Skip to content

    Share India Securities Q4 FY26 earnings call

    SHAREINDIA
    Financial Services·20 May 2026
    Management Summary

    Share India Securities reported strong standalone performance for Q4 and FY26, with significant revenue and PAT growth driven by operational efficiency and strategic diversification. While consolidated PAT saw a slight dip due to market conditions, the company is aggressively expanding into wealth management, debt markets, and retail broking. Management addressed regulatory challenges impacting prop trading and uTrade's multi-broker model, expressing confidence in navigating these with a strong capital base and diversified business model.

    Highlights

    5

    • Standalone Q4 FY26 Revenue significantly increased by 103% YoY to INR 383 crore, reflecting improved operational efficiency and strategy execution.

    • Standalone Q4 FY26 Profit After Tax (PAT) surged by 368% YoY to INR 75 crore, demonstrating strong profitability growth.

    • The MTF book showed robust growth, increasing by 77.4% YoY to INR 424 crore in FY26, with a target of INR 650 crore by FY27.

    • The company is actively diversifying into Wealth Management (PMS AUM at INR 100 crore, targeting INR 200 crore by FY27) and the debt market (targeting INR 500 crore worth of issues by FY27).

    • uTrade, the algo trading platform, crossed 5,000 clients in FY26, establishing Share India as a leader in this niche.

    Concerns

    3

    • Consolidated FY26 PAT marginally declined by 1.21% YoY to INR 324 crore, primarily due to weak market conditions and fair value adjustments.

    • The multi-broker expansion plan for uTrade faces challenges due to a recent SEBI circular requiring separate infrastructure setups for each broker, making it costly.

    • RBI regulations on proprietary trading are expected to impact overall limits by 20%, though management anticipates minimal bottom-line effect due to improved per-trade margins.

    What Changed3

    vs Q1 FY27

    Guidance items8 → 14 (+6)Risks discussed4 → 5 (+1)Q&A highlights4 → 8 (+4)

    Key financials

    Single quarter

    06 metrics
    1. 01Standalone Revenue₹383 Cr+103.7%YoY
    2. 02Standalone PAT₹75 Cr+3.7%YoY
    3. 03Consolidated Revenue₹416 Cr+74.1%YoY
    4. 04Consolidated PAT₹58 Cr+2.2%YoY
    5. 05Standalone EPS₹17.6+50.4%YoY

    Capital allocation

    2
    high confidence
    CategoryHeadline
    M&A

    Silverleaf

    merger · pending regulatory

    Liquidity

    Liquidity disclosed

    The company reported a strong net worth of INR 2,655 crore as of March 31, 2026, indicating a well-capitalized position to navigate challenges. Banks are extending bank guarantees for client business, helping manage liquidity needs.

    Guidance & targets

    14
    CategoryTargetPriority
    AUM
    PMS AUM
    INR 200 crores
    		High
    Regulatory Approval
    AIF CAT-3 Approval
    by end of Q2
    		Medium
    Business Operations
    AIF Operations Start
    start operations
    		High
    Debt Market
    Debt Issues (Share India Cred)
    INR 500 crore
    		High
    MTF Book
    MTF Book Value
    INR 650 odd crores
    		High
    Branch Expansion
    New Branches (Tier-3 cities)
    6 more branches
    		High
    Branch Expansion
    Total Branches (Tier-3 cities)
    at least 30 branches
    		High
    Profitability Mix
    Client Business Contribution to Profitability
    70%
    		High
    Profitability Mix
    Prop Business Contribution to Profitability
    30%
    		High
    Turnover Mix
    Client Turnover Contribution
    60%
    		High
    Profitability
    EBITDA Margin
    around 38% (+/-2%)
    		Medium
    Profitability
    PAT Margin
    around 22% (+/-2%)
    		Medium
    Regulatory Impact
    RBI Impact on Prop Limits
    20% impact
    		High
    Exchange Operations
    MSCI Derivative Segment Launch
    launch derivative segment
    		Medium

    What to watch in Q1 FY27

    5

    Silverleaf merger approval status

    within maximum quarters' time
    CurrentPending NCLT approval
    TargetApproval received

    Why it matters

    Approval of Silverleaf merger is crucial for diversifying revenue streams through HFT trading.

    Silverleaf merger as last call we spoke still in NCLT we hope it is in last leg of the approval. So, we should get in a maximum quarters' time.

