Share India Securities Limited has informed the Exchange about the transcript of Conference Call with Analysts/Investors held on July 31, 2025 to discuss the un-audited Financial Results of the Compan...
(CIN: L67120GJ1994PLC115132) Member: NSE, BSE, MCX, NCDEX & MSEI Depository Participant with ‘CDSL’ AMFI Registered Mutual Fund Distributor SEBI Registered Research Analyst & Portfolio Manager
MAY 2025-MAY 2026 INDIA
August 05, 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 July 31, 2025 to discuss Un-audited Financial Results of the Company for the quarter ended June 30, 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 July 31, 2025 to discuss Un-audited Financial Results of the Company for quarter ended June 30, 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
“Share India Securities Limited
Q1 FY 26 Earnings Conference Call”
July 31, 2025
MANAGEMENT: MR. KAMLESH SHAH – MANAGING DIRECTOR –
SHARE INDIA SECURITIES LIMITED MR. SACHIN GUPTA – CHIEF EXECUTIVE OFFICER AND WHOLE TIME DIRECTOR – SHARE INDIA SECURITIES LIMITED MR. RAJESH GUPTA – DIRECTOR – SHARE INDIA SECURITIES LIMITED MR. ABHINAV GUPTA – PRESIDENT, CORPORATE STRATEGY – SHARE INDIA SECURITIES LIMITED MR. PRABHAKAR TIWARI – SENIOR VICE PRESIDENT– SHARE INDIA SECURITIES LIMITED
MODERATOR: MR. AMIT KUMAR SHARMA – ADFACTORS PR
INVESTOR RELATIONS
Page 1 of 16
Share India Securities Limited July 31, 2025
Moderator:
Ladies and gentlemen, good day, and welcome to Q1 FY26 Earnings Conference Call of Share
India Securities Limited. As a reminder, all participant lines will be in 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 touchtone phone. Please note that this conference is being 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 Kumar Sharma:
Thank you, Bhavya. 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 Q1 FY26 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, Mr. Abhinav Gupta,
President, Capital Markets and Mr. Prabhakar Tiwari, who has joined us as the Head of the
WealthTech Division.
Before we begin, please note that this conference 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 the Q&A. With that, I will now hand over the call to Mr.
Shah to share his opening comments. Over to you, sir. Thank you.
Kamlesh Shah:
Hello. Thank you, Amitji. Good evening, everyone. I welcome you all to the first investor call
to share the performance of the company for quarter one financial year 2025-2026. Currently,
we are witnessing a lot of headwinds, mainly because of the external factors and tariff-like
issues. However, the industry in the first quarter has been experiencing supportive development
that we are positively influencing our performance.
A trend that is now clearly being realized. We are especially excited by the immense potential
yet to be unlocked within the financial service sector. Below are the detailed financial results for
quarter one 2025-2026. First, we will discuss standalone performance for the quarter one.
Quarter on quarter comparison is really very exciting. The total revenue from the operation for
quarter one was INR273 crore compared to INR188 crores for quarter one 2025.
Impressive 45.6% increase quarter on quarter basis. Profit before tax and profit after tax for
quarter one financial year 2026 was INR89 crores and INR69 crores compared to INR17 crores
and INR16 crores for quarter four of financial year 2025. This represents significant increase of
427% in profit before tax and whooping 324% increase in profit after tax quarter on quarter
basis, highlighting our strong operational efficiency.
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Share India Securities Limited July 31, 2025
Coming to year on year comparison for the standalone results, total revenue from the operation
was INR273 crores compared to INR324 crore for quarter one financial year 2025, showing a
decline of 16% year on year basis. Strictly speaking, year on year basis comparison does not
give any comparable solutions because the situation in quarter one ‘25 was different.
Thereafter, we had a lot of development on international front, on tariff front, on these spikes
and many other disturbances which has affected the performance of last two quarters of the last
financial year. However, we have overcome that particular situation and now we are on a better
footing.
Profit before tax and profit after tax for quarter one financial year ‘26 were INR89 crores and
INR69 crores compared to INR94 crores and INR72 crores for quarter one financial year ‘25,
showing a decline of approximately 6%. Earnings per share for the quarter on standalone basis
stood at INR3.15 on face value of INR2 per share, reflecting a healthy profitability per share.
Coming to the consolidated financial numbers, quarter on quarter comparison. The total revenue
from the operation for quarter one financial year 26 on consolidated basis was INR341 crores
compared to INR240 crores in the last quarter, making a substantial 42.57% increase compared
to the previous quarter.
For quarter one financial year ‘26, profit before tax was INR111 crores and profit after tax was
INR84 crores compared to profit before tax of INR23 crores and profit after tax of INR19 crores
in the previous quarter. This reflects approximately 379% increase in profit before tax and 353%
increase in profit after tax quarter on quarter basis, demonstrating robust growth across our
consolidated entities.
