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    Share India Sec.

    SHAREINDIAGood
    Financial Services·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

    8

    • 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.

    What Changed2

    vs Q3 FY26

    Guidance items18 → 10 (-8)Risks discussed3 → 1 (-2)

    Key financials

    Single quarter

    09 metrics
    1. 01Consolidated Revenue₹341 Cr-17.5%YoY
    2. 02Consolidated PBT₹111 Cr-15.3%YoY
    3. 03Consolidated PAT₹84 Cr-18.4%YoY
    4. 04Consolidated EPS₹3.86
    5. 05Standalone Revenue₹273 Cr-15.7%YoY

    Guidance & targets

    10
    CategoryTargetPriority
    Credit Growth
    MTF Book Growth
    20%-30%
    		Medium
    Credit Growth
    MTF Book
    ₹1,000 crores
    		Medium
    Overall Growth
    Company Growth
    20%-25%
    		Medium
    New Business
    PMS Launch
    September
    		High
    New Business
    Project Drone MVP
    6-9 months
    		High
    New Business
    AIF Plans
    after 1-year maybe
    		Low
    Volume
    Exchanges Volume
    far better
    		Medium
    Client Growth
    Institutional Client Growth
    20%-30%
    		Medium
    Revenue Mix
    Proprietary Revenue Percentage
    30%-35%
    		High
    Dividend
    Dividend Payout Ratio
    12%
    		High

    Risks & concerns

    1
    RiskSeverity

    Regulatory Challenges and External Headwinds

    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

    medium

    Q&A highlights

    3

    “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

    2 min read7 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    07

    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.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.