SMC Global Securities Ltd

It is with immense pride and a deep sense of responsibility that I present to you the Annual Report of SMC Global Securities Limited for the financial year ended March 31, 2025. This year has been one of transformation and resilience, where we not only navigated a complex and evolving financial landscape but also strengthened the foundations of our organization for sustainable, long-term growth. As we reflect on the year gone by, I am pleased to share the milestones we achieved, the challenges we overcame and the strategic initiatives that position us favourably for the future.

The financial year 2024 25 was marked by a unique blend of opportunities and challenges. While the first half of the year witnessed robust market participation and favorable economic conditions, the later half brought regulatory changes that reshaped the dynamics of our industry. The Securities and Exchange Board of India (SEBI) introduced significant reforms in the equity and derivatives segments, particularly in the Futures & Options (F&O) space. These reforms, though initially disruptive, were necessary for the long-term health and transparency of India's capital markets. While they temporarily impacted trading volumes and broking revenues across the industry, we at SMC viewed these changes as an opportunity to reinforce our commitment to a diversified, technology-driven business model. Our agility in adapting to these regulatory shifts underscores our ability to thrive in a dynamic environment.

Globally, capital markets remained volatile, influenced by persistent inflationary trends, fluctuating interest rates and geopolitical uncertainties, particularly in developed economies. This macroeconomic backdrop led to cautious investor sentiment, impacting equity volumes and prompting stricter scrutiny of high-frequency trading practices. Despite these headwinds, SMC's multi-asset capabilities and adaptive strategies enabled us to deliver consistent value to our clients. Our ability to navigate both domestic and global challenges speaks volumes about the resilience of our business model and the dedication of our team.

Amidst these external challenges, SMC Global Securities Limited delivered a resilient financial performance. On a consolidated basis, we recorded a total income of 1,785.7 crores, reflecting a healthy 8.6% growth over the previous fiscal year. Our Profit before tax stood at 192.03 crores, while Profit After Tax (PAT) reached 146.8 crores. While higher compliance costs, interest outgo, and strategic investments in technology and infrastructure impacted our bottom line, these figures underscore the inherent strength of our diversified business architecture.

On a standalone basis, the Company's performance was equally robust, with a total income of 955.4 crores, profit before tax of 131.2 crores, and PAT of 105.3 crores. These results must be viewed in the context of our continued investments in digital transformation, regulatory preparedness and expansion into new business verticals. Our ability to maintain profitability while investing for the future is a testament to our disciplined financial management and strategic foresight.

One of the key strengths of SMC Global Securities Limited is our diversified portfolio of financial services, which insulates us from sector-specific volatility and positions us for sustainable growth. Our operations span across Broking, Distribution & Trading, Financing, and Insurance Broking, supported by a network of subsidiary Companies.

The Broking, Distribution & Trading segment, though impacted by regulatory changes, recorded a Profit Before Interest and Tax (PBIT) of 246.9 crores, a marginal decline of 2.4% compared to the previous year. This segment remains the backbone of our operations, and we are continuously enhancing our offerings to cater to the evolving needs of retail and institutional clients.

Our Insurance Broking vertical, operated through SMC Insurance Brokers Private Limited, emerged as a standout performer this year. The business recorded over 2,892 crores in gross premium and sold more than 10 lakh policies, driven by an extensive network of over 16,000 Point of Sales Persons (POSPs) and 348 Motor Insurance Service Providers (MISPs). The success of this vertical can be attributed to our digital-first servicing approach to both B2B and B2C networks and AI-driven distribution models, which have significantly improved customer acquisition and retention.

The Financing arm, Moneywise Financial Services Private Limited, also delivered a strong performance, with overall disbursements crossing 3,800 crores and Assets Under Management (AUM) reaching 1,291 crores. Despite macroeconomic stress, the asset quality remained robust, with a collection efficiency of 98.9% and Net Non-Performing Assets (NNPA) contained at 2.2%. Our tailored lending products, including SME loans, supply chain financing, and gold loans, have been instrumental in supporting small businesses and self-employed individuals, further solidifying our position as a trusted financial partner.

Our discount broking platform, Stoxkart, has also continued to reinforce its value proposition in an increasingly competitive landscape. Offering a flat brokerage of 20 per order and an attractive unlimited trading plan at just 99 per month, Stoxkart has become a go-to platform for cost-conscious and tech-savvy traders. The platform also provides advanced features such as option chain with open interest analysis, seamless advisory access from SMC's top analysts, and trading capabilities through both Trading View and Chart IQ charting interfaces. Further, for enhancing user experience, Stoxkart delivers detailed stock insights powered by Markets Mojo, covering over 2,000 listed companies. Also, one of the most strategic developments this year was the launch of the 'SMART TRADER' plan, a feature-rich initiative aimed at accelerating market share acquisition.

