Established in **1995** and listed on the **BSE SME platform** in **January 2025** (IPO size: **₹88.82 Cr**), Rikhav Securities Limited is a diversified financial services provider. The company has evolved from a traditional boutique brokerage into a technology-led ecosystem offering retail and HNI broking, proprietary trading, and specialized market-making services. --- ### **Integrated Financial Services Ecosystem** Rikhav Securities operates a "tech-and-touch" model, combining digital efficiency with personalized relationship support. The business is structured across five primary verticals: | Vertical | Description | Key Status / Metrics | |:---|:---|:---| | **Equity & Derivatives Broking** | Trading across **NSE**, **BSE**, and **MCX** (Cash, F&O, Currency, Commodities). | **23,000+** clients; **99%** retention. | | **Market Making** | Liquidity provisioning for **SME IPOs** on **BSE** (since 2012) and **NSE** (since 2016). | Supports **40–45** issuers annually. | | **Proprietary Trading** | Capital deployment using algorithmic models, delta hedging, and arbitrage. | Targets **mid-teens** annual returns. | | **Depository Services** | Registered Depository Participant with **CDSL**. | **18,400+** active depository clients. | | **Margin Trading (MTF)** | Credit facility extending leverage to clients against security holdings. | Launched **2025**; Book size ~**₹10 Cr**. | In addition to these core areas, the company acts as a **Mutual Fund Distributor**, providing a centralized platform for Equity, Debt, Hybrid, and ELSS schemes, and offers a streamlined online portal for **IPO applications**. --- ### **Digital Infrastructure & Client Retention Metrics** The company’s digital transformation is centered on reducing acquisition costs and increasing the Average Revenue Per User (**ARPU**). * **Rikhav Plus Mobile App:** A proprietary trading platform (rated **4.2 stars** on Google Play) featuring one-tap execution, live P&L tracking, and bank-grade multi-factor authentication. Final enhancements are slated for completion by **February 2026**. * **Meon Aadhaar eKYC:** A paperless onboarding solution enabling instant digital verification, which has streamlined the transition to a digital-first brokerage. * **Client Loyalty:** The firm maintains an exceptional **99% retention rate** among active clients. **Operational Growth Trends:** | Particulars | FY23 | FY24 | FY25 | | :--- | :--- | :--- | :--- | | **Total No. of Clients** | 22,116 | 22,787 | **23,571** | | **ARPU (₹)** | 17,245 | 17,643 | **28,900** | --- ### **Strategic Asset Reclassification & Financial Performance** In **October 2024**, Rikhav Securities executed a significant strategic shift by reclassifying its equity holdings from "Non-Current Investments" to **"Stock in Trade" (Inventory)**. This move reflects a transition toward active proprietary trading and tax optimization. **Financial Summary:** | Particulars (₹ Cr) | H1 FY26 | FY25 | FY24 | FY23 | | :--- | :--- | :--- | :--- | :--- | | **Total Income** | **386.67** | **327.77** | **110.60** | **54.52** | | **EBITDA** | **25.96** | **34.50** | **54.91** | **28.43** | | **PAT** | **17.75** | **23.67** | **42.20** | **19.57** | | **EPS (₹)** | **4.64** | **7.51** | **28.17** | **6.38** | *Note: FY25 profitability was impacted by a non-cash fair valuation loss of **₹33.88 Cr** due to the inventory reclassification. However, by May 2025, the company had already recovered **₹10 Cr to ₹12 Cr** of these valuation losses.* --- ### **The "SME Ecosystem" & Institutional Roadmap** Rikhav Securities leverages its position as a dominant market maker to feed its other business lines. * **SME Leadership:** By acting as a market maker for **46 SME IPOs** in FY25, the firm builds long-term pipelines for HNI and institutional clients. * **Institutional Expansion:** The company is actively pursuing empanelment with **Foreign Portfolio Investors (FPIs/FIIs)** and banks to diversify its brokerage income. * **GIFT City:** Through its wholly-owned subsidiary, **RSL IFSC Private Limited**, the company maintains a strategic presence in India’s international financial hub. * **Geographic Diversification:** Currently concentrated in **Maharashtra** and **Gujarat**, the firm is expanding its pan-India footprint via franchise partnerships and digital outreach. --- ### **Capital Allocation & Shareholder Value Initiatives** Management has demonstrated a disciplined approach to capital and corporate governance: * **Stock Split:** In **September 2024**, the company executed a **1:2 stock split**, reducing the Face Value from **₹10** to **₹5**. * **Promoter Commitment:** In **April 2026**, the promoter group launched an open offer to acquire an additional **26%** stake (**99,55,920 shares**) at **₹47.75** per share, a total commitment of **₹47.54 Cr**. * **Strategic Discipline:** Following a feasibility study in **September 2025**, the company cancelled the planned acquisition of **RSL Insurance Brokers** to remain focused on high-yield financial verticals. --- ### **Risk Management & Compliance Framework** The company employs a fully automated, **VaR-based** algorithmic risk framework using tools such as **N-Prime RMS**, **ODIN**, and **Greeksoft**. * **Automated Controls:** Systems automatically block trades for clients exceeding margin norms by **10%**. * **Liquidity Management:** The company maintains **₹125 Crores** in bank guarantees (Axis, ICICI, and HDFC Banks) to meet exchange requirements. * **Regulatory Headwinds:** Recent **SEBI** changes to derivative contract sizes and weekly expiries impacted trading volumes in **H2 FY25**. * **Legal & Audit:** The company is contesting legacy service tax disputes totaling approximately **₹36 Lakhs** and a case under the **Benami Transactions Act** (currently in appeal by the department). In **August 2024**, **M/s. AHSP & Co. LLP** was appointed as statutory auditors for a five-year term. --- ### **Future Growth Targets** * **Revenue:** Targeting **20-25%** year-on-year growth. * **MTF Expansion:** Anticipating book growth of **30-40%** every half-year with a return on capital of **15-20%**. * **Innovation:** Development of quant-driven trading strategies and a digital joint-account opening facility to further penetrate the HNI segment.