Coming to the year on year comparison, the total revenue from the operation for quarter one was
INR341 crores compared to INR414 crores, decline of 17.5% Y-O-Y basis. Profit before tax for
quarter one financial year '26 was INR111 crores compared to INR131 crores in the quarter one
of financial year ‘25 and profit after tax is INR84 crores in quarter one financial year ‘26
compared to INR103 crores for financial year ‘25, showing a decline of approximately 18%.
Earnings per share for the quarter has been recorded as INR3.86 on face value of INR2 per share.
We have declared dividend of INR0.30 per share of the face value of INR2 per share. The
company has shown strong performance and significant rebound from last quarter's result across
all the segments. We are very pleased with the result and we believe they set a positive tone for
the rest of financial year.
The past few years have marked our transition from traditional broker to full-fledged tech
financial service provider. The company has remained focused and taken right steps with right
people to achieve this transformation. Carrying this legacy forward, we are now venturing into
new segment of WealthTech, a comprehensive technology-driven product designed to serve all
classes of investors.
In line with this exciting development, we are pleased to announce that Mr. Prabhakar Tiwari, a
well-known name in the industry, has been entrusted with the responsibility of this project. We
welcome Mr. Prabhakar Tiwari to Share India Family. He is with us on this conference call, so
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Share India Securities Limited July 31, 2025
he will give you detail of the project and Sachin ji will give you overall view of the developments
and the new initiatives that we have taken and the way forward.
I would like to acknowledge exceptional contribution of the team led by Mr. Sachin Gupta, CEO,
for their efforts in creating opportunities and converting them into results, which has
significantly contributed to the historic growth of Share India as a group.
To conclude, I would like to reiterate our commitment to growing sustainably and creating robust
ecosystem that provides sustainable long-term growth opportunity for all our stakeholders.
Thank you. With these words, I would like to hand over the proceeding to Mr. Sachin Gupta.
Thank you.
Sachin Gupta:
Thank you, Kamlesh sir. Thank you for the detailed presentation about the Q1 results. Good
afternoon, everyone. Thanks for taking time out for this conference call. As Kamlesh sir
explained, Q1 has been a very satisfying quarter as we have seen good rebounds from the Q4 of
the last financial year. This particular quarter has been a very happening quarter for the company.
A lot of new initiatives and steps have been taken. We were trying this last month and maybe
year. All these steps are forward-looking towards the commitment to our investors where we say
that Share India is here to be a more stabilized company focusing on the diversified revenue and
run by the hardcore professionals. Different divisions are run by the hardcore professionals.
What we achieved in this particular financial year? First of all, I would like to highlight that
MTF book which was dropped to INR186 odd crores by Q4 last financial year has jumped by
around 40% in this quarter. We have closed the book around INR315 crores. With MTF, it gives
us more stability in our revenues. That also helps in increasing the penetration towards the retail
side of the business.
The way the market is growing, so this particular financial year, we can see the MTF book is
growing at least 20% or maybe 30% from here on. Another thing that we achieved is we closed
the 100 crores NCD in this quarter which was at 10.75%. The best part is a lot of institutions,
retailers, and HNIs have participated in NCDs and our NCDs are very well accepted in the
market.
That's the first time in our history that we came up with this kind of product and this was well
accepted and this opened a few doors for the company for the further fund raising in the future.
Another big step towards the future is, we got the permission from the SEBI for the PMS license,
which we explained in the last quarter that we have applied but we got the permission from the
SEBI. Luckily, as we are committed to work with the professionals, I cannot name the
professionals right now but that will be disclosed in the coming months.
One guy from the industry having more than 18 years of experience with the different mutual
funds and a hardcore guy of this industry has agreed to join us as a PMS. The first team will be
launched by September. By September first, the team will be launched from the PMS side. This
is a very forward-looking step.
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Share India Securities Limited July 31, 2025
We are looking to enter into the fund management system where AIF and PMS should be part
of our revenue and product offering. So, PMS is the first step. Once we get stabilized with this,
then definitely we have AIF in our mind. Going further, we might go towards the AIF also. PMS,
as I said, again will be run by the professional team, as we are hopeful, in coming years PMS
will also become a good revenue stream for the company and stabilizing the overall revenue for
the Share India.
And going further, another project which we announced in this quarter is Project Drone. Project
Drone is a project that Kamlesh has explained. It is a project towards a WealthTech company
we want to launch and Mr. Prabhakar Tiwari has joined hands with Share India. It is a
WealthTech startup by Share India and Prabhakar. So, the idea is, as we all know, we are seeing
also next decade belong to the Indian retailers.
So, if India is going to grow, why Share India should not be a part of that growth by offering at
least some products for the retailers? Primarily, we are a B2B company. And I appreciate my
Management, my Board that they gave us the permission to enter into the hard core B2C
business. It's very tough for any B2B company to enter into B2C. So, you need courage to do
that and the Management and Board showed that courage and backed us.
