Shah Investor’s Home Limited brokerage income remains Gujarat-led

Shah Investor’s Home Limited had a concentrated Fiscal 2026 brokerage revenue base: Gujarat generated Rs 43.40 crore, or 93.74%, of brokerage income, while authorised persons generated Rs 38.53 crore, or 53.91%, of total revenue from operations. Brokerage remained its largest revenue segment despite falling from Rs 64.91 crore in Fiscal 2025 to Rs 46.30 crore in Fiscal 2026.

How concentrated is Shah Investor’s Home brokerage income in Gujarat?

Shah Investor’s Home derived 93.74% of its Fiscal 2026 brokerage income from Gujarat, leaving Maharashtra and other regions with a combined 6.26% share. Gujarat produced Rs 43.40 crore of total brokerage income of Rs 46.30 crore. Maharashtra accounted for Rs 1.67 crore, or 3.61%, while other regions produced Rs 1.23 crore, or 2.65%.

Gujarat’s share stayed above 93% in each of the three reported fiscal years, although brokerage income declined in Fiscal 2026. Gujarat income fell by Rs 17.16 crore from Rs 60.56 crore in Fiscal 2025, but its share rose by 0.44 percentage points because Maharashtra’s contribution declined from 4.37% to 3.61%. Other regions also remained below 3% of brokerage income in all three periods.

The disclosed risk is that a disruption in Gujarat could affect most brokerage income at the same time. Shah Investor’s Home identifies competition, reduced demand, social, political or economic developments, natural calamities and civil disruption as potential regional factors. It stated that it had not faced operational disruption from Gujarat concentration in the past, but said it cannot assure that such developments will not affect future operations.

Why do authorised persons generate over half of total revenue?

Authorised persons generated Rs 38.53 crore, or 53.91%, of Shah Investor’s Home revenue from operations in Fiscal 2026. An authorised person is an agent appointed by the company after approval from the relevant stock exchange to canvass business. Shah Investor’s Home had 181 authorised persons as of March 31, 2026.

Revenue from authorised persons declined by Rs 12.51 crore from Rs 51.04 crore in Fiscal 2025 to Rs 38.53 crore in Fiscal 2026. Its share of revenue from operations, however, changed only marginally, to 53.91% from 54.14%. In Fiscal 2024, authorised persons generated Rs 45.42 crore, representing 58.36% of revenue from operations.

The channel served 27,630 active clients in Fiscal 2026, compared with 10,559 through branches and head office. Active clients are clients who undertook transactions in a fiscal year. The authorised-person channel reported average revenue per client, or ARPC, of Rs 13,943.31, compared with Rs 7,359.69 for branches and head office.

Shah Investor’s Home paid Rs 25.99 crore in brokerage-sharing expense to authorised persons during Fiscal 2026, equal to 36.37% of revenue from operations. The payment arrangement means retention can be affected by agents’ expectations for revenue sharing. Although the company uses prescribed contracts, it says it cannot assure that authorised persons will continue their association.

How exposed is Shah Investor’s Home to its largest authorised persons?

Shah Investor’s Home’s top five authorised persons generated Rs 13.54 crore in Fiscal 2026, equal to 18.94% of revenue from operations. Its top 10 generated Rs 17.74 crore, or 24.82% of revenue from operations. This is a second layer of concentration within a network that already accounted for more than half of company revenue.

The top-10 contribution declined as a share of revenue from operations from 25.36% in Fiscal 2024 to 23.84% in Fiscal 2025, before rising to 24.82% in Fiscal 2026. In absolute terms, top-10 revenue fell by Rs 4.73 crore from Rs 22.48 crore in Fiscal 2025 to Rs 17.74 crore in Fiscal 2026. The figures show that revenue is generated beyond the largest agents, but that the top group remains material to company-wide revenue.

Authorised-person retention also changed during the three periods. In Fiscal 2026, 31 authorised persons ceased their association and 28 were appointed, reducing the year-end network to 181 from 184 in Fiscal 2025. The disclosed attrition rate was 17.13% in Fiscal 2026, compared with 9.24% in Fiscal 2025 and 20.69% in Fiscal 2024; the company defines it as departures divided by authorised persons at the end of the relevant year.

The agents who exited in Fiscal 2026 accounted for Rs 9.75 lakh of revenue during that year, compared with Rs 77.68 lakh for Fiscal 2025 departures and Rs 30.10 lakh for Fiscal 2024 departures. Shah Investor’s Home states that it could be adversely affected if it cannot replace a significant number of departing authorised persons or retain their revenue. Under applicable arrangements, the company may also be responsible for acts and omissions by authorised persons and their employees.

What determines whether this revenue concentration persists?

The concentration persists if Gujarat remains the main source of brokerage transactions and authorised persons continue to generate more than half of revenue from operations. Broking generated Rs 46.30 crore, or 64.78%, of Fiscal 2026 revenue from operations, down from Rs 64.91 crore, or 68.85%, in Fiscal 2025. It therefore remains the largest business vertical, linking geographic and distribution-channel dependencies to a majority of revenue.

Client growth did not prevent the Fiscal 2026 decline in brokerage income. Clients catered to in the broking segment rose to 38,189 in Fiscal 2026 from 37,814 in Fiscal 2025 and 35,535 in Fiscal 2024, while brokerage income declined by Rs 18.61 crore from Fiscal 2025. Shah Investor’s Home states that brokerage income is directly proportionate to traded value and order size, rather than client numbers alone.

Trading volumes and order numbers can be affected by macroeconomic conditions, government monetary and taxation policy, market conditions, regulations, interest rates and inflation, according to the disclosure. Brokerage fee rates also face competitive pressure because clients have no exclusivity arrangements, may use several brokers at once and can access standardised online products. Exchange-imposed limits on brokerage fee rates and net-worth requirements are additional constraints cited by Shah Investor’s Home.

Shah Investor’s Home plans to add clients in other states through marketing campaigns, new branches and networks of authorised persons. It has also started the Zeece Partner referral scheme, through which individuals may join for a short period and introduce clients. The company says it cannot assure that these actions will produce expected growth or that expansion outside Gujarat will succeed.

Conclusion

Shah Investor’s Home reported 38,189 broking clients in Fiscal 2026, but its revenue sources were substantially concentrated: Gujarat supplied 93.74% of brokerage income and authorised persons generated 53.91% of revenue from operations. The exposure is amplified because broking itself contributed 64.78% of total revenue, while the top 10 authorised persons accounted for 24.82%.

The next reported indicators are the outcome of the stated expansion outside Gujarat, non-Gujarat brokerage income, and changes in authorised-person retention and concentration. Fiscal 2026 non-Gujarat brokerage income was Rs 2.90 crore, while 31 authorised persons left and 28 joined; later disclosures can show whether the expansion plan changes those measures.