Share India Securities Limited has informed the Exchange about transcript of Conference Call with Analysts/Investors held on May 27, 2025 to discuss Audited Financial Results of the Company for quarte...
June 02, 2025
To, BSE Limited Scrip Code: 540725
To, National Stock Exchange of India Limited SYMBOL: SHAREINDIA
Sub: Transcript of Conference Call with Analysts/Investors held on May 27, 2025 to discuss audited Financial Results of the Company for the quarter and financial year ended on March 31, 2025.
Dear Sir,
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”) read with Para A of Part A to Schedule III of the SEBI Listing Regulations, please find enclosed herewith the transcript of Conference Call with Analysts/Investors held on May 27, 2025 to discuss audited Financial Results of the Company for quarter and financial year ended on March 31, 2025.
Please take the same on your records.
Thanking you,
Yours faithfully, For Share India Securities Limited
Vikas Aggarwal Company Secretary & Compliance Officer M. No.: F5512
Regd. Office : Unit No. 615 and 616, 6th Floor, X-Change Plaza, Dalal Street Commercial Co-operative Society Limited, Road 5E, Block-53, Zone 5, Gift City, Gandhinagar, Gujarat- 382050 Corporate Office : A-15, Sector-64, Noida, Distt. Gautam Buddha Nagar, Uttar Pradesh-201301, Tel.: 0120-4910000, 0120-6910000, Fax : 0120-4910030 E-mail : info@shareindia.com, Website : www.shareindia.com
Regd. Office : Unit No. 615 and 616, 6th Floor, X-Change Plaza, Dalal Street Commercial Co-operative Society Limited, Road 5E, Block-53, Zone 5, Gift City, Gandhinagar, Gujarat-382355 Corporate Office : A-15, Sector-64, Noida, Distt. Gautam Buddha Nagar, Uttar Pradesh-201301, Tel.: 0120-4910000, 0120-6910000, Fax : 0120-4910030
“Share India Securities Limited
Q4 FY'25 Earnings Conference Call”
May 27, 2025
MANAGEMENT: MR. KAMLESH SHAH – MANAGING DIRECTOR –
SHARE INDIA SECURITIES LIMITED MR. RAJESH GUPTA – DIRECTOR – SHARE INDIA SECURITIES LIMITED MR. SACHIN GUPTA – CHIEF EXECUTIVE OFFICER AND WHOLE TIME DIRECTOR – SHARE INDIA SECURITIES LIMITED MR. ABHINAV GUPTA – PRESIDENT, CORPORATE STRATEGY– SHARE INDIA SECURITIES LIMITED
MODERATOR: MR. AMIT KUMAR SHARMA – ADFACTORS PR
INVESTOR RELATIONS
Page 1 of 16
Moderator:
Ladies and gentlemen, good day, and welcome to the Q4 and FY '25 Earnings Conference Call
of Share India Securities Limited.
Share India Securities Limited May 27, 2025
As a reminder, all participant lines will be in the listen only mode and there will be an
opportunity for you to ask questions after the presentation concludes. Should you need assistance
during the conference call, please signal an operator by pressing star then zero on your touch-
tone phone. Please note that this conference is been recorded.
I now hand the conference over to Mr. Amit Kumar Sharma from Adfactors PR Investor
Relations team. Thank you, and over to you, sir.
Amit Sharma:
Good evening, everyone. On behalf of the entire management, I thank all the participants present
on the call and wish you a very warm welcome to our Q4 and FY '25 Earnings Conference Call.
To guide us through the results today, we have with us the senior management team of Share
India Securities Limited, represented by Mr. Kamlesh Shah, Managing Director; Mr. Sachin
Gupta, CEO and Whole Time Director; Mr. Rajesh Gupta, Director; and Mr. Abhinav Gupta,
President, Capital Markets.
Before we begin, please note that this conference call may contain forward-looking statements
about the company, which are based on the beliefs, opinions and expectations of the company
as on the date of this call. These statements are not a guarantee of future performance and involve
risks and uncertainties that are difficult to predict. We will commence the call with the opening
brief by Mr. Kamlesh Shah, Managing Director; followed by the business highlights from Mr.
Sachin Gupta, CEO and Whole-Time Director. After this, we will open the forum for Q&A.
With that, I will now hand over the call to Mr. Shah to share his comments. Over to you, sir.
Thank you.
Kamlesh Shah:
Yes. Good evening. Good evening, everyone. We appreciate you joining us for the investor call
covering our performance for quarter 4 and financial year 2024-2025. The past year presented
both our company and the broader industry with unique set of headwinds, including geopolitical
uncertainties, significant selling pressure from the FPIs, regulatory measures aimed at
moderating derivative market volumes and correction in the value of investments.
Consequently, our company's performance has been below our usual standard. A trend echoed
by many of our peers, who have also reported losses or considerable drop in the revenue and
profitability.
Looking ahead however, the macroeconomic indicators for India appear promising. I can
probably say that India has become the fourth largest economy in the world, surpassing Japan.