And Prabhakar is here. Prabhakar is a veteran in this industry. He was a Chief Growth Officer
of Angel. He has seen the growth of Angel from 10,000 accounts per month to 10 lakh accounts
per month. He has seen all this journey. He has planned and he showed his commitment towards
his business.
Now, that Prabhakar is here and we have just started this project and we believe Prabhakar will
explain in his comments after me, that when he will commence the business. Our goal is to --
it's not only the broking, it's not what Zerodha is doing only. So, it is a complete financial product
with broking, with wealth product, with financing, with everything.
So, next 10 years, as I said, we believe that if we somehow conquer this, this will further stabilize
and it will not stabilize. It will help us grow far more than what we are expecting with only one
way of B2B business. So, you guys can see that Share India is constantly taking steps every
quarter towards entering into the B2C space of the country, like institutional business got started,
PMS now, MTF, now Project drone.
So, uTrade Algos, again Prabhakar will be taking the lead in taking and uTrade Algos also now,
that product will also be offered to the clients via this Project Drone only. And as we saw, as
Kamlesh sir had said in commentary, we have seen so much regulatory challenges in last
financial year, especially Q3 and Q4. So, we believe that those things are now stabilizing a bit
and business is picking up, which is shown in the results of Q1.
So, if the broadening, as we believe that regulator is broadly done with the last changes. So, if
there are no much differences on the regulatory side, so we believe this particular financial year
will be somewhere 20%-25% growth based on last financial year.
One more thing I want to add here that we got permission from the SEBI and exchanges for the
merger of Silverleaf. This is another big thing, which was stuck with the regulatory approval
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Share India Securities Limited July 31, 2025
from the exchanges and the SEBI. We just received it 15 days back. And going further, Silverleaf
is going to be a great acquisition. They are experts in HST Trading Shines and Quant Trading
Shines. So, they will again -- now we will move to the CLT and I hope in next 6 months this
merger, this financial merger will happen.
And with the Silverleaf coming in our chain, it will again boost our revenues from the different
line of business, which we are not doing right now. Again, focus is on stabilizing and growth
both. So, this is from my side and thank you for giving me this chance to explain about the
quarter and the future growth.
Thank you very much. And Prabhakar, over to you, if you can please explain about the Project
Drone. Thank you, guys.
Prabhakar Tiwari:
Yes. So, thank you Sachin ji and Kamlesh ji. Good evening, everyone. I am delighted to join
today's earning call alongside the Share India leadership team. I am Prabhakar Tiwari with more
than two decades of leadership roles across finance, consumer, and technology. In my last role
as Chief Growth Officer of Angel One, I had the privilege to work alongside the management
there to scale Angel One to number three, top three brokerage in the country and transform a
traditional brokerage house to a full stack fintech platform.
I extend a warm welcome to our investors, analysts, and valued partners, as I talk about Project
Drone today. Over the past few months, I have had the privilege of working closely with the
team at Share India to work towards building our next big growth engine, Project Drone, Share
India's WealthTech venture. I would like to briefly share our vision and why we believe it is a
game changer for both Share India and our investors.
India's wealth management space is at an inflection point with over 80 to 100 million plus mass
and emerging affluent investors seeking holistic wealth guidance beyond trading. In Tier 2 cities
represent a massive white space and differentiated market entry opportunity. Project Drone
leverages Share India's strength in institutional-grade trading infrastructure, AI algo-led tools
and strong compliance DNA, while expanding into WealthTech, capturing a broader share of
clients and their investable capital from INR10 lakhs to INR10 crores.
Unlike single product brokers or legacy wealth platforms, Project Drone is designed as a bundled
AI algo-driven wealth platform, seamlessly integrating trading, investing, advisory and credit,
especially for underserved Tier 2, 3, 4 geographies in India. I am glad to share with the investors
that we have assembled a founding team with deep fintech and tech experience from firms like
Angel, Upstox, Google, among others, and this is just a start. More people are supposed to join
us in coming quarter.
Our early surveys and pilots with thousand plus retail investors confirm the strong appetite for
an integrated wealth platform, which Project Drone envisages to build over time, starting from
a strong MVP in next 6 to 9 months. In short, Project Drone is designed to future-proof Share
India's growth, diversify revenue beyond trading fee and capture the next wave of India's wealth
creation story. Project Drone, in my opinion, is not just a growth driver, but a reflection of Share
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Share India Securities Limited July 31, 2025
India's ability to innovate and lead. We look forward to welcome your questions during the
Q&A. Thank you, and I will hand it back to Bhavya who will open to Q&A.
