Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
Rating Rationale
Acuité has assigned the long-term rating of ‘ACUITE A-’ (read as ACUITE A minus) on the Rs. 200.00 Cr. Proposed Non-Covertible Debentures of Vikabh Securities Private Limited (VSPL). The outlook is 'Stable'.
Rationale for Rating
The rating assigned factors Vikabh Securities Private Limited’s (VSPL) experienced management and promoters, established track record in financial broking operations and its strong capitalisation profile. The promoter family, the Biyanis, have run a capital markets business since 1989, first through a cash-futures arbitrage desk and later through a full options arbitrage and quant trading operation. Currently, it is majorly engaged in proprietary trading in the derivatives segment. The company has demonstrated steady scaling of operations over the years with the operating income standing at Rs. 189.09 Cr. for FY2026. VSPL’s net worth improved to Rs. 873.74 Cr. in FY26 from Rs 808.26 Cr. in FY25, supported by healthy internal accruals. The company’s reliance on external debt is has remained low as denoted by a gearing of 0.05 times as on March 31, 2026 and 0.04 times as on March 31, 2025. However, the rating is constrained by the decline in profitability in FY25 and FY26 due to structural regulatory changes in the derivatives segment, which have led to moderation in trading volumes. Further, the company’s revenue profile remains largely linked to market activity, with a significant contribution from proprietary trading (hedging and arbitrage based), resulting in earnings volatility. The company reported a PAT of Rs. 64.98 Cr. during FY2026 as compared to Rs. 172.93 Cr. during FY2025. Acuite also takes note of the change in margin requirements by RBI effective July 1, 2026, wherein bank guarantees issued for capital market participants are required to be 100% backed by collateral, with at least 50% in cash. The impact of the same on the company’s liquidity position and business operations will remain a key monitorable.
About the company
Vikabh Securities Private Limited, headquartered in Mumbai, was incorporated in 1995 and is engaged in the securities and capital markets business. The company operates a proprietary trading business within the regulatory framework prescribed by the SEBI, with primary focus on options trading and quantitative research. VSPL also provides a range of capital market services, including Institutional broking, HNI broking, stock broking and commodities trading. In addition, it undertakes the distribution of mutual fund products to its clients. The company derives income from brokerage, fees, commissions and in addition to income generated from its proprietary trading operations. It is promoted and managed by the Biyani family, with Mr. Vinod Hardattrai Biyani, Mr. Kailash Hardattrai Biyani, Mr. Bharat Hardattrai Biyani, Mr. Ravi Vinod Biyani, Mrs. Suchita Bharat Biyani and Mrs. Radha Vinod Biyani serving as Directors of the Company.
Unsupported Rating
Not applicable
Analytical Approach
For arriving at the rating, Acuite has considered a standalone approach for Vikabh Securities Private Limited.
Key Rating Drivers
Strength
Experienced management and promoters
The company is led by promoters with over three decades of experience in financial markets, particularly in broking and proprietary trading activities. The management has demonstrated the ability to scale operations, as reflected in the growth in networth owing to internal accruals. The family-owned business has run a capital markets business since 1989, first through a cash-futures arbitrage desk and later through a full options arbitrage and quant trading operation. The company is a registered trading member of both the BSE and the NSE. It is majorly engaged in proprietary trading in the derivatives segment, and, on a much smaller scale, in stock broking and mutual fund distribution to clients. The company is now building a wealth management franchise alongside the trading business, setting up AIF, Research Analyst and Depository entities.
Healthy capitalisation levels
The company’s’ capitalisation levels remain healthy. VSPL’s net worth improved to Rs. 873.74 Cr. in FY26 from Rs 808.26 Cr. in FY25, supported by healthy internal accruals. The company has debt in the form of unsecured loans from related parties to the tune of Rs. 43.64 Cr. as on March 31, 2026 (Rs. 26.59 Cr. as on March 31, 2025). Hence, the company’s reliance on external debt is has remained low as denoted by a gearing of 0.05 times as on March 31, 2026 and 0.04 times as on March 31, 2025. However, with the new regulations with respect to bank guarantee, VSPL does intend to raise a substantial amount of debt in H2FY2027 to support its scale of operations.
Going forward, securing and deploying additional capital profitably while maintaining the capitalisation levels will remain key monitorables.
Weakness
Concentrated revenue stream with moderation in the earning profile
The company’s revenue profile remains largely linked to market activity, with a significant contribution from proprietary trading (hedging and arbitrage based), resulting in earnings volatility. For FY2026, ~73 percent of the income is attributed to the hedged strategy income and ~25 percent is attributed to interest income from FD and other income. For FY2025, the contributions were ~75 percent and ~13 percent respectively. Additionally, the company reported a PAT of Rs. 64.98 Cr. during FY2026 as compared to Rs. 172.93 Cr. during FY2025. The decline in profitability is due to structural regulatory changes in the derivatives segment, which have led to moderation in trading volumes.
Going forward, the company’s ability to diversify its revenue profile and stabilize its earnings amidst volatility in the market and regulatory changes will remain a key monitorable.
Regulatory Risk and susceptibility to Market volatility
The Company remains exposed to regulatory risk, as frequent changes in compliance norms and margin rules along with recent RBI circulars mandating higher security cover for proprietary trading and evolving risk-management frameworks can impact operations and influence industry-wide trading behaviour. Its performance is also closely linked to capital market conditions, which are inherently volatile and affected by economic trends and investor sentiment. Revenues from broking and proprietary trading depend on overall market turnover; hence, periods of subdued activity can compress revenue. While the entity continues to benefit from its business model, the level of activity in the commodities markets and capital markets will be key determinant of its revenue profile and future growth trajectory.
Rating Sensitivity
Potential triggers (individual or collective) for an upward rating action:
Significant scale-up of operations leading to improvement in the market position and diversification of revenue profile.
Improvement in the earning profile on a sustained basis as denoted by ROCE remaining above 20 percent
Potential triggers (individual or collective) for a downward rating action:
Deterioration in earning due to sharp adverse movements or heightened volatility in capital markets.
Impact of any material changes in the regulatory environment on business operations.
Impact on liquidity and business arising from regulatory changes, including stricter margin requirements on funding.
Consistent decline in profitability parameters, making ROCE below 12 percent.
Liquidity Position
Adequate
The liquidity profile of Vikabh Securities Private Limited remains adequate, supported by steady internal accruals and moderate cash balances. The company reported cash and cash equivalents of Rs 23.91 Cr. as on March 31, 2026. VSPL’s total borrowings stood at Rs. 45.57 Cr. as of March 31, 2026 which majorly comprises of unsecured loans related parties. The company does not have any long-term debt repayment obligations over the near to medium term as of March 31, 2026. The dependence on external debt has remained low, as reflected in comfortable gearing of around 0.05 times as on March 31, 2026, however the company will raise NCDs in H2FY2027 to fund margin requirements. The borrowing profile comprises non-fund-based facilities in the form of bank guarantees aggregating to Rs. 1,070.00 Cr. as on March 31, 2026, utilised towards exchange margin requirements.
Outlook
Stable
Other Factors affecting Rating
None
Key Financials - Standalone / Originator
Particulars
Unit
FY 26 (Actual)
FY 25 (Actual)
Operating Income
Rs. Cr.
189.09
374.75
PAT
Rs. Cr.
64.98
172.93
PAT Margin
(%)
34.36
46.15
Total Debt/Tangible Net Worth
Times
0.05
0.04
PBDIT/Interest
Times
5.23
9.49
Status of non-cooperation with previous CRA (if applicable):
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
Contacts
List of instruments and names of regulators of the instruments
