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Share India Securities LtdQ4 FY27

Share India Securities Ltd Q4 FY27 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: 137P/E: 12.7Market Cap: ₹3.0K CrSector: Capital Markets

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 2
  • Q3 FY26 standalone revenue grew 18% YoY; consolidated revenue up 9% YoY, indicating positive growth momentum.
  • Average Daily Turnover (ADTO) increased by 29% from Q2 to Q3 FY26, driven by cash market stabilization and commodity market growth, expected to sustain with ±5% variation.
  • Commodity market volumes, especially gold and silver, show structural uptick contributing to growth.
  • Institutional client base grew by 13% QoQ; retail active clients increased marginally, showing improving market participation.
  • Merchant banking revenues remain cyclical but focus on main board IPOs and new deal pipeline to sustain deal flow.
  • MTF book and broking income expected to grow via expansion into Tier 3 cities and digital marketing of products like uTrade Algo.
  • Subsidiaries uTrade and Silverleaf expected to grow revenues 2x-3x in next 1-2 years, adding to overall growth.
  • Full-year insurance business revenue targeted for 20-25% YoY growth, bolstered by strong Q4 performance.

Margin guidance

Category 3
  • Standalone profit after tax for Q3 FY ‘26 increased by 35% YoY to Rs. 81 crores; consolidated PAT up 8% YoY to Rs. 89 crores.
  • Earnings per share (EPS) on standalone basis: Rs. 3.69; consolidated EPS: Rs. 4.06.
  • Insurance business targets 20%-25% YoY growth for the full fiscal year, with the strongest quarter expected in JFM (January-March).
  • Broking income growth driven by margin trading finance (MTF) and new algo trading products; retail client base expected to grow via expansion into Tier 3 cities.
  • Subsidiaries uTrade and Silverleaf expected to double or triple revenues over the next 1-2 years, contributing significantly to profit growth starting FY ‘27.
  • Stability and growth in average daily turnover (ADTO), with Q3 seeing a 29% increase from Q2.
  • Focus on expanding wealth management, PMS, and alternative investment funds starting next fiscal year expected to add incremental earnings.

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Fundraise plans

  • No explicit mention of any current or upcoming fundraising through debt or equity in the provided transcript.
  • The company has a comfortable debt-equity ratio of 0.24%, indicating low leverage.
  • Strategic focus appears on organic growth through existing and new business verticals (e.g., AIF, PMS, wealth management, MTF expansion, subsidiaries like Silverleaf, uTrade, Algowire).
  • Plans include branch expansion and launching new products rather than raising capital externally.
  • No direct reference to capital raising or fund infusion through equity or debt during the discussed quarters or near future.
  • Emphasis on maintaining control and disciplined growth without indication of an equity or debt raise.

Order book

  • Share India currently has around six merchant banking approvals in hand.
  • They have filed one main board IPO in September, awaiting approval, expected to open next quarter.
  • Another main board IPO was filed in January this year.
  • The focus is to complete pending SME market approvals once the market stabilizes.
  • Continued emphasis will be on main board IPOs, with new companies in the deal pipeline from next year.
  • Market conditions for merchant banking revenues remain cyclical and visibility depends on market stabilization.
  • Next quarter is seen as crucial for a significant uptick in market sentiment and deal flow.

Capex plans

Yes
  • Share India is focusing on strategic investments and new initiatives primarily from the next financial year (FY27), including:
  • - Launch of Alternative Investment Fund (AIF) and Portfolio Management Services (PMS), with AIF license already applied for via subsidiary Share India Wealth Multiplier Solutions Pvt Ltd.
  • - Formation and operationalization of Share India Cred Capital Pvt Ltd (technology-driven fixed income investment distribution platform) starting Q1 FY27.
  • - Merger of Silverleaf (specialized trading subsidiary) expected post-NCLT approval by end of current quarter, adding new revenue streams next financial year.
  • - Expanding branch network starting with five pilot branches in Tier 3 cities from April FY27 to grow retail client base and MTF book.
  • No immediate capex specifics disclosed for current quarter; focus is on operational expansion, technology investments via subsidiaries, and expanding product portfolio for long-term growth.

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