SMC has successfully raised funds through two public issuances of NCDs that are currently listed and actively traded on the BSE. The company's first NCD issuance in August 2024 saw allotment of approximately 9.98 lakh instruments, followed by a second issuance in April 2025 comprising about 12.03 lakh NCDs. Together, these offerings have resulted in around 22 lakh NCDs being listed and actively traded on the exchange, demonstrating SMC's strong presence in the debt capital market. The successful listing and continued trading of these instruments underscore investor confidence in the company's financial instruments.

The proceeds from these issuances are being utilized for working capital requirements, business expansion, and general corporate purposes. This infusion of capital will enable us to seize emerging opportunities, invest in technology, and further strengthen our market position.

In our commitment to creating shareholder value, the Board of Directors declared an interim dividend of 60% ( 1.20 per equity share of 2 each) during the financial year. Further, the Board has recommended a final dividend of 60% ( 1.20 per equity share) for FY 2024 25, subject to approval by shareholders at the forthcoming Annual General Meeting. If approved, this will result in a total dividend payout of 120% ( 2.40 per equity share) for the year 2024-25.

Our dividend policy reflects our confidence in the Company's earnings potential and our commitment to sharing the fruits of our success with our valued shareholders. We remain focused on delivering consistent returns while reinvesting in growth initiatives that will drive long-term value creation.

At SMC, we recognize that technology is a key enabler of growth and customer satisfaction. This year, we made significant strides in our digital transformation journey, investing in cutting-edge platforms and tools to enhance operational efficiency and customer experience. Our proprietary platforms, such as SMC ACE and EasyInvest, have evolved into full-service digital enablers, offering algorithmic trading, robo-advisory, mutual fund investments, and more. The launch of next-generation mobile apps, integrated with advanced market analytics, has empowered our clients with real-time insights and seamless trading experiences.

A cloud-first approach has been central to our technology strategy. We have undertaken a comprehensive migration of our trading, payments, and partner systems to the cloud, enabling us to scale operations with agility while ensuring robust security and compliance. Modern development operation practices, AI-powered customer engagement tools, and enhanced cyber security measures, including vulnerability assessments and automated monitoring, have further fortified our digital infrastructure.

As part of our strategy to diversify revenue streams and tap into global opportunities, we expanded our presence at the International Financial Services Centre (IFSC) in GIFT City. Through our wholly owned subsidiary, SMC Global IFSC Pvt. Ltd., we have established broking and clearing operations and launched an Alternate Investment Fund SMC IFSC International Opportunities Fund. This strategic foray into global financial services aligns with our vision to build a world-class platform catering to both domestic and international investors. The IFSC ecosystem offers a conducive regulatory environment and access to global capital, positioning us for sustained growth in the years ahead.

Our greatest strength lies in our people. With over 4,000 employees, 2,147 authorized persons, and more than 6,700 distributors, our pan-India network spans 424 cities and towns, including an international office in Dubai. This extensive reach is a testament to the trust our clients place in us and the dedication of every member of the SMC family.

We are committed to fostering an inclusive and empowering workplace. Today, women constitute 25% of our workforce and we are actively working to improve this ratio through structured recruitment and development programs. Our focus on talent development, leadership training and employee well-being ensures that we attract and retain the best minds in the industry.

As a responsible corporate citizen, SMC remains deeply committed to creating a positive impact on society. During FY 2024 25, we contributed 4.05 crores towards CSR initiatives focused on healthcare, education, gender sensitivity, women empowerment and environmental sustainability.

Our initiatives include supporting underprivileged communities through healthcare camps, education for under privileged children, scholarships for meritorious students and programs aimed at empowering women through skill development. We believe that the true measure of an enterprise's success lies not just in its financial performance but also in its ability to contribute meaningfully to society. Our CSR efforts reflect this philosophy and our commitment to building a better, more equitable world.

As we step into the new financial year, I would like to express my deepest gratitude to all our stakeholders, our clients, shareholders, Board members, regulators, business partners and employees for their unwavering trust and support. It is your belief in our vision that fuels our progress.

The road ahead is filled with opportunities and we are well-positioned to capitalize on them. Our resilient business model, digital-first strategy and unwavering commitment to excellence will continue to guide us as we strive to deliver sustainable value to all our stakeholders.

Thank you for being an integral part of our journey. Together, we will scale new heights.

Warm regards,

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