Moderator:
Thank you very much. We will now begin the question-and-answer session. The first question
is from the line of Jitesh Sakaria, an Individual Investor. Please go ahead. As there is no response
from the current participant, we will move to the next question. The next question is from the
line of Neha Shah, an Individual Investor. Please go ahead.
Neha Shah:
Good evening, sir. Sir, can you break down the performance about the verticals, like broking
proprietary like how, which segments are contributing more to the top line and how is the margin
expansion?
Management:
Sachin ji, you'll take the call.
Sachin Gupta:
This particular quarter, what we saw that, as I said, MTF interest income is getting stabilized or
going up. Broking business has shown good growth and the major growth has come from the
prop side. In the last quarter, when the numbers came down, so the commentary from our side
was there was some notional M2M losses which we need to book in the balance sheet. That
number has recovered a bit.
So, putting everything together, some recovery from the investment side, our business getting
good, you know, stabilized and MTF and broking side. All things have been improving the
margins and the numbers. Also, primary market activities have picked up in the last quarter. So,
everything put together has contributed. Abhinav, if I have missed something, can you please
add?
Abhinav Gupta:
Sure, sir. So, thanks a lot for your question, ma'am. So, as Sachin sir has explained, in the last
couple of quarters, there has been a lot of flux in terms of the regulatory landscape changing. As
continuously said in our con calls, we now see some sort of stability coming into the system and
as you can see, the broking numbers have started stabilizing and have seen some marginal
growth as well.
Major improvement that has happened has happened in terms of the fact that the interest income
by the virtue of MTF income has sort of started taking a leg up, which is a very healthy sign
because in the long-term scenario, we believe the interest income would be a very major
component of a broking component specifically. Also, by the virtue of the cost-cutting measures
that we had done internally in the last quarter have ensured that the cost element remains the
same while the business has started recovering in this quarter.
And as Sachin sir said, along with it, some benefit of the interest or the investment benefits that
were there in terms of losses last quarter has started coming up on the improvement side, which
has led to a margin expansion both at the EBITDA level and PAT level.
Neha Shah:
Okay. Thank you, sir. And sir, I also wanted to know about the new client acquisition. Sir, any
targets you have set for this year and can you explain on, like what's the strategy to scale further?
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Abhinav Gupta:
Ma'am, we have been very continuously talking about client acquisition and uTrade Algos has
Share India Securities Limited July 31, 2025
been a very beneficial product for us in terms of acquiring clients. While that product has been
now in line for almost a year now, as discussed on this call, we believe there is a lot more space
apart from just broking in terms of client acquisition. With Prabhakar ji on board, we believe
that the wealth DIY and the wealth technology especially would be a game changer from the
long-term scenario.
We are not trying to compete on a quarter-on-quarter basis with other broking houses on this
regard. We believe building a sustainable new digital platform with much more capabilities
beyond broking would be a game-changer and a better customer acquisition strategy in the
longer run. Prabhakar ji, if you can just want to add some points...
Prabhakar Tiwari:
I want to add something here. So, in terms of expanding our offline retail business, Share India
has opened branches in the Tier 1 cities, like in Calcutta, Ahmedabad, Delhi itself and Patna.
And we are focusing on all these cities and opening our own branches. So, the intent is to serve
the clients for the equity services and wealth products also. So, our base is expanding in terms
of offering more wealth products, like mutual funds, FDs and debenture selling and also equity
products.
And secondly, as I explained primary, I think we are also doing really good these days. So, the
number of clients they are going up. Intent is also to expand our own base in the different parts
of the country and in the offline side. So, we primarily focus on offering multiple products to
the retail customers now.
Neha Shah:
Okay. Thank you, sir. I'll get back in the queue. Thank you.
Moderator:
The next question is from the line of Mayank Sharaf, an individual investor.
Mayank Sharaf:
Yes. Hi. Good evening everyone. So, the first question was regarding your project drone. It was
very well explained by Mr. Prabhakar. I just want to know if you have some growth plans if you
could share some insights.
Prabhakar Tiwari:
Yes. Sachinji, should I take it?
Sachin Gupta:
Yes. Prabhakar, please go ahead.
Prabhakar Tiwari:
Yes. No. Thank you, sir. I mean, that's the most relevant question. And I mean, with the kind of
Share India setup that we are incubating this wealth tech venture, we believe this will play a
large role in expanding not just the revenue top line for Share India, but also increase the margin
expansion, which is required.
And we also believe that this will have a complementary and catalystic impact on other
businesses of Share India. So, in terms of growth plan, I mean, I'm not in a position to share a
specific number at this juncture, but we will move very fast. And the reason for the same is that
we are – we have assembled a very experienced team as a part of this startup venture of Share
India, who are coming from a very mature scaled fintech experience.
