Share India Securities Limited — Q1 FY26 earnings call

Call held 31 Jul 2025

Management summary

Share India Securities Limited reported a strong rebound in Q1 FY26, with consolidated revenue growing 42.57% QoQ to ₹341 crores and PAT surging 353% QoQ to ₹84 crores. This performance was driven by recovery in the proprietary trading segment, growth in the MTF book, and stabilization of the regulatory environment. The company is actively diversifying its revenue streams through new initiatives like the WealthTech venture 'Project Drone' and the launch of PMS services, aiming for a 20-25% overall growth in FY26.

Highlights

  • Consolidated Revenue from operations for Q1 FY26 was ₹341 crores, a substantial 42.57% increase QoQ.

  • Consolidated Profit After Tax (PAT) for Q1 FY26 was ₹84 crores, representing a 353% increase QoQ.

  • Standalone Revenue from operations for Q1 FY26 was ₹273 crores, an impressive 45.6% increase QoQ.

  • Standalone Profit After Tax (PAT) for Q1 FY26 was ₹69 crores, a significant 324% increase QoQ.

  • The MTF book jumped by around 40% from Q4 FY25 to ₹315 crores in Q1 FY26.

  • The company successfully closed a ₹100 crore NCD at 10.75% interest rate.

  • SEBI permission for PMS license obtained, with the first team to be launched by September.

  • Project Drone, a new WealthTech venture, is expected to have its Minimum Viable Product (MVP) out in 6-9 months.

Key financials

  1. Consolidated Revenue ₹341 Cr -17.5%YoY
  2. Consolidated PBT ₹111 Cr -15.3%YoY
  3. Consolidated PAT ₹84 Cr -18.4%YoY
  4. Consolidated EPS ₹3.86
  5. Standalone Revenue ₹273 Cr -15.7%YoY
  6. Standalone PBT ₹89 Cr -5.3%YoY
  7. Standalone PAT ₹69 Cr -4.2%YoY
  8. Standalone EPS ₹3.15
  9. MTF Book ₹315 Cr +69.9%QoQ

What they filed

Q1 FY27: revenue up 31.4%, net profit up 47.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue453 342 239 341 341 −25%372 +9%416 +74%448 +31%
EBITDA186 131 52 138 159 −15%156 +19%117 +125%201 +46%
Net profit124 82 19 84 93 −25%89 +9%58 +205%124 +48%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Credit Growth

  • MTF Book Growth Credit Growth · from here on · Medium confidence 20%-30%
    The way the market is growing, so this particular financial year, we can see the MTF book is growing at least 20% or maybe 30% from here on.

    — Mr. Sachin Gupta, CEO and Whole-time Director

  • MTF Book Credit Growth · future · Medium confidence ₹1,000 crores
    And we have currently MTF book of around INR300 crores, which we may take it up to INR1,000 crores.

    — Mr. Kamlesh Shah, Managing Director

Overall Growth

  • Company Growth Overall Growth · this particular financial year · Medium confidence 20%-25%
    So, if there are no much differences on the regulatory side, so we believe this particular financial year will be somewhere 20%-25% growth based on last financial year.

    — Mr. Sachin Gupta, CEO and Whole-time Director

New Business

  • PMS Launch New Business · September · High confidence September
    The first team will be launched by September. By September first, the team will be launched from the PMS side.

    — Mr. Sachin Gupta, CEO and Whole-time Director

  • Project Drone MVP New Business · next 6-9 months · High confidence 6-9 months
    And I expect our MVP to be out in six months to nine months.

    — Mr. Prabhakar Tiwari, Senior Vice President

  • AIF Plans New Business · after 1 year · Low confidence after 1-year maybe
    And now, AIF is also in our kitty. So, we are planning for it after 1-year maybe.

    — Mr. Kamlesh Shah, Managing Director

Volume

  • Exchanges Volume Volume · coming two to three quarters · Medium confidence far better
    And the changes are very positive that in coming two to three quarters, exchanges volume will be far better from here on.

    — Mr. Kamlesh Shah, Managing Director

Client Growth

  • Institutional Client Growth Client Growth · every quarter · Medium confidence 20%-30%
    But easily from -- even from current levels, we expect on every quarter to grow by 20%, 30% easily.

    — Mr. Abhinav Gupta, President, Corporate Strategy

Revenue Mix

  • Proprietary Revenue Percentage Revenue Mix · next 3 to 4 years · High confidence 30%-35%
    But the percentage of prop revenue should drop to 30%-35% next 3 to 4 years.

    — Mr. Kamlesh Shah, Managing Director

Dividend

  • Dividend Payout Ratio Dividend · ongoing · High confidence 12%
    We have restricted our dividend payout to 12% of that on a standalone basis.

