Share India Sec.

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.

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.

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.

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.

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.