Rikhav Securities revenue doubles but half-year profit falls

Rikhav Securities Limited reported Rs 857.11 crore of consolidated revenue from operations for the half year ended 30 September 2026, more than double the year-earlier figure, while profit after tax fell 23% to Rs 13.60 crore. Higher stock-in-trade purchases, inventory changes and operating expenses limited earnings despite the revenue increase.

What did Rikhav Securities report for the September half-year?

Rikhav Securities reported total income of Rs 869.07 crore for the six months ended 30 September 2026, compared with Rs 386.67 crore in the corresponding six months ended 30 September 2025. Revenue from operations rose to Rs 857.11 crore from Rs 379.91 crore, while other income increased to Rs 11.97 crore from Rs 6.76 crore.

The higher revenue did not produce a higher bottom line. Profit before tax declined to Rs 19.85 crore from Rs 23.80 crore, and consolidated profit after tax fell to Rs 13.60 crore from Rs 17.76 crore. Basic and diluted earnings per share were Rs 3.55 for the September 2026 half-year, compared with Rs 4.64 a year earlier.

The preceding-half comparison shows a different pattern. Revenue from operations was Rs 1,596.05 crore in the six months ended 31 March 2026, above Rs 857.11 crore in the latest half-year, while profit after tax increased from Rs 1.20 crore to Rs 13.60 crore over the same comparison.

Why did Rikhav Securities profit fall despite higher revenue?

Rikhav Securities’ total expenses increased to Rs 849.23 crore in the September 2026 half-year from Rs 362.87 crore a year earlier. Purchases of stock in trade rose to Rs 788.07 crore from Rs 385.70 crore, while the inventory line changed from a Rs 40.58 crore reduction in the prior-year period to a Rs 28.55 crore expense.

The inventory movement changed the expense base between periods. In the September 2025 half-year, the negative Rs 40.58 crore inventory change reduced expenses; in September 2026, the Rs 28.55 crore change added to them. Total income rose by Rs 482.40 crore year on year, but total expenses rose by a larger Rs 486.36 crore, resulting in lower profit before tax.

Employee benefit expense rose to Rs 9.21 crore from Rs 6.92 crore, finance costs increased to Rs 3.32 crore from Rs 1.75 crore, and other expenses climbed to Rs 18.77 crore from Rs 8.67 crore. Depreciation and amortisation also rose to Rs 1.30 crore from Rs 41.42 lakh, adding Rs 88.54 lakh of expense compared with the year-earlier half.

Tax expense was Rs 6.25 crore in the latest half-year, including a Rs 33.60 lakh write-back of excess or short tax provision. This compared with net tax expense of Rs 6.04 crore a year earlier, leaving profit after tax at Rs 13.60 crore despite the substantially larger revenue base.

How did Rikhav Securities’ balance sheet change by September?

Rikhav Securities’ total consolidated assets were Rs 432.21 crore at 30 September 2026, up from Rs 398.35 crore at 31 March 2026. Shareholders’ funds rose to Rs 259.06 crore from Rs 245.47 crore, as reserves and surplus increased to Rs 239.92 crore from Rs 226.32 crore while share capital remained Rs 19.15 crore.

Current assets increased to Rs 418.30 crore from Rs 388.06 crore. Other cash and cash equivalents rose to Rs 276.52 crore from Rs 192.37 crore, while trade receivables increased to Rs 40.40 crore from Rs 16.03 crore. Inventory partly offset those movements, falling to Rs 75.60 crore from Rs 104.15 crore.

Short-term borrowings increased to Rs 56.49 crore at 30 September from Rs 5.59 crore at 31 March, while long-term borrowings rose to Rs 2.74 crore from Rs 2.30 crore. Trade payables due to parties other than micro and small enterprises increased to Rs 100.50 crore from Rs 88.14 crore.

Other current liabilities declined to Rs 6.28 crore from Rs 49.67 crore over the same period. The balance-sheet movements included a Rs 24.38 crore increase in trade receivables and a Rs 28.55 crore decline in inventories, both of which were reflected in the cash-flow statement for the six months ended 30 September 2026.

What did Rikhav Securities’ cash flow show?

Rikhav Securities used Rs 10.41 crore in operating activities during the six months ended 30 September 2026, compared with Rs 2.31 crore used in the corresponding 2025 period. Cash used in operations before tax was Rs 4.33 crore, versus Rs 3.89 crore generated from operations a year earlier, and net tax paid was Rs 6.09 crore.

A Rs 24.38 crore increase in trade receivables was a cash outflow, while the Rs 43.39 crore reduction in other current liabilities was another outflow. A Rs 28.55 crore inventory adjustment and a Rs 12.20 crore increase in trade payables were positive working-capital movements, but did not offset the receivables and other-liabilities effects.

Investing activities used Rs 77.14 crore, compared with Rs 25.44 crore generated in the September 2025 half-year. Deposits and advances used Rs 86.66 crore, while interest received contributed Rs 11.96 crore and purchases of property, plant and equipment used Rs 2.45 crore.

Financing activities generated Rs 48.02 crore, led by Rs 50.90 crore of proceeds from short-term borrowings. After operating, investing and financing flows, cash and cash equivalents fell by Rs 39.54 crore to Rs 5.46 crore at 30 September 2026, from an opening balance of Rs 45.00 crore.

What business does Rikhav Securities consolidate?

Rikhav Securities identifies shares and stock broking as its sole operating segment, and management states that there is no separate reportable segment under Accounting Standard 17, or AS 17. The consolidated statement therefore does not provide revenue, profit or asset splits by operating business line for the six months ended 30 September 2026.

The consolidated accounts include RSL IFSC Private Limited as a 100% wholly owned subsidiary. The auditor stated that the subsidiary had total assets of Rs 1.40 lakh at 30 September 2026 and a net loss after tax of Rs 8.36 lakh for the six-month period.

The consolidated interim results are labelled unaudited and were subject to a limited review under Standard on Review Engagements 2410. The auditor’s report dated 5 November 2026 stated that nothing had come to its attention to indicate that the statement failed to provide required disclosures or contained a material misstatement.

Conclusion

Rikhav Securities generated substantially higher revenue in the September 2026 half-year, but the increase in stock-in-trade purchases, the reversal in inventory-cost treatment and higher employee, finance and other expenses exceeded the income increase. As a result, consolidated profit after tax declined by Rs 4.16 crore year on year despite a Rs 477.19 crore increase in revenue from operations.

The next results filing will show whether purchases of stock in trade, inventory movements, trade receivables and short-term borrowings change after 30 September 2026. These items stood at Rs 788.07 crore, Rs 75.60 crore, Rs 40.40 crore and Rs 56.49 crore, respectively, in the latest disclosed half-year or balance sheet date.