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Share India Securities Limited July 31, 2025
And Share India already has a lot of expertise around trading, compliant DNA, regulatory know-
how. So, I believe we'll hit the ground running. And I expect our MVP to be out in six months
to nine months. And when I say MVP, mostly the minimum viable product, people look at two
key features with minimal resources as they go to the market.
But our MVP will be very strong and we will be testing multiple revenue driving features, and
customer acquisition features as we go to the market. And in my opinion, as we start progressing
from MVP, you will see the impact of this venture both on the top line and bottom line of Share
India very soon.
Mayank Sharaf:
I have another question. So, like, what are your views on the turnover at the exchange level,
given the regulations around derivative trading?
Prabhakar Tiwari:
Yes. Sachin sir would like to take.
Sachin Gupta:
Kamlesh sir, do you want or should I answer?
Kamlesh Shah:
Yes. I mean, you can start and then if there is anything left, then I'll chime in.
Sachin Gupta:
So, we have seen that exchanges volumes and overall market volumes are coming down because
of the regulatory challenges and the spikes and we can see, so many things are happening in
industry. So, as we see in the regulatory changes, believe that they are stabilizing a bit.
And regulatory is also of the view and now they have changed their view, changed -- and they're
very accommodative in their stance and listening to the industry. So, going further, we believe
exchanges will be more innovative in offering more products. And like I said, people are in a
mood that, again, they are trying their strategy because with the current regulatory environment.
So, not exactly the kind of volumes we were having like six months ago. But yes, volumes will
not drop from here. And they will start going up in maybe a quarter or two. And -- but it's hard
to commend that, when we can see the exact numbers were happening six months ago. But yes,
things will be better from here. I think we have always touched the bottom from the volume side.
And the changes are very positive that in coming two to three quarters, exchanges volume will
be far better from here on. Kamlesh sir. Yes.
Kamlesh Shah:
Yes. Here, I would like to add two, three lines.
Mayank Sharaf:
Yes.
Kamlesh Shah:
We have emerged from the regulatory headwinds. We have used this difficult time to consolidate
and to take new initiative. We have broadened our revenue stream so that, we are more
sustainable and each vertical contributes revenue to the organization or on the consolidation
basis.
We believe that the last leg of disruption, namely the tariff war, will also get resolved as
government is proactively tackling this issue. And we are taking new initiatives, like, increasing
our stake in metropolitan exchange. And this is just not investment, but this will also provide us
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Share India Securities Limited July 31, 2025
one more platform where we can expand our activity, we can get new products and this will add
to our turnover.
So, I think, the difficult time should be behind us. And there will be stability in the turnover.
And going forward, we feel that this year could be better, as Sachinji has already pointed out,
we will have decent growth this year.
Abhinav Gupta:
Also - yes, also, I would just like to add, as explained by both Sachin sir and Kamlesh sir.
Mayank Sharaf:
Yes.
Abhinav Gupta:
Along with just the stability into the ecosystem, we believe the new innovative products being
offered by different exchanges across the Board would be really helpful for broker licenses going
forward.
Moderator:
The next question is from the line of Kunal Choudhary, an individual investor.
Kunal Choudhary:
Thank you for the opportunity and congratulations for the nice recovery. I have one question
regarding the shareholding pattern. As I can see, like, in the last few years, like, for so many
years, there's a continuous reduction in the promoter shares. Okay, can I know the reason behind
this?
Abhinav Gupta:
I mean that’s -- yes. So…
Sachin Gupta:
Yes.
Abhinav Gupta:
Thanks for your question. I think the reduction that you had been seeing across has been very
marginal and that has to do with a couple of factors. Number one, the acquisition strategy that
the company employed from 2017 to 2020, and specifically, because there was a right issue that
was brought out in 2023, which was fully subscribed by the second half of 2024 or 2025 fiscal
year.
I think because of that, there was some dilution. The promoters have not sold any shares, and I
think, if you see from last couple of quarters, the shareholding pattern was a stability factor. Just
to answer your question in a more pointed way, the promoters have not sold shares. I think all
the dilution has been because of either acquisitions or new capital being issued to new investors.
Kunal Choudhary:
Okay. Thank you for the clarification. And I have one more question regarding the cash flow
statement. There are, like, last two financial years, like, March 2023 and 2024, there is a negative
cash flow from operating activity. So, can I -- like, is there any, but this March 2025, the cash
flow from the operating activity becomes positive and it becomes, like, INR6 crores.
Abhinav Gupta:
Yes. So I think you are talking about the full years. You need to understand that ours is a financial
company, and all the money invested into the FDs or any other investment product is also taken
as an operating cash flow -- cash outflow. And hence, because of that, you might see a negative
operating cash flow. But I think for a finance company, just looking at a pure-play, cash flow
from operations would not be a right message, because a lot of investment related are classified
as operating activities and taken in a negative cash outflow. So, you need to look at that.
