SIHL margin-trading book more than doubled to Rs 20.96 crore

SIHL’s margin-trading facility (MTF) book rose 117% to Rs 20.96 crore at March 31, 2026, from Rs 9.64 crore on the last trading day of March 2025. The product generated Rs 2.23 crore of FY26 interest income, although 476 active MTF users represented only 1.25% of SIHL’s 38,189 active clients.

How did SIHL’s margin-trading book more than double in FY26?

SIHL’s MTF book increased by Rs 11.32 crore between the last trading days of March 2025 and March 2026. MTF is an equity-cash facility in which a client pledges eligible securities as collateral and SIHL funds part of the purchase value. SIHL registered for MTF in 2023, making the March 2026 balance part of a recently introduced product line.

The disclosed monthly series shows that the book did not rise in a straight line. It moved from Rs 9.64 crore in March 2025 to Rs 12.29 crore in June 2025, reached Rs 13.48 crore in December 2025, declined to Rs 13.00 crore in January 2026 and then rose to Rs 17.83 crore in February 2026 and Rs 20.96 crore in March 2026. Each figure is measured on the last traded day of the stated month, so it is a closing funded balance rather than an average balance.

SIHL cited broader MTF-market growth as context for the product. The industry MTF book reached Rs 88,000 crore in June 2025, 23.7% above March 2025, and recorded an 87% compound annual growth rate from the last trading day of March 2020 to the last trading day of June 2025. SIHL attributed that market expansion to greater awareness of buying power and potential returns, alongside a bullish stock market.

How limited was SIHL’s margin-trading adoption among clients?

SIHL’s MTF usage was limited relative to its client base because 476 active MTF users made up 1.25% of 38,189 active clients at March 31, 2026. SIHL had 1,200 MTF-registered clients at that date, meaning the active MTF-user count was about 40% of registrations. SIHL defines an active client as one that executed at least one trade in the preceding 12 months across broking, MTF or distribution services.

Monthly MTF participation increased over the disclosed June 2024 to March 2026 period. The number of clients trading under MTF in a given month rose from 71 in June 2024 to 388 in March 2026, while the monthly retention ratio moved from 91% to 93%. SIHL calculates this retention measure using clients who traded in the previous month, so it tracks repeat activity among prior-month MTF traders rather than retention across all active clients.

SIHL’s overall active-client count increased by 375 clients, or 1.0%, from 37,814 at March 31, 2025 to 38,189 at March 31, 2026. That growth was materially lower than the 117% rise in the MTF book over the same March-to-March comparison. Broader adoption would require more registered or overall active clients to use MTF, but SIHL has not disclosed an adoption target.

What revenue did SIHL’s margin-trading book generate?

SIHL earned Rs 2.23 crore of interest income from MTF in FY26, equivalent to 3.11% of Rs 71.48 crore in total revenue from operations. The revenue arises because clients pay interest on the broker-funded amount, calculated daily and charged periodically under the MTF arrangement. The reported MTF interest rate ranges from 10% to 18% and may rise to 24% under SIHL’s prevailing business policy.

MTF interest remained smaller than SIHL’s Rs 46.30 crore brokerage income in FY26. Brokerage accounted for 64.78% of total revenue from operations in FY26, compared with 68.85% in FY25 and 71.57% in FY24, while MTF interest contributed 3.11% in FY26. This comparison shows that brokerage remained SIHL’s principal reported revenue source despite the growth in funded MTF balances.

The duration of funded positions also affects interest income. SIHL reported a weighted-average holding period of 115.18 days for MTF-funded positions at March 31, 2026, calculated using the respective quantities. A larger MTF book would not by itself determine interest income because the applicable rate, holding period and clients’ decisions to sell securities or repay funding also affect collections.

What controls and concentrations apply to SIHL’s MTF book?

SIHL restricts MTF to Group I scrips and applies collateral, margin and liquidation controls under Securities and Exchange Board of India (SEBI) and stock-exchange requirements. SIHL may also exclude stocks following risk analysis, exchange surveillance alerts or trading suspension. Its real-time exposure monitoring uses a National Stock Exchange (NSE)-empanelled third-party software provider.

SIHL’s illustration shows how collateral limits buying power. Shares valued at Rs 1.82 lakh receive a 12.5% haircut, reducing usable collateral to Rs 1.59 lakh; a haircut is a reduction in an asset’s market value when used as collateral. In the example, a 19.5% total margin requirement permits an MTF purchase worth Rs 8.16 lakh, compared with a normal purchase value of Rs 1.59 lakh.

The top 10 stocks accounted for 12.48% of SIHL’s MTF book at March 31, 2026, and the top 10 clients accounted for 16.32%. The top 10 sectors accounted for 65.49% of funded positions, spanning capital goods, finance, chemicals, information technology, automobile and ancillaries, infrastructure, healthcare, bank, power and business services. The sector measure is therefore more concentrated than the stated top-10 stock and client measures.

SIHL may provide exposure of up to five times the available margin, although it can modify or restrict limits during exceptional market conditions. It may partly or fully close positions when margin cover falls below the required level and a client does not meet a margin call, and it may liquidate pledged collateral to recover dues. These mechanisms are relevant because the MTF facility finances positions beyond the client’s initial collateral value.

Conclusion

SIHL’s MTF book expanded from Rs 9.64 crore in March 2025 to Rs 20.96 crore in March 2026, producing Rs 2.23 crore of FY26 interest income. The increase in funded balances outpaced growth in SIHL’s wider active-client base, while the 476 active MTF users remained a small share of the 38,189 active clients.

The next disclosed measures to watch are the monthly MTF book, the number of clients trading under MTF and the retention ratio, as well as top-10 client, stock and sector exposures. SIHL’s disclosed policy allows interest rates of 10% to 18%, potentially rising to 24%, and exposure of up to five times available margin, subject to margin-monitoring and liquidation controls.