Share India Sec.

Share India Securities reported a strong Q3 FY26. On a standalone basis, revenue from operations increased 18% year-on-year to ₹305 crores, with Profit Before Tax (PBT) rising 34% to ₹107 crores and Profit After Tax (PAT) up 35% to ₹81 crores. Consolidated results also showed growth, with revenue at ₹372 crores (up 9% YoY), PBT at ₹122.35 crores (up 9.32% YoY), and PAT at ₹89 crores (up 8% YoY). The company declared a third interim dividend of ₹0.40 per share, representing 20% on the face value.

The company maintains a healthy financial position with a consolidated net worth exceeding ₹2,600 crores. The debt-equity ratio is comfortable at 0.24%, and the current ratio stands at 2.12x. Operating profit margin was 43%, and net profit margin was 24%. Management expressed cautious optimism for Q4 FY26, anticipating double-digit returns driven by earning recovery and supportive policies, with benchmark indices rebounding from recent dips.

In the NBFC segment, the company has strategically shifted from unsecured lending in Tier 2/3 towns to a more secured book, which now constitutes around 40% of the total book. This shift has led to a lower Net Interest Margin (NIM) but is expected to stabilize after a few more hundred basis points of downward traction. The increase in NPAs for Q3 was attributed to conservative provisioning for defaults in the unsecured book during its downsizing. Management expects NPAs to trend downwards as the secured book grows.

The broking business saw significant traction, with Average Daily Turnover (ADTO) increasing 29% quarter-on-quarter, from ₹7,500 crores in Q2 to ₹9,700 crores in Q3. The MTF book grew marginally by 3% QoQ to ₹457 crores despite market volatility^🌐. Active retail clients increased by 1% QoQ, and institutional active clients saw a 13% growth, reaching 174 institutions. The company attributes this growth to market stabilization, increased commodity volatility, and strong participation across all products.

Share India is aggressively expanding its product portfolio. The wealth management team is expected to be operational from Q1 FY27, with PMS launching in the next 10-15 days. An AIF license has been applied for a new subsidiary, Share India Wealth Multiplier Solutions Private Limited. Additionally, Share India Cred Capital Private Limited, a new technology-driven fixed income investment distribution platform, will be operational from Q1 FY27, leveraging the Greyhill partnership.

The Silverleaf merger is expected to receive NCLT approval by the end of the current quarter and complete in the next financial year, projected to contribute ₹50-60 crores in initial gross revenue and grow 2-3x in the next 1-2 years. uTrade, focusing on customer-facing algo trading products, is also expected to multiply its revenue by 2-3x in the next 1-2 years by offering its products to multi-brokers. Algowire primarily serves the parent company by providing low-latency solutions.

The company plans to expand its retail footprint by starting five pilot branches in Tier 3 cities from April onwards (Q1 FY27). The strategic focus is on high-touch businesses and offering multiple wealth management products, including AIF, structured AIF, and debt-based investments, to grow its retail base. Share India aims to double its MTF book from the current ₹457 crores to ₹900-1,000 crores within the next two years, leveraging its physical presence and digital marketing efforts.

Merchant banking revenues are acknowledged to be cyclical, with a greater impact in SME markets. The company is shifting its focus towards main board IPOs. They have six approvals in hand and have filed one main board IPO in September (awaiting approval, expected to open next quarter) and another in January 2026. The strategy involves completing approvals for SME markets while focusing on main board IPOs and new companies in the deal pipeline from next year.