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Emkay Global Financial Services Ltd
NSE: EMKAY BSE: 532737 INE296H01011 Financial Services Cap Markets 🔎 Screen
₹622 Cr
Market Cap
1.76
P/B
7.9%
ROCE
4.5%
ROE
0.27
D/E
7.0%
Fin. Margin
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

Incorporated in 1995, Emkay Global Financial Services Ltd is in the business of providing capital market services

✓ Strengths 1
  • Company is expected to give good quarter
! Concerns 5
  • Company has a low return on equity of 12.1% over last 3 years.
  • Contingent liabilities of Rs.270 Cr.
  • Earnings include an other income of Rs.19.3 Cr.
  • Dividend payout has been low at 9.76% of profits over last 3 years
  • Company has high debtors of 167 days.
Key Ratios Snapshot
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📈 Growth Pattern
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3-Statement Financial Model
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Mixed quarter: revenue surged 99% YoY to ₹153.2 Cr, but PAT fell 34% YoY to ₹5.6 Cr driven by a 189% spike in other expenses and a weak Wealth Management performance. quarter Investor Presentation One-Pager? Mar 2026
Revenue
₹153.2 Cr
+99% YoY (Q4 FY26 vs Q4 FY25)
EBITDA Margin
7.51%
Full-year FY26; down 864bps YoY from 16.15%
PAT
₹5.6 Cr
-34% YoY (Q4 FY26 vs Q4 FY25)
PMS+AIF AUM Growth
30% YoY
AUM reached ₹1,595 Cr as of Mar 2026
What Went Right
  • Capital Markets revenue surged 145% YoY to ₹109.5 Cr in Q4, driven by strong institutional activity.
  • Executed 3 ECM transactions in Q4 aggregating ₹1,072 Cr (Eclerx buyback, Innovision IPO, Amirchand IPO).
  • PMS+AIF AUM grew 30% YoY to ₹1,595 Cr, crossing the ₹1,550 Cr milestone; 4 out of 6 strategies beat benchmarks.
  • Advisory revenue in Wealth Management grew 24% YoY to ₹22.5 Cr in FY26, showing resilience in fee-based income.
  • Technology capex of ₹7.7 Cr in FY26 enhanced trading, risk, and digital platforms.
What to Watch
  • PAT declined 73% YoY to ₹15.2 Cr for full year; Q4 PAT down 34% YoY to ₹5.6 Cr despite revenue growth.
  • EBITDA margin halved to 7.51% in FY26 (from 16.15%) due to a 189% YoY jump in other expenses in Q4 (₹81.4 Cr vs ₹28.2 Cr).
  • Wealth Management AUMs degrew 14% YoY to ₹15,458 Cr, reflecting market volatility and FII outflows.
  • ROE collapsed to 4.45% in FY26 from 20.89% in FY25, signaling weak capital efficiency.
  • Quarterly finance costs rose 153% YoY to ₹4.3 Cr, largely due to higher debt (debt/equity ratio increased to 0.24 from 0.15).
Management Guidance
  • Visible revenue pipeline in Investment Banking is above ₹500 Mn (₹50 Cr).
  • Projected revenue of ~₹10,000 Mn (₹1,000 Cr) over the next 24 months from current deal visibility.
Investor Lens
The core Institutional Equities and Investment Banking segments demonstrated resilience with robust revenue growth and a healthy deal pipeline, but profitability suffered from a sharp rise in costs and a weak Wealth Management business. On the positive side, Asset Management continued to scale well with 30% AUM growth and strong product performance. However, the 14% decline in Wealth AUMs and a ROE of just 4.45% raise concerns about capital allocation and cost control. Next quarter, watch for conversion of the ₹50 Cr+ IB pipeline, any improvement in Wealth AUM trends, and management's ability to rein in operating expenses. The elevated debt and geopolitical risks add uncertainty, but the strong ECM activity and AUM flows provide some offset.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Revenue surges 109% YoY but net profit falls 33%
Revenue
Revenue jumped to ₹148.4 Cr, up 108.9% YoY and 70.4% QoQ, driven by strong business momentum.
Profitability
Net profit fell 33.3% YoY to ₹5.7 Cr despite revenue growth, with EPS at ₹2.16 vs ₹3.35. Profit rose 31.6% QoQ, but high tax rate of 41.25% dampened bottom line.
Margins
OPM improved sharply to 8.59% from 0.15% YoY, but slipped from 9.49% QoQ, indicating some sequential pressure.
Cash Flow
No cash flow data provided for this quarter.
Balance Sheet
Borrowings stood at ₹110 Cr, reserves at ₹354 Cr, and total assets at ₹1,740 Cr. D/E ratio of 0.27 indicates low leverage, with ROE at 20.9%.
Key Risks
Despite revenue surge, net profit declined YoY; high effective tax rate; and QoQ margin contraction signal potential cost or expense headwinds.
Outlook
Sustained revenue growth and improving margins are positives, but profit decline and tax burden need monitoring. The company's low leverage and strong ROE provide a cushion.
Generated by AI · Mar 2026 results · Not investment advice
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Revenue by Segment

Segment Q3FY26 Q4FY26 Trend
Advisory, Transactional and other related activities
91
EBIT 4
155
EBIT 8
Financing and Investment Activities
2
EBIT 2
2
EBIT 2
Total 93 157

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

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