Everyone Knows About Groww, Motilal Oswal and Angel One. But Here are 6 Broking Stocks Flying Under the Radar

It's no secret that stock market trading has been extremely profitable over the past five years, especially since the pandemic-led market crash.

Moreover, the method of stock trading has transformed tremendously in recent years. Thanks to technological advancements and ease of payment, one can trade in the stock market at the click of a button.

From just about 40 million (m) demat accounts in FY19, the number crossed 160 m in 2025. That's a 4x jump... and behind every new account lies a broker.

So, whether it is Robinhood in the US or the popular discount brokers in India like Zerodha, Groww, and Angel One, one cannot dismiss their popularity.

When you look at India's broking ecosystem, there are names like Angel One, IIFL Securities, Motilal Oswal, ICICI Securities, Groww, Zerodha, among others.

But beneath the surface, some smaller players are quietly building value.

These smallcap broking firms may not dominate headlines today, but they have real businesses, earnings, regional reach, and diversified services.

In this editorial, we will look at 6 such names...

#1 Arihant Capital Markets

Arihant Capital Markets is not a newcomer. Established in the early 1990s, it has steadily built a presence across retail broking, wealth management, and investment banking.

The company's strength lies in its balanced business model. It combines retail and institutional broking, mutual fund distribution, and corporate finance advisory. Unlike newer tech-driven brokers chasing scale at all costs, Arihant focuses on sustainable profitability.

In recent years, the company has invested in digitising its client onboarding and back-office processes. This has allowed it to compete effectively with discount brokers while retaining a human touch, a combination that appeals to its client base.

Arihant has recently increased its regional strength, especially in central India.

Coming to its financials, Arihant has recorded operating revenue of around Rs 2.5 billion (bn) in FY25, a 5.2% increase from the previous year. Its EBITDA came in Rs 937.4 m, down 11%, while net profit came in at Rs 555.1 m, down 19%.

While these declines reflect market cyclicality, the underlying business remains robust.

Looking forward, Arihant is looking to intensify cross-selling of its products and look at inorganic opportunities for growth.

For more details, check out Arihant Capital Markets' financial factsheet.

#2 SMC Global Securities

Next on the list is SMC Global.

SMC Global is one of the most professionally diversified mid-sized brokers. Its operations span equity and commodity broking, wealth management, insurance distribution, financing, and NBFC activities.

This diversification allows it to maintain stability even during periods of market volatility, where pure-play brokers can see sharper swings in revenue and profitability.

While discount brokers rely almost entirely on digital channels, SMC leverages hundreds of branches and franchisees in over 500 cities.

The firm has also expanded into commodities and currency derivatives, segments that remain underpenetrated in India but have strong growth potential. It has steadily invested in portfolio management services (PMS) and wealth advisory for high-net-worth clients.

Coming to its financials, SMC Global reported revenue of Rs 17.9 bn in FY25, up 8.4% year-on-year (YoY). Its net profit came in at Rs 1.5 bn, down 22% from the previous year, with net profit margins falling from 11.5% to 8.3%.

The management has acknowledged the impact of regulatory changes on short-term revenue but remained optimistic about long-term growth.

SMC Global plans to enhance digital marketing efforts and streamline account opening processes to increase client acquisition.

Additionally, the company is targeting both retail and high net worth individuals (HNI) clients through a comprehensive suite of financial services, including mutual funds, insurance, and fixed-income products.

For more details, check out SMC Global Securities' financial factsheet.

#3 Indo Thai Securities

Next on the list is Indo Thai.

Indo Thai Securities, based in Indore, is a smaller, nimble brokerage that focuses on both retail and HNI clients. The company offers equities, derivatives, mutual funds, and corporate advisory.

The company is a member of NSE, BSE, MSEI, MCX, NCDEX and depository participant of CDSL. It also renders mutual funds services by being a member of AMFI.

Its regional strength is its moat. Additionally, its Category-I merchant banking license allows participation in IPOs and corporate finance mandates, a segment poised for growth in India's active primary market.

Coming to its financials, In the most recent Q2 FY26, Indo Thai reported revenue of Rs 237.7 m and net profit of Rs 144.1 m, a 217% year-on-year increase. For FY25, total revenue was Rs 270 m, down 14%, and net profit came in at Rs 82.5 m.

