Choice International Reports Strong Second Quarter Performance with Balanced Growth Across Segments

Stonegate Capital Partners has updated its coverage on Choice International Ltd. following the company's second quarter fiscal year 2026 results. The financial services firm reported consolidated revenue of ₹2.84 billion, representing a 14.0% year-over-year increase. This growth was supported by balanced performance across its Broking & Distribution, Advisory Services, and NBFC operations. The company's EBITDA saw a more pronounced rise, increasing 27.5% year-over-year to ₹989.8 billion. This resulted in an EBITDA margin expansion of 368 basis points to 34.8%, which management attributed to operating leverage, an improving product mix, and continued digital adoption across customer channels.

The company's growth drivers were notably broad-based. Its wealth assets under management surged 327% year-over-year, while the loan book for its non-banking financial company segment grew 56% year-over-year to approximately ₹7.2 billion. These figures underscore the company's successful expansion in key financial service areas beyond its traditional broking business. Profitability metrics remained healthy, with profit after tax increasing 22% year-over-year. The company reported a net non-performing asset ratio of 2.79%, and its government advisory order book stood at ₹6.66 billion, providing significant visibility for future revenue streams.

Management has reiterated confidence in sustaining this operational momentum into the second half of fiscal year 2026. The strong quarterly performance, characterized by double-digit revenue growth and even faster profit expansion, highlights Choice International's effective execution of its diversified business model. The margin improvement, particularly the near 370-basis-point expansion in EBITDA margin, demonstrates the company's ability to translate top-line growth into bottom-line results through cost management and operational efficiency. The substantial growth in its wealth AUM and NBFC loan book indicates successful penetration into adjacent financial services markets, which are critical for long-term, sustainable growth in the competitive Indian financial sector.

The results are significant for investors and market observers as they reflect a company successfully navigating a complex economic environment while capitalizing on digital transformation trends. The balanced growth across segments reduces reliance on any single revenue source, potentially mitigating sector-specific risks. The maintained asset quality, as indicated by the NNPA ratio, alongside the strong government advisory order book, suggests a foundation for continued stability and predictable earnings. For further details on the coverage update, including downloadable materials, visit https://www.stonegateinc.com. The performance solidifies Choice International's position as a growing player in India's financial services landscape, leveraging digital tools and a multi-product strategy to drive shareholder value.