Share India Securities Limited — Q3 FY26 earnings call

Call held 28 Jan 2026

Management summary

Share India Securities Limited reported a robust Q3 FY26 with strong standalone performance, including an 18% YoY revenue growth to Rs. 305 crores and a 35% YoY PAT increase to Rs. 81 crores. Consolidated revenue grew 9% YoY to Rs. 372 crores, with PAT up 8% YoY to Rs. 89 crores. The company saw significant growth in ADTO by 29% QoQ and a 13% increase in institutional active clients, alongside a 3% QoQ rise in MTF book despite market volatility. However, the NBFC segment experienced NIM compression and increased NPAs, and the PMS launch faced delays.

Highlights

  • Standalone revenue from operations grew 18% YoY to Rs. 305 crores.

  • Standalone Profit After Tax (PAT) increased 35% YoY to Rs. 81 crores.

  • Consolidated revenue from operations grew 9% YoY to Rs. 372 crores.

  • Average Daily Turnover (ADTO) saw a significant 29% QoQ increase, reaching Rs. 9,700 crores.

  • Institutional active clients grew 13% QoQ, from 154 to 174.

  • MTF book increased marginally by 3% QoQ to Rs. 457 crores despite volatile market.

Concerns

  • Consolidated results were comparatively lower than standalone for the quarter.

  • NBFC segment expects further downward traction in Net Interest Margins (NIMs) and saw an increase in NPAs Q3 vs Q2.

  • PMS launch was delayed due to compliance issues.

Key financials

  1. Revenue from Operations (Standalone) ₹305 Cr +18%YoY
  2. Profit After Tax (Standalone) ₹81 Cr +35%YoY
  3. EPS (Standalone) ₹3.69
  4. Revenue from Operations (Consolidated) ₹372 Cr +9%YoY
  5. Profit After Tax (Consolidated) ₹89 Cr +8%YoY
  6. EPS (Consolidated) ₹4.06
  7. Net Worth (Consolidated) ₹2,600 Cr
  8. Debt Equity Ratio 0.24
  9. Operating Profit Margin 43%
  10. Net Profit Margin 24%
  11. Average Daily Turnover (ADTO) ₹9,700 Cr +29%QoQ
  12. MTF Book ₹457 Cr +3%QoQ
  13. Institutional Active Clients 174 +13%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.

Capital allocation

high confidence
  • Dividend ₹0.4/share (interim)
    We have also declared a third interim dividend of Rs. 0.40 per share, that comes to around 20% on the face value.
  • M&A Silverleaf Merger · Pending regulatory

    Expected to add more revenues from different streams by professionally trained traders.

    Expected initial revenue of Rs. 50-60 crores, with potential to multiply by 2x-3x in 1-2 years post-merger.

    So, Silverleaf, as I explained last quarter, SEBI approvals were received. And again, things are in NCLT. So, they are in advanced stage, so we believe NCLT approval should come by end of this quarter. So, Silverleaf merger will happen next financial year, that will also add to the numbers of the Share India in next financial year. That is a big thing we all are looking forward. So, that will give us, again, more revenues from the different streams by the highly professionally trained traders.
  • M&A Share India Wealth Multiplier Solutions Private Limited New entity formation · Announced

    To launch AIF and manufacture/distribute wealth products.

    New AIF license applied, expected to drive wealth management growth from next financial year.

    And also on PMS side, yes, there is some delay in PMS because of some compliance issues. And PMS any time, next 10 to 15 days, PMS will be launched. And once that PMS part is done. AIF, we have applied for the license and the new Company formed called Share India Wealth Multiplier Solutions Private Limited. So, a new AIF license, it actually has been applied in Share India Wealth Multiplier Solutions Private Limited. This Company is a wholly owned subsidiary of Share India.
  • M&A Share India Cred Capital Private Limited New entity formation · Announced

    To focus on the debt market with a technology-driven fixed income investment distribution platform.

    Expected to be operational from Q1 of the next financial year.