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Share India Securities Limited July 31, 2025
Kunal Choudhary:
I agree. But before -- but if we compare like before 2023, it was a continuously positive side,
like, INR400 crores, INR250 crores, INR68 crores. Okay, but since like March 2023, it was
minus INR170 crores. Then March 2024, it was minus INR300 crores.
Abhinav Gupta:
See, I think it is only because of some investments that might be there.
Sachin Gupta:
Yes. Yes. Abhinav, I think that is because of the investments. Earlier, we never used to do any
investments. So, we did some strategic investments in last two years, like Master, like Swastika,
like MSCI. I think that is a primary reason.
Abhinav Gupta:
Yes. But I think even…
Kunal Choudhary:
Okay sir.
Abhinav Gupta:
Those amounts would be smaller. I think it has to be a larger context. I think we can address it
on a one-on-one at a later time. But as I said, cash outflow from operations for a financial
company is not the right metric completely to look at.
Sachin Gupta:
Second thing, here I would like to clarify that all the investments that we have made are all
business investments. I mean, it is not pure investment. And these are all strategic investments,
which will pay very rich dividend in terms of expansion of our business activity and getting like-
minded brokers on board and to broaden our revenue streams.
And like MSCI, MasterShare, and Swastika, all are from the same industry. So, what we are
focusing, and partly because of the merchant banking activity also, we need to invest something
in the company that -- where we are merchant bankers to be market makers for the SME segment.
So, all the business -- all the investments are related to business itself and these are going to be
paying rich dividend in coming months.
Moderator:
The next question is from the line of Prisha Shah, an individual investor.
Prisha Shah:
Hello. Good evening, sir. I have a couple of questions. First one being what steps are being taken
to scale our insurance and mutual fund distribution business, especially in the Tier 2 and below
cities?
Abhinav Gupta:
Okay. You want to ask both or should we start the answer, ma'am, continue?
Prisha Shah:
Maybe you can start. I can go on with other questions not related to the same business, so.
Abhinav Gupta:
Yes. So, I think your question is around regarding the mutual fund business and the insurance
business.
Prisha Shah:
Yes.
Abhinav Gupta:
As we said, as Sachin sir has already said, we had opened branches. We are going both offline
and online in both these products. Offline we are opening branches in the major epicenters of
the businesses including Kolkata, Patna, and Delhi branch itself, where we are just not trying to
cater to the broking part of it but go beyond broking and into the other part -- businesses
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including both insurance and mutual fund. Insurance business, we do a lot of cross synergy from
our merchant banking business as well because we get a lot of clientele from those businesses
and are able to cross-sell a lot of other products by those virtues.
Also, in terms of insurance and mutual fund both as Prabhakar is there, we believe while we had
different suits available with us in both in terms of mutual fund insurance and other product as
well, I think that is what we are trying to accumulate into a single platform and offer to our
clients in a digital version. So, the acquisition strategy is both physical and digital along with
cross selling from the other synergies that we get from the other business divisions.
Prisha Shah:
Okay. Understood. And so, my other question is on our institutional client base. Currently we
are having it at around 140 or so. How are we planning to grow that institutional base beyond
that?
Abhinav Gupta:
Yes. So, ma'am, from an institutional clientele, you are absolutely right. We currently have an
empowerment of 144 clients over there. I think we have seen a massive growth in this business
in the last two years that we have started this business. And now, we see some sort of stability
there.
But as you said, we currently see easily a growth by being a nascent player and being very tech
enabled in terms of different product suits of in-house tech capabilities. We believe we will
continue to acquire customer and gain market share in this. But being a different kind of nature,
the clientele would be not as high what you would expect in a retail business.
Prisha Shah:
Yes.
Abhinav Gupta:
But easily from -- even from current levels, we expect on every quarter to grow by 20%, 30%
easily.
Kamlesh Shah:
See here -- see, ma'am, here I would like to clarify. Don't, I mean, the client for institutional
business is something different. These are all FII, DII, mutual fund and domestic institutions.
Their number will be like this only. In fact, this is a great achievement that within a year of
operation, we could have 140 institutions working with us. This cannot be compared with the
retail clients. Retail client base is different. These are institutional clients. And to acquire 140
clients, I mean, institutions to work on our Insti platform, that itself is a credit and the Insti desk
is performing very well.
Normally, it takes about 3 years for breakeven, but we have pleasure of getting breakeven in the
first year itself. So, the institutional is doing extremely well. And it has opened up some
opportunities and going forward, we will do even better. Thank you.
Moderator:
The next question is from the line of Ashish Jindal, an Individual Investor.
Ashish Jindal:
Good evening, sir. Sir, as of now, most of our revenue and profits come from proprietary trading,
right? All other businesses are quite small in comparison. So, I wanted to ask you, how should
we see your business 5 years down the line? I'm assuming that the proprietary business will
continue to generate good ROEs. But what to do with all of this cash now?
