SMC Global consolidated PAT ₹28.2 Cr, +34% YoY on NBFC scale-up; Q1 trading gain fades QoQ

SMC Global Securities' consolidated PAT for Q2 FY27 (quarter ended September 30, 2026) came in at ₹28.23 Cr, up 34.4% YoY from ₹21.00 Cr, on revenue from operations of ₹532.45 Cr, up 20.9% YoY — profit growth outpaced revenue growth, and net profit margin expanded to 5.30% from 4.75% a year ago, with operating margin (PBT/revenue) up to 7.12% from 6.32%. Sequentially, though, PAT fell 23.2% from ₹36.74 Cr in Q1 FY27 even as revenue rose a modest 3.4%, and both margins compressed from Q1's 7.13% NPM and 9.04% OPM. Standalone (parent-only) figures echo the same pattern more sharply: PAT of ₹9.48 Cr was up 49.5% YoY but down 62.3% QoQ from ₹25.12 Cr, confirming the swing sits mainly at the parent level. No exceptional items were reported in either statement, and no analyst consensus estimates for this quarter turned up in search, so the print cannot be benchmarked against street expectations. The sequential decline traces to three compounding, non-exceptional factors rather than core deterioration: Q1 FY27 carried an elevated fair-value/trading gain of roughly ₹85.5 Cr within revenue from operations that normalized to about ₹24.4 Cr in Q2; fees and commission expense (the largest cost line) grew 8.1% QoQ against just 3.4% revenue growth; and the effective tax rate rose from 21.1% to 25.5%. Against this, the NBFC/financing segment kept scaling cleanly — segment PBT of ₹37.65 Cr was up 43.2% YoY and 44.1% QoQ, and segment assets of ₹1,347.9 Cr at quarter-end already sit within management's FY27 closing AUM guidance band of ₹1,250-1,300 Cr set on the Q1 FY27 call, reached half a year ahead of schedule. Insurance broking revenue of ₹193.80 Cr, up 19.3% YoY, is tracking the other leg of management's stated 20% group CAGR driver thesis. Post quarter-end, the company allotted ₹150 Cr of NCDs (October 13-14) and its board approved a further ₹106 Cr preferential warrant issue on October 14, subject to shareholder approval at the November 6 EGM — both consistent with funding the expanding financing book. No management press release accompanied this result.