Choice International’s Robust Performance: A Testament of Consistency

Q3 FY25 Revenue increased by 23% YoY to ₹ 667 Cr

As we mark the completion of the first nine months of this financial year, we are pleased to report steady progress that keeps us on track to achieve our targets. It is with great satisfaction that I share these achievements with our valued readers, investors, and stakeholders. In this blog, we not only highlight our key accomplishments but also provide insights into our strategic vision for the future of the company, as we continue our journey toward a common goal: making financial inclusion a reality for the Indian economy.

Growth, Shifts & Optimism in India’s Economy:

India, the world’s fifth-largest economy with a GDP of $3.89 trillion, grew at an impressive 8.2% in 2024. As the New Year unfolds, the recent budget announcements present an opportunity to drive growth, innovation, and economic resilience. The long-term outlook remains strong, and conditions are expected to stabilize post-Q4, reinforcing confidence and optimism for the next financial year.

As we move from 2024 to 2025, the Indian equity market continues to evolve. The year 2025 is set to be an eventful one for investors, driven by a combination of domestic and global factors that are likely to impact market sentiment and investment trends. Although global markets may experience volatility, India's growth outlook continues to be robust.

The record number of IPOs in December was the highest for the year and the best December since 1996. Last month, 15 companies raised Rs 25,438 crore via IPOs. In 2024, more than 91 companies raised Rs 1.59 trillion. This exhibits strong momentum across the capital markets, providing more avenues for investors to invest, leading to a surge in demat accounts.

About Choice International:

A prominent financial conglomerate with over a decade of experience in delivering tech-driven services:

Performance Update for the Quarter and Nine Months Ended:

In the third quarter of FY25, Choice International reported a total revenue of Rs. 212 Cr, compared to Rs. 210 Cr in Q3 FY24. EBITDA stood at Rs. 62 Cr, with EBITDA margins at 29.17%. PAT stood at Rs. 31 Cr, with PAT margins at 14.53%. This quarter we did face some industry-wide headwinds leading to a roadblock in our performance, but we are confident to deliver strong performance in the coming quarters.

On a cumulative basis, performance was better for 9M FY25. Revenue surged by 23% to Rs. 667 Cr, up from Rs. 543 Cr in 9M FY24. EBITDA grew by 25% to Rs.198 Cr, with margins at similar levels of last year at 30%. PAT for the period increased by 19% to Rs. 109 Cr, with PAT margins at 16%.

Segment Performance Overview:

Choice International has consistently focused on offering a comprehensive solution for all its customers' financial needs. To this end, the company has strategically diversified its operations into three core verticals: Broking & Distribution (65%), Advisory Services (23%), and NBFC Business (12%). Our objective is to achieve a balanced contribution across these verticals, ensuring a diversified approach to growth and minimizing reliance on any single segment to drive our overall performance.

Broking & Distribution:

Our Broking business encompasses Stock Broking, Wealth Advisory, and Insurance Broking, contributing 65% to our total revenues, which amounts to Rs. 135 Cr.

Retail participation in the stock market has been steadily increasing as investor awareness grows, and our stock broking business has capitalized on this trend. We’ve successfully added 67K demat accounts, bringing our total to 998K. This growth is largely attributed to our focus on user retention and our strategic expansion into Tier III cities. At the heart of our client acquisition strategy is our proprietary application, ‘Choice FinX,’ which continues to play a key role. Moving forward, we aim to further extend our presence across more locations in India and continue to expand our branch network.

With the demand for wealth management services in India is poised for significant expansion, our Wealth Management business has achieved an AUM of Rs. 1,090 Cr, reflecting a strong year-on-year growth of 99%. To capture this growing opportunity, we are happy to announce that we received in-principle approval from the Securities and Exchange Board of India (SEBI) to set-up a mutual fund. This marks a pivotal moment for the company, as it allows us to expand our financial services offering and tap into a broader spectrum of investors. The approval aligns with our vision to provide comprehensive financial solutions, further cementing our position as a key player in the industry. This approach will not only strengthen relationships with existing clients but also attract new ones, fueling the continued success of our Wealth Management business.

The insurance industry is poised to grow significantly in India. With a strong focus on customer-centricity, operational efficiency, and regulatory compliance, the industry is well on its way to realizing IRDAI’s vision of ‘Insurance for All’. This is witnessed with more and more insurance companies getting listed on the stock exchanges and focusing on offering innovative products at competitive pricing. In line with this trend, in Q3 FY25, we sold over 54,892 policies, reflecting a YoY growth of 429%. Our premiums for the period totalled Rs. 73 Cr, marking an impressive YoY increase of 43%. We have seen a higher conversion rate and a remarkable success ratio of 74%. Additionally, we’ve seen a notable 237% YoY rise in insurance policy inquiries, indicating increasing consumer interest.

The sector has shifted towards greater digitalisation, improved product offerings, and enhanced accessibility, setting the stage for continued growth in 2025. We’ve also expanded our offerings by forging successful partnerships with over 40 insurance providers, enabling us to provide their products seamlessly through our Choice FinX app, enhancing customer choice and convenience.

NBFC:

Our NBFC business under Choice Finserv is actively contributing to the growth and development of India's MSME sector. This business currently contributes 12% of total revenues, with a total loan book of Rs. 754 Cr, including a retail loan book of Rs. 604 Cr. NBFC retail lending in India is growing, especially in the Tier I- III cities. To capture this opportunity, at Choice we are focusing more on retail loans and digitizing our lending operations to streamline and fast track our processes through our mobile app, ‘Choice Money'. This has led to a surge in the revenues for this vertical.

Another milestone for this division, we have acquired the retail lending business of ‘Paisabuddy Finance’ and ‘Sureworth Financial services’ through a slump sale. This strategic move resulted in a 61% increase in our total AUM, which now stands at Rs. 754 Cr. The acquisition not only strengthens our existing portfolio but also enhances our retail lending capabilities, setting the stage for sustained growth and an even stronger market presence in the future.

Advisory:

The Choice Consultancy subsidiary, which drives our Advisory business contributes 23% of total revenues, with an impressive order book of Rs. 555 Cr. Our strong commitment to delivering exceptional performance in executing government projects on a grassroot level, enables us to win more orders thereby strengthening our order book. Maharashtra leads with the highest contribution to the order book, followed by Rajasthan. With a presence across 3 states, 100+ districts, and 50+ project offices, our primary goal is to assist the government in executing grassroots development projects. To date, we have successfully served over 200K PMAY beneficiaries, demonstrating our commitment to impactful community development.

Empowering the Future of Finance:

At Choice International, our commitment to financial inclusion is not just a business objective—it is the foundation of our purpose. Despite recent market headwinds, we remain steadfast in our mission to create long-term value for our clients, shareholders, and society through integrity, fairness, and innovation.

As we navigate this evolving landscape, our focus remains on fostering equitable access to financial services while ensuring financial security for all. By leveraging our deep industry expertise and forward-thinking approach, we continue to serve as a catalyst for growth, prosperity, and positive change.

With the unwavering support of our clients, employees, and stakeholders, we are confident in our ability to overcome challenges and seize new opportunities. Our journey is guided by our aspiration to be "सर्वश्रेष्ठ"—the very best in everything we do. Together, we will build a legacy of empowerment that extends across generations, shaping a more inclusive and sustainable future.

Thank you for being an integral part of our journey. We look forward to achieving even greater milestones together.