Choice International reported a 33% revenue growth to ₹379 crore for Q2 FY27, while securing a ₹900 crore investment from South Korea’s NH Investment & Securities. The capital is aimed at scaling its margin trade financing business. Additionally, the company has proposed a 1:1 bonus issue to reward shareholders.
Choice International reported a strong performance for the second quarter of the 2027 fiscal year, with consolidated revenue reaching ₹379 crore, a 33% increase compared to the same period last year. Net profit also saw healthy growth, rising 23% to ₹69.47 crore. This performance comes as the company continues to scale its operations across its broking, wealth management, and advisory segments.
The most notable development for the company is a strategic capital infusion of ₹900 crore from South Korea-based NH Investment & Securities. This investment has been directed into the company’s subsidiary, Choice Equity Broking, primarily through Compulsorily Convertible Preference Shares. The firm plans to use these funds to significantly expand its margin trade financing book, a segment that requires substantial capital to allow clients to trade with borrowed funds. As of the end of the quarter, this book stood at ₹463 crore, and the new infusion is expected to provide the liquidity needed to grow this business further.
While the top-line growth remains strong, investors may note that the company is facing upward pressure on costs. Total expenses for the quarter rose to ₹285.2 crore. Specifically, employee-related costs increased by 45% compared to the previous year, and finance costs climbed by 49%. These rising expenses are a monitorable for shareholders, as they can put pressure on net profit margins if the revenue growth does not outpace these costs in the coming quarters.
Operationally, the company showed steady growth in its core business. It added 1.73 lakh new demat accounts during the quarter, bringing the total base to 13.78 lakh. The firm’s wealth management division also saw positive momentum, with equity mutual fund assets under management rising 49% to reach ₹3,013 crore. Additionally, the company’s investment banking arm managed five issues, raising ₹680 crore, with a future pipeline of 24 mandates.
To reward shareholders, the Board has proposed a 1:1 bonus share issue. While this rewards existing investors, it also increases the total number of shares, which is a factor to consider regarding future earnings per share calculations. This proposal is currently subject to shareholder approval. Investors should monitor whether the company can maintain its profit margins while absorbing the higher operational and finance costs associated with its rapid expansion. The next key step will be the formal shareholder approval for the bonus issue and the subsequent execution of the margin financing expansion using the newly acquired capital.