Shah Investor’s Home Limited digital share reaches 42.62% in FY26

Shah Investor’s Home Limited generated 42.62% of Fiscal 2026, or FY26, brokerage income through its digital platform, compared with 17.61% in FY24. Digital-platform brokerage rose to Rs 19.7354 crore from Rs 9.7874 crore over two years, while total brokerage income fell to Rs 46.3020 crore in FY26 from Rs 64.9113 crore in FY25.

How did SIHL’s digital share reach 42.62% in FY26?

SIHL’s digital share reached 42.62% because digital-platform brokerage increased while brokerage from non-digital channels declined. Digital brokerage increased by Rs 5.2165 crore from FY25 and by Rs 9.9480 crore from FY24. Its proportion of total brokerage income rose from 22.37% in FY25 and 17.61% in FY24, a change in revenue mix rather than an increase in overall brokerage income.

SIHL’s non-digital brokerage fell to Rs 26.5666 crore in FY26 from Rs 50.3925 crore in FY25, reducing that channel’s share to 57.38% from 77.63%. SIHL defines its non-digital platform as assisted order placement, in which clients contact authorised dealers or relationship managers on recorded telephone lines; the dealer validates the client and order details before executing the trade through the front-office terminal.

For the 42.62% digital share to remain at that level or rise, SIHL would need to retain or add clients using its digital channels while the volume of brokerage generated through assisted channels does not recover more quickly. The filing reports only the channel-level brokerage split for FY24 through FY26, rather than trade volumes or digital revenue per client.

What is supporting SIHL’s digital brokerage transition?

SIHL’s transition is supported by platforms launched in 2024 and by its technology infrastructure. The SIHL Moneymaker app had more than 12,452 trading clients and more than 33,287 downloads as of March 31, 2026. The app offers real-time streaming quotes, charts and trading across equities, derivatives, currencies and commodities.

SIHL also launched SIHL Fundpro in 2024 to simplify and digitise mutual-fund investments. The platforms operate alongside an enterprise resource planning system developed and maintained by SIHL’s in-house software team. An enterprise resource planning system is software used to coordinate business processes and operational data; SIHL said it had also moved trading and back-office operations to a VMware-based virtual platform in 2007.

The digital channel operates alongside SIHL’s physical distribution network. At March 31, 2026, SIHL had 11 branches and 181 authorised persons, while 36,720 of 38,189 active clients, or 96.15%, were in Gujarat. The company’s disclosed plan to market its mobile application in tier 2 and tier 3 cities means future digital adoption may depend on both app enrolment and this existing local network.

Did a larger digital share offset lower brokerage income per client?

No, the larger digital share did not offset lower overall brokerage income or lower brokerage income per active client in FY26. Total brokerage income declined to Rs 46.3020 crore from Rs 64.9113 crore in FY25, while average brokerage revenue per active client fell to Rs 12,124.43 from Rs 17,165.95. Active clients rose by 375 to 38,189 in FY26, compared with 37,814 in FY25.

SIHL’s wider FY26 financial measures also declined from FY25. Revenue from operations was Rs 71.4767 crore, profit after tax was Rs 13.2022 crore and the profit-after-tax margin was 18.24%, compared with Rs 94.2739 crore, Rs 23.3850 crore and 24.76%, respectively, in FY25. Earnings before interest, tax, depreciation and amortisation, or EBITDA, margin declined to 30.24% from 37.46%.

Client activity remained concentrated in the equity cash segment. SIHL reported 36,133 equity-cash clients, representing 94.62% of its 38,189 active broking clients in FY26, and this segment generated Rs 27.9376 crore, or 60.34%, of total brokerage income. Derivatives clients represented 5.38% of active clients but generated Rs 18.3644 crore, or 39.66%, of brokerage income.

How do client tenure and margin funding affect SIHL’s model?

SIHL has a large base of long-tenure active clients, although active clients formed a smaller share of total clients in FY26. Clients associated with SIHL for more than five years numbered 27,728, or 72.61% of 38,189 active clients, at March 31, 2026. Active clients represented 44.71% of 85,422 total clients, compared with 47.04% of 80,391 total clients in FY25.

Margin trading facility, or MTF, can also influence transaction activity because it funds trading against client collateral, subject to stock-exchange margin requirements. SIHL’s MTF book was Rs 20.9626 crore at March 31, 2026, compared with Rs 9.6422 crore a year earlier. FY26 MTF revenue was Rs 2.2258 crore, with 476 active MTF users, an 18.00% interest charge and a reported default rate of 0.00%.

The monthly average MTF book increased to Rs 13.6440 crore in FY26 from Rs 7.9267 crore in FY25, while collateral coverage declined to 153.75% from 164.28%. SIHL’s plan is to use MTF, relationship management and mobile-app enrolments to increase retail trades and transactions, which makes the outcome dependent on client use and the applicable exchange-margin framework.

What disclosed technology plans could change SIHL’s digital revenue?

SIHL began offering application programming interface, or API, based trading services in FY26 and received National Stock Exchange of India Limited approval on August 17, 2026, for its in-house algorithmic trading platform. An API enables software systems to connect with trading functions, while algorithmic trading uses programmed instructions to execute trades within applicable regulatory requirements.

SIHL stated that its comparable approval application with BSE Limited was under process in the disclosed update. The company plans to grow API-based trading revenue and add clients through algorithmic trading, but these are plans rather than reported FY26 revenue. SIHL also stated that it intends to use artificial intelligence, machine learning and data-management systems to improve operational efficiency, cyber security and behavioural analysis.

SIHL has also disclosed plans to expand fee-based services. SIHL AIF Investment Trust obtained Securities and Exchange Board of India registration on February 11, 2026, as a Category III alternative investment fund called SIHL Dynamic Growth Fund. These initiatives could broaden digital client interactions, but the filing does not provide a forecast for their revenue contribution.

Conclusion

SIHL’s FY26 figures show that digital platforms became a much larger source of brokerage income, contributing 42.62% compared with 17.61% in FY24. The shift occurred as digital brokerage more than doubled over the two-year period and non-digital brokerage declined, while total brokerage income, revenue from operations and average brokerage revenue per active client were lower in FY26 than in FY25.

The next disclosed developments to watch are SIHL’s API-based trading rollout, the National Stock Exchange approval dated August 17, 2026, and the pending BSE approval. SIHL’s mobile-app marketing, authorised-person network, MTF expansion and plans to add clients will determine whether the higher digital mix is accompanied by growth in total brokerage income.