We are observing positive GDP growth encouraging inflation figures, interest rate reductions by
RBI, increase in the liquidity within the system and supportive measures from government in
budget. Furthermore, appointment of new SEBI chairperson with forward-looking perspective
suggest a potential uplift for industry's overall performance.
The recent effective handling of border situation with our neighbouring country should further
bluster national sentiment and economic capabilities. With this, overview of the macroeconomic
Page 2 of 16
Share India Securities Limited May 27, 2025
and geopolitical landscape, I would now like to present our financial result for the financial year
2024 -2025.
First, we shall address stand-alone quarter 4 financial year 2024-2025. Total revenue from
operations was INR188 crores, a decrease of 28% on quarter-on-quarter basis, profit before tax
and profit after tax were INR17 crores and INR16 crores, respectively, representing 79% decline
in PBT and 73% decline in profit after tax quarter-on-quarter basis.
Earnings per share for the quarter stood at INR0.63 on the face value of INR2 per share. Coming
to stand-alone full year financial year '24, '25, the total revenue from the operations amounted
to INR1,138 crores showing a modest increase of about 1.68% year-on-year basis. PBT and PAT
were INR320 crores and INR247 crores respectively, indicating a decline of approximately 19%
PBT, an 18% decline in the PAT year-on-year basis. Earnings for the full fiscal year was
INR11.73 on face value of INR2 per share. The net worth for the year on stand-alone basis,
works out to INR1,960 crores.
Coming to the consolidated quarter 4 financial year '24, '25. The total revenue from the operation
was INR239 crores, a 30% decrease compared to the previous quarter. Profit before tax and
profit after tax reached INR23 crores and INR19 crores, respectively, reflecting an
approximately 79% decline in profit before tax and 77% decline in profit after tax quarter-on-
quarter basis. The earnings per share on consolidated basis was INR0.71 on the face value of
INR2 per share.
Coming to the consolidated full financial year 2024, '25, total revenue from the operation was
INR1,449 crores, showing a year-on-year decline of 2.5%. Profit before tax and profit after tax
were INR431 crores and INR328 crores, respectively, representing approximately 23% decrease
in both on year-on-year basis. The earnings per share for the full fiscal year was INR15.58 on
INR2 paid up equity shares.
Consolidated net worth for the year has jumped to INR2,300 crores-plus. While reporting --
while reported figure may appear challenging, I want to assure you that during this period of
global geopolitical instability, our company has proactively utilized this time to strengthen our
core business area, identifying promising new ventures, expand our collaborative partnership
and explore untapped market.
Furthermore, the anticipated decrease in the revenue and profitability over past 2 quarters was
something management had foreseen, and we have implemented appropriate strategies to ensure
a strong rebound as the business environment improves.
Our focus remains on creating sustainable business model. And to that end, we have made
strategic acquisitions in past and continue to identify synergy-based opportunities. Key
milestone achieved during the year include strategic investment in Metropolitan Stock
Exchange, obtaining PMS license and merger of Silver Leaf securities, a subsidiary aimed at
leveraging our HFT capability and expanding our proprietary trading into the international
market.
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Share India Securities Limited May 27, 2025
To conclude, I would like to highlight supportive developments within the industry that are
likely to play a positive influence in the future performance. This includes removal of intraday
trading limit and significant increase in the limit based on the delta factor, which are expected
to stimulate higher trading volume and drive growth within the industry.
This was a very significant step to see that we maintain our volume and liquidity, the recent
clarification regarding investment opportunities, which will enable investment in group
companies and other businesses. So with the kind of net worth that we have of exceeding
INR2,300 crores, we will be able to invest the surplus fund into the group companies and other
businesses, potentially enhancing our overall return on investment. And yesterday, there was
one more circular from SEBI that has clarified we will have 2 weekly expiry for multi exchanges,
that is one expiry per exchange for weekly contracts.
With this, I would like to thank you for your support and cooperation. Over to you -- I would
like to hand over the proceeding to Mr. Sachin Gupta, who would highlight the business
opportunities and throw more light on the performance of the company. Thank you.
Sachin Gupta:
Thank you very much, Kamlesh sir, for the detailed presentation of the results of financial year
'24, '25. Good evening, everyone. Here, I'm Sachin Gupta. So as Kamlesh sir has explained the
challenges in the last financial year because of some rigorous regulatory changes at extreme
market volatility in quarter 4. So last year was a bit challenging. And I personally believe where
I am into the day-to-day operations of the company, I believe the worst is behind us now. And
we will see that things have started improving from here on.
As Kamlesh sir had explained, this particular shock was a little bit expected as we were in
constant touch with the regulator and the exchanges that the kind of measures they were bringing
in, they will take some time to get stabilized, but it will take some time to formulate your
business strategy around those new changes. So as I said, things should start -- things -- we are
already feeling that things are better now, and worst is over.
But the next 2 to 3 quarters, we'll see that we will be able to achieve the same numbers that we
were doing in first half of the last financial year. So still, we are in phase of where market is
adopting all the changes and sir explained after the appointment of new SEBI chief, so he is a
bit positive towards the market. His goal is to regulate and also grow the volumes, grow the
market overall.