After turning profitable in FY24 (following a loss in FY23), the company is eyeing another profitable year in FY26, going by the quarterly earnings.

In recent quarters, Indo Thai shares have seen good buying from foreign investors (FII).

Going forward, the company is looking to scale its offerings and reach in smaller cities where there's more potential to expand.

For more details, check out Indo Thai Securities' financial factsheet.

#4 Indbank Merchant Banking Services

Next on the list is Indbank Merchant Banking Services.

Indbank Merchant Banking Services, a subsidiary of Indian Bank, often flies under the radar.

It engages in merchant banking, broking, and advisory services, and has the advantage of being part of a public sector bank. This gives access to a ready retail base, which can be a significant growth lever if effectively utilised.

In FY25, Indbank reported revenue of Rs 267.8 m, up 7.5%, while net profit came in at Rs 84.6 m, down 6%.

While smaller than private peers, Indbank offers stability and a conservative setup, appealing to investors who value relatively lower risk business models.

Its scale limits immediate upside, but a gradual alignment with Indian Bank's retail initiatives could quietly enhance growth.

The promoter holding in Indbank Merchant Banking Services is 64.84% as of 2025. The company has zero debt and the return of equity for the past year is 9.7%.

IndBank is also registered with Association of Mutual Funds of India (AMFI) for distribution of Mutual Fund products.

Given its scale of diversified offering, the company can potentially capture a large chunk of the underpenetrated segments in the future.

For more details, check out IndBank Merchant Banking Services' financial factsheet.

#5 Monarch Networth Capital

Monarch Networth Capital is an interesting mix of legacy and reinvention. Initially known as Networth Stock Broking, it merged with Monarch Group in 2016 and has modernised its operations since.

The company offers equity and commodity broking, depository services, PMS, investment banking, and mutual fund distribution. Its expansion into advisory and wealth management is backed by technology upgrades that improve client experience and operational scalability.

In FY25, Monarch reported revenues of Rs 3.3 bn, up from Rs 2.7 bn in the previous year. Net profit jumped to Rs 1.5 bn, up from Rs 1.2 bn.

Monarch's presence in Gujarat, a state with active retail investors, and its strengthening of institutional research capabilities, make it well-positioned for future growth.

It's leveraging digital tools and advisory services to capture market growth beyond metros, offering investors a mix of legacy strength and modern capability.

For more details, check out Monarch Networth's financial factsheet.

#6 DAM Capital Advisors

DAM Capital Advisors, formerly IDFC Securities, is known for its institutional focus and merchant banking strength. It primarily operates in equity capital markets, research, and advisory, catering to domestic and foreign institutional investors.

DAM has a strong track record in IPOs and QIPs. Since 2019, it has taken care of 78 transactions, including 30 IPOs, 19 QIPs, 7 preferential issues, 6 OFS, and others, across many sectors.

Some of the major ones included the fundraise of SpiceJet, Afcons Infrastructure, Wockhardt, Aurionpro Solutions, among others.

Coming to its financials, for FY25, the company reported revenue of Rs 2.5 bn, up from Rs 1.8 bn, while net profit came in at Rs 1 bn, up from Rs 702.8 m.

While DAM Capital lacks a large retail base, its deep institutional relationships and execution capability make it a credible mid-tier capital market firm.

The company's management views this phase as the golden era of capital market growth. Its deal pipeline is strong as more and more IPOs file for their offerings.

For more details, check out DAM Capital's financial factsheet.

Should You Invest in Smallcap Broking Stocks?

The megatrend of young Indian investors taking exposure to equities as an asset class is here to stay.

Therefore formidable, tech driven fintech players should not be ignored.

It's important to be aware of the financial track record and valuations of these business to ride the trend with adequate safeguards in place.

These six firms share traits that make them interesting for patient investors. They are deeply rooted in India's broking ecosystem but aren't headline-grabbing.

For investors willing to look beyond the hype, comfortable with cycles, and keen to track growth in depth rather than just scale, these under-the-radar brokers could be worth keeping on the watchlist.

That said, these companies are exposed to regulatory risk as India's capital markets are highly regulated. Investors should take note of that factor and conduct due diligence on these companies' fundamentals along with checking their corporate governance.

Happy investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...