Share India Securities Receives Credit Rating: Maintains Stable Outlook Amid Capital Market Expansion
DSIJ Intelligence-1Categories: Mindshare, Trending
The stock is up by 17 per cent from its 52-week low of Rs 127.70 per share and has given multibagger returns of 325 per cent in 5 years.
CRISIL Ratings has assigned a ‘CRISIL A1+’ rating to the Rs 250 crore commercial paper of Share India Securities Limited (SISL) while reaffirming its ‘CRISIL A+/Stable/CRISIL A1+’ ratings on existing Bank loans and debentures. This rating reflects the group's robust capital position, evidenced by a consolidated net worth of Rs 2,509 crore and a conservative gearing ratio of 0.23 times as of September 2025. The group benefits significantly from the three-decade-long expertise of its promoters and a sophisticated risk management framework that utilises market-neutral strategies and automated algorithmic software to mitigate trading volatility.
Despite these financial strengths, the group’s revenue profile remains heavily concentrated, with proprietary and high-frequency trading accounting for approximately 61 per cent to 80 per cent of total income. While the group is actively diversifying into merchant banking, lending, and insurance distribution to broaden its earnings base, its performance remains inherently susceptible to the cyclical nature of capital markets. Recent fiscal data indicate a shift in the cost-to-income ratio, which stood at 66 per cent in H1 FY26, highlighting the importance of maintaining operational efficiency as they scale.
The outlook remains Stable, supported by the group's strong market position in the proprietary trading segment and its ability to generate consistent profits for nearly a decade. However, the rating remains sensitive to the evolving regulatory landscape, such as SEBI’s revised equity index derivatives framework and changes in transaction charges. Future rating movements will depend on the group's ability to successfully diversify its revenue streams and adapt to regulatory shifts without compromising its credit profile or earnings stability.
About the Company
Since its 1994 founding, Share India Securities Limited has transformed into a leading financial services conglomerate, shifting from primarily serving High-Net-Worth Individuals (HNIs) with sophisticated algo-trading solutions to rapidly growing its reach in the retail market as a fintech brokerage. Driven by a philosophy of transparency and honesty, the company has achieved a formidable market presence, consistently earning top rankings in the Indian Derivatives Market and demonstrating a robust financial standing with a net worth of over Rs 25.09 billion and an extensive network of clients and 275 branches/franchisees, cementing its position as a dynamic leader in India's evolving finance landscape.
H1FY26 saw its Total Revenue from Operations at Rs 682 crore and Profit After Tax (PAT) at Rs 178 crore, year-on-year decline of 21 per cent and 22 per cent respectively. The company demonstrated strong sequential growth. For Q2FY26 alone, PAT grew by 10 per cent quarter-on-quarter (QoQ) to Rs 93 crore, and EBITDA showed an even stronger 16 per cent QoQ rise to Rs 164 crore, signalling a recovery in the most recent quarter. Reflecting confidence in profitability, the Board declared a second interim dividend of Rs 0.40 per share. Operationally, the company showed significant traction, with the Broking business servicing 46,549 clients and maintaining an Average Daily Turnover of Rs 7,500 crore. The NBFC division reported a solid loan book of Rs 253 crore with healthy Net Interest Margins (NIMs) of 4.24 per cent, serving 43,770 clients.
Share India Securities has a market cap of Rs 3,200 crore. The stock has a PE of 12x whereas the sectoral PE is 21x and a ROE of 16 per cent. The stock is up by 17 per cent from its 52-week low of Rs 127.70 per share and has given multibagger returns of 325 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.