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What businesses can you scale? Because I do not think that market will give good valuation to
the proprietary desk part of the business. But what proportion of our PAT can we expect to come
from other businesses 5 years down the line?
Kamlesh Shah:
Sachinji, you can start.
Management:
Yes.
Abhinav Gupta:
Sachin, sir, I just want to clarify a couple of points before you start. I'll handle it. So, sir, thanks
a lot for your question. I think I'll clarify that not most of our revenue, I mean, it might seem
from a revenue perspective that most of our revenues come from proprietary trading. But at the
bottom-line level, not more than 50% or 55% of our profitability comes from proprietary trading.
The rest of profitability comes from all the other segments combined. So, just to clarify on that,
but rest, Sachin sir, you can start and then we'll all follow up.
Sachin Gupta:
Yes. So, the point you're making is see, you guys can easily see and it is very noticeable that
since last 3 years, we are making very sincere efforts in different, different verticals to, to go
away with -- to start revenues with the -- in B2B business into different verticals, like merchant
banking business is one, NBFC business, institutional desk, insurance side of the business. So,
all these things we are doing since last 3 years.
And every 6 months, we are trying to add some more verticals where we can enter into the retail
side of the overall business side. So, like MTF business, we started 1.5 years back. Retail
branches, now we are opening. Now, we have started distributing best products to the sub
brokers also. So, all these things. So, if you can see last year, merchant banking division did
really well.
Even in this year, merchant banking, first time we have two mandate of main Board IPOs. So,
the quality of company is far, far better. So, we are growing in every vertical slowly and
gradually. So, growth is in a very organic process. We need -- we cannot be very aggressive. It
can backfire also. Every vertical is led by some professional, like we have a separate CEO for
insurance. He has full independence to drive his own vertical. Abhinav is doing one.
Insti desk is led by Kalpesh Shah. So, different, different guys are having lots of experience
behind them. So, diversifying into different verticals and leading that in their own verticals. So,
that's why the earlier 3 years back, this rate with the bottom line was around 80%-85%. Now, it
has come down to 55% as Abhinav has explained. So, going further, again, in this quarter only,
we are starting PMS and the Project Drone is already, as explained by us, Prabhakar is sitting
here.
If intent was not there, then Prabhakar and PMS, then Insti desk, all these things might not be
happening. So, what we are doing, we are keeping a close control over our cash flows. The cash
flows we are generating by our prop business; we are using those cash flows to diversify into
other verticals where we are serving to the clients, maybe B2B and now B2C also.
So, I think this is the best-case scenario and best strategy and extreme, extreme rare case where
you see a hardcore B2B company working into different verticals. And now, our goal is not that
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we are not only focusing on the -- growing our PAT number, growing our prop. Our focus is
stabilization and participation into different aspects of this business.
So, that intent is clearly shown since last 3 years. And going further, we'll go deeper into it. And
with the people like Prabhakar, the project drone, PMS, all these things. And now, AIF is also
in our kitty. So, we are planning for it after 1-year maybe. So, continuously we are -- and you
will not see any big names and big addition on prop side, correct?
So, all these things we are doing and intent is there. And also, use of this cash flow is a fabulous
strategy I think our management has done. And going further, we are hopeful that revenue from
the prop will -- overall revenue will grow. Even the revenue from prop will also grow. But the
percentage of prop revenue should drop to 30%-35% next 3 to 4 years. That's from my side.
Abhinav and Kamlesh, sir.
Kamlesh Shah:
Sachin, can I add some few?
Sachin Gupta:
Yes, sir. Yes, sir.
Kamlesh Shah:
See, we have unique business model. We are focusing on algorithmic solutions and automations.
And if you want a breakup of the revenue, out of 100 rupees that we earn on the consolidated
basis, 25%-30% comes from the subsidiaries. We have about 8-10 subsidiaries which contribute
positively to the consolidated revenue.
Out of the balance 70, 45-50 is contributed currently by the prop desk and 20%-25% is
contributed by the investors. Now, we have net worth of INR2,400 crore as of June. And this
also, the prop desk also gives us opportunity to earn money out of the surplus fund that we have.
And prop desk is a door to attract customers.
Whatever strategies we use for our business, we offer the same to the client. We offer the same
platform to our clients. We also offer them strategies so that they get attracted and they get
complete business solutions. And that is where the, lot many clients or the HNIs or the brokers
are coming to us and joining our platform.
In addition to that, the new initiatives that we have taken on PMS side, on Insty side, and the
recent one on the retail side by this Mr. Prabhakar Tiwari, all this will rightly, increase our
revenue stream from the retail investment to a higher side, as Sachin Ji has already explained.
Thank you.
Ashish Jindal:
Sir, just to add on that part, like all of our businesses are good cash generating businesses. So,
can we like anticipate that 3 years down the line, 4 years down the line, the company can be a
good dividend paying company?
