Khandwala Securities Ltd (KHANDSE)
🎯 Key Takeaways
- Khandwala Securities Ltd is in a fragile recovery phase following a period of losses, with management signaling cautious optimism about operational stabilization. The company operates in the highly competitive and volatile stock brokerage sector, where revenue growth has shown signs of improvement but remains inconsistent.
- Revenue declined 1.3% QoQ to ₹2 in Q1FY27.
- ⚠️ Material uncertainty in financial recoverability due to a qualified audit opinion over ₹566.69 lakhs in disputed share application money and long-term
- Market Cap
- ₹27
- P/B Ratio
- 0.99
- ROE
- -2.2%
- ROCE
- -1.1%
- Debt/Equity
- 0.10
- Promoter
- 48.8%
📖 The Story
Khandwala Securities Ltd is in a fragile recovery phase following a period of losses, with management signaling cautious optimism about operational stabilization. The company operates in the highly competitive and volatile stock brokerage sector, where revenue growth has shown signs of improvement but remains inconsistent. Despite modest YoY gains in revenue and profitability, persistent losses and a qualified audit opinion introduce material uncertainty. The firm maintains a conservative capital structure with minimal debt, but weak returns and negative ROE/ROCE underscore ongoing profitability challenges.
📰 What's Happening
In the latest developments, Khandwala Securities approved unaudited Q1 FY27 financial results on August 10, 2026, reporting consolidated revenue of ₹258.89 lakhs and net profit of ₹8.49 lakhs — a significant improvement from a ₹43.99 lakh loss in the same quarter last year. This was followed by the announcement of its 33rd AGM on September 18, 2026, scheduled via video conferencing with remote e-voting, requiring shareholders to convert physical shares to demat for participation. The board also approved the statutory auditors' limited review report on these results. Earlier, on May 21, 2026, the company finalized its audited FY26 results, which revealed a consolidated net loss of ₹128.49 lakhs despite revenue growth, with a qualified audit opinion due to unresolved litigation over ₹216.69 lakhs in share application money and ₹350 lakhs in long-term deposits.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 1 | 3 | 1 | 2 | 2 |
| Operating Profit | -1 | 0 | -1 | -1 | -0 |
| OPM % | -65.8% | 1.2% | -108.5% | -38.7% | -10.6% |
| Net Profit | -1 | 0 | -0 | -0 | 0 |
| EPS | ₹-0.38 | ₹0.16 | ₹-0.32 | ₹-0.29 | ₹0.06 |
The company's financial trajectory shows a clear inflection point in operational performance, with revenue rising to ₹258.89 lakhs in Q1 FY27 from ₹129.72 lakhs a year earlier, and net profit turning positive at ₹8.49 lakhs after a ₹43.99 lakh loss in the prior-year quarter. This improvement is attributed to growth in 'Feebased Operations' contributing ₹754.61 lakhs to standalone PBT in FY26. However, standalone and consolidated results in earlier quarters showed volatility, including a consolidated net loss of ₹128.49 lakhs in FY26. The recent profitability gains appear to stem from cost optimization and revenue recovery, though margins remain volatile, as seen in the sharp swing in OPM from -108.5% in December 2025 to -10.6% in June 2026.
🔮 Management Outlook & What's Next
Management did not provide explicit forward financial guidance or deadlines in the latest filing, but indicated continued focus on operational efficiency and expansion of fee-based income streams. The board re-appointed Mrs. Bhagyashree Khandwala, signaling confidence in leadership continuity. The company emphasized compliance and transparency in its March 27, 2026 clarification filing regarding financial disclosures, reinforcing its commitment to regulatory adherence. No specific targets for revenue, margin, or market share were disclosed, suggesting a cautious and conservative approach to guidance.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 15 | 15 | 15 | 15 |
| Reserves | 14 | 15 | 12 | 13 |
| Borrowings | 1 | 0 | 3 | 3 |
| Total Liabilities | 43 | 51 | 41 | 52 |
| Fixed Assets | 1 | 1 | 4 | 2 |
| Investments | 1 | 10 | 1 | 12 |
| Total Assets | 43 | 51 | 41 | 52 |
The balance sheet reflects a stable but modest capital base, with equity and reserves slightly increasing to ₹15 lakhs and ₹12–13 lakhs respectively, while borrowings remain minimal at ₹3 lakhs. Total assets grew to ₹41–52 lakhs over the past two fiscal years, indicating limited reinvestment or asset expansion. The company is not pursuing aggressive capital deployment, instead maintaining a defensive financial posture. The absence of significant debt or large cash reserves suggests a focus on preserving capital amid ongoing operational uncertainty.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 | Mar 2026 |
|---|---|---|
| Operating | +4 | -2 |
| Investing | -4 | +1 |
| Financing | +0 | -1 |
| Net Cash Flow | +0 | -2 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 48.3% | 48.3% | 48.7% | 48.8% |
| FII | 0.0% | 0.0% | 0.0% | 0.0% |
| DII | 0.0% | 0.0% | 0.0% | 0.0% |
| Public | 41.4% | 41.5% | 41.4% | 41.2% |
| # Shareholders | 4,561 | 4,604 | 4,571 | 4,604 |
Shareholding patterns show stable promoter ownership at approximately 48.7% over the last four quarters, with no FII or DII holdings reported in Q1FY27. The number of public shareholders has gradually increased from 4,561 to 4,604, indicating modest retail interest. There are no signs of institutional accumulation, and the lack of FII/DII exposure suggests limited analyst or fund interest. The stability in shareholding may reflect promoter confidence but also a lack of external investor conviction.
