Summary
Share India Securities Limited - Q3 FY 2026 Earnings Call Summary Wednesday, January 28, 2026, 4:00 PM IST
Event Participants
Executives 3 Abhinav Gupta (President, Capital Markets and Products), Kamlesh Shah (Managing Director), Sachin Gupta (CEO & Whole-time Director)
Analysts 5 Danish, Harsh, Nitin, Rahul, Rohan (All Individual Investors)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Revenue (Consolidated) | ₹372 crores | +9% YoY; reflects stability in core broking despite market volatility. |
| Profit After Tax (Consolidated) | ₹89 crores | +8% YoY; driven by standalone growth of 35% in PAT. |
| Total Revenue (Standalone) | ₹305 crores | +18% YoY; strong performance in core operations. |
| Profit After Tax (Standalone) | ₹81 crores | +35% YoY; significant margin expansion at the standalone entity level. |
| Net Worth (Consolidated) | ₹2,600+ crores | Strengthening capital base to support new vertical launches in FY27. |
| Average Daily Turnover (ADTO) | ₹9,700 crores | +29% QoQ from ₹7,500 crores; driven by commodity volatility and cash market stability. |
| MTF Book | ₹457 crores | +3% QoQ; growth achieved despite value erosion in mid/small-cap segments. |
| Debt-to-Equity Ratio | 0.24% | Maintains conservative leverage; comfortable headroom for expansion. |
| Operating Profit Margin | 43% | Consolidated margin remains robust; Net Profit Margin at 24%. |
| Active Institutional Clients | 174 | +13% QoQ from 154; rapid empanelment despite only 2 years of desk operations. |
Geographic & Segment Commentary
- Retail Broking: Focused on Tier-3 cities through a “high-touch” brick-and-mortar model rather than pure digital competition. The company plans to launch 5 pilot branches in Q1 FY27 to expand the MTF book and distribute wealth products.
- NBFC / Lending: Shifting focus from unsecured to secured lending, with the secured book now at 40%. This transition has caused a temporary compression in NIMs and a slight uptick in NPAs as the legacy unsecured book (₹100 crores remaining) is downsized.
- Technology & Algos: uTrade and Algowire are developing AI-based retail algo products. While Algowire serves the parent internally, uTrade will move to a multi-broker model in FY27, targeting 2x-3x revenue growth.
Company-Specific & Strategic Commentary
- Wealth Management Launch: A new subsidiary, Share India Wealth Multiplier Solutions, has applied for an AIF license. Execution starts Q1 FY27 with a focus on PMS and third-party product distribution.
- Debt Market Entry: Incorporated “Share India Cred Capital Private Limited” on Jan 6, 2026. This tech-driven fixed income platform will be operational by Q1 FY27.
- Silverleaf Merger: NCLT approval is expected by the end of Q4 FY26. The merger will contribute ₹50-60 crores in gross revenue starting FY27, utilizing high-frequency trading (HFT) expertise.
- Exchange Stake: The company maintains a 3%+ equity stake in MSEI, providing strategic alignment with exchange-level developments.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| MTF Book | ₹900 - ₹1,000 crores (2 years) | Plan to double the book via physical branch expansion in Tier-3 towns. |
| Insurance Revenue | 20% - 25% Growth (FY26) | Heavy reliance on JFM (Jan-Feb-Mar) quarter which historically contributes bulk of volumes. |
| Tech Subsidiary Revenue | 2x - 3x Growth (2 years) | Expected from uTrade (multi-broker shift) and Silverleaf (capital infusion post-merger). |
| ADTO | +/- 5% Variance (Short-term) | Guidance suggests stability as recent regulatory changes are now priced into market volumes. |
Risks & Constraints
| Risk | Context |
|---|---|
| Margin Compression | NIMs are expected to compress by a few hundred basis points further as the book shifts from high-yield unsecured to low-yield secured lending. |
| Asset Quality | Slight increase in NPAs in Q3 due to stress in the legacy unsecured book; management expects NPAs to trend downward as the secured portion grows. |
| Regulatory / Cyclicality | Merchant banking remains lumpy and cyclical; management is pivoting to Main Board IPOs (2 filed) to mitigate SME market volatility. |
Q&A Highlights
Lending Strategy & NIMs
- Question: Why are NIMs declining and NPAs rising in the NBFC vertical? (Harsh)
- Answer: The decline is intentional as the company shifts from unsecured to secured lending (40% of book). NPAs rose due to downsizing the unsecured book, but management expects them to trend down as the secured book scales. (Abhinav Gupta)
Technology Subsidiaries
- Question: What is the roadmap for uTrade and Silverleaf? (Rohan)
- Answer: Algowire supports internal low-latency needs. uTrade will open to other brokers in FY27. Silverleaf merger should conclude by Q4 FY26, bringing ₹50-60cr revenue which can scale 2x-3x with parent capital. (Sachin Gupta)
Retail Expansion
- Question: How does Share India compete with Groww/Zerodha? (Nitin)
- Answer: Share India avoids the “mass-digital” branding war, focusing instead on “high-touch” physical presence in Tier-3 cities where competitors have less reach. (Abhinav Gupta)
Merchant Banking Pipeline
- Question: What is the visibility on the IPO deal flow? (Danish)
- Answer: Six SME approvals are in hand. Strategy is shifting toward Main Board IPOs (one filed in Sept, one in Jan) to reduce reliance on cyclical SME markets. (Kamlesh Shah)
Key Takeaway
Share India Securities delivered a steady Q3 FY26 with consolidated revenue up 9% YoY to ₹372 crores, underpinned by a significant 29% QoQ jump in ADTO to ₹9,700 crores. While the NBFC segment is undergoing a structural transition toward secured lending—leading to temporary NIM compression—the core broking and institutional business (174 active clients) remain robust. The company is positioning FY27 as a pivotal year with the launch of wealth management (AIF/PMS), the integration of Silverleaf’s HFT capabilities, and the operationalization of the Cred Capital debt platform. Despite short-term volatility in merchant banking and retail client acquisition, management’s pivot toward Tier-3 physical expansion and high-margin specialized tech products aims to double the MTF book to ₹1,000 crores within two years. Share India remains focused on building a multi-asset financial services ecosystem while maintaining a conservative debt-to-equity ratio of 0.24%.
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