Choice International: Driving Excellence with Diversified Growth in H1 FY26

Choice International Limited has demonstrated a robust performance in the first half of fiscal year 2026, showcasing consistent growth across its diversified financial services portfolio. The company's investor presentation and concall transcript highlight a strategic focus on expanding its reach, enhancing technological capabilities, and venturing into new high-potential segments. This period underscores Choice International's disciplined execution and customer-first approach, positioning it as a significant player in India's evolving financial landscape.

For H1 FY26, Choice International reported a consolidated revenue of ₹522 crore, marking a healthy 15% year-on-year growth. Profit After Tax (PAT) surged by an impressive 33% year-on-year, reaching ₹104 crore. The company's EBITDA for the first half stood at ₹186 crore, with margins improving to 35.59%, reflecting a strong focus on operational efficiency. These figures not only reaffirm the strength of its scalable operating model but also indicate a positive trajectory for sustained growth.

Segmental Performance and Strategic Pillars

The company's growth is underpinned by strong contributions from its core business segments. The Broking & Distribution vertical, which includes stock broking, wealth management, and insurance distribution, remains the largest contributor, accounting for 59% of the total revenue. This segment saw client assets under management (AUM) in stock broking grow by 25% year-on-year to ₹576 crore, while wealth product AUM soared by 327% year-on-year to ₹4807 crore. The number of Demat accounts increased by 29% year-on-year to over 1.2 million, driven by robust onboarding capabilities and client engagement.

The Non-Banking Financial Company (NBFC) business contributed 15% to the total revenue, focusing on empowering MSMEs and retail borrowers in semi-urban and rural areas. The total loan book stood at ₹716 crore, with a significant retail segment contribution of ₹536 crore. The asset quality remains healthy, with Net Non-Performing Assets (NNPA) at 2.79% as of September 30, 2025. The Advisory business, contributing 26% of the revenue, continues to build strong execution capabilities, securing project mandates worth ₹140 crore and maintaining an order book of ₹666 crore.

Expanding Horizons and Digital Leadership

Choice International is actively expanding its footprint and enhancing its digital capabilities. A significant milestone was the final SEBI approval for Choice AMC Pvt. Ltd. to operate as an asset management company. The company is set to launch its Gold ETF on October 24, 2025, followed by a Silver ETF in Q4 FY26, and a range of passive and active strategies in FY27. This strategic entry into the investment management space is expected to leverage Choice's pan-India reach and tech-led distribution to bridge the gap between traditional advice and modern investment solutions.

In terms of physical expansion, the company aims to add 100 new locations in FY26 and establish a presence in every district over the next three years. In H1 FY26, 35 new branches were opened, demonstrating progress towards this goal. The Choice Business Associate Network has grown to over 63,000, significantly expanding its reach across India and supporting client acquisition.

Technological innovation remains a core focus, with upcoming enhancements in stock broking including Lightning-Fast Trading, a Hyper-Personalized Experience, and AI Search. These advancements are designed to provide a seamless, efficient, and personalized trading experience, attracting new users and improving retention. The company's hybrid cloud architecture and robust security measures, including SOC Centre and ISO 27001:2022 certification, underpin its tech-led operations.

Management Outlook and Future Growth Trajectory

Management's outlook for the second half of FY26 remains positive, with a continued focus on deepening client engagement and exploring new growth opportunities. The investment banking division has a strong pipeline, with 27 mandates in progress and a tentative fundraising pipeline exceeding ₹700 crore. The NBFC segment is targeting an AUM of ₹1000 crore for Green Finance and ₹2500 crore for MSME Finance by 2030, reflecting a commitment to sustainable and inclusive growth.

While the corporate insurance business experienced a temporary decline due to a non-renewed contract, management is confident in filling this gap in Q3 FY26. The slight dip in NBFC Net Interest Margin is attributed to a strategic shift towards secured loans, with management aiming to maintain NIMs at 10-11% in the medium term. The AMC business is expected to break even within two to three years, indicating a clear path to profitability for this new venture.

Choice International Limited's H1 FY26 performance reflects strategic clarity and disciplined execution. The company is well-positioned to capitalize on India's economic resilience and the growing financialization of savings, leveraging its diversified business model, expanding network, and technological prowess to drive sustained growth and deliver value to its stakeholders.