So as far as focus is concerned. I will just share some numbers. In retail clients, we have seen a
jump of 30% on year-on-year basis. Last year, we were having 35,380 clients. And this year, we
are having more than 46,252 clients. So, the client base has increased by 30%. Institutional
clients last year, we closed at 52 impairments.
This year, if the desk has done 137 impairments, this is a jump of 250%. MTF is one business
where we are very bullish in the coming future. Our book has increased by more than 330%. It
was at INR72 crores at the end of financial year 2024, this year we've closed the book at INR239
crores.
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Share India Securities Limited May 27, 2025
As far as NBFC is concerned, we have increased branches from 61 to 80 branches now. Client
base has a bit reduced from 69,000 to 52,000 because even in NBFC, we have seen a trouble in
3 quarters for the -- especially for the personal loans in the villages and the side. Book size is
broadly same because INR260 crores and INR260 crores.
The reason is we have shifted our focus on -- more on secured SME loans rather than only doing
unsecured personal loans. So, book size, we have maintained, and we believe the trouble period
in NBFC is also gone. And this financial year, we'll see NBFC stabilizing and giving much better
returns and book is also covered now like it's not 100% unsecured. It is a secured book also.
BSE options, we have seen a major growth like last year, our market share was 3.5%. This year,
our market share is 5.8% in BSE options, and we have seen that BSE is one thing which has
given us a good edge to the overall business. And as I explained, PMS is another product we
have just added.
And Share India is also enhancing the visibility by opening the branches in the prominent
locations at the different cities like we have recently opened a branch in Connaught Place in
Delhi. It's a pure-play retail branch, and we opened a branch in the main land of Kolkata,
Ahmedabad. So these are the 3 branches we have recently opened in last 6 months. And so the
focus in the financial area is mainly, as earlier, also we were focusing on retail and wealth.
So with this period where prop trading is going through some trouble period, we are trying to
develop the ancillary business in different verticals. Retail and wealth is one thing we are very
bullish on. And for retail, what we are doing, we are developing product based on AI where, you
will see AI is recommending the stocks, AI will be doing the technical charts. You can choose
your stock through AI. So AI will play a major part in our product which we'll roll out in end of
third quarter.
That -- uTrade is developing their product for us. That product will be one of the unique products
in the industry. Our focus is -- and we are also in process of hiring senior resources from the
industry to develop the retail piece for the Share India. MTF is one thing where we are focusing
like I said, we closed around INR240 crores. Next 3 years, our MTF book will not be less than
INR1,000 crores.
So we are planning everything accordingly. So once that we crossed at INR1,000 crores number,
clients will go up, revenue will go up. And MTF helps you not only in cash market volumes, it
also gives you a runoff effect in the derivatives and other products -- other wealth products also.
So PMS will roll out -- we got the license, we'll roll out in July and very ambitious plan. And
next 3 years, PMS will also start showing positive growth. And as far as retail numbers are
concerned, as I said, MTF target is INR1,000 crores in 3 years. Retail clients so number, we are
targeting 2 lakh to 2.5 lakh clients in next 3 years.
The reason is it's not only off-line, so SEBI has allowed retail for Algo, which from first of
August, retail can also carpet in Algo. We want to make this Algo thing for Share India, like
think Algo, think Share India. This will be a tagline, and we are going to go very hard for Algo
trading for the retail.
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Share India Securities Limited May 27, 2025
We want to capture this opportunity to penetrate into retail business using our algo strength and
technology provided by the uTrade. So wealth and retail is one thing we are going to focus very
hard, PMS and wealth site. And once the PMS gets stabilized, we'll also go for AIF. And on the
retail side, our focus is on MTF and Algo for retail thing, where uTrade will provide us the
product, and our target is not less than 2 lakh to 2.5 lakh customers in the next 3 years.
So, Silverleaf, again, is very important acquisition. So last year, it took some time, but we hope
this year, that acquisition will be completed. Silverleaf is 1 HFT firm, which is doing really
great. And once the acquisition is completed, their number will also be added in Share India
book, and this is a diversified prop trading.
It's not the traditional prop trading that Share India is doing. So that will give us more stability.
And it will help us in overcoming the challenges we are facing from the regulatory side. So
combining everything, we are very bullish on our business in coming 2 to 3 years.
Yes, our business is highly regulated, so challenges are always there. But as we see the basket,
if we go into -- if we see the retail side, wealth side, not PMS, addition of institution, AIF, MTF,
prop desk and addition of Silverleaf, this makes our company well diversified and sustainable.
So we believe we are very bullish for next few years. And I think worst is behind us now.
So Share India is ready to take to the current challenges and numbers will definitely improve
and things will be much clearer. And next 2 to 3 quarters, we hope that we'll be able to catch the
last year numbers very soon. And we are working very hard for all the investors and entire
companies, very motivated and bullish on the current business. Thank you very much, sir.
