Share India Securities Limited — Q4 FY25 earnings call

Call held 2 Jun 2025

Management summary

Share India Securities reported a challenging Q4 FY25 and full year FY25, with significant declines in revenue and profitability attributed to regulatory changes, market volatility, and a ₹42 crores fair value loss on its investment book. Despite the headwinds, management expressed optimism, stating the worst is behind them and anticipating a rebound in 2-3 quarters. The company is focusing on strategic diversification into retail, wealth, Algo trading, and secured NBFC lending, with ambitious growth targets for client acquisition, MTF book, and AUM.

Highlights

  • Q4 FY25 Consolidated Revenue: ₹239 crores, a 30% QoQ decrease.

  • Q4 FY25 Consolidated PAT: ₹19 crores, a 77% QoQ decline.

  • FY25 Consolidated Revenue: ₹1,449 crores, a 2.5% YoY decline.

  • FY25 Consolidated PAT: ₹328 crores, a 23% YoY decrease.

  • FY25 Consolidated EPS: ₹15.58 on a face value of ₹2 per share.

  • FY25 Consolidated Net Worth: Jumped to over ₹2,300 crores.

  • Retail client base grew 30% YoY to over 46,252 clients.

  • MTF book increased 330% YoY to ₹239 crores by FY25 end.

Concerns

  • Regulatory changes impacting derivative market volumes and profitability

Key financials

3 periods

Headline

  • Consolidated Revenue
    ₹239 Cr
    QoQ -30%
  • Consolidated PBT
    ₹23 Cr
    QoQ -79%
  • Consolidated PAT
    ₹19 Cr
    QoQ -77%
  • Consolidated EPS
    ₹0.71

Q4 FY25

  • Fair Value Loss
    ₹42 Cr

FY25

  • Consolidated Revenue
    ₹1,449 Cr
    YoY -2.5%
  • Consolidated PAT
    ₹328 Cr
    YoY -23%
  • Consolidated Net Worth
    ₹2,300 Cr
  • Retail Clients
    46,252 clients
    YoY +30%
  • MTF Book
    ₹239 Cr
    YoY +330%

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

Volume

  • MTF book size Volume · Next 3 years · High confidence ₹1,000 crores
    Next 3 years, our MTF book will not be less than INR1,000 crores.

    — Sachin Gupta, CEO and Whole Time Director

  • Retail client base Volume · Next 3 years · High confidence 2 lakh to 2.5 lakh clients
    Retail clients so number, we are targeting 2 lakh to 2.5 lakh clients in next 3 years.

    — Sachin Gupta, CEO and Whole Time Director

  • Mutual Fund AUM growth Volume · This financial year · High confidence At least 100%
    And our aggressive target is on mutual fund AUM should at least grow by 100% this financial year on year-on-year basis.

    — Kamlesh Shah, Managing Director

Profitability

  • PMS business growth Profitability · Next 3 years · Medium confidence Positive growth
    And next 3 years, PMS will also start showing positive growth.

    — Sachin Gupta, CEO and Whole Time Director

  • Prop trading numbers Profitability · Q4 FY25 (implying improvement from Q1 FY26) · High confidence Bottom quarter
    we also believe that fourth quarter should be the bottom as far as prop trading numbers are concerned because we are seeing that retailers have also start picking their volumes.

    — Abhinav Gupta, President, Corporate Strategy

Revenue

  • Insurance premium Revenue · This financial year · High confidence 3-figure premium
    our internal target is, we should touch 3-figure premium this year.

    — Kamlesh Shah, Managing Director

  • Insurance premium growth Revenue · Year-on-year basis · High confidence 30% to 35% jump
    So that is, again, 30% to 35% jump on year-on-year basis.

    — Kamlesh Shah, Managing Director

  • Overall business recovery to last year's numbers Revenue · Next 2 to 3 quarters · Medium confidence Catch up to last year's numbers
    And next 2 to 3 quarters, we hope that we'll be able to catch the last year numbers very soon.

    — Sachin Gupta, CEO and Whole Time Director

Risks & concerns

  • Regulatory changes impacting derivative market volumes and profitability

    high

    Rigorous regulatory changes (reduced expiries, increased margins, intraday trading limits) and extreme market volatility in Q4 FY25 directly impacted performance, but management believes the worst is over and they are adapting strategies.

    Management acknowledged

  • Fair value loss on investment book due to negative market sentiment

    medium

    A ₹42 crores fair value loss was booked in Q4 FY25 due to the investment book's exposure to market downturns, but management clarified it was not from unhedged trading strategies and all accounting measures are taken.

