Share India Sec. Q1 FY27 Results (NSE: SHAREINDIA)
Signal: Margin expansion
The read
Consolidated results show strong recovery: revenue +31% YoY and PAT +48% YoY, with OPM expanding for the 5th consecutive quarter to 40.1%, driven by operating leverage and cost control. The standout is the 23.6% rise in net fair value gains (largest revenue component at 60% of total) alongside steady growth in interest income (+31%). The sequential PAT jump (+114% QoQ from Q4FY26's subdued quarter) confirms the business has moved past the trough seen earlier in FY26. Divergence between standalone (78% of revenue, 73% of PAT) and consolidated shows subsidiaries contributed ₹35 Cr PAT (28% of group), though the group's performance remains heavily tied to capital market activity.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4.48 Cr | 31.2% | 7.7% |
| EBIT | ₹0 Cr | ||
| Net profit | ₹1.24 Cr | 47.5% | |
| EPS | ₹5.68 | 47.5% | |
| EBIT margin | 40.1% |
P&L walk
Revenue ₹448.09 Cr (+31.2% YoY) driven by strong growth in net gain on fair value changes (+23.6% to ₹268.87 Cr) and interest income (+31.0% to ₹79.9 Cr); OPM expands to 40.1% (+500bps YoY) as employee cost, operating expenses, and finance costs all decline as % of revenue; PAT surges 47.5% to ₹124.41 Cr, outpacing revenue growth, aided by both operating leverage and stable tax rate
Key positives
- Revenue ₹448 Cr, +31% YoY — growth broad-based across trading gains, interest income, and commodity sales
- OPM 40.1%, +500bps YoY — 5th consecutive quarter of margin expansion after trough in Q4FY25 (22%)
- PAT ₹124 Cr, +48% YoY — profit growth outpacing revenue due to margin expansion and stable tax rate
- Standalone OPM at 42.4% (+222bps) with operating expenses declining 10.7% YoY
- EPS ₹5.68, +47.5% — tracks PAT exactly (no dilution)
- Net worth ₹2,327 Cr, +14.2% YoY; debt/equity at comfortable 0.21x
- Board approved 1% interim dividend of ₹0.50 per share
Key concerns
- Revenue concentration: net gain on fair value changes (60% of total) is inherently volatile and linked to capital market conditions
- Finance costs grew 37% YoY (to ₹36.6 Cr), indicating higher leverage for trading/margin activities
- Fees and commission income growth only +10.8% — suggesting client addition/brokerage income is lagging trading activity growth
- Consolidated impairment on financial instruments at ₹3.06 Cr (vs ₹5.17 Cr YoY) — still a drag
- Sale of products (commodity) at ₹49 Cr rose 196% from very low base — not yet a diversified revenue stream
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