SMC Global Q1 PAT up 22%, insurance broking lifts revenue
Operational income ₹515 cr. Insurance broking jumps 44%. NBFC AUM dips on secured pivot. Aspirational targets, data gaps.
— 4 earlier stories on SMC Global Securities Ltd. →What's new
- Consolidated Q1 operational income ₹515.1 cr, up 21.2% YoY; PAT ₹36.7 cr, up 22.3%.
- Insurance broking revenue surged 44.4% to ₹167.3 cr; broking & distribution grew 15.1% to ₹316.3 cr.
- NBFC AUM fell to ₹1,025 cr as company shifts to secured retail; management targets ₹1,250-1,300 cr by FY-end and group revenue of ₹6,000-8,000 cr in five years.
Why this matters
Insurance broking is the standout—nearly half of revenue growth. The NBFC AUM dip is intentional, a move to safer lending, but the data discrepancies in agent numbers and segment margins need clarification. The five-year revenue target implies a 4-6x leap from current run-rate. Aspirational, not a near-term forecast.
What we're watching
- Whether NBFC AUM reaches the ₹1,250-1,300 cr target by March 2027.
- Clarity on the reported agent count and segment profitability gaps.
- Progress toward the five-year group revenue vision of ₹6,000-8,000 cr.
The full read
SMC Global's Q1 was strong. Operational income hit ₹515.1 cr, up 21.2%. PAT rose 22.3% to ₹36.7 cr. Insurance broking led the charge, up 44.4% to ₹167.3 cr. Broking & distribution grew a more modest 15.1% to ₹316.3 cr. The NBFC arm shrank to ₹1,025 cr as the company pivots to secured lending. Prudent, but it weighs on AUM. Management targets ₹1,250-1,300 cr by March and ₹6,000-8,000 cr in five years. That is a 4-6x leap from current run-rate. Aspirational, not a forecast. The concall flagged discrepancies in agent numbers and segment margins. Worth watching, not alarming. With a P/E of 14.8 and ROE of 7.8%, the stock isn't pricing in miracles.
Questions answered
- What drove Q1 profit growth?
- Operational income rose 21.2% to ₹515.1 cr, led by insurance broking (up 44.4% to ₹167.3 cr) and broking & distribution (up 15.1% to ₹316.3 cr). PAT improved 22.3% to ₹36.7 cr.
- Why did NBFC AUM decline?
- NBFC AUM dropped to ₹1,025 cr as SMC pivoted toward secured retail products, reducing higher-risk lending. Management targets AUM of ₹1,250-1,300 cr by fiscal year-end.
- What are the key medium-term targets?
- Management aims for NBFC AUM of ₹1,250-1,300 cr by March 2027 and group consolidated revenue of ₹6,000-8,000 cr over five years.
- What discrepancies were flagged?
- The summary noted inconsistencies in reported agent numbers and segment profitability metrics. Management will need to clarify these in subsequent communications.
- How does this compare to the prior quarter?
- In Q4 FY26 (Mar 2026), SMC reported standalone sales of ₹517 cr and net profit of ₹21 cr. Q1 FY27 shows continued growth, with PAT up 22% YoY on a consolidated basis.
SMC Global Securities Ltd.
Latest quarter · Jun 2026
Leverage & growth
Story so far
All notes on SMCGLOBAL →- 27 Jul 2026 · 4:59 PM IST SMC Global Q1 PAT up 22%, insurance broking lifts revenue
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