Moderator:
Thank you very much. The first question is from the line of Akshay Sharma from Golden Myriad. Please go ahead.
Akshay Sharma:
Sir, my question is -- I have 2 questions. Firstly, sir, basically, if you can give us the breakup of
revenue, trading revenue and I mean, in terms of -- from broking and from prop book? And
secondly, if we have any unrealized loss ending in the books, what will be that amount?
Kamlesh Shah:
Abhinav, do you want to answer the first part of the question?
Abhinav Gupta:
Yes, sure. Please, sir. So in order to answer your first part of question, the percentage in terms
of revenue drop this year as everyone has explained that due to regulatory reasons, there has
been a drop. So in terms of revenue, it is around 62%, and rest business is from broking and
NBFC, all combined. And in terms of profitability prop, this year would have been somewhere
around 47% and rest coming from all the other businesses combined.
As far as the unrealized business is concerned, I think all the accounting measures account for
that all the unrealized gain has been taken care in this P&L. But I'll let Sachin sir, and Kamlesh
sir comment further on that.
Sachin Gupta:
Yes. We maintain conservative approaches. And we know auditors also MSK. So we maintain
accounting discipline. And as of today, there are no unrealized losses that have not been
accounted.
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Share India Securities Limited May 27, 2025
Kamlesh Shah:
No, I think he's asking for the fair-value losses in the books, correct?
Akshay Sharma:
Yes, yes.
Kamlesh Shah:
So fair value numbers, it is because of the investments in our book and because last quarter, the
stock prices have gone down, so we have to book some fair value loss. That number is around
INR42 crores. Unless that quarter was not that bad, so fair value loss was around INR42 crores
in the fourth quarter.
Abhinav Gupta:
Yes. But to answer your question, there's no further loss that has been needed to be accounted.
As far as 31st of March, all the accounting has been done completely.
Akshay Sharma:
Okay. Okay. Sir, if you can help me what is the size of your prop book like you use INR300
crores and you scale it to maybe INR1,000 crores. So how exactly does it happen?
Sachin Gupta:
So what is your question exactly? Like what kind of margins we use for the prop trading or
investments you're asking, what exactly you're asking?
Kamlesh Shah:
I think he is asking for MTF book.
Sachin Gupta:
You're asking for MTF book?
Akshay Sharma:
No. So, sir, basically, I think 6% of our revenue comes from this prop book profits plus
brokerage, which we have generated from the prop book, right?
Kamlesh Shah:
No, there is no brokerage in the prop book.
Akshay Sharma:
Okay. So these are nothing, but the profit from the prop book which we see as revenues? Correct?
Sachin Gupta:
Correct. You're right.
Akshay Sharma:
Right. So sir, technically, if I see, 50% of the business is that and the 50%, no. So in the last
conference calls, which I have attended, so we had this -- we generate around 15% to 18% to
20% plus returns in this prop book. And the last 2 quarters, if I see this doesn't look as consistent
as -- so I just wanted to understand whether are these hedged or arbitrage strategies or these are
leveraged ones? How does it work?
Sachin Gupta:
So, Abhinav, do you want to answer?
Abhinav Gupta:
I'll start and then you can add on. So you're absolutely right. The prop book constitute of 2
components, as Sachin sir has explained. Number one is of the hedge strategies that we trade
and the second one of the investment book that we have in our company.
So because of the market having a negative sentiment in the last quarter on our investment book
that we had of all the equities in other companies that we hold, we had to book a fair value loss
of INR42 crores. And that's why that number appears to be skewed. From a return perspective
on our proprietary trading business, as mentioned earlier, we continue to maintain completely
hedged strategies.
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Share India Securities Limited May 27, 2025
The result on those strategies has seen a slight drop because of the regulatory reasons, as sir has
explained and the number of expiries dropping from 4 to 2, but as said earlier in this call, we
expect that number to stabilize going forward.
Sachin Gupta:
And secondly, volatility in the returns was basically because of the regulatory changes, which
came in November 1. And as I explained in my earning commentary that industry is stabilizing
around those changes and now things have started becoming much better.
And as Kamlesh sir also told that new SEBI chief seems to be quite positive towards the
development of the overall market. So we believe that with the current regime if we don't see
any aggressive changes from the regulatory side. So things will start going up and the returns
will start stabilizing, and we'll see the better returns from the quarter 4.
Akshay Sharma:
Got it. Just last question, sir, hedge strategy portfolio. There is no cash segment. So everything
is F&I options, right?
Kamlesh Shah:
No, we do cash future Algo also.
Akshay Sharma:
So in this cash for the future. So I think future has been expired, so we'll have to sell. So we
don't have any continued cash position still, right?
Sachin Gupta:
No, no, no, no. That is on a regular basis. So if we square off the future, we also square off the
cash position. We don't keep positions naked.
Abhinav Gupta:
We don't think position matter.
Sachin Gupta:
We don't keep naked positions. They are all completely hedged. So we are not exposed to the
market movement. The fair value loss is because of the investments in the book, proprietary
book. That is not because of the unhedged strategies.