    And one more Company has been formed. I explained in the last con call Share India Greyhill Partnership for the debt market. So, taking it forward, a Company has been formed, Company is called Share India Cred Capital Private Limited. It is a subsidiary of the Share India Securities. This Company has been incorporated on 6th January 2026. So, this will be a technology-driven fixed income investment distribution platform, led by the Goyal family. They presented their part in the last con call. So, taking ahead the Greyhill partnership, so the Company has been formed. And again, this Company will be operational from the Q1 of the next financial year.

Guidance & targets

Market Outlook

  • Indian Capital Market Outlook Market Outlook · 2026 · Medium confidence Cautionsly optimistic, double-digit return
    The Indian capital market outlook for year 2026 remains cautiously optimistic despite under performance in year 2025. And recent volatility with analysts forecasting double-digit return driven by earning recovery and supportive policies.

    — Kamlesh Shah

NBFC

  • NIMs NBFC · Near term · Medium confidence Stabilize after few more hundred basis points downward traction
    So, the blended NIMs that you would see, we will see a few more hundred basis points downward traction before they stabilize at that level.

    — Abhinav Gupta

  • NPAs NBFC · Going forward · Medium confidence Going downward only
    But going forward, we should see these kind of NPAs going downward only.

    — Abhinav Gupta

MTF Book

  • MTF Book Growth MTF Book · Next two years · High confidence Rs. 900-1,000 crores

    From Rs. 450 crores today

    Next two-year target is to double the book from Rs. 450-odd crores to anywhere between Rs. 900 crores to, four figures, to Rs. 1,000 crores is our aim.

    — Sachin Gupta

Subsidiaries

  • uTrade Revenue Growth Subsidiaries · Next one or two years · Medium confidence 2x to 3x
    And we believe that uTrade numbers should also multiply by 2x to 3x in next one or two years.

    — Abhinav Gupta

  • Silverleaf Revenue Growth Subsidiaries · Next one or two years (post-merger) · Medium confidence 2x to 3x
    then these numbers can easily multiply by 2x to 3x in next one year or two years. So, this is Silverleaf.

    — Abhinav Gupta

Insurance

  • Insurance Business Growth Insurance · Full year FY26 · High confidence 20-25%
    So, full year projection, we are expecting at least 20% to 25% growth year-on-year basis from April to March.

    — Sachin Gupta

ADTO

  • ADTO Variation ADTO · Going forward · Medium confidence Plus/minus 5%
    Going forward, we continue to believe that our ADTO numbers should remain in the similar numbers with plus/minus 5% kind of a variation going forward.

    — Abhinav Gupta

New Initiatives

  • Operationalization of New Initiatives New Initiatives · Next financial year (Q1) · High confidence Operational
    So, next year you will see a lot of new initiatives will start showing some ground like AIF, PMS, wealth distribution and Share India Cred Capital also will be operational from the next financial year.

    — Sachin Gupta

Branch Expansion

  • Pilot Branches Branch Expansion · From April onwards (Q1 next FY) · High confidence 5 pilot branches
    So, from April onwards we will start all these branches at five different locations, again, Q1 next financial year.

    — Sachin Gupta

What to watch in Q4 FY26

Silverleaf merger completion

Next quarter (Q4 FY26 / Q1 FY27)
Current NCLT approval pending, expected by end of Q3 FY26
Target Merger completed, operational next financial year

Why it matters

Significant revenue contribution (Rs. 50-60 crores initially) and growth potential post-merger.

So, Silverleaf, as I explained last quarter, SEBI approvals were received. And again, things are in NCLT. So, they are in advanced stage, so we believe NCLT approval should come by end of this quarter. So, Silverleaf merger will happen next financial year, that will also add to the numbers of the Share India in next financial year.

Risks & concerns

  • Short-term market volatility and external factors

    medium

    Short-term range-bound trading due to global trade tensions, FII outflow, muted IPO activity, and inflation potentially delaying rate cuts.

    Management acknowledged

  • NBFC NIM compression and NPA increase

    medium

    NIMs expected to see further downward traction, and NPAs increased Q3 vs Q2 due to stress in the unsecured book.

    Management acknowledged

  • Cyclicality of merchant banking revenues

    medium

    Merchant banking numbers have a cyclical effect due to market conditions, with SME markets having a larger impact.

