Stonegate Capital Partners Initiates Coverage on Choice International Ltd. Highlighting Strong FY26 Start

Stonegate Capital Partners has recently initiated coverage on Choice International Ltd. (NSE: CHOICEIN), spotlighting the company's robust start to FY26. The first quarter saw Choice International reporting a revenue of ₹2.38B, marking a 16% year-over-year increase. This growth was complemented by a 49% rise in EBITDA to ₹870M and a 50% increase in PAT to ₹480M, attributed to enhanced operating efficiency and a significant margin expansion of 462bps year-over-year.

The company's expansion strategy is evident in its growing national footprint, now boasting 208 branch offices and a distribution network of over 58,000 Choice Business Associates (CBAs). Management's confidence in maintaining an annual growth rate of 25–30% underscores the company's strong market position and operational scalability.

Choice International's broking segment, accounting for approximately 60% of total revenue, demonstrated steady growth with client assets under broking reaching ₹478B, a 16% increase year-over-year. The digital transformation within the segment is noteworthy, with 67% of broking revenue now generated online, reflecting the company's successful adaptation to evolving consumer preferences.

The wealth management vertical emerged as a high-growth area, with AUM expanding by 443% year-over-year to ₹47.7B, largely due to the acquisition of Arete Capital’s wealth business. This growth is supported by an integrated digital platform and a diversified product suite catering to HNI and UHNI clients.

Insurance distribution also saw remarkable growth, with premium collections rising 62% year-over-year to ₹763M, bolstered by a 46% increase in policies sold. The addition of over 42 insurer partnerships and an expanded POSP network has significantly contributed to this segment's performance.

The NBFC segment continues to scale, with the retail loan book doubling year-over-year to ₹5.96B and the total loan book reaching ₹7.45B. Credit quality remains stable, with NIM expanding to 11.85%, up 85bps sequentially, highlighting the segment's robust underwriting controls and focus on secured MSME lending and rooftop solar finance.

Choice International's government advisory segment ended the quarter with a ₹5.86B order book, supported by new project wins, including a ₹528M World Bank–funded mandate in Maharashtra. The investment banking division remains active, with 24 ongoing mandates and a ₹66B+ fundraising pipeline, leveraging its cross-vertical presence and strong institutional relationships.

Stonegate Capital Partners' valuation of Choice International Ltd. employs a comprehensive approach, including DCF Model, EV/Operating Income comp analysis, and P/E analysis, indicating a promising outlook for the company's stock performance. For more details on Stonegate Capital Partners' coverage, visit https://www.stonegateinc.com.