    — Mr. Kamlesh Shah, Managing Director

Risks & concerns

  • Regulatory Challenges and External Headwinds

    medium

    The company faced significant regulatory challenges and external factors in Q3 and Q4 of the last financial year, which affected performance, but management believes these are now stabilizing.

    Management acknowledged

Q&A highlights

3 direct
Contribution of Proprietary Trading to Profitability and Future Business Mix Direct
But at the bottom-line level, not more than 50% or 55% of our profitability comes from proprietary trading. The rest of profitability comes from all the other segments combined.

Clarifies that while proprietary trading appears to dominate revenue, its contribution to actual profitability is lower, and the company is actively diversifying.

Asked by Ashish Jindal

Promoter Shareholding Pattern and Dilution Direct
The promoters have not sold any shares, and I think, if you see from last couple of quarters, the shareholding pattern was a stability factor. Just to answer your question in a more pointed way, the promoters have not sold shares. I think all the dilution has been because of either acquisitions or new capital being issued to new investors.

Addresses concerns about declining promoter shareholding by explaining it's due to strategic acquisitions and capital raising, not promoter selling, indicating stability.

Asked by Kunal Choudhary

Negative Cash Flow from Operating Activities Direct
You need to understand that ours is a financial company, and all the money invested into the FDs or any other investment product is also taken as an operating cash flow -- cash outflow. And hence, because of that, you might see a negative operating cash flow. But I think for a finance company, just looking at a pure-play, cash flow from operations would not be a right message, because a lot of investment related are classified as operating activities and taken in a negative cash outflow.

Provides a sector-specific explanation for negative operating cash flow, clarifying that it's due to investments classified as operating activities for a financial company, rather than operational inefficiency.

Asked by Kunal Choudhary

2 min read 7 chapters

Detailed narrative

Strong Q1 FY26 Performance and Rebound

Share India Securities Limited demonstrated a robust recovery in Q1 FY26. Consolidated revenue from operations increased by 42.57% QoQ to ₹341 crores, while consolidated PAT surged by 353% QoQ to ₹84 crores. Standalone results also showed significant improvement, with revenue up 45.6% QoQ to ₹273 crores and PAT rising 324% QoQ to ₹69 crores, highlighting strong operational efficiency after a challenging previous quarter.

Strategic Diversification with WealthTech Venture (Project Drone)

The company is venturing into the WealthTech segment with 'Project Drone,' a technology-driven product designed to serve all classes of investors. Led by Mr. Prabhakar Tiwari, a veteran from Angel One, this initiative aims to build a comprehensive platform integrating trading, investing, advisory, and credit. The Minimum Viable Product (MVP) for Project Drone is expected to be launched within the next 6 to 9 months, targeting underserved Tier 2, 3, and 4 geographies.

Growth in Capital Markets and MTF Book

The company's MTF (Margin Trading Facility) book saw significant growth, jumping by approximately 40% from ₹186 crores in Q4 FY25 to ₹315 crores in Q1 FY26. Management expects the MTF book to grow by at least 20-30% going forward and potentially reach ₹1,000 crores. Additionally, Share India successfully raised ₹100 crores through NCDs at a competitive rate of 10.75%, indicating strong market acceptance.

Expansion into PMS and Future AIF Plans

Share India has secured SEBI permission for its Portfolio Management Services (PMS) license. The first PMS team, comprising industry professionals, is slated for launch by September. This move is a strategic step towards entering the fund management system, with plans to explore AIF (Alternative Investment Fund) offerings approximately one year after stabilizing PMS operations, aiming to diversify revenue streams.

Silverleaf Merger and Institutional Business Performance

Regulatory approval from SEBI and exchanges has been received for the merger of Silverleaf, an acquisition expected to boost revenues from quant trading. The company's institutional desk has shown strong performance, acquiring 140 institutional clients (FII, DII, mutual funds) within a year of operation, achieving breakeven in its first year. Management anticipates institutional client growth of 20-30% quarter-on-quarter.

Evolving Revenue Mix and Profitability Outlook

Management clarified that while proprietary trading appears to be a major revenue contributor, it accounts for only 50-55% of the company's profitability. Subsidiaries contribute 25-30% of consolidated revenue, with the prop desk contributing 45-50% of the remaining 70%, and investors 20-25%. The strategic goal is to reduce the proprietary revenue percentage to 30-35% over the next 3-4 years, emphasizing diversification and sustainable growth across verticals.

Navigating Regulatory Environment and FY26 Outlook

The company acknowledged facing significant regulatory challenges and external headwinds in the last two quarters of FY25. However, management expressed confidence that these issues are now stabilizing, and the business is picking up. They project an overall growth of 20-25% for the current financial year (FY26), driven by new initiatives and a diversified business model.

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