DALLAS, TX -- December 11th, 2025 -- Choice International Ltd. (NSE: CHOICEIN): Stonegate Capital Partners updates their coverage on Choice International Ltd. (NSE: CHOICEIN). Choice International delivered another strong quarter in 2Q FY26, with consolidated revenue rising 14.0% y/y to ₹2.84B, supported by balanced growth across Broking & Distribution, Advisory Services, and NBFC operations. EBITDA increased 27.5% y/y to ₹989.8B, with margin expanding 368bps y/y to 34.8%, driven by operating leverage, improving product mix, and continued digital adoption across customer channels. Management reiterated confidence in sustaining momentum into the second half of FY26.
Company Updates:
Stock/Equity Broking: The broking franchise recorded steady performance, supported by rising engagement. Demat accounts expanded 29% y/y to 1.205M, while active accounts reached 262K, reflecting improved market participation and stronger penetration in Tier-II/III markets. The Company continued strengthening its distribution footprint, adding branches and expanding franchisee count to support service-oriented client preference. The upgraded FinX platform delivered higher adoption, reflecting growing traction across traders and investors.
Wealth Products: Wealth management remained one of Choice’s fastest-growing verticals, with AUM reaching ₹48.07B, a 327% y/y increase primarily driven by integration of Arete Capital and ongoing improvement in SIP flows and advisory penetration. The business delivered a 55% y/y increase in monthly SIP book to ₹146M and a 72% y/y increase in transaction count to 263K. Equity products accounted for ~49% of AUM.
Insurance Distribution: The insurance business delivered continued growth, with 2Q26 total premiums of ₹660M, supported by a significant increase in health, travel, and motor policy issuance. The Company added new insurer partnerships and scaled its POSP base to over 13,650 agents, strengthening productivity levels while deploying AI-led workflow automation to improve onboarding, underwriting support, and claims assistance.
NBFC Segment: The NBFC platform continued scaling with a 56% y/y increase in total loan book to ₹7.16B, including retail AUM of ₹5.36B. Credit quality remained stable while net interest margin expanded sequentially to 11.25%, reflecting improved yield mix and disciplined liability management. Collection efficiency remained above 90%.
Government Advisory: The advisory division ended 2Q26 with a robust ₹6.66B order book, supported by new mandates. Recent wins include expanded engagements across Maharashtra, Rajasthan, Bihar, Chhattisgarh, and Himachal Pradesh. The advisory business continues to execute large-scale national programs supported by a 1,600+ member on-ground team and 49 project offices across 13+ states.
Investment Banking: The capital markets advisory segment remains active with 27 ongoing mandates and a fundraising pipeline exceeding ₹70B. The team continues leveraging its integrated ecosystem to deepen its presence in the mid-market and fast-growing SME issuance landscape.
Valuation: We use a DCF Model, EV/Operating Income comp analysis, and a P/E analysis to guide our valuation. Our DCF analysis produces a valuation range of $7.00 to $12.78 with a mid-point of $9.08. Our EV/Operating Income valuation results in a range of $9.20 to $10.24 with a mid-point of $9.72. Our P/E analysis returns a range of $8.33 to $9.84 with a mid-point of $9.08.
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.
