What Is The Revenue Model Of HDFC Securities, And How Is It Different From Its Competitors?

Established in 2000, HDFC Securities Limited is a renowned financial intermediary and a subsidiary of HDFC Bank, a private sector bank in India. The company offers top-notch stock broking services through its 262 branches across 161 Indian cities. With its stock broking services, the company earned Rs. 1,874 crore in operating revenue in  FY 2023. HDFC Securities generated revenue far more than its competitor, Motilal Oswal, which earned Rs 861.31 crore in revenue in the same year. 

There are many competitors of HDFC Financial securities, such as Jio Financial Services, Five-Star Business Finance Ltd, SBFC Finance Ltd., etc. But, HDFC Securities has been performing well and earning more than its competitors. This is the reason why the majority of retail investors want to invest in HDFC Securities unlisted shares. If you’re a retail investor, you must know about HDFC Securities revenue model and how it is different from its peer competitors. 

Without further ado, let’s analyse this below. 

Revenue Model Of HDFC Securities 

HDFC Securities operates as a brokerage company and is a leading stockbroker and financial securities service provider in India. HDFC Securities is a corporate member of the Bombay Stock Exchange and the National Stock Exchange. As per the annual report FY 22-23 of HDFC Securities, Profit After Tax (PAT) of the company in FY23 was Rs. 777 crore, which is less than its previous year, Rs. 984 crore in FY22. 

However, compared to all the previous years (except 2022), the company performed well this year, and that’s why many investors want to know about HDFC Securities share price. Wondering how the company generates revenue? Well, there are various sources through which the company earns revenue, such as buying and selling equities, derivatives, mutual funds, bonds, currency, corporate fixed deposits, and many others. Let’s understand this in detail below:

Brokerage and Fee Income

HDFC Securities generates a significant portion of revenue through its brokerage fees. The company charges brokerage fees for allowing customers to buy and sell financial securities like stocks, bonds, mutual funds, etc. In FY22, the company earned Rs. 1,409 crores in brokerage fees and in FY23, it earned Rs. 1,164 crores in brokerage fees. Though this year the amount is less compared to the previous year. 

Initial Public Offerings (IPO)

HDFC Securities Limited company facilitates people with investment in different companies’ IPOs via its Mobile App or online trading platforms. This is another source of revenue generation where they may charge a percentage of fees through IPO investments. 

Demat Account Charges

The company offers demat account services to clients where they can hold and trade securities in electronic form. So, they charge account opening, maintenance fees, and transaction charges for the account. 

Depository Services 

Another source of revenue for HDFC Securities is its depository services. This includes account maintenance, transaction charges and other related services of the account. 

How Does The Revenue Model Of HDFC Securities Differ From Its Peers?

The revenue model of HDFC Securities differs from its peer competitors in various aspects like specific services offered, customer base, and strategic approach. Below are the key differences that may set apart HDFC Securities from its competitors. The differences include:

  • HDFC Securities offers a wide range of financial services and products to its clients, such as banking, loans, insurance, wealth management, etc., which its competitors do not offer. Diversified services of the company allow it to generate higher revenue than its competitors.
  • The extensive branch network of HDFC Securities sets it apart from its competitors. The company operates offline as well as online, allowing customers to get access to various financial services from anywhere at any time. 
  • The diverse customer base of the company is another factor that makes it different from its small or less-established competitors. The customer base of the company includes retail investors, institutional clients, and high-net-worth individuals (HNIs). 
  • Since HDFC Securities offers online trading to its clients, the services are available to tech-savvy individuals. The integration of advanced technology in the platform makes it unique from other brokerages in the market. This makes a significant impact on HDFC Securities share price and overall performance. 

Invest In HDFC Securities Unlisted Shares With Stockify

HDFC Securities unlisted shares offer a great opportunity for retail investors to diversify their investment portfolio. Whether you want to invest in HDFC Securities’ unlisted shares or other pre-IPO companies in India, Stockify is here to assist you. Our expert brokers will help you with buying and selling unlisted shares seamlessly. We will guide you about the company and its performance and share all the information like EBITDA, EPS Growth, and Profit and loss statements to make your trading hassle-free. 

Connect with expert brokers at Stockify and start trading today.  

Frequently Asked Questions

What is the operating revenue of HDFC Securities in FY2-23?

Ans. The operating revenue of the company was Rs. 1,874 crore in FY 22-23 against Rs. 1,975 crore in FY 21-22. The company earned higher revenue than the previous year. 

Where do I buy HDFC Securities unlisted shares?

Ans. You can buy HDFC Securities at Stockify. In fact, you can also invest in other pre-IPO companies in India through Stockify. 

At what price HDFC Securities pre-IPO stocks are available?

Ans. Currently, HDFC Securities unlisted shares are trading at Rs. 11,770 per equity share. However, the prices keep fluctuating based on the company’s performance and market trends. 

How do I check the daily prices of HDFC Securities unlisted shares?

Ans. You can check the prices of HDFC Securities pre-IPO shares at Stockify. The expert brokers update the prices, keeping a keen eye on market trends and the company’s performance. 

Which is the best platform to buy and sell unlisted shares in India?

Ans. Stockify is the leading stock broking platform in India. You can easily buy and sell top pre-IPO shares in India through this platform without any hassle.

Table of Contents

HDFC Securities is the best online platform for stock trading. How does the company generate revenue? Learn about its revenue model and how it differs from its peer competitors.
HDFC Securities is the best online platform for stock trading. How does the company generate revenue? Learn about its revenue model and how it differs from its peer competitors.

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Piyush Jhunjhunwala
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Rahul Khatuwala
Ex. Wipro & Finaco Founder
Co-Founder
Bangalore, India.