    Management acknowledged

  • Concentration in unsecured NBFC loans

    medium

    Historically, the NBFC book had a higher proportion of unsecured loans. Management is actively mitigating this by shifting focus to secured SME loans and aiming for a 50/50 balance, alongside strict risk management for unsecured portfolios.

    Management acknowledged

Q&A highlights

3 direct
Prop book performance and unrealized losses Direct
So fair value numbers, it is because of the investments in our book and because last quarter, the stock prices have gone down, so we have to book some fair value loss. That number is around INR42 crores. Unless that quarter was not that bad, so fair value loss was around INR42 crores in the fourth quarter.

Clarified the significant Q4 profit decline was largely due to a non-operational fair value loss on investments, not unhedged trading strategies, providing insight into the prop book's composition.

Asked by Akshay Sharma

Impact of regulatory changes on options trading Direct
So SEBI has made the changes from 5 expiries to 2 expiries and restricted it between the 2 exchanges. So that is the primary reason that volumes have gone down... So now we have changed our strategy from the volume base to more margins. So only what we were doing, we were churning it a lot and earning very nice margin. Now our churning has been reduced, and we are relying on the better margins.

Addressed the industry-wide impact of regulatory changes on derivative volumes and detailed the company's strategic shift to a margin-based approach to adapt to the new regime.

Asked by Rohan Shah

NBFC loan book growth and asset quality management Direct
Mr. Aditya, our loan book has not decreased, but it has increased only marginally from the last year. Yes, we are we have adopted many strategies to mitigate this, main strategy is to balance our loan book between unsecured to secured. Initially, our book -- main book consisted of unsecured loans. Now we are balancing it with the secured loans. Our strategy is to maintain this to by 50%, 50%.

Provided clarity on the NBFC loan book's trajectory and outlined specific risk management strategies, including balancing secured and unsecured loans and avoiding geographical concentration, to ensure asset quality.

Asked by Aditya Shah

2 min read 5 chapters

Detailed narrative

Q4 FY25 and Full Year FY25 Performance Review

Share India Securities reported a challenging Q4 FY25, with consolidated revenue at ₹239 crores, marking a 30% sequential decline, and consolidated PAT at ₹19 crores, a 77% QoQ decrease. This was primarily attributed to regulatory changes, market volatility, and a ₹42 crores fair value loss on the investment book. For the full fiscal year 2025, consolidated revenue stood at ₹1,449 crores, a 2.5% YoY decline, while consolidated PAT decreased by 23% YoY to ₹328 crores, resulting in an EPS of ₹15.58. Despite the downturn, the consolidated net worth increased to over ₹2,300 crores.

Impact of Regulatory Changes and Market Outlook

The company acknowledged that rigorous regulatory changes, including reduced weekly expiries and increased margins, significantly impacted derivative market volumes and profitability in the past year. However, management expressed optimism, noting that the market is stabilizing, and the appointment of a new SEBI chairperson with a forward-looking perspective suggests a potential uplift. Recent clarifications on investment opportunities and the introduction of two weekly expiries for multi-exchanges are expected to stimulate higher trading volumes, with management believing the worst is behind them and a recovery expected in 2-3 quarters.

Strategic Diversification and Growth Initiatives

Share India is actively diversifying its business model beyond traditional prop trading. The retail client base expanded by 30% YoY to over 46,252 clients, with a target of 2 lakh to 2.5 lakh clients in the next three years. The MTF book demonstrated robust growth, increasing 330% YoY to ₹239 crores, with an ambitious target of ₹1,000 crores within three years. The company is also focusing on Algo trading for retail, PMS, and AIF, aiming to leverage its technology and market position for sustainable growth.

NBFC Business Transformation

The NBFC segment maintained its book size at approximately ₹260 crores, despite a reduction in client base from 69,000 to 52,000. A key strategic shift involves balancing the loan book between unsecured and secured loans, targeting a 50/50 split, moving away from a predominantly unsecured portfolio. This change, coupled with stringent risk management practices such as avoiding geographical concentration and detailed borrower assessments, is expected to stabilize the NBFC business and improve returns in the coming year.

Expansion in Insurance and Mutual Fund Distribution

The company is making significant strides in its insurance and mutual fund distribution businesses. The insurance premium grew by 35-40% YoY to ₹75 crores in FY25, with an internal target to achieve a 3-figure premium (₹100 crores or more) and a 30-35% jump in FY26. For mutual fund AUM, an aggressive target of at least 100% growth is set for FY26, supported by strategic partnerships and a focus on expanding presence in northern India, including Punjab, Chandigarh, Delhi, Himachal, and Haryana.

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