Share India Securities Limited

Share India Securities reported a strong Q3 FY26, with standalone revenue from operations increasing 18% year-on-year to Rs. 305 crores and profit after tax growing 35% year-on-year to Rs. 81 crores. Consolidated revenue stood at Rs. 372 crores, up 9% year-on-year, with consolidated profit after tax at Rs. 89 crores, an 8% increase. The company declared a third interim dividend of Rs. 0.40 per share, representing 20% on the face value of Rs. 2. Consolidated net worth stands at over Rs. 2,600 crores, with a comfortable debt-equity ratio of 0.24% and an operating profit margin of 43%.

The company observed stabilization and improvement in market participation, with Average Daily Turnover (ADTO) jumping 29% quarter-on-quarter from Rs. 7,500 crores to Rs. 9,700 crores. The MTF book also saw a marginal 3% quarter-on-quarter increase to Rs. 457 crores, despite a volatile market. Active clients in equities increased by 1% quarter-on-quarter, and institutional active clients grew significantly by 13% from 154 to 174. The commodity market, particularly gold and silver, contributed significantly to the ADTO growth due to volatility.

Share India is actively pursuing several new initiatives expected to become operational from Q1 of the next financial year. These include the launch of AIF and PMS products, the operationalization of Share India Cred Capital Private Limited for the debt market, and the expansion of its branch network with five pilot branches starting April. The company aims to double its MTF book from Rs. 450 crores to Rs. 900-1,000 crores within the next two years, primarily by focusing on Tier 3 cities. Subsidiaries like uTrade and Silverleaf are also projected to see 2x-3x growth in the next one to two years.

The NBFC vertical is undergoing a strategic shift from unsecured lending in Tier 2/3 towns to a more secured book, which now contributes around 40% of the total book. This transition is expected to result in a few more hundred basis points of downward traction in Net Interest Margins (NIMs) before stabilization. The company also reported an increase in NPAs for Q3 versus Q2, attributed to stress in the unsecured book and a conservative provisioning approach, but anticipates NPAs to trend downwards going forward^⏳ as the secured book grows.

Wealth management remains a core focus area, with planning and recruitment for the team underway, aiming for the team to be on the ground by Q1 of the next financial year. The launch of PMS, though slightly delayed due to compliance issues, is expected within the next 10-15 days. Additionally, a new company, Share India Wealth Multiplier Solutions Private Limited, has been formed, and an AIF license has been applied for, signaling a comprehensive push into wealth management and third-party product distribution.

Merchant banking revenues are acknowledged to be cyclical due to market conditions. To mitigate this, the company is focusing on main board IPOs, having filed one in September (awaiting approval for next quarter) and another in January. The strategy involves letting the market stabilize before completing approvals for SME market deals and building a pipeline of new companies from the next year onwards. The company currently has around six approvals in hand for merchant banking activities.