Rikhav Securities: Navigating Growth with Digital Innovation and Strategic Focus

Rikhav Securities Limited, a diversified Indian stock-market services firm, has presented a robust performance for H1 FY26, underscoring its strategic pivot towards digital enablement and diversified financial offerings. The company reported a total income of INR 386.67 crore, with EBITDA standing at INR 25.96 crore and a profit after tax of INR 17.75 crore. This performance reflects steady operational progress and a concerted effort to enhance efficiency, scalability, and service quality, aligning with India's rapidly expanding and digitizing financial services industry.

The company's business model is built on a comprehensive suite of financial services, including equity and derivatives trading, market making, proprietary trading, Margin Trading Facility (MTF), depository services, mutual fund distribution, and IPO applications. For FY25, the revenue breakdown highlights a significant contribution from Business & Investment activities at 92.00% (INR 301.55 crore), followed by Brokerage & Commission at 4.41% (INR 14.45 crore), and Demat operations & Other Income at 3.59% (INR 11.77 crore). This diversified revenue stream provides a resilient foundation amidst market fluctuations.

Strategic Initiatives Driving Future Growth

Rikhav Securities is actively pursuing several strategic initiatives to capitalize on market opportunities and enhance its competitive edge. A key focus is the strategic capital reallocation, where the company plans to reduce traditional market investments to increase its focus on proprietary trading, brokerage business, and the Margin Trading Facility (MTF). This shift is designed to optimize capital deployment for higher returns and diversify earnings.

Digital transformation remains at the forefront, with the successful rollout of a paperless KYC/account-opening portal and the Rikhav Plus mobile trading app. The company anticipates completing the final enhancements for the app within the next three months, aiming for a fully integrated, real-time trading and client service experience. This digital push is crucial for streamlining client onboarding and expanding reach to retail and high-net-worth investors nationwide.

Geographical expansion is another pillar of Rikhav's growth strategy. The company is actively expanding beyond its core markets of Maharashtra and Gujarat through digital channels, franchise partnerships, and sub-broker networks. This initiative aims to drive wider retail participation and increase the client base across India. Furthermore, Rikhav is developing its institutional business, targeting empanelment with foreign direct investors (FDIs) and banks, with an expectation to grow this segment profitably within 1.5 to 2 years.

Market Position and Outlook

Rikhav Securities operates in a fast-evolving capital market environment, strategically aligned with industry trends of digital transformation, financial inclusion, and increasing retail investor participation. India's financial services industry is experiencing accelerated expansion, driven by robust national savings, wealth creation, and strong capital market activity. The company's role as an accredited market maker on both BSE and NSE, actively supporting 40-45 SME IPOs annually, further solidifies its position in the market.

Management has provided optimistic guidance, expecting an overall growth of 20% to 25% on a year-on-year basis. The MTF segment, in particular, is projected to grow by 30% to 40% every half year, with an expected return on capital of 15% to 20%. The company aims to achieve over INR 100 crore in profit after tax within the next five years, demonstrating confidence in its growth trajectory and strategic initiatives.

Sustained Growth Through Disciplined Execution

Rikhav Securities' H1 FY26 performance and strategic roadmap reflect a clear vision for sustained growth through disciplined execution and digital innovation. The company's commitment to enhancing its technology infrastructure, expanding its client reach, and diversifying its revenue streams positions it favorably in the dynamic Indian financial landscape. With a strong focus on client retention, robust risk management, and an experienced leadership team, Rikhav Securities is well-prepared to navigate market complexities and deliver long-term value to its shareholders.