Choice International Reports Strong 2Q FY26 Performance with Balanced Growth Across Segments
TL;DR
Choice International's strong quarterly performance with 27.5% EBITDA growth and expanding margins offers investors a competitive advantage in the financial services sector.
Choice International achieved 14% revenue growth and 27.5% EBITDA increase through balanced expansion across broking, advisory, and NBFC operations with improved operating leverage.
Choice International's growth across multiple financial services helps more people access wealth management and loans, contributing to broader economic development and financial inclusion.
Choice International's wealth AUM surged 327% year-over-year while maintaining healthy profitability metrics, demonstrating remarkable growth in India's financial sector.
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Stonegate Capital Partners has updated its coverage on Choice International Ltd. (NSE: CHOICEIN) following the company's second quarter fiscal year 2026 results. The financial services firm reported consolidated revenue growth of 14.0% year-over-year to ₹2.84 billion, supported by balanced performance across its Broking & Distribution, Advisory Services, and Non-Banking Financial Company (NBFC) operations.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 27.5% year-over-year to ₹989.8 billion. The EBITDA margin expanded by 368 basis points year-over-year to 34.8%. This margin improvement was attributed to operating leverage, an improving product mix, and continued digital adoption across customer channels. Management reiterated confidence in sustaining this operational momentum into the second half of FY26.
The company's growth was broad-based across its business segments. Assets under management (AUM) in its wealth management segment grew by 327% year-over-year. The NBFC loan book increased by 56% year-over-year to approximately ₹7.2 billion. Profitability and asset quality metrics remained healthy, with profit after tax (PAT) increasing by 22% year-over-year. The net non-performing asset (NNPA) ratio stood at 2.79%. The company's government advisory order book, valued at ₹6.66 billion, provides visibility for future revenue.
Stonegate Capital Partners is a capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services. Its affiliate, Stonegate Capital Markets, provides investment banking services. For the full announcement from Stonegate, including downloadable images and additional details, visit https://www.stonegateinc.com.
The results indicate Choice International's successful execution of its diversified financial services strategy. The simultaneous strength in broking, advisory, and lending operations suggests resilience against sector-specific downturns. The significant expansion in wealth AUM and the NBFC loan book points to successful client acquisition and capital deployment. The improved EBITDA margin, driven by digital initiatives, highlights the benefits of technological investment in scaling operations efficiently.
For the financial services industry, these results underscore the competitive advantage of firms with diversified revenue streams and a focus on digital transformation. The strong government advisory order book also highlights the ongoing demand for specialized consulting services in the public sector. The company's performance may influence investor sentiment toward mid-sized financial service providers demonstrating consistent growth and margin discipline.
Curated from Reportable
