Choice reports record ₹379 crore Q2 income as profit rises 23%

Choice International Limited reported its highest-ever consolidated quarterly total income of ₹379 crore in Q2 FY27, up 33% year on year, while consolidated profit after tax rose 23% to ₹69.47 crore. The quarter ended September 30, 2026 also brought 36% growth in revenue from operations, although profit after tax and EBITDA margins declined from Q2 FY26.

How did Choice perform in Q2 FY27?

Choice delivered ₹379 crore of total income in Q2 FY27, compared with ₹284.1 crore in Q2 FY26, as revenue from operations increased 36% to ₹372.9 crore. Choice described the September-quarter result as its strongest quarterly performance in its history. Other income fell 36% to ₹6.2 crore from ₹9.7 crore, meaning operating revenue drove the increase in total income.

Choice’s profit before tax rose 26% to ₹93.8 crore from ₹74.4 crore, while tax expense grew 36% to ₹24.4 crore. Profit after tax, or PAT, was ₹69.47 crore in the release summary, while the financial-results table showed ₹69.5 crore after rounding. Earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 32% to ₹130.63 crore in the release summary.

Why did Choice’s margins decline despite income growth?

Choice’s PAT margin declined to 18.33% in Q2 FY27 from 19.88% in Q2 FY26, while its EBITDA margin edged down to 34.47% from 34.84%. Total expenses increased 36% to ₹285.2 crore, faster than the 33% increase in total income, though equal to the 36% growth rate in revenue from operations.

Employee benefit expenses increased 45% to ₹112.1 crore, finance costs rose 49% to ₹30.6 crore, and depreciation and amortisation expenses grew 56% to ₹6.2 crore. Administrative and other expenses increased 26% to ₹136.3 crore. The decline in other income to ₹6.2 crore from ₹9.7 crore also reduced the non-operating contribution to total income versus Q2 FY26.

Finance cost growth exceeded revenue-from-operations growth by 13 percentage points, while employee expense growth exceeded it by nine percentage points in the September 2026 quarter. The filing does not provide a segment-wise profit split or a further explanation for the cost movements behind the margin changes.

Which business indicators supported Choice’s Q2 FY27 results?

Choice added 1.73 lakh demat accounts during the quarter, taking the total to 13.78 lakh, a 14% increase from a year earlier. Its broking and distribution network comprised 218 branches, client assets under custody stood at ₹66,300 crore, and its margin trading facility, or MTF, book reached ₹463 crore.

In wealth distribution, total assets under management, or AUM, stood at 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 rose 49% 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 all of FY26. Choice’s India Post Payments Bank pilot had onboarded more than 25,000 customers and generated AUM of ₹1.12 crore. Its insurance business sold 75,173 policies and generated premiums of ₹81 crore during Q2 FY27.

What could shape Choice after Q2 FY27?

Choice Equity Broking received ₹900 crore in its bank account after the September quarter ended, completing the strategic investment by South Korea’s NH Investment & Securities. Management said the funds would primarily support MTF expansion, while the partnership could create opportunities to strengthen institutional, wealth-management and asset-management capabilities.

Choice’s government advisory business ended Q2 FY27 with an order book of ₹710 crore. The proposed acquisition of Feedback Infra advanced after a Letter of Intent from the Resolution Professional confirmed the Committee of Creditors’ approval of the resolution plan. Completion remains subject to approval by the National Company Law Tribunal, or NCLT, and other applicable requirements.

In investment banking, Choice handled five initial public offerings, or IPOs, that collectively raised about ₹680 crore during the quarter, including one offering subscribed about 177 times. Its October pipeline comprised 24 IPO mandates with estimated fundraising of ₹6,210 crore. The non-banking financial company, or NBFC, loan book stood at ₹935 crore, with management stating that retail lending remained its focus.

Choice’s first actively managed scheme, the Choice Large & Mid Cap Fund, had a new fund offer, or NFO, scheduled to close on November 3, 2026, one day after the results announcement. Management said it planned additional products, while the board recommended a 1:1 bonus-share issue subject to shareholder approval.

Conclusion

Choice combined 33% growth in Q2 FY27 total income with 23% growth in PAT, supported by expansion across broking, wealth distribution, insurance and investment banking. The comparison with Q2 FY26 also shows expenses rising 36%, led by 45% growth in employee costs, 49% growth in finance costs and 56% growth in depreciation, resulting in lower PAT and EBITDA margins.

The next disclosed developments are deployment of the ₹900 crore received by Choice Equity Broking for MTF expansion, progress toward NCLT and other approvals for the Feedback Infra resolution plan, and conversion of the 24-IPO mandate pipeline estimated at ₹6,210 crore. Choice also plans additional asset-management products, continues to focus on retail lending, and requires shareholder approval for the recommended 1:1 bonus-share issue.