SMC Global Q1 profit up 23%, board clears ₹150 cr NCD issue
Net profit hit ₹36.74 cr and the debt offering, about 9.5% of market cap, signals plans to expand lending and broking.
— 3 earlier stories on SMC Global Securities Ltd. →What's new
- Q1 net profit rose 23% to ₹36.74 crore.
- Board approved a public issue of secured NCDs up to ₹150 crore with a greenshoe.
- The issue size equals roughly 9.5% of SMC Global's ₹1,513 crore market cap.
Why this matters
The 23% profit growth shows steady momentum in a competitive broking field. The ₹150 crore NCD issue, though modest relative to market cap, is a public offering that will add to debt (current D/E 1.53) and fund expansion. It gives investors a clear view of the company's capital strategy and near-term growth plans.
What we're watching
- Terms of the NCD issue: coupon, tenure, and credit rating.
- Utilisation of proceeds — whether it flows to lending book or working capital.
- Impact on debt/equity ratio and ROE (currently 7.8%).
The full read
SMC Global Securities posted a 23% rise in Q1 net profit to ₹36.74 crore from ₹29.95 crore a year ago. A solid start. The board also cleared a public issue of secured, rated, non-convertible debentures for up to ₹150 crore with a greenshoe option. The size is material: about 9.5% of the ₹1,513 crore market cap, signalling management's intent to expand lending and broking. SMC Global's trailing debt/equity is 1.53 and ROE 7.8%, so the fresh debt will increase debt but is not outsized. The profit growth and the fundraise together suggest confidence in demand for brokerage and credit products. The next test: the coupon and tenure of the NCDs, and whether utilisation follows the stated intent.
Questions answered
- Why is SMC Global raising debt via NCDs?
- The company intends to use the proceeds to expand its lending and broking operations, as indicated by the board's approval. The public issue targets a broad investor base.
- How does ₹150 crore compare to SMC Global's existing debt?
- The trailing debt/equity ratio is 1.53, so the NCD issue of ₹150 crore will increase debt but is manageable at about 9.5% of market cap.
- Is this the first NCD issue by SMC Global?
- A prior board meeting on the same date also approved a ₹75 crore NCD issue, indicating active use of debt instruments for capital raising.
- What is the green-shoe option mentioned?
- The green-shoe option allows the company to retain oversubscription, meaning the issue size can exceed ₹150 crore if demand is high.
- How did Q1 profit growth compare to revenue growth?
- The filing only provided net profit figures, not revenue. Trailing twelve-month revenue grew 22.6%, so the 23% profit growth is roughly in line.
Story so far
All notes on SMCGLOBAL →- 26 Jul 2026 · 10:47 PM IST SMC Global Q1 profit up 23%, board clears ₹150 cr NCD issue
- today SMC Global Q1 profit edges up, board approves ₹75 cr NCD issue
- today SMC Global board approves ₹150 cr NCD issue, Q1 profit jumps 23%
- today SMC Global Securities to raise up to ₹150 cr via NCD public issue