Earnings Call Transcript - XNSE:ALMONDZ 2026-11-11

Operator

Ladies and gentlemen, good day and welcome to Almonds Global Securities Limited, Q2 FY27 earnings call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. Today we have with us from the management team. Mr. Navjit Softhi, Founder and Promoter, Mr. Sanjay Divan, Director, Mr. Rajiv Kumar, CFO and Director. As a reminder, all participant lines will be in the lesson only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference call over to Mr. Navjit Sobti, promoter and founder of Allman's Global Securities Limited. Thank you, Vinubatio, sir.

Navjit Sobti, Other

Good evening, everyone, and thank you so much for joining us today. We are pleased to report a strong second quarter. On a consolidated basis, among global securities, total revenue grew 17.9% year-on-year to 40.09 crores, while profit rose 2.4x to 9.13 crore, profit margin expended by 11.4 basis point to 22.8%. This shows the operating leverage now coming through across our businesses. We have in total three businesses, intra-engineering business, clean and green energy business, and the third business is financial services. First, talking about our intra-business, where the de-merger also is in place, and it is on official records. Infrastructure consultancy continues to anchor our total consolidated revenue. As Premier Green, our energy business is not being consolidated on the top-line basis. This contributes about 78% of revenue this quarter. Armand's Global Infra Consulting Limited revenue grew by 21.1% to Rs.31.35 crores. And profit rose 19.8% to Rs. 2.90 crores, led by higher revenue from DPR projects. Order inflows have been particularly very encouraging. We secured 154 crore rupees of new orders in H1, 2.4 times of 72 crores won in the last quarter, this last year, first quarter last year, first half year last year. And our total order book is now over 400 crores to be executed over the next three to four years. This gives us a strong multi-year revenue visibility. Going forward, we are investing in technology-led automation in a big way, talent, and global partnerships. We see significant headroom in railways, urban development, and geolab, besides maintaining our strong positioning in the highway section. In terms of order book, the quality of these winds matters as much as they decide. During the quarter, Armand Global Infra Consultancy Limited won its largest ever sole bid of Rs. 33 crore, program management consultancy mandate from Odisha Industrial Infrastructure Development Corporation. We were also appointed to prepare the DPR for 422 kilometers NAMO Expressway in Odisha. In railways, we won the authority engineer assignment for the third line on the ITARC-Nathpur section of Central Railway. We also secured our first project. from Uttar Pradesh State Bridge Corporation. Our international presence is building as well. Our first overseas assignment in Zabia, we won a transaction advisory mandate from public-private partnership authority in Bangladesh. And we were also in panel by the PPP Center of Philippines. On execution, our team completed the DPR for UPDA, Uttar Pradesh government, for Vindyanchal Expressway in record time. This is again a 350 km plus 100, 450 km expressway access control. To support this growth, we have strengthened our senior bench with experienced experts in urban and transport planning, bridges, highway design, and road safety. GIS and laboratory testing. Going forward, our priorities are to mobilize newly won mandates on schedule and deepen our presence in railways and urban development. We are also building our pipeline in ports, airports, and metros. Our second business, Green Fuel Joint Venture, Premier Green Innovations Limited, had an outstanding quarter. Himachal Pradesh unit operated at full capacity of 285 kilolitres per day and delivered revenue of 202.24 crore rupees in the last quarter of 55.7% with profit rising 3.4 times 2 rupees to 12.59 crore. The 200 KLPD Odisha Greenfield plant is fully operational now. It produced 71 lakh litres of ethanol in its initial phase. We have participated in the OMC tender for financial year 27, and full supply is expected from third week of November. As of yesterday, we have been allocated 12.80 crore litres. Of supply of ethanol from Himachal and Odisha, this combined will take both our plants to nearly 100% of capacity utilization. We are targeting in quarter three that our total capacity of 485 KLPD in the quarter four, not in the quarter three, because in the quarter three, we shall be targeting 80%. In quarter four, we shall be targeting 100% capacity utilization. The numbers will be very encouraging. In financial services, the revenue growth of 2.7% to 8.05% has been reported, and profit was lower at 2.51% because of weak capital market, reducing mark-to-market capital gain, which were reported in the last quarter on our own investment portfolio. The underlying franchise remains very healthy. Our merchant banking advisory business has a strong pipeline of mandates under execution, including fundraisers, right issues, and IP advisory, and we expect this to support growth in revenue and profit in the coming quarter, and we see a significant growth in our financial services fee-based numbers in the last quarter of the year, and also in the next year going forward because the pipeline is very strong. Finally, we continue to progress significantly in the proposed scheme of arrangement. Under the scheme, right now in the first phase, infrastructure consultancy is being converted into a separate entity, and it shall be listed as an independent listed company, and it will yield significant gains for Armand Global Security shareholders, and unlocking of value will be there. We believe giving each business its own listed entity will unlock value and allow investors to participate directly in the three distinct grow stories of Almond Jintra and the green business, which both of them are going to be significant players in their own fields in the country. With a strong order book, expanding ethanol capacity, and healthy advisory business, we remain confident about the second half of the year also. Thank you very much, and I would now take any questions, and all the numbers are there with you, and we can discuss each of these three businesses independently.

