Share India Securities Reports Record Q1 FY27 Profit; Net Profit Rises 47% YoY to ₹124.4 Crore

What Happened ?

key details – Operational Performance

Broking Business:

The broking segment continued to expand during the quarter.

Key highlights include:

• Clients serviced: 48,061
• Average Daily Turnover: ₹90 billion
• Institutional Clients: 212
• Margin Trading Funding (MTF) AUM: ₹465.5 crore, up 47.8% YoY. 

NBFC Business:

The lending business maintained stable growth while improving asset quality.

Key developments:

• Loan Book: ₹268.2 crore
• Quarterly Disbursements: ₹79.9 crore
• NBFC Clients: 37,538 across 68 branches
• Gross NPA: Improved to 4.05% (down 25 bps QoQ)
• Net NPA: Improved to 2.26% (down 40 bps QoQ)
• Return on Assets (ROA): Increased to 1.71% from 1.55% in Q4 FY26. 

Mutual Fund Business:

The company’s investment distribution platform continued to scale.

Highlights include:

• Assets Under Administration (AUA): ₹230.7 crore
• Mutual Fund Customers: 19,632.

Operational Strength:

The company continued expanding its distribution network and customer base.

Current scale includes:

• 225 broking branches and franchisees.
• 68 NBFC branches.
• 1,12,800 insurance lives covered.
• Strong presence across broking, lending, wealth management, insurance and institutional services. 

Management Commentary:

• Management stated that Q1 FY27 marked the company’s strongest quarterly profit performance to date.
• The company highlighted continued expansion of its client base, growth in the MTF portfolio, strengthening of its branch and franchise network, and improved contributions from multiple business segments.
• Management reiterated its focus on disciplined execution, technology-led innovation and building a diversified financial services platform to drive sustainable long-term growth.

Note:

• Share India Securities delivered broad-based growth across its core businesses, with strong operating leverage translating into record profitability.
• Improvements in lending asset quality, rapid expansion of the MTF book and continued customer acquisition indicate that growth is being supported by multiple business verticals rather than a single revenue source.
• The interim dividend further reflects management’s confidence in the company’s financial strength. 

Risk Analysis

Summary:

• Despite strong operating momentum, earnings remain influenced by capital market activity and credit quality within the lending business.

Key Risks:

• Revenue remains sensitive to trading volumes and overall capital market activity.
• Margin Trading Funding growth requires continued prudent risk management.
• NBFC profitability depends on maintaining asset quality and controlled credit costs.
• Competitive pressure within financial services and fintech segments may impact margins.
• Regulatory changes affecting capital markets or lending businesses could influence future performance. 

Worst Case:

• A prolonged slowdown in capital market activity or deterioration in lending asset quality could moderate earnings growth despite the company’s diversified financial services platform.

Risk Level: Medium

Company Commentary

• Reported record quarterly consolidated net profit of ₹124.4 crore, up 47.2% YoY.
• Revenue increased 31.3% YoY to ₹448.1 crore, while EBITDA grew 45.2% YoY.
• MTF Assets Under Management expanded 47.8% YoY to ₹465.5 crore.
• NBFC business improved asset quality with lower GNPA and NNPA, while ROA increased to 1.71%.
• Declared the first interim dividend of ₹0.50 per equity share and reiterated its focus on technology-driven, diversified financial services growth.