Share India FY26: Strong Q4 bounce, steady full-year revenue, and a push beyond pure trading

Share India Securities Limited closed Q4 FY26 with a sharp rebound on a consolidated basis. Revenue rose to INR 4,159 million, up 73.7% year-on-year. EBITDA increased to INR 1,169 million, up 123.2%, while net profit came in at INR 580 million, up 211.3%. The quarter also showed higher profitability ratios, with EBITDA margin at 28.11% and net profit margin at 13.95%.

The full-year picture is more measured. FY26 consolidated revenue was INR 14,703 million, up 1.5% year-on-year, and EBITDA improved to INR 5,704 million, up 10.3%. Net profit for FY26 was INR 3,244 million, marginally down 1.1% compared with FY25. Management attributed the consolidated softness to weak market conditions and fair value adjustments relating to investments held by group companies, while stating that the underlying operating business remained strong.

Segment performance: broking steady, other lines small but visible

In FY26, broking and trading remained the largest reported operating segment in the segmental table, with revenue of INR 13,878 million versus INR 13,667 million in FY25. Segment EBIT also improved to INR 5,339 million from INR 4,781 million. Management highlighted steady institutional momentum as well, with the number of institutional clients increasing to 186 by Q4 FY26 and the total number of institutions in broking at 47,253.

Other segments remained relatively small in comparison. In FY26, NBFC revenue was INR 555 million, merchant banking revenue was INR 240 million, insurance revenue was INR 87 million, and technology revenue was INR 128 million.

The investor presentation also provides a separate FY26 revenue split view, showing NBFC at 93.22% of revenue, brokerage and trading at 3.73%, banking and trading insurance at 1.61%, and merchant banking and technology services at 0.86% each. This disclosure signals a concentrated revenue mix, even as the group runs multiple lines of business.

Operating drivers: MTF, institutional scale, and algo-led positioning

Share India continues to position itself as a technology-led platform, particularly around algorithmic trading. The presentation describes an integrated ecosystem spanning uTrade Solutions, Algowire Trading Technologies, and Silverleaf Securities Research, with uTrade Algo platform paid plan subscriptions at 5,231 till date.

On the operating metrics side, Q4 FY26 average daily turnover increased to INR 109 billion (from INR 73 billion in Q4 FY25). Margin Trading Facility (MTF) AUM was INR 4,239 million at Q4 FY26, after peaking at INR 4,570 million in Q3 FY26.

Management also laid out the strategic rationale for expanding company-owned branches in Tier-3 cities. It stated that direct branches can reduce intermediaries in MTF distribution and potentially improve unit economics relative to metro markets where competition is higher and interest rates are harder to sustain. During the year, the company said it started branches in Hyderabad, Indore, Bhopal, Varanasi, Agra, Raipur and Nagpur, and it targets further branch additions.

In the NBFC business, the FY26 loan book was INR 2,653 million, supported by 73 NBFC branches. Asset quality metrics were GNPA at 4.30% and NNPA at 2.66% as of FY26. NII was INR 455 million with NIM at 17.64%.

What management is guiding towards: wealth products, debt distribution, and a lower prop share

The management commentary on the concall was largely centred on diversification. It gave multiple time-bound and numeric targets, especially in wealth and fixed-income distribution.

It stated that PMS has already started and crossed INR 100 crore of assets, with a target to reach INR 200 crore by the end of FY27. It also stated that a Category III AIF application has been filed with SEBI and approval is expected by end of Q2, with the goal of starting AIF operations within the financial year.

Another diversification pillar is Share India Cred, created to participate in debt market distribution. Management stated operations started in Q1 FY27, six issues have already been closed, and the target is to execute at least INR 500 crore worth of issues during FY27.

On the proprietary trading versus client business mix, management explained that client turnover has started to exceed proprietary turnover and stated an intent to raise the client share further over the coming years. It provided a directional target of moving toward 70% business from clients and 30% from prop over the next three years, described in terms of profitability contribution.

Risks discussed: regulation and quarterly margin volatility

Two notable risk themes were openly discussed.

First is regulation around proprietary trading funding. Management discussed RBI restrictions on bank limits for proprietary trading and the removal of intraday facilities. It suggested that the impact on overall limits could be about 20%, while also stating it expects limited impact on the bottom line due to potential improvement in per-trade margins if liquidity reduces in the market.

Second is the volatility seen in March quarters. In response to investor questions, management said Q4 weakness has been visible in the last two years due to market volatility and geopolitical uncertainty, and it encouraged investors to focus on annual margins rather than quarter-only margin movements.

Separately, the company also stated CRISIL reaffirmed ratings for total INR 2,000 crore bank loan facilities at A+ Stable (long-term) and A1+ (short-term). The board also recommended a final dividend of INR 0.50 per share and mentioned an aggregate dividend of INR 1.60 per share for FY26.

Takeaways

Share India’s FY26 performance shows two realities running in parallel. The core engine still depends heavily on market-linked activities, and consolidated profitability was affected by fair value adjustments. At the same time, management is investing in a clearer diversification roadmap, with specific targets for PMS assets, an AIF launch timeline, debt distribution volumes, MTF scaling, and branch expansion.

For investors tracking the next phase, the key variables appear to be execution on these non-core initiatives, the sustainability of MTF growth and pricing, and how regulatory changes around proprietary trading funding reshape industry economics over FY27.