Operator

Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sahil Khurana, an individual investor. Please go ahead.

Sahil Khurana, Analyst — Individual Investor

Congratulations on a great set of numbers. My question to you is, can you please provide me an update on the demurge timeline as well as what the key management leading each vertical of the demurge entity? And also wanted to understand what is your five-year growth expectation from these individual businesses once they are listed. Thanks.

Navjit Sobti, Other

Ahil, thank you very much for the interest in our company. So, the merger, as far as the infra engineering business is concerned, this is already filed and we are expecting NSE approval in any time now. NSE has done the analysis and our application is the final stages of approval. Once the NSE approval is there, we will be filing with SEBI and then with NCLT. We expect anywhere between six months' time to nine months' time for the entire process to be completed and it being finally listed. Already, the ratio has been tentatively worked out, subject to any further changes suggested by the regulator. So this, the de-merger scheme for every, for 10,000 shares of Armand Global Security, every shareholder will get 666 shares of Armand Global Infra Consultant Limited. Once this scheme is completed, we propose, as per the board, again, the second round of de-merger of Premier Green as a separate entity, but that ratios and everything will be based on the valuations to be done at that time. And as far as the five-year growth projections of the company, we are expecting... Strong growth and each of our businesses, all three businesses of ours, would not be growing less than 25% at least year-on-year basis. The infra business, the premier green business, and the almond financial services business also.

Sahil Khurana, Analyst — Individual Investor

Got it. Can you also explain what is your spending on the capital market business? Like, you know, there are a lot of uncertainty within the ongoing market as well as geopolitical volatility across the market. So, how do you see the capital market segment for the, you know, next two years? How do you see the growth in this particular segment?

Navjit Sobti, Other

Sahil, our capital market advisory business has got a good pipeline of private placement mandates with us, wherein we are targeting and our business focuses on these small cap companies, which are in the growth stage. So, typically, companies with 100 to 500 crore rupees expected valuations are being invested, oblique advised by us, and those companies, we have a standing or we have the business propositions of being associated with those companies for at least five-year basis by advising those companies. So, we are not too much impacted by the current round of capital market fluctuations because the businesses we pick up are the businesses which are sunrise sector and which have a great potential. We have in the last two years of activity in the market close around four mandates and we have right now in pipeline around five mandates which are going, which are currently being executed and we expect them to be executed in the next two to three quarters of this year and the next year. So we have a good visibility as far as the field business is concerned. As far as our investment book is concerned, our investment book is divided equally between debt and equity markets. And in the debt market, we are very active traders and we invest also into these highly high rated government PSU bonds and also high rated. And as far as the equity market exposures are concerned, again, that book is equally divided between unlisted and listed stocks. And we have in the listed stock, we only invested in the front running capital market investments, which are only for treasury till the time we get good investment returns from our private market. Our focus primarily is to invest in the private equity market.

Sahil Khurana, Analyst — Individual Investor

Thank you so much. I will wait in the queue for my next questions.

Operator

Thank you. Next question is from Simran Jeet Singh, an individual investor. Please go ahead.