Moderator:
The next question is from the line of Rohan Shah who is an individual investor. Please go ahead.
Rohan Shah:
Sir, I have a question with regard to the options trading business. Given the -- like the weekly
expiries, which used to happen when a lot of expiries across the exchanges, we see a big cut in
them, and they formed a substantial part of the options turnover. So I would just like to
understand how has that shaped up for us?
Sachin Gupta:
So SEBI has made the changes from 5 expiries to 2 expiries and restricted it between the 2
exchanges. So that is the primary reason that volumes have gone down. And now see
participants, so it depends on the variety of participants, like retailer, hedger, speculate,
everyone. So everyone's volume went down, but now volumes have started picking up. So we
can see that BSE particularly is showing a good take-off of the volumes since November.
So BSE is one thing. And again, Nifty. Nifty volumes compared to the number have gone up.
So both NSE and BSE are showing good signs of recovery in the volumes. So it may take 2 to
3 quarters to cover up that kind of volumes which we're seeing earlier. But the first part of the -
- that the business is going down that is over now. And more partitions are coming in. Retailers
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Share India Securities Limited May 27, 2025
are coming in. The people who were trading on a daily basis because of the expiry, they have
changed their strategy.
We have also changed our strategy. Earlier, it was volume-based, now they are better margin
based. So now we are not trading much, we are relying on better margins. So we have to tweak
our strategy based on the current scenario. And that's why we all see that things are going up
from this quarter and next 2 to 3 quarters, things will be much better.
As Kamlesh sir said, SEBI has shown the positive sign by sticking that intraday position limit
thing and also on the end of day, SEBI has given a much liberal positions in the position limit
circular. So that is a very positive step from the regulatory side and both our exchanges, NSE
and BSE, they both are...
Rohan Shah:
At the same time, that definitely increases the margin limits for the market participants, right?
For institutional investors, that's not a concern. But for retailers, that would surely act as a hurdle.
So are we seeing any kind of a business loss for that?
Sachin Gupta:
No. But position limit, as there is no restriction on the position limit in intraday now.
Rohan Shah:
No, no, no. I meant about the margin increase.
Sachin Gupta:
You're talking about ELM.
Rohan Shah:
Yes, yes. Yes, the margin increase.
Sachin Gupta:
Yes, margin increase on the expiry day is definitely a challenge. See, sir, I have already
explained, see SEBI has come up with 7 different regulations on November 1. So increasing
margin on the expiry day, reducing the expires, all these were implemented on November 1. So
combining everything, it has actually dented the overall volumes and it has impacted prop shops,
retailers, it has impacted everyone, right?
So -- but now things are starting, going up and industry, different organizations like NE, CPI
and some broker forums, they are meeting SEBI, explaining them about the challenges industry
is facing. SEBI is also considering rationalizing the margins on the expiry day so that people can
participate and trade more. But as of now, yes, increase in margin is a dent for the retailers, as
far as and everyone, even for the institutional clients and for everyone.
So that's why we are seeing that now we have changed our strategy from the volume base to
more margins. So only what we were doing, we were churning it a lot and earning very nice
margin. Now our churning has been reduced, and we are relying on the better margins. This is
what we have to do in the higher margin regime in this scenario.
So people are taking their strategies, including Share India and now we are seeing that those
strategies have started working, and things will be better in the coming future.
Rohan Shah:
Understood, understood. Just another question, sir. Like basically, as you mentioned just now
that you are seeing the participation increasing the volumes have started to increase as they were
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Share India Securities Limited May 27, 2025
before a year or something. So just wanted to understand this participation increase has gone up
from the retail side or institutional side?
Abhinav Gupta:
I think the combined effect is both Rohan, to be honest with you, because the retail participation
and the entire institutional participation is a factor of the entire stabilization in the market
sentiment and also the behavior of the index level and the entire positivity in the market segment
for that matter.
So it's across the board, stability of all the regulations that were implemented in the last couple
of quarters that has happened. So now this quarter, we are seeing a lot of stability coming into
the ecosystem. We are seeing green shoot, but I think it would take us another couple of quarters
while we achieve the earlier kind of levels in terms of turnover, but stability has surely started
setting into the ecosystem as a whole.
Sachin Gupta:
I also want to add one point, Abhinav. So earlier the market was totally dependent on the indexes,
correct. The concern with the SEBI was, it is only index-based trading stocks were -- people are
not even trading in stocks, volumes are very low. So the idea of SEBI was to make a market a
broader-based market, not only index-based market.
So what that is, they allow the changes to list more stocks on the futures and reduce the indexes,
correct? So, what is happening even today, we received the list of many stocks, even that base
is increasing. So 2, 3 months back, they added some stocks. Now, they are again -- they are
adding some stocks.
So we are seeing that people have actually started trading much in stock. So that, as I said,
business strategy is changing stabilizing. People have adopted to the new situation. And as SEBI
wants, the participation will widen into different stocks and the indexes also. So that will
stabilize the volatility also in the market.
