Choice confirms ₹900 crore receipt for MTF expansion

Choice International Limited confirmed that Choice Equity Broking received ₹900 crore from South Korea's NH Investment & Securities after the September 30, 2026 quarter-end, completing the strategic investment. Choice said the capital will primarily fund margin trading facility, or MTF, expansion; its MTF book was ₹463 crore at quarter-end.

When did Choice receive the ₹900 crore investment?

Choice received the ₹900 crore in Choice Equity Broking's bank account after Q2 FY27 ended on September 30, 2026. Its November 2, 2026 results announcement said this completed the strategic investment by NH Investment & Securities, but did not provide the precise credit date.

The receipt occurred after the reporting period, so it was not included in the operating figures published for Q2 FY27. For the quarter, Choice reported consolidated total income of ₹379 crore, up 33% year on year, and profit after tax of ₹69.47 crore, up 23%. The filing presents the investment as capital for future business expansion rather than quarterly revenue or profit.

Managing Director Kamal Poddar said the investment brings capital and international expertise for Choice's next phase of growth. He said Choice intends to use the partnership to expand beyond retail broking and build institutional, wealth-management and asset-management capabilities, with capital allocation and execution guiding the expansion.

How will Choice use the ₹900 crore investment?

Choice said the funds will primarily support expansion of its MTF business, while the partnership may create opportunities to strengthen other financial-services capabilities. MTF refers to financing for securities transactions, and the disclosed purpose places the new capital alongside the ₹463 crore MTF book reported at September 30, 2026.

The ₹900 crore investment is ₹437 crore larger than the quarter-end MTF book. However, Choice did not disclose a deployment timetable, a target MTF book, financing terms or the portion of the capital that will be directed to MTF versus other businesses.

Choice reported 13.78 lakh demat accounts after adding 1.73 lakh accounts, representing 14% year-on-year growth. Its broking and distribution network included 218 branches, while client assets under custody were ₹66,300 crore. The release did not disclose MTF revenue, borrowing costs attributable to the facility or credit-loss data.

How did Choice perform in Q2 FY27?

Choice reported consolidated total income of ₹379 crore in Q2 FY27, compared with ₹284.1 crore in Q2 FY26, while profit after tax rose to ₹69.47 crore from ₹56.5 crore. Revenue from operations increased 36% to ₹372.9 crore, but other income declined 36% to ₹6.2 crore from ₹9.7 crore.

Total expenses increased 36% to ₹285.2 crore, faster than the rise in total income. Employee-benefit expenses rose 45% to ₹112.1 crore, finance costs increased 49% to ₹30.6 crore, and depreciation and amortisation expenses rose 56% to ₹6.2 crore. The profit-after-tax margin was 18.33%, compared with 19.88% a year earlier.

Choice reported earnings before interest, depreciation, tax and amortisation, or EBIDTA, of ₹130.6 crore, up 32% from ₹99 crore in Q2 FY26. Its EBIDTA margin was 34.47%, compared with 34.84%. The board also recommended a 1:1 bonus-share issue, subject to shareholder approval, without linking that proposal to the NH Investment & Securities transaction.

Which Choice businesses are growing alongside broking?

Choice reported total wealth-distribution assets under management, or AUM, of about ₹6,047 crore, including mutual-fund AUM of ₹4,108 crore and portfolio management services, or PMS, and alternative investment fund, or AIF, AUM of ₹291 crore. Equity mutual-fund AUM grew 49% year on year to ₹3,013 crore from ₹2,023 crore, while PMS and AIF AUM increased 127% from ₹128 crore.

Structured and fixed-income product distribution reached ₹1,636 crore in H1 FY27, compared with ₹512 crore a year earlier and ₹745 crore in full-year FY26. The H1 FY27 volume therefore exceeded the full-year FY26 volume by ₹891 crore. Choice also said its pilot partnership with India Post Payments Bank had onboarded more than 25,000 customers and generated AUM of ₹1.12 crore.

Insurance sold 75,173 policies and generated premiums of ₹81 crore during the quarter. Choice's non-banking financial company, or NBFC, loan book stood at ₹935 crore, while its government-advisory order book was ₹710 crore. In investment banking, Choice handled five initial public offerings, or IPOs, that raised about ₹680 crore during Q2 FY27.

What are Choice's next disclosed growth steps?

Choice said it plans to launch additional asset-management products after the new fund offer, or NFO, for its first actively managed scheme, Choice Large & Mid Cap Fund, was scheduled to close the day after the November 2 announcement. The filing did not disclose NFO collections, dates for additional launches or AUM targets for the asset-management operation.

In government advisory, the proposed acquisition of Feedback Infra progressed after Choice received a letter of intent from the resolution professional confirming the Committee of Creditors' approval of the resolution plan. Completion remains subject to approval from the National Company Law Tribunal, or NCLT, and other applicable requirements.

Choice said its IPO pipeline comprised 24 mandates with estimated fundraising of ₹6,210 crore, and that execution momentum continued into October. One of the five Q2 FY27 offerings was subscribed about 177 times, according to the release, though Choice did not identify the offering or set a timetable for the 24 mandates.

Conclusion

The post-quarter receipt confirms that the ₹900 crore strategic investment reached Choice Equity Broking and is principally intended to expand MTF financing. The funding arrives after Choice reported 33% year-on-year growth in Q2 FY27 total income to ₹379 crore, alongside a decline in profit-after-tax margin to 18.33% from 19.88%.

The next disclosures to watch are how Choice deploys the capital into MTF, whether it gives greater detail on institutional and wealth-management expansion, and the planned launch of further asset-management products. The filing also identifies NCLT approval for the Feedback Infra transaction and conversion of 24 IPO mandates with estimated fundraising of ₹6,210 crore as unresolved milestones.