Shardul Securities Posts Spectacular Turnaround in Q1 FY27; Net Profit Skyrockets to ₹131.55 Crore

Shardul Securities Limited has released its unaudited standalone financial results for the first quarter of the fiscal year 2026-27, which ended on June 30, 2026. The investment and capital markets firm delivered an extraordinary financial turnaround, reversing a steep net loss from the previous quarter and achieving massive exponential growth in net profitability compared to the corresponding period last fiscal year.

Fair Value Gains Propel Total Income to New Heights

For the quarter ended June 30, 2026, Shardul Securities registered a total revenue from operations of ₹17,323.80 lakhs (~₹173.24 crore). This represents a phenomenal increase compared to the modest ₹121.44 lakhs reported in the preceding quarter ended March 31, 2026, and more than doubles the ₹8,057.79 lakhs recorded in the year-ago quarter (Q1 FY26).

The primary catalyst for this massive top-line surge was a monumental net gain on fair value changes, which reached ₹17,163.48 lakhs for the quarter. This investment performance completely overshadowed the company's traditional recurring income lines, which included dividend income of ₹126.18 lakhs, rental income of ₹33.30 lakhs, and a minor interest income of ₹0.84 lakh. Backed by an additional other income of ₹14.79 lakhs, the company's total income for the quarter peaked at ₹17,338.59 lakhs.

Drastic Drop in Expenses Aids Turnaround

Total expenses for the quarter fell sharply to ₹1,020.79 lakhs. This marks a massive drop from the ₹7,904.38 lakhs expended in the preceding sequential quarter, where the company's balance sheet had been heavily dragged down by a net loss on fair value changes amounting to ₹7,089.66 lakhs.

During the current quarter, the firm's main expense block came from finance costs, which rose to ₹776.28 lakhs compared to ₹133.64 lakhs in Q1 FY26. Other operating overheads included employee benefits expenses at ₹29.25 lakhs, depreciation and asset amortization at ₹13.63 lakhs, and general administrative other expenses at ₹201.63 lakhs.

Driven by the absence of fair value losses, Shardul Securities booked an exceptional profit before tax of ₹16,317.80 lakhs, successfully reversing a deep pre-tax loss of ₹(7,782.92) lakhs suffered in the final quarter of fiscal year 2025-26.

Soaring Net Profit and Enhanced Shareholder Value

The company accounted for a total tax expense of ₹3,163.25 lakhs during the quarter. This line item was impacted by a deferred tax provision of ₹3,014.04 lakhs and a current tax provision of ₹490.00 lakhs, which was partially mitigated by a prior-year current tax adjustment credit of ₹340.79 lakhs.

Consequently, Shardul Securities concluded the quarter with a spectacular net profit after tax of ₹13,154.55 lakhs (~₹131.55 crore). This marks a massive recovery from the net loss of ₹(5,999.45) lakhs recorded in Q4 FY26, and more than doubles the net profit of ₹6,077.35 crore cleared in the year-ago opening quarter.

After accounting for a marginal gain of ₹0.48 lakh under other comprehensive income, the total comprehensive income for the period stood at ₹13,155.03 lakhs. On a stable paid-up equity share capital base of ₹1,749.84 lakhs (comprising equity shares with a face value of ₹2 each), basic and diluted Earnings Per Share (EPS) bounded into highly positive territory at ₹15.04 per share, up from a negative EPS of ₹(6.86) in the preceding quarter and ₹6.95 in the year-ago quarter.

Source : Equity Bulls

Keywords

ShardulSecurities Q1FY27 Q1FY2027 ResultUpdate