    Risks & concerns

    5
    RiskSeverity

    Global economic volatility and geopolitical tensions

    The global economic environment remained volatile due to geopolitical tensions, trade uncertainties, fluctuating energy prices, and inflationary pressure, leading to FII selling and pressure on emerging markets. — Management acknowledged

    medium

    RBI restrictions on proprietary business funding

    RBI has disallowed banks from providing intraday limits for prop trading, impacting funding availability. Management expects a 20% impact on overall limits but minimal bottom-line effect due to improved per-trade margins. — Management acknowledged

    medium

    Frequent regulatory changes

    The industry faces frequent regulatory changes requiring continuous operational and system adoption, impacting overall margins. — Management acknowledged

    low

    SEBI circular impacting uTrade's multi-broker model

    A recent SEBI circular requires separate infrastructure setup for each third-party vendor, making the multi-broker model for uTrade costly and challenging at this juncture. — Analyst acknowledged

    medium

    Subdued consolidated results due to market conditions

    Consolidated results were relatively subdued compared to standalone performance, primarily due to weak market conditions and fair value adjustments relating to investments. — Management acknowledged

    medium

    Q&A highlights

    8

    “I think what you are looking at it from purely from a margin perspective is only from a Q4 perspective. It somehow happens in that both the last two years both Fiscal Year '25 and Fiscal Year '26 the Q4 has been little rough. Prior to that we usually used to have a better market scenario in Q4 earlier. So, I think it is more prudent to look at it from an annual perspective. If you look at it from an annual perspective as guided by us earlier we have maintained an EBITDA of around 38%, (+/-2%) and a PAT margin of around 22%, (+/-2%) which I think has been the broader guideline from the Management from the very beginning essentially.”

    Analyst questioned the Q4 margin dip, and management clarified it's not always seasonal, attributing recent dips to geopolitical volatility and emphasizing annual margin targets.

    asked by Rohan

    3 min read6 chapters

    Detailed Narrative

    01

    Q4 & FY26 Financial Performance Overview

    Share India Securities reported robust standalone performance for Q4 FY26, with revenue growing 103% YoY to INR 383 crore and PAT surging 368% YoY to INR 75 crore. Standalone EPS improved to INR 17.6 from INR 11.7 last year. For the full financial year 2026, standalone revenue increased 23% to INR 395 crore, and PAT rose 20% to INR 298 crore. Consolidated results were relatively subdued, with Q4 FY26 revenue up 74% YoY to INR 416 crore and PAT up 220% YoY to INR 58 crore. However, consolidated FY26 PAT marginally declined by 1.21% to INR 324 crore, attributed to weak market conditions and fair value adjustments.

    02

    Strategic Initiatives & Diversification

    The company is focused on diversifying revenue streams and expanding its footprint. Key initiatives include strengthening Wealth Management, developing a commodity business, and expanding retail presence. The MTF book grew significantly to INR 424 crore in FY26, up from INR 239 crore in FY25, with a target of INR 650 crore by FY27. The company's net worth stands strong at INR 2,655 crore as of March 31, 2026, providing a solid capital base for growth.

    03

    Wealth Management & Debt Market Expansion

    Share India is making significant strides in Wealth Management. Its PMS business has already garnered INR 100 crore in AUM, targeting INR 200 crore by FY27. The company has applied for AIF CAT-3 approval from SEBI, expecting it by Q2 FY27 end and operations to commence this financial year. In the debt market, Share India Cred has started operations in Q1 FY27, closing six issues and targeting INR 500 crore worth of issues by FY27, aiming to diversify from equity products.

    04

    uTrade Platform & Retail Expansion

    The uTrade algo trading platform has achieved a significant milestone, crossing 5,000 clients in FY26, with 5,231 clients currently. This platform is seen as a unique selling proposition for retailers. For retail expansion, Share India has opened 6 new company-owned branches in Tier-3 cities (Hyderabad, Indore, Bhopal, Varanasi, Agra, Raipur, Nagpur) and plans to open 6 more by FY27 end, with a long-term goal of 30 branches in the next 2-3 years. These branches will offer a full suite of products including broking, wealth management, and uTrade.

    05

    Regulatory Environment & Prop Trading Challenges

    The company acknowledged challenges from the volatile global economic environment and frequent regulatory changes. Specifically, a recent SEBI circular requiring separate infrastructure for each broker has made the multi-broker model for uTrade costly. Regarding RBI regulations on proprietary trading, intraday limits have been disallowed, but bank guarantees are permitted for client-based business. Share India, as a hybrid broker, expects a 20% impact on overall limits but anticipates minimal bottom-line impact due to improved per-trade margins and conversion of intraday limits to bank guarantees.

    06

    Outlook & Capital Position

    Management remains optimistic about the Indian capital markets, citing increasing financialization of savings and retail participation. The company aims to shift its profitability mix, targeting 70% from client business and 30% from prop business in the next three years, up from current 49-52% prop contribution. Annual EBITDA margin is expected to be around 38% (+/-2%) and PAT margin around 22% (+/-2%). The strong net worth of INR 2,655 crore positions the company well to capitalize on future opportunities and navigate market challenges🌐.

    This is an AI-generated summary of a publicly available earnings call transcript.