Pune E-Stock Broking lifts EBITDA margin to 62.2% in FY26

Pune E-Stock Broking Limited lifted its consolidated EBITDA margin to 62.2% in FY26 from 35.0% in FY22, while EBITDA rose from Rs 14.4 crore to Rs 33.5 crore. PESB achieved this increase despite revenue from operations falling to Rs 53.9 crore from its Rs 66.4 crore peak in FY24, alongside lower total expenditure in FY26.

How did PESB's EBITDA margin change from FY22 to FY26?

PESB's consolidated EBITDA margin increased by 27.2 percentage points, from 35.0% in FY22 to 62.2% in FY26. EBITDA increased in every year of the five-year series, reaching Rs 33.5 crore in FY26 from Rs 14.4 crore in FY22, although revenue from operations moved unevenly over the period.

The margin progression was not linear. It rose to 42.7% in FY23, fell to 28.6% in FY24, then increased to 48.7% in FY25 before reaching 62.2% in FY26. The FY24 low coincided with the highest revenue from operations in the series, Rs 66.4 crore, and total expenditure of Rs 57.2 crore.

PESB's reported EBITDA increased by Rs 19.1 crore between FY22 and FY26, while revenue from operations increased by Rs 12.7 crore. This comparison describes reported outcomes; the presentation does not provide a breakdown assigning the margin increase to specific businesses or products.

Why did PESB's margin expand while operating revenue declined?

PESB's total expenditure fell more sharply than operating revenue after FY24. Total expenditure declined from Rs 57.2 crore in FY24 to Rs 45.9 crore in FY25 and Rs 33.9 crore in FY26, a Rs 23.3 crore reduction over two years, while revenue from operations fell by Rs 12.5 crore from Rs 66.4 crore to Rs 53.9 crore.

Other expenses were the largest moving cost line in that comparison. They declined from Rs 53.6 crore in FY24 to Rs 40.8 crore in FY25 and Rs 27.3 crore in FY26, while employee benefit expenses rose from Rs 3.6 crore to Rs 5.1 crore and then Rs 6.6 crore. The reported result was a lower total expenditure base despite the higher employee expense.

Total revenue, which includes other income, was Rs 67.3 crore in FY26, compared with Rs 76.6 crore in FY25 and Rs 76.3 crore in FY24. Other income increased from Rs 9.8 crore in FY24 to Rs 13.5 crore in both FY25 and FY26, meaning other income represented a larger part of the FY26 revenue mix than it did in FY24.

The presentation records both gross profit and EBITDA at Rs 33.5 crore in FY26, with both margins at 62.2%. It does not provide segment-level expense allocation or quantify contributions from broking, wealth, merchant banking, insurance, lending or international operations to the FY26 cost movement.

Did PESB's net profit and return measures also improve?

PESB's consolidated net profit rose to Rs 19.9 crore in FY26 from Rs 10.1 crore in FY22, and its net profit margin increased to 37.0% from 24.5%. Profit before tax increased from Rs 12.6 crore to Rs 26.6 crore over the same period, while tax expense increased from Rs 2.5 crore to Rs 6.7 crore.

Net profit declined slightly in FY23 to Rs 9.6 crore from Rs 10.1 crore in FY22, alongside a fall in revenue from operations to Rs 35.8 crore from Rs 41.2 crore. It then rose for three consecutive years, from Rs 12.7 crore in FY24 to Rs 19.2 crore in FY25 and Rs 19.9 crore in FY26, while net profit margin increased from 19.1% to 30.4% and then 37.0%.

Return on equity, or ROE, did not track net profit margin in every year. ROE was 14.3% in FY22, fell to 9.6% in FY24, recovered to 12.6% in FY25 and stood at 12.2% in FY26. The FY26 ROE was therefore 2.1 percentage points below the FY22 level despite higher FY26 net profit.

Debt to equity was 0.29 in FY26, compared with 0.23 in FY22 and 0.31 in FY25. Finance cost increased from Rs 1.2 crore in FY22 to Rs 5.7 crore in FY26, while depreciation was Rs 1.1 crore in FY26 compared with Rs 0.6 crore in FY22, separating EBITDA from profit before tax.

What do PESB's H1 FY27 results show after FY26?

PESB reported H1 FY27 revenue from operations of Rs 34.2 crore, up 29.6% from Rs 26.4 crore in H1 FY26 and 24.5% above Rs 27.5 crore in H2 FY26. EBITDA was Rs 22.3 crore, up 31.0% year on year from Rs 17.0 crore and 35.1% half on half from Rs 16.5 crore.

H1 FY27 EBITDA margin was 65.1%, compared with 64.4% in H1 FY26 and 60.0% in H2 FY26. Net profit was Rs 14.3 crore, 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% and 34.6%, respectively.

Total assets increased to Rs 397.5 crore at H1 FY27 from Rs 328.2 crore at FY26. Cash and cash equivalents were Rs 186.3 crore, trade receivables were Rs 93.1 crore and total equity was Rs 225.8 crore, compared with Rs 151.7 crore, Rs 76.6 crore and Rs 180.6 crore, respectively, at FY26.

Management's guidance targets sustained double-digit annual profitability growth and improving return ratios. Its roadmap includes retail expansion, scaling the margin trading facility book, open application programming interface-based algorithmic trading, and diversification into merchant banking, secured non-banking financial company lending and insurance broking.

Conclusion

PESB's FY22-to-FY26 results show operating revenue fluctuating while profitability increased. Revenue from operations peaked at Rs 66.4 crore in FY24 before falling to Rs 53.9 crore in FY26, but EBITDA reached Rs 33.5 crore and net profit reached Rs 19.9 crore as total expenditure fell to Rs 33.9 crore and reported margins increased.

The next measure will be whether H1 FY27 revenue from operations of Rs 34.2 crore and EBITDA margin of 65.1% continue through the full year. Management also targets more than 1 lakh customers by 2027 and plans to scale wealth, merchant banking and insurance divisions, although their future financial contribution is not separately disclosed in the presentation.