Rohan Shah:
Understood. Just on that point, over like the last year or something, we've seen a drop in the new
retail entries in the market, like new retail participation, which was a continuous uptick after the
lockdown. So can we expect the similar in the future.
Abhinav Gupta:
Sorry, can you repeat that question again? I think there was some disturbance in the line.
Rohan Shah:
No, I was saying that over last year, maybe, let's say, last 4 to 6 quarters, we've seen a drop in
the new demat openings by the retail participants in the market.
Abhinav Gupta:
Correct.
Sachin Gupta:
Yes.
Kamlesh Shah:
Abhinav, let me start.
Sachin Gupta:
So I got 2 questions. So the answer, I see nothing can go up straight away like this. So retail
numbers are going up, adding up every month-to-month basis. And we are seeing that last 4
years, retail participation has gone up by multiple folds. So it has to consolidate.
Page 10 of 16
Rohan Shah:
I am referring to the last 1-year period because after the COVID lockdown, there was definitely
a very big spike, but that started to go down in the last 4 to 6 quarters.
Sachin Gupta:
Rohan, I'm trying to answer that. Give me a minute only. So because the numbers are going up,
Share India Securities Limited May 27, 2025
so we have to see the consolidation, correct? So consolidation is happening, nothing else. So we
still believe that consolidation will stay there. Number might not go as they were going up
earlier. But we are more looking at the change in the behavior of the consumer.
Like, now, they are trading more in stocks, not only in indexes, correct? How can we give them
better strategies to trade in stocks? How can we give them AI-based strategy to trade in stocks?
How can we use better platforms to trade, correct? What kind of brokerages we should charge
that they should trade more in stocks and indexes both.
So now we are not dependent only on the new flow of the customers. but we are also depending
on the change in behavior of the customer. As progressively, SEBI allowed the retailer, this is a
first country where the regulator has allowed retailers to do Algo trading on the open APIs. So
consolidation will stay there like in last 3, 4 years, we were seeing numbers were going up like
anything.
So consolidation is 100% welcome. No issues at all. We have to prepare ourselves to accept the
change in the behavior of the customer. And this is our goal. And we believe as every in 1 decade
or 8 years new concept and got introduced to the retailers like Zerodha introduced some
brokerage plans 10 years ago, and now we see what happened in the industry.
So Algo -- the way, SEBI is pushing, the way industry is ready, Algo is going to another thing
where you will give the open APIs and AI strategies for the retail as people will definitely trade
and things will start changing for the retailers and for the entire market.
Abhinav Gupta:
And Rohan, just to add on to that point. Demat account opening is a factor of market sentiment
as a whole as well. So, whenever there is a positivity in terms of market. I think -- so you see a
change in behavior according to those parameters as well.
From a company perspective, as Sachin sir has already told you, we have an advantage of having
a base effect that from our current levels, we can grow very significantly. And also, we are trying
to realign our strategies in terms of customer acquisition so that we focus more on cash-oriented
and Algo-oriented products rather than anything else.
Moderator:
The next question is from the line of Aditya Shah from Meteor Wealth Management.
Aditya Shah:
My question is on the loan book. Sir, with the loan book decline, how does the company plan to
grow in the coming quarters. And what is the risk -- kind of risk management strategies have
you placed to maintain the asset quality? Those are my first 2 questions.
Kamlesh Shah:
So Sachin Sir will start on it.
Sachin Gupta:
Rajesh sir is on the call. Rajesh sir will answer.
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Rajesh Gupta:
Let me to answer, please. This is Rajesh Gupta. Mr. Aditya, our loan book has not decreased,
Share India Securities Limited May 27, 2025
but it has increased only marginally from the last year. Yes, we are -- we have adopted many
strategies to mitigate this, main strategy is to balance our loan book between unsecured to
secured. Initially, our book -- main book consisted of unsecured loans.
Now we are balancing it with the secured loans. Our strategy is to maintain this to -- by 50%,
50%. And we all know that there -- the main risk is only in unsecured book. This risk is across
the Board and secured books are naturally less risky and it will naturally reduce our risk in the
future.
Aditya Shah:
And the follow-up, sir, I mean, what are the risk management strategies for your, the
maintenance at least?
Rajesh Gupta:
So as I told you, main strategy is to shift from unsecured loans to the secured loans sector
segment. This is the best strategy. And to pursue the -- as our unsecured loan is going down, so
we can follow it up more strongly.
Sachin Gupta:
May I add something in the risk management strategy?
Aditya Shah:
Yes, please.
Sachin Gupta:
Yes. So as Rajesh sir has claimed, we have already a mix of secured and unsecured book, and
on the unsecured side, we have a very clear strategy that we avoid concentration geographically
that we don't do business in 1 state or 1 district or something. So we have a limitation that above
certain number, we do not get the customers, or we do not open the branches in 1 state.
We see that there should not be a consultation of particular religion in that particular village. We
see so many things like the family structure of the borrower, the reason of borrowing. So there
are a number of things that we follow as a risk management made before giving the loan. They're
paying capacity and so many things, correct?
