Pune E-Stock Broking EBITDA margin reaches 62.2% in FY26

Pune E-Stock Broking Limited, referred to as PESB, reported a consolidated EBITDA margin of 62.2% in FY26, up from 28.6% in FY24, although revenue from operations declined to Rs 53.9 crore from Rs 66.4 crore. EBITDA rose Rs 14.5 crore over the period to Rs 33.5 crore as total expenditure fell Rs 23.3 crore.

How did PESB's EBITDA margin change through FY26?

PESB's consolidated EBITDA margin rose 33.6 percentage points from 28.6% in FY24 to 62.2% in FY26. The margin was 48.7% in FY25, meaning the increase was recorded in each of the two financial years following the FY24 level.

PESB's EBITDA increased to Rs 33.5 crore in FY26 from Rs 19.0 crore in FY24, despite a Rs 12.5 crore decline in revenue from operations. The presentation reports gross profit and EBITDA at the same Rs 33.5 crore in FY26, and reports both gross margin and EBITDA margin at 62.2%.

The FY26 margin also exceeded the 35.0% reported in FY22 and the 42.7% reported in FY23. FY24 was the lowest point in the five-year consolidated margin series, at 28.6%, before EBITDA rose from Rs 19.0 crore to Rs 30.7 crore in FY25 and Rs 33.5 crore in FY26.

Why did PESB's margin rise while operating revenue fell?

PESB's expenditure reduction was larger than its operating-revenue decline between FY24 and FY26. Total expenditure fell Rs 23.3 crore, from Rs 57.2 crore to Rs 33.9 crore, while revenue from operations decreased Rs 12.5 crore, from Rs 66.4 crore to Rs 53.9 crore.

Other expenses accounted for most of the reported expenditure change, declining to Rs 27.3 crore in FY26 from Rs 53.6 crore in FY24. Employee benefit expenses moved in the opposite direction, increasing to Rs 6.6 crore from Rs 3.6 crore over the same two years.

Other income was Rs 13.5 crore in both FY25 and FY26, compared with Rs 9.8 crore in FY24. As a result, total revenue declined by Rs 9.0 crore from Rs 76.3 crore in FY24 to Rs 67.3 crore in FY26, a smaller fall than the Rs 12.5 crore decline in revenue from operations.

The presentation does not provide a breakdown explaining the reduction in other expenses from FY24 to FY26. It does, however, show that total expenditure fell from 75.0% of total revenue in FY24 to 50.4% in FY26, based on the reported Rs 57.2 crore and Rs 33.9 crore expenditure figures and total revenue of Rs 76.3 crore and Rs 67.3 crore, respectively.

How did PESB's profits develop through FY26?

PESB increased EBITDA in both years after FY24, reporting Rs 30.7 crore in FY25 and Rs 33.5 crore in FY26, compared with Rs 19.0 crore in FY24. Profit before tax followed the same direction, rising from Rs 16.7 crore in FY24 to Rs 24.9 crore in FY25 and Rs 26.6 crore in FY26.

Net profit reached Rs 19.9 crore in FY26, up from Rs 12.7 crore in FY24, while net profit margin rose to 37.0% from 19.1%. Tax expense increased from Rs 4.1 crore in FY24 to Rs 6.7 crore in FY26 as profit before tax rose by Rs 9.9 crore.

Depreciation increased to Rs 1.1 crore in FY26 from Rs 0.7 crore in FY24, and finance cost rose to Rs 5.7 crore from Rs 1.6 crore. Even with those increases, FY26 profit before tax was Rs 26.6 crore, or Rs 9.9 crore above the FY24 level.

How did PESB's returns and leverage metrics change?

PESB reported return on equity, or ROE, of 12.2% in FY26, compared with 12.6% in FY25 and 9.6% in FY24. The FY26 reading was therefore 2.6 percentage points above FY24, but 0.4 percentage points below the preceding year.

PESB's debt-to-equity ratio was 0.29 in FY26, down from 0.31 in FY25 but above 0.20 in FY24. The five-year series started at 0.23 in FY22 and remained at 0.23 in FY23 before falling to 0.20 in FY24.

Balance-sheet borrowings changed composition between FY24 and FY26. Long-term borrowings fell to Rs 5.3 crore from Rs 8.2 crore, while short-term borrowings increased to Rs 47.0 crore from Rs 18.2 crore; total equity rose to Rs 180.6 crore from Rs 131.6 crore.

What did PESB report for H1 FY27?

PESB reported revenue from operations of Rs 34.2 crore in H1 FY27, up 29.6% from Rs 26.4 crore in H1 FY26 and 24.5% from Rs 27.5 crore in H2 FY26. Total revenue was Rs 43.8 crore, compared with Rs 33.7 crore a year earlier and Rs 33.6 crore in H2 FY26.

EBITDA was Rs 22.3 crore in H1 FY27, an increase of 31.0% from Rs 17.0 crore in H1 FY26 and 35.1% from Rs 16.5 crore in H2 FY26. EBITDA margin was 65.1%, versus 64.4% in H1 FY26 and 60.0% in H2 FY26.

Net profit was Rs 14.3 crore in H1 FY27, up 36.8% from Rs 10.4 crore in H1 FY26 and 50.1% from Rs 9.5 crore in H2 FY26. Net profit margin was 41.7%, compared with 39.5% a year earlier and 34.6% in the second half of FY26.

PESB's H1 FY27 balance sheet showed short-term borrowings of Rs 65.1 crore, compared with Rs 47.0 crore at FY26, while long-term borrowings declined to Rs 0.6 crore from Rs 5.3 crore. Cash and cash equivalents increased to Rs 186.3 crore at H1 FY27 from Rs 151.7 crore at FY26.

Conclusion

PESB's consolidated FY24-to-FY26 results show a divergence between operating revenue and profitability. Revenue from operations declined from Rs 66.4 crore to Rs 53.9 crore, but total expenditure declined more sharply, from Rs 57.2 crore to Rs 33.9 crore, lifting EBITDA from Rs 19.0 crore to Rs 33.5 crore and the EBITDA margin from 28.6% to 62.2%.

The unresolved issue is whether the H1 FY27 increase in revenue from operations and margins carries through the full year. H1 FY27 revenue from operations was Rs 34.2 crore and EBITDA margin was 65.1%, while short-term borrowings were Rs 65.1 crore, compared with Rs 47.0 crore at FY26; the presentation does not disclose an FY27 full-year target.