⚖️ Peer Comparison — Stock/ Commodity Brokers
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| GROWW | 1.15 L Cr | 46.1 | 33.9% | — | 0.02 |
| MOTILALOFS | 60,702 | 30.6 | 11.9% | — | 1.65 |
| 360ONE | 42,519 | 33.6 | 11.5% | — | 1.68 |
| NUVAMA | 29,932 | 14.1 | 21.9% | — | 2.25 |
| ANGELONE | 25,505 | 4.7 | 13.7% | — | 1.29 |
| PRUDENT | 13,134 | 53.6 | 37.9% | — | 0.00 |
| IIFLCAPS | 10,776 | 18.7 | 20.4% | — | 0.59 |
| ARSSBL | 3,156 | 19.8 | 16.4% | — | 0.62 |
| MONARCH | 2,783 | 15.4 | 24.8% | — | 0.03 |
| GEOJITFSL | 2,190 | 30.2 | 8.6% | — | 0.05 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Material uncertainty in financial recoverability due to a qualified audit opinion over ₹566.69 lakhs in disputed share application money and long-term deposits under legal challenge. 2. Persistent volatility in profitability, with frequent swings between profit and loss despite YoY improvements, indicating fragile operational control. 3. Heavy reliance on 'Feebased Operations' as a revenue driver, which may be susceptible to market volatility and regulatory changes in the brokerage sector. 4. Low trading liquidity and minimal institutional interest could exacerbate price volatility and make the stock vulnerable to speculative moves.
📋 Recent Filings
- 🟡 Board Meeting2026-09-18Khandwala Securities held its 33rd AGM on September 18, 2026 via video conference, adopting audited standalone and consolidated financial statements f…
- 🟡 Board Meeting2026-09-18Khandwala Securities held its 33rd AGM on September 18, 2026 via video conference, confirming quorum and approving audited standalone and consolidated…
- 🔴 Corporate Action2026-08-26Khandwala Securities Limited announced its 33rd AGM on September 18, 2026, via video conferencing, with remote e-voting open from September 15 to 17. …
- 🟡 Board Meeting2026-08-10Khandwala Securities announced the outcome of its August 10, 2026 board meeting, approving unaudited standalone and consolidated financial results for…
- Announcement2026-06-24Khandwala Securities Limited announced that its trading window for insider transactions will close from July 1, 2026, until 48 hours after the unaudit…
- Announcement2026-06-11Khandwala Securities received an administrative warning from SEBI dated June 9, 2026 for failing to include an independent auditor's report in a draft…
- 🔴 Announcement2026-06-02No summary available
- 🟡 Board Meeting2026-05-21Khandwala Securities Limited approved its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, during …
- 🔴 Financial Results2026-03-27Khandwala Securities Limited filed a clarification reply on March 27, 2026, addressing regulatory queries regarding its financial results announcement…
- Announcement2026-03-24Khandwala Securities Limited announced a trading window closure from April 1, 2026 through 48 hours after announcement of audited financial results fo…
🧠 Analyst's Read
Khandwala Securities is navigating a delicate recovery, with recent quarterly results showing improved profitability but still operating from a position of weakness. Investors should monitor upcoming AGM outcomes, resolution of audit-related uncertainties, and any signs of sustainable margin improvement or revenue diversification beyond fee-based income. The absence of institutional interest and limited transparency in forward guidance warrant caution, even as operational indicators show modest progress.
Based on filing content and financial data. Not a recommendation.
Read the full analysis
Quarterly trends, balance sheet, cash flow, peer comparison, and AI insights — sign up free to unlock.
Sign Up Free — Unlock Full Analysis2 free AI queries per day.
Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-29.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
📡 Get AI alerts when KHANDSE files new disclosures
Track KHANDSE filings, board meetings, and corporate actions. Free email alerts at 5 PM.
Track KHANDSE — FreeFree account · 2 AI queries/day