So we have a proper ecosystem. And also, we have moved to -- 50% book has moved to the
secured line now to the major cities and mainly focusing on SMEs and all. So now we are quite
comfortably positioned in NBFC. And this year,NBFC should give us a good return.
Aditya Shah:
Great, sir. And my last question is, sir, do you have any plans to tie up with banks to increase
the broking business?
Sachin Gupta:
Like how can banks like.
Abhinav Gupta:
Yes. So currently, there is no proposal in front of the board. Right now, we keep on doing
multiple strategies in terms of customer acquisition. As and when there is an announcement to
be made, we'll do so.
Aditya Shah:
Okay. Okay. If I may, sir. Sir, last question, what is the target to increase your AUM, sir, in the
coming years, a percentage would also do.
Abhinav Gupta:
In terms of wealth management business you're talking.
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Share India Securities Limited May 27, 2025
Aditya Shah:
Yes, yes, sir. Yes.
Abhinav Gupta:
So as Sachin sir has explained, we are trying to penetrate into this market by making our presence
felt into the hot spots and essentially high visibility areas, which include areas like Central Delhi
and Kolkata and everything. That business has sort of started being good business in the last few
years. In terms of expansion, we are not setting a very aggressive target for the same business
because we want to let that business stabilize and focus more on distribution before we set a
very high set of targets over that business.
Kamlesh Shah:
Abhinav, I want to add something here. So sir, on the distribution side, the 2 things we are
focusing on. One is insurance distribution, and one is mutual fund bonds and FDs. So what we're
doing, insurance is doing great last year, insurance rate, INR75 crores premium. This is like 35%
to 40% jump on an year-over-year basis.
And on the bottom line, also insurance business did very well. And this year, we believe that we
-- our internal target is, we should touch 3-figure premium this year. So that is, again, 30% to
35% jump on year-on-year basis. So insurance distribution is doing really great with a lot of
corporate plans we have added in '24, '25.
And now -- and mostly clients are from the western part of India. This year, we are focusing
more on the northern part, and we are also entering into like real estate, builder space for the
insurance and all. So we are getting good success there, and we are hopeful that team is working
very hard and we have a detailed operational plan where we should touch 3-figure premium this
year for the insurance.
And as far as mutual fund AUM or other ancillary services, we have tied up with an institute
based in Chandigarh, where they will train people on behalf of us. And after the training of 3
years, we are going to hire a big chunk of people for the northern part, mainly for Punjab,
Chandigarh, Delhi, Himachal and Haryana.
And our aggressive target is on mutual fund AUM should at least grow by 100% this financial
year on year-on-year basis. So these are the 2 verticals we are focusing, and professional teams
are working on it, and we hope so that this business should show good results this year also.
Moderator:
The next question is from the line of Satvik from Jefferies.
Satvik:
So just on MSE first, since SEBI has decided on expiry date to be Tuesday and Thursday as per
the circular release yesterday. Where does that leave MSE given it was allotted Friday earlier.
Is there a push from SEBI to create a liquid FX 40 cash market before derivatives can be
launched on it?
Sachin Gupta:
Kamlesh sir, you want to start? Kamlesh sir, you want to add?
Kamlesh Shah:
Yes. Right now, right now, only 2 exchange had a liquid cash market, and they had the derivative
market development. So 2 expiries have been given to the 2 exchanges. That is Tuesday and
Thursday. So the exchange can select any one day for their benchmark indices for weekly
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Share India Securities Limited May 27, 2025
contract. Now Metropolitan Stock Exchange and other exchanges which have planned to enter
into equity market will take some time.
It may take 1 year or 1.5 year, 2. So right now, yesterday only the SEBI has come up with the
circular that exchange can choose either Tuesday or Thursday day. As far as Metropolitan stock
exchange and other exchanges are concerned, they will have to develop the cash market first. So
it's a process.
So maybe down the line after a year, they will review again everything. Already, SEBI has given
approval to Metropolitan Stock Exchange for Friday, but before that is implemented, they will
have to develop the cash market and the derivative market to seek different expiry date. Like --
I mean, that will be taken up only as and when they cross the benchmark turnover on the indices,
I hope this clarifies your doubt.
Satvik:
Yes, yes, very clear. My second question is on the gross and net delta base open interest limits
that have been proposed. What are you hearing from your interactions with the market. There
are media reports circulating that are suggesting that the proposed -- I mean, the final limits will
actually be much higher at 100 billion on a gross basis and 15 billion on net basis, but intraday
monitoring was excluded. So is there any truth to this?
Kamlesh Shah:
Yes, yes, yes. See, we had a meeting recently, in which detailed discussion had happened. And
you have the proper knowledge about the issue. There are 2 things, one is end of the day position.
End of the day position, earlier, it was on a normal growth basis. And now they've shifted the
entire working to delta-based. Now Delta base will provide an additional advantage because it
will be considered as a net position so that the limit would be much, much higher.
