolio Transition: Management is deliberately winding down high-ticket LAP and unsecured loans in favour of higher-yielding, granular secured loans like micro-LAP and gold loans.
• Regulatory Headwinds in Capital Markets: SEBI's Closing Auction Session changes hurt option trading turnover and proprietary arbitrage profits during Q2, leading to sequential margin pressure.
• Digital Expansion via Stoxkart: Prioritising high top-line growth and scale in digital discount broking and MTF over near-term breakeven.
• Insurance Broking Growth and Regulatory Review: Insurance broking is scaling through health and corporate lines while monitoring IRDAI's draft consultation on distribution economics.

Operational commentary

• Successfully issued and listed ₹150 Cr public NCDs in October 2026 to diversify borrowing and strengthen liquidity.
• NBFC strategy actively shifting toward retail granular loans (micro-LAP, gold loans) away from large-ticket LAP and unsecured loans; micro-LAP grew to ₹172 Cr.
• Exchange introduction of Closing Auction Session (CAS) in August impacted client trading volumes and arbitrage trading profitability in Q2.
• Stoxkart operating at >₹20 Cr quarterly revenue run-rate, moving to expand its Margin Trade Funding (MTF) book size.
• Broking DP AUA expanded 17% since March 2026 to ₹1,66,737 Cr; client base reached 14.2 lakh with 75% online penetration.

Analyst Q&A

• Q. What drove the sequential PAT decline in Q2FY27 compared to Q1FY27?

  The decline was driven by regulatory changes (SEBI's Closing Auction Session introduced in August), which lowered client derivative turnover and impacted proprietary arbitrage trading profitability.

• Q. What is the expected FY27 NBFC AUM against the earlier target of ₹1,300 Cr?

  Revised to ₹1,125–₹1,150 Cr due to a faster-than-anticipated ₹253 Cr runoff in discontinued large LAP and unsecured loans during the half year.

• Q. What is the potential impact of the IRDAI draft consultation paper on distribution commissions?

  Management stated it is only a draft paper and declined to quantify financial impact until final guidelines are released.

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