Shardul Securities Ltd (SHARDUL)
🎯 Key Takeaways
- Shardul Securities Ltd appears to be in a distressed financial phase, marked by volatile and largely negative financial performance over recent quarters, despite a high operating margin in one period. The company has shown minimal revenue generation and recurring losses, with equity and reserves barely growing despite asset expansion.
- Revenue grew 4023.3% QoQ to ₹189 in Q1FY27.
- ⚠️ Persistent volatility in revenue and profitability with no clear recovery trajectory.
- Market Cap
- ₹490
- P/E Ratio
- 21.1
- P/B Ratio
- 0.74
- ROE
- 3.5%
- ROCE
- 5.0%
- Debt/Equity
- 0.42
- Promoter
- 74.8%
📖 The Story
Shardul Securities Ltd appears to be in a distressed financial phase, marked by volatile and largely negative financial performance over recent quarters, despite a high operating margin in one period. The company has shown minimal revenue generation and recurring losses, with equity and reserves barely growing despite asset expansion. Management has not signaled a clear turnaround strategy, and profitability remains elusive.
📰 What's Happening
The most recent quarter (June 2026) shows a recovery in revenue to ₹189 crore and operating profit of ₹177 crore with a 93.5% OPM, but this follows three consecutive quarters of losses and negative revenue. Earlier quarters (Dec 2025, Sep 2025) recorded negative revenue and operating cash flows, indicating operational instability. There are no disclosed strategic initiatives, acquisitions, or capital raises in the filings to explain performance shifts. The consistent promoter holding at 74.85% suggests no urgent dilution or exit, but no new investor interest is evident.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | -39 | -13 | 5 | 189 |
| Operating Profit | -48 | -22 | -82 | 177 |
| OPM % | 122.8% | 167.3% | -1783.2% | 93.5% |
| Net Profit | -39 | -17 | -64 | 143 |
| EPS | ₹-4.40 | ₹-1.97 | ₹-7.29 | ₹16.31 |
Revenue has swung from negative ₹39 crore in September 2025 to positive ₹189 crore in June 2026, suggesting erratic operational cycles rather than sustained growth. Operating profit turned positive only in the latest quarter after sustained losses, indicating possible seasonal or project-based volatility. The sharp improvement in OPM to 93.5% in June 2026 is offset by the broader trend of negative margins in prior quarters, raising concerns about sustainability. Profitability remains inconsistent, with net income swinging from ₹143 crore to losses of ₹64 crore in prior periods.
🔮 Management Outlook & What's Next
Management has not provided forward guidance or strategic commentary in the latest filing, and no commentary on future revenue, margins, or business outlook is available in the disclosed materials. The absence of guidance or discussion about recovery plans limits visibility into intent or expectations. The company has not announced any new business lines, cost-cutting measures, or restructuring efforts in the reviewed filings.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 17 | 18 | 18 | 18 |
| Reserves | 686 | 796 | 640 | 718 |
| Borrowings | 23 | 9 | 274 | 185 |
| Total Liabilities | 738 | 867 | 934 | 938 |
| Fixed Assets | 4 | 16 | 17 | 16 |
| Investments | 694 | 795 | 845 | 858 |
| Total Assets | 738 | 867 | 934 | 938 |
The balance sheet shows modest equity growth from ₹17 crore to ₹18 crore and reserves increasing from ₹686 crore to ₹718 crore, suggesting retained earnings or revaluation, but this contrasts with volatile asset growth from ₹738 crore to ₹938 crore. Borrowings remain low at ₹185 crore in March 2026, indicating conservative leverage, but asset expansion has not translated into profitability. The capital structure remains underutilized, with little reinvestment signal or debt reduction strategy.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 |
|---|---|
| Operating | -36 |
| Investing | +12 |
| Financing | +13 |
| Net Cash Flow | -11 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 74.8% | 74.8% | 74.8% | 74.8% |
| FII | 0.2% | 0.3% | 0.3% | 0.3% |
| DII | 0.0% | 0.0% | 0.0% | 0.0% |
| Public | 10.3% | 10.3% | 10.2% | 10.3% |
| # Shareholders | 7,405 | 7,245 | 6,813 | 6,805 |
Promoter holding remains stable at 74.85% over the last four quarters, indicating no dilution or stake sale. FII and DII holdings are negligible and flat, with no signs of accumulation. Public shareholding has slightly declined, and the number of shareholders has marginally reduced, suggesting limited retail interest. There are no indications of activist activity or institutional interest building.
⚖️ Peer Comparison — Finance
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| BAJFINANCE | 6.06 L Cr | 29.8 | 10.4% | — | 3.82 |
| BAJAJFINSV | 2.79 L Cr | 27.4 | 11.4% | — | 5.50 |
| SHRIRAMFIN | 2.29 L Cr | 17.2 | 11.5% | — | 3.80 |
| ICICIAMC | 1.60 L Cr | 32.1 | 111.5% | — | 0.00 |
| JIOFIN | 1.44 L Cr | 67.7 | 2.3% | — | 0.17 |
| TATACAP | 1.41 L Cr | 25.7 | 8.4% | — | 5.28 |
| CHOLAFIN | 1.39 L Cr | 24.1 | 9.3% | — | 6.93 |
| BAJAJHLDNG | 1.19 L Cr | 13.4 | 12.4% | — | 0.00 |
| MUTHOOTFIN | 1.10 L Cr | 9.7 | 14.4% | — | 3.88 |
| PFC | 1.07 L Cr | 4.1 | 9.8% | — | 7.62 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Persistent volatility in revenue and profitability with no clear recovery trajectory. 2. Negative revenue and margins in recent historical quarters raise concerns about business model viability. 3. Lack of management commentary or forward-looking guidance obscures strategic intent. 4. Asset growth without corresponding profitability or cash flow generation suggests potential capital inefficiency or unprofitable expansion.
📋 Recent Filings
- 🟡 voting results2026-09-29Shardul Securities Limited held its 41st Annual General Meeting on 25 September 2026, where shareholders approved the audited standalone and consolida…
- 🟡 Board Meeting2026-09-25Shardul Securities held its 41st AGM on September 25, 2026 via video conference, adopting audited standalone and consolidated financial statements for…
- 🟡 Board Meeting2026-09-02Shardul Securities Limited will hold its 41st AGM on 25 September 2026 via video conferencing, featuring a proposed buyback of up to 1.92 million shar…
- 🔴 annual report2026-09-02Shardul Securities Ltd reported a net loss of ₹5,895.42 lakhs for FY2025-26, with no dividend recommended and no statutory reserve transfer due to los…
- 🟡 Board Meeting2026-09-02Shardul Securities announced that its register of members and transfer registers will be closed from September 19 to 24, 2026, to facilitate the 41st …
🧠 Analyst's Read
Shardul Securities Ltd exhibits erratic financial performance with no consistent growth or margin trend, and management provides no clarity on future direction. Investors should monitor for signs of stabilization in operations or new strategic initiatives, but current indicators suggest limited confidence in near-term recovery.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-30.
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.
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