Kamlesh Shah:
We have restricted our dividend payout to 12% of that on a standalone basis. Because we need
constantly funds for expanding our business activity and increase our foothold in the industry.
But, whenever we will have surplus fund, or whenever we feel that the funds are not generating
more revenue than, the individual, our investors can earn. We will definitely reconsider our
policy and increase the payout ratio.
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But right now, as we've mentioned earlier also, that we are opening new stream, like MTF and
other things, where we require more funds. And we have currently MTF book of around INR300
crores, which we may take it up to INR1,000 crores. So, this is a lot of investment.
This is a growing company. And we have a lot of business opportunity and with the kind of
diversification and the business verticals that we have created, it gives very good opportunity
for us to gainfully deploy the fund available with us. And that is why, we are little conservative
on the dividend payout policy. Thank you.
Ashish Jindal:
Sir, just last question. We already have…
Moderator:
Sorry to interrupt, sir. Sir, can you please rejoin the queue as there are several participants
waiting in the question queue?
Ashish Jindal:
So, just waiting these questions. So, what will be a star vertical in the future?
Moderator:
Sir, please rejoin the queue.
Ashish Jindal:
Okay.
Moderator:
The next question is from the line of Khyati Dewani from Aditya Birla Capital.
Khyati Dewani:
Yes. Hello. Sir, I wanted to ask one question. So, in the consolidated revenue, which we are
seeing for Q1 FY '26, so there is a component for net gain on fair value changes, like which has
spiked up a lot during the quarter from last quarter, which is Q4 FY '25. So, sir, can you explain
what is the reason for this increase, which we can see?
Abhinav Gupta:
Sachin sir, you want to take or should I start?
Sachin Gupta:
I will just start then, Abhinav, please take it. So, ma'am, the component you are seeing is a
combination of two sides. One is the prop income and another is the change in the investment
value of -- from the last quarter. So, as I explained earlier, because this quarter was good for
overall prop business, the prop number has gone up. And as I explained, in the last quarter, there
was a fair value loss of INR40 crores because of the drop in the market.
So, when that -- now that particular fair value is around INR16 crores. So, overall, it's a
combination of two things, prop income and change in the fair value. So, that's why the number
has gone up. Abhinav, you can explain.
Abhinav Gupta:
Yes. So, ma'am, thanks a lot for your question. I think the number, as you said, is the net gain in
fair value changes and explained by Sachin sir is a combination of both these incomes, which is
proprietary income and investment income. Proprietary income, we were doing around INR250
crores a quarter before all the regulations started happening and that number started dropping
because of all the regulatory tightening that was happening.
And as explained on this call earlier that we have just come from the regulator headwinds. So,
the proprietary income, essentially, because of the tightening in the derivative market, had
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dropped in the last quarter. Along with that, we also had a double impact because of the inventory
loss on the investment that we had.
And as sir said, this quarter has been good in terms of both the growth of the derivative business,
again, coming into the fore, where we see even at a consolidated exchange level, we now see the
volumes being stable, giving some stability. And we, being pioneers in terms of the technology,
are able to capture a better market share in the entire equation.
And also, we have recouped some of the inventory losses that we had to take on the balance
sheet last year. So, that's why from a quarter-on-quarter perspective, you see a very big jump.
But if you look at it from a year-on-year perspective, you would see stability into the system,
essentially.
Khyati Dewani:
Okay, got it. So, sir, out of this INR218 crores which is there, so how much would be for the fair
value changes and how much would be for the top income?
Abhinav Gupta:
Ma'am, as sir said, B2B -- yes, on a rough estimate basis, as Sachin sir said, in the last quarter,
we took an impact of around INR40 crores in this line item. And of this INR40 crores, we have
recouped around INR16 crores in this line item this quarter.
Khyati Dewani:
Okay. So, INR16 crores would be the change -- fair value change and balance would be from
prop income?
Abhinav Gupta:
Yes.
Khyati Dewani:
Okay. Yes. Thank you.
Moderator:
Thank you. Ladies and gentlemen, this was the last question. I now hand the conference over to
Mr. Kamlesh Shah for the closing comments. Thank you and over to you, sir.
Kamlesh Shah:
Yes. Thank you for your participation in large number. Your inputs are very valuable to us. And
this also gives us insight into our business and we try to explore all the opportunities that are
coming in our way. And with the expanding team, we are confident that we are best placed and
the unique business model that we have gives us also an edge in securing business.
So, thank you for your inputs. And thank you for your support. It is your support that has given
a lot of confidence to us. And it's an energy for us. And going forward also, we look forward for
your support. And thank you again for attending this Investor Meet. Yes. Thank you very much.
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. Thank you.
Management:
Thank you.
Kamlesh Shah:
Thank you everyone.
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