MOFSL Estimates Q2FY27 Revenue Growth Amid Derivative Pressure
What happened
Motilal Oswal estimates revenue for Q2FY27 at Rs 1,434 crore, representing a 40.8% increase year-on-year from Rs 1,019 crore. The brokerage projects EBITDA to rise 43.5% year-on-year to Rs 866 crore. However, Motilal Oswal flagged potential sequential pressure, noting that derivative revenue is expected to decline quarter-on-quarter due to CAS. Conversely, Groww's margin trading facility book has reached a new peak, with growth momentum expected to continue.
From indiatimes.com
Why it matters
While Motilal Oswal projects significant year-on-year growth in profits and revenue, the decline in derivative revenue from CAS suggests potential sequential challenges for the brokerage sector. The continued growth in Groww's MTF book indicates sustained demand and positive cash yield improvements in the fintech sector.
From indiatimes.com
Who's involved
- Motilal OswalBrokerage firm providing revenue and profit estimates
- CASIndividual whose derivatives revenue is expected to decline quarter-on-quarter
- GrowwFintech company whose margin trading facility book is seeing continued growth
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- SBI SecuritiesSpeculative
SBI Securities might see reduced brokerage income due to the decline in derivative revenue.
- HDFC securitiesSpeculative
HDFC securities might see reduced brokerage income due to the decline in derivative revenue.
- GrowwSpeculative
Groww might see continued revenue growth and improved cash yields from its MTF book.