Simran Jeet Singh, Analyst — Individual Investor

Yeah, thank you for giving me the opportunity. Congratulations, Swaphi, sir, Diwanji, and another person in the call, and to the senior management. My question to, you know, to, sir, is that, sir, I... Going through the, you know, segments like infra, green ethanol, annual investment banking, though they are, you know, doing fantabulous good and congratulations to you also because it's, you know, being very new venture to you also. And, but the moment we, you know, start looking towards broking and wealth management, things are not so great when, you know, we are looking in, when, you know, we are competing with, you know, your infrastructure and all. Though we are the very old players in the market in the broking and wealth. So I just want to understand how the management is planning to scale up the broking and the wealth management business in the next couple of years. This is my question.

Navjit Sobti, Other

Thank you very much, Himran. And our broking and wealth management business has been over the years being very neglected. And we have not been growing over there. Our total focus was on the infra and clean energy business. So, last two years, we have drawn out a strategy that our total broking and wealth management business is grown through our investment banking book. So, we advise our clients and we advise our clients to invest in the investment banking or investment advisory-led business of ours. So, we... Our entire wealth book is dedicated towards investing in the companies we advise raising equity for, and that's why we are not linked with the market. And to manage the treasury function of our clients, of our H&Is, we are not a retail broker per se. We are only very strong H&I brokers, and our total wealth management book of around 1,500 rupees, Most of it comes from not more than 20 or 25 family offices. So that's how we have structured our business. And we are very focused. We are a very small team. And we continue to grow like that. And every year, we see around 25 to 30% addition in our total AUM, wealth management. And half of that will be invested into the private market only. And those companies only, we shall take. Towards the public market route through our own advisory business. That's our strength. That's why you see very small growth. And now, for the last two years, since the time we have sold out, we have disinvested from our insurance business. We were second largest reinsurance company, reinsurance brokerage company in the country. We sold that business for 550 crore rupees around four years back. After that, we started focusing on our financial services portfolio all over again. And by that time, our green energy business and our infra-engineering businesses, as and when they are now getting on their own feet and they are growing significantly, our now focus for the next three years is to grow our financial services business.

Simran Jeet Singh, Analyst — Individual Investor

Yes, sir. And, sir, one more suggestion is that in the, you know, elements presentation, in the future, if, you know, you can add and you can advise your team that, you know, in the wealth management and in the broking, you know, this activity in this particular segment, if you can show the AUM growth quarter-on-quarter-wise or the number of new clients acquired in that particular presentation, that will be very helpful to the investors and to the analyst community also.

Navjit Sobti, Other

Thank you very much for your suggestion. We shall implement that. Thank you.

Simran Jeet Singh, Analyst — Individual Investor

Sure, sir. Thank you. All the best. Thank you, sir.

Navjit Sobti, Other

Okay, Jim. Take care. Bye.

Operator

Thank you. Next question is from Anant Arora from Polls of Profit Mentors. Please go ahead.

Anant Arora, Analyst — Polls of Profit Mentors

Hello. Yes, Anand. Yes, Anand. Congratulations for the good bit of Rondo, Mustafa. And could management provide an overview of current operation across the broking, margin banking, and investment banking verticals, along with the key growth strategies being deployed to scale the capital market business and gain market share and attract new clients?

Navjit Sobti, Other

Anant, like I told Simran in my last answer, financial services business is the smallest vertical of the company, but it is now on to the significant growth path, where we are emerging as very, very strong investment banking player, advising our clients to raise capital market resources and raise equity for their growth businesses. And we are focusing on two or three sectors, which are green energy business again and infra business again. And all these businesses are growing in a significant manner as well as the capital market advisory business of ours also. And same companies, we are advising them on the private markets. Same companies, we shall be advising them on their route to the public markets also. And each company is our, where we are going to be associated with each one of them for the next four to five years. Taking them from a small cap to mid-cap. You know, that's our strategy. And on that route only, our whole business vertical has been worked out. And also advising our wealth management family office.

Operator

Thank you. Next question is from Ravi Kumar, an individual investor. Please go ahead.