    Management acknowledged

  • Delay in PMS launch

    low

    PMS launch delayed due to compliance issues, but expected within 10-15 days.

    Management acknowledged

Q&A highlights

7 direct
NBFC NIM decline Direct
So, the blended NIMs that you would see, we will see a few more hundred basis points downward traction before they stabilize at that level.

Clarifies the ongoing pressure on NIMs in the NBFC segment due to the strategic shift towards secured lending.

Asked by Harsh

NBFC client base and branch network reduction Direct
So, as we continuously maintain in terms of, we have sort of reduced our unsecured book which was given in Tier 2, Tier 3 towns. So, in terms of branch network we think we have mostly downsized whatever that we had to do.

Explains the strategic shift away from unsecured lending in Tier 2/3 towns, leading to downsizing of the branch network.

Asked by Harsh

NBFC NPA increase Q3 vs Q2 Direct
So, between Q3 and Q2, as we have said, in terms of unsecured book, we were already seeing a little bit of stress that was there in the last year as well. And we were very conservative in our approach to sort of start producing it before the industry.

Addresses the reason for the recent increase in NPAs, attributing it to stress in the unsecured book and a conservative approach to provisioning.

Asked by Harsh

Subsidiaries (uTrade, Algowire, Silverleaf) revenue and growth Direct
So, Silverleaf, once the merger will be done, we are expecting top line of Rs. 50 crores to Rs. 60-odd crores, and that's the initial revenues. And we are very hopeful the kind of technology they are bringing in, going further, if a parent Company like Share India is there, and we just help with more risk appetite and more capital exposure to them, then these numbers can easily multiply by 2x to 3x in next one year or two years.

Provides specific revenue expectations and growth potential for key subsidiaries, especially Silverleaf post-merger and uTrade.

Asked by Rohan

Insurance segment revenue decline Partial
Insurance, as you would appreciate, there's a little structural issue where a lot of business happens in the Q4 onwards. So, far an insurance Company, measuring only Q1 or Q2 or Q3 numbers would be inappropriate numbers. JFM quarter is a very strong quarter and the Company in the overall growth number should be on a growth trajectory.

Clarifies that the perceived decline is due to seasonality in the insurance business, with Q4 being a strong quarter, and reiterates full-year growth expectations.

Asked by Sejal

Retail broking growth plans and MTF book expansion Direct
Next two-year target is to double the book from Rs. 450-odd crores to anywhere between Rs. 900 crores to, four figures, to Rs. 1,000 crores is our aim. And how we will grow it? It's very simple. As I said, we are planning to start opening our branches on ground in Tier 3 cities where there's still a lot of scope.

Details the company's strategy for expanding its MTF book and retail presence through branch expansion in Tier 3 cities, aiming to double the book in two years.

Asked by Nitin

ADTO growth interpretation Direct
So, sir, the ADTO numbers that you referred to have seen some growth in Q3 specifically, which are contributed by the stability that has come in the cash market, and also the commodity market growth that has been there. Commodity market, especially in the last quarter has seen a really uptick, which we believe is a structural number and should continue at those similar levels.

Explains the drivers behind the significant ADTO growth, highlighting stability in the cash market and a structural uptick in the commodity market.

Asked by Rahul

Merchant banking revenues and IPO pipeline Direct
We have filed one main board IPO in September, which we are awaiting approval, which we should hopefully open in next quarter. We have also filed one more main board IPO in January this year. So, our strategy in terms of build pipeline would be to let the market stabilize a bit when we go ahead and complete the approvals that we have in hand for the SME market, and continue to focus on the main board IPOs, plus work on the new companies in the deal pipeline from next year onwards.

Provides an update on the merchant banking IPO pipeline, indicating two main board IPO filings and a strategic focus on main board issues and new companies.

Asked by Danish

3 min read 6 chapters

Detailed narrative

Overall Financial Performance

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%.

Capital Market Business Performance

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.

New Initiatives & Future Growth Drivers

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.

NBFC Segment Update

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 & PMS Strategy

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 Outlook

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.

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