And the limit of INR500 crores also will be revised to INR1,500 crores on delta based at end of
the day. In addition to that, they will also monitor the growth position that will be INR10,000
crores on short side and INR10,000 crores on a long side. So, this is a very constructive move.
The earlier limit which was implemented on 20th March 2020 during the COVID period was
INR500 crores. And that was causing a lot of concern for the development of the market. Now
with all those things removed, now there is no -- I mean they are proposing no intraday limits
and end of the day limit also has been liberalized. So this will help a lot in the development of
the market and participation by all the stakeholders.
Satvik:
So this is very, very helpful. Just to follow up on the prop side, do we see like this to be the
bottom quarter and sequentially improvement from here? And also wanted to know how big is
the prop book. Can you -- is it possible to quantify it, please?
Kamlesh Shah:
Sachin ji please tell.
Sachin Gupta:
So, I will start the answer and then Abhinav can answer the last part of the question. So, as far
as the prop bottom is concerned, so I will tell you one thing very clearly. Even in the last quarter,
the major dent was because of the fair value change, correct? So the investment is still in the
book. It was because -- mainly because of the fair value market goes up, your number goes up
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Share India Securities Limited May 27, 2025
and market goes -- number goes down. So that's entirely different thing. As far as regular prop
trading is concerned, it was not that bad, it was not that challenging, correct?
Still from the April onwards, we see as SEBI has stopped this intraday position limit regulation.
It has boosted the confidence in the participants. So business has actually shown good results,
and we see the prop numbers will start improving from the fourth quarter and -- as you rightly
said, we also believe that fourth quarter should be the bottom as far as prop trading numbers are
concerned because we are seeing that retailers have also start picking their volumes.
And so vice-versa prop numbers are going up. So all over things have started going up. So we
believe the fourth quarter should be the bottom for the prop numbers and from all the things that.
Rest of question is the quantum of our retail book. Abhinav, if you can quantify or if you can
answer, please?
Abhinav Gupta:
So I'll just start on Satvik in terms of prop book, as Sachin sir has already explained.
Sequentially, we should start seeing green shoot. Stability has already started setting in. And if
you look at in terms of ADTO, you would already see that Q3 and Q4 were more or less similar.
There was not much of a difference over there.
And in terms of quantification of loan book, you need to understand there are certain limits that
are involved, banking limits that are involved. And currently, we are working on the same
numbers that we had last year. But this year, when I mean for fiscal year '26, the number should
be a little higher than what it was last year.
Satvik:
Understood. Understood. This is very helpful. Just last one, if I can squeeze in. On the Silverleaf
acquisition, is it possible to quantify any metrics? Or are we not giving it out yet?
Abhinav Gupta:
What kind of metric are you looking at?
Satvik:
Top line, bottom line kind of metric?
Abhinav Gupta:
So it will be an EPS accretive acquisition. And as and when the acquisition happens, we can't
disclose as where, but fiscal year, it would be an EPS accretive is what I can state officially right
now.
Moderator:
Ladies and gentlemen, in the interest of time we'll take this as a last question. I now hand the
conference over to Mr. Kamlesh Shah for closing comments.
Kamlesh Shah:
Yes, yes. Sachin, yes, we would like to thank all the investors. The session was very interesting.
It highlighted a lot of new areas where we are working and as well as the queries were also was
from well-informed investors. And this will also help us to build our business model. And as
Sachin Ji has explained, a lot of new initiatives that has been taken by Share India. So we can
say that the past 2 quarters were consolidation period and from here on, with the positive
developments, we could look for a better year to follow.
And I would like to thank all the investors for the trust and the confidence that they have in the
company. And we seek your continued support and from our end, we will leave no stones
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Share India Securities Limited May 27, 2025
unturned to see that we meet your expectation and deliver to your expectation. Thank you so
very much for participation in large number.
The management would like to thank you for all the inputs that has been provided by you. And
thank you very much. Thank you. Sachin Ji, you would like to add anything?
Sachin Gupta:
No, I just want to say that besides all the challenges, we are all pumped up, we are all geared up.
Entire team is working day and night, and we are also seeing whatever the changes that come
from the industry, we will adapt them. See, we are into this business since last 30 years. And
we know that this business is highly regulatory business, and we need to adapt according to the
changes, and it takes some time to consolidate even if we look at the Share India's growth in the
last 5 years, things cannot go up like this.
Not everything has to get consolidated and then start to go up. We need to stay relevant; we need
to stay positive. And the success is not in achieving growth in one year. Success is growing
continuously year-on-year basis. So consistency is what we require.
We might see some challenging quarters, but believe me, things are very much in control, and
we are strategizing it very aggressively and we'll execute it very aggressively and coming years
are going to be very good for Share India, and we welcome this consolidation. This consolidation
is one we have all experienced in the past and we'll come out of it very positively and the future
is very bright for all Share India, and I wish best of luck to the shareholders and everyone. Thank
you.
Moderator:
Thank you. On behalf of Share India Securities Limited, that concludes this conference. Thank
you for joining us, and you may now disconnect your lines.
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