Choice International, a Mumbai-based financial services group, has reported its best-ever quarter. Consolidated revenue rose 33% from a year ago to ₹379 crore in the July–September quarter (Q2 FY27). Its board also cleared a 1:1 bonus issue. This means one free share for every share held.
Growth came from broking, wealth and advisory work. After the quarter, the company also received ₹900 crore from a South Korean partner. But costs rose fast, and two news reports differ on profit growth.
What the board decided
According to Economic Times, the board approved the bonus. It is the company's first such step in two years. In a bonus issue, a company gives free shares to existing shareholders from its reserves. Reserves are profits saved over the years. If you hold 100 shares on the record date, you get 100 more.
The record date is the cut-off day that decides who gets the bonus. It will be announced later. Economic Times said the shares are expected to reach accounts within two months. The Hindu BusinessLine said the board recommended the bonus, and shareholders must still approve it.
The board also cleared a plan to raise authorised share capital from ₹225 crore to ₹447.80 crore, as per Economic Times. This is the most share capital a company is allowed to issue. The limit moves from 22.5 crore shares to 44.78 crore shares. Shareholders must approve this too.
The Q2 FY27 numbers
EBITDA means earnings before interest, tax, depreciation and amortisation. It shows profit from daily business before those costs. The table uses figures from The Hindu BusinessLine.
| Item | Q2 FY27 | Change from a year ago |
|---|---|---|
| Consolidated revenue | ₹379 crore | Up 33% |
| Revenue from operations | ₹372.9 crore | Up 36% |
| Other income | ₹6.2 crore | Down 36% |
| Total expenses | ₹285.2 crore | Up 36% |
| EBITDA | ₹130.63 crore | Margin of 34.47% |
| Net profit | ₹69.47 crore | Up 23% |
The core business grew 36%, but total expenses grew just as fast.
Within costs, employee expenses rose 45% and finance costs rose 49%, The Hindu BusinessLine said. Economic Times gave rounded figures: EBITDA up 32% to ₹131 crore and net profit of ₹69.5 crore. Both put the PAT (profit after tax) margin at about 18.3%. That is roughly ₹18 of final profit from every ₹100 of revenue.
The two reports do not agree on profit growth. Economic Times says net profit rose "a little over 18%" from a year ago. The Hindu BusinessLine says it rose 23%. They also differ on the result day. Economic Times said Tuesday (3 November), while The Hindu BusinessLine said Monday (2 November). We could not confirm which is right. Readers can check the company's filing on the BSE or NSE website.
Business update and the ₹900 crore
According to The Hindu BusinessLine, the company added 1.73 lakh demat accounts in the quarter. The total is now 13.78 lakh, up 14% in a year. A demat account holds your shares in electronic form. Client assets under custody were ₹66,300 crore across 218 branches.
Wealth management assets under management (AUM) were about ₹6,047 crore. AUM is the money a company manages for its clients. Equity mutual fund AUM grew 49% to ₹3,013 crore. The loan book of its non-banking finance company (NBFC) business was ₹935 crore.
In investment banking, Choice handled five Initial Public Offerings (IPOs) that raised about ₹680 crore. One issue was subscribed 177 times. It has 24 more mandates, aiming to raise an estimated ₹6,210 crore. Its government advisory order book stood at ₹710 crore.
After the quarter, ₹900 crore from South Korea's NH Investment & Securities reached Choice Equity Broking's bank account. Most of it will grow the margin trade financing (MTF) book, which was ₹463 crore at quarter-end. MTF is a broker loan that lets you buy shares by paying only part of the price. The partnership is also expected to support institutional, wealth and asset management work.
Share price and valuation
Economic Times said the stock rose nearly 2% on Tuesday to a day's high of ₹764 on the NSE. The Hindu BusinessLine said it traded at ₹752.40 at 12.52 pm IST, up 0.17%. These prices are from different times of the day. Market capitalisation, the total value of all shares, was about ₹16,765 crore per Economic Times and ₹16,761 crore per The Hindu BusinessLine.
| Period | Share price change |
|---|---|
| One week | Up more than 4% |
| One month | Up nearly 5% |
| 2026 so far | Down more than 10% |
| Past one year | Down 9% |
| Three years | Up nearly 270% |
These figures are from Economic Times. Long-term gains are large, but the stock is lower this year.
The Hindu BusinessLine said the stock trades at a trailing price-to-earnings (P/E) ratio of 63.50. It is about 12.5% below its 52-week high of ₹860.50. A P/E of 63.50 means buyers pay about ₹63.50 for every ₹1 of profit earned over the past year.
What a bonus means for you
A bonus does not add value by itself. Your share count doubles, but the company's market value stays the same, as Economic Times noted. So the price usually adjusts lower after the record date. For example, 100 shares worth ₹10,000 become 200 shares worth about ₹10,000. More shares may make trading easier, but long-term value depends on earnings. You can follow more company numbers on our results page.
Risks to keep in mind
- Employee costs rose 45% and finance costs rose 49%. This could squeeze profit if revenue growth slows.
- A trailing P/E of 63.50 means the price already expects strong growth. If growth disappoints, the stock can fall.
- Broking and IPO income depend on the stock market mood. Fewer trades and listings mean less income.
- More margin lending can raise risk if borrowers cannot repay during a market fall.
- The bonus and the higher authorised capital still need shareholder approval.
What to watch next
Watch for the bonus record date and the shareholder vote. Track how the ₹900 crore is used and how the MTF book grows. Also see how many of the 24 IPO mandates turn into actual listings.
Words explained
- Bonus issue: Free extra shares a company gives existing shareholders from its saved profits.
- Record date: The cut-off day. Only shareholders on the company's list that day get the benefit.
- Authorised share capital: The highest amount of share capital a company is allowed to issue.
- EBITDA: Profit from daily business before interest, tax, depreciation and amortisation.
- PAT margin: The share of revenue left as final profit after all costs and tax.
- Demat account: An account that holds your shares in electronic form.
- AUM: Assets under management. The total money a firm manages for clients.
- Margin trade financing (MTF): A broker loan that lets you buy shares by paying only part of the price.
- P/E ratio: Share price divided by profit per share. It shows how much buyers pay for each rupee of profit.
Sources: Economic Times, The Hindu BusinessLine.
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