Share India Securities Ltd (NSE: SHAREINDIA) Q3 2026 Earnings Call dated Jan. 28, 2026
Corporate Participants:
Kamlesh Vadilal Shah — Managing Director
Sachin Gupta — Whole-time Director and Chief Executive Officer
Abhinav Gupta — President
Analysts:
Hena Khatri — Analyst
Harsh — Analyst
Rohan — Analyst
Sajel — Analyst
Nitin — Analyst
Rahul — Analyst
Danish — Analyst
Questions and Answers:
operator
[Operator Instructions] The first question is from the line of Harsh an individual investor. Please go ahead.
Harsh
Hello, thank you for the opportunity. So I have few questions on the NBFC vertical. So what is the reason for continuous decline in NIMS over the last few years?
Abhinav Gupta
Sachin do you want me to take that up?
Sachin Gupta
You please start.
Abhinav Gupta
So you know as we have been very continuously saying that initially we were doing a lot of unsecured lending in Tier 2 Tier 3 downs. When we were doing that book in fiscal year 23, fiscal year 24, within the span of fiscal year 24 we moved towards a secured book which currently contributes around 40% of the book. And as the industry practices in secured book there is a comparatively lower amount of mills that you maintain. So the blended mills that you would see, we’ll see compare a few more hundred basis points downward traction before they stabilize at that level.
Harsh
Okay. And also our client base and branch network is also reducing. So what is the reason for this and in future what’s the strategy for the same?
Abhinav Gupta
Yeah, so you know, as we have continuously maintained in terms of we are sort of reduced our unsecured book which was given in tier 2 tier 3 towns. So we have sort of in terms of branch network, we think we have mostly downsized whatever that we have to do. Of the 250 odd crore book that we have currently left, around 100 crore is only present in the unsecured nature. So in terms of going forward, as earlier stated as well, we will continue to focus on the secured lending which would be a lower roe, but a much more secure product for the growth.
Harsh
Aspect of the company. Okay, my last question. What is the reason for increase in the NPA? NPA for Q3 versus Q2.
Abhinav Gupta
So it’s between Q3 and Q2 that we were, as we had said in terms of unsecured book, we were already seeing a little bit of stress that was there in the last year as well. And we were very conservative in our approach to start tradition before the industry. So hence I think as we were sort of downsizing unsecured book, there were sort of some defaults that we had to take on our book. But going forward we should see this kind of NPL going downward only. Plus as our support group grow the NPA, the blended NPAs will go further down from that level.
Harsh
Okay sir. Thank you sir. That answers my questions and I’ll get back to the.
operator
Thank you. The next question is from the line of Rohan, an individual investor. Please go ahead.
Rohan
Yeah, hi. Thank you so much for the opportunity sir. I just wanted to understand more on the subsidiaries part. So like we have U Trade, we have Algo Wire and we have Silver League. So I think I understand it is in the algorithmic trading segment. So how is that and what is the revenue segment from what is the revenue we’re getting from there and how is the growth going forward? And what is the run rate we expect from these verticals?
Sachin Gupta
May I start?
Abhinav Gupta
Sir please go ahead.
Sachin Gupta
So like you said, we subsidize on the tech side. So Algobar is, is a subsidiary, you know which is, which is focusing only on the low latency products like you know, high frequency trading, maybe helping with FPGA technology and all.
So Algorithm does not provide any service to any outside client apart from Share India. So Shared is only client because they are coming only to the parent company and to our needs. Right. So Algorithm is not the company which has been you know created to, to get the more revenues from the industry. They are created to help the parent company to grow especially on the low literacy side of the trading. So 1, 2. Silver Lead. Silver Lead is an HFT based trading company as I said will be done next financial year. So we are expecting one, the silver leads will be there.
We’re expecting not less than gross revenue. It should not be less than, you know, anywhere between to 15. [Technical Issue]
operator
Hello. Yeah, Mr. Rohan.
Rohan
Yes.
Abhinav Gupta
There are some insurance things. Yeah, yeah. Sir, please continue. Sir, please continue.
Sachin Gupta
Okay, so are you there? Yes, yes I am here. Okay. So Silver Lift we are sitting once the merger will be done. We’re expecting top line of 50 to 60 or close and that initial revenues and we are very hopeful the the kind of you know, technology they are bringing in going further. If the company like for example next year India is there and we just help with the more risk appetite and more capital exposure to them then these numbers can easily multiply by two to three times in next one year or two years. So this is Silver leaf.
And lastly you trade, so you trade is a company who focus more on the customer facing products. And in last one and a half, probably two years they are only developing products for the, you know by the help of Share India. Now they are all set and they have created a very fabulous product of Algo trading based on AI for the retailers and the product has been delivered to the Share India. And now next financial year the core management of utrade is focusing on opening U trade for the multi broker. They will offer the product to the multi brokers not only Share India and we believe that you know utrade numbers should also multiply by two to three times in next one or two to three years.
So Utrecht and Silverleaf should give us really good growth in next two years. Algovar is just a support company which is helping the parent company. So as Sebi has opened up for the retail Algos so demand is there in the industry and the kind of organized and future looking product. They have developed that one of its clients and once the management will start meeting and start tying up with the larger brokers based on the retail side. So we believe their revenue will definitely go up and people like their product. And Silverleaf as I said again they’re good in trading side once the capital is provided to them then their number will also go up.
So both companies should show at least two to three times growth in revenue in next two years.
Abhinav Gupta
Also I would just like to clarify as sir said, Algowire caters to the need of the parent company which are used by parent company to grow their own retail business. So Algovia sort of gives us the low literature solutions which have been bread and butter for sharing the securities and hence used by them or the clientele of sharing their securities and the charges to them is in form of broking income. So a lot of broking income growth that we are expecting should be driven from those solutions which are created by algorithm and U trade. And Silver Leaf has been clearly explained by sir very clear.
Just a note, Silver Leaf is yet to merge as explained by s earlier Silver Leaf numbers will start showing for the first time from fiscal year 27 onwards.
Rohan
Okay, got it sir, thank you so much. That gives you a lot of clarity. That’s it from my side. My pleasure.
operator
Thank you. The next question is from the line of Sajel, an individual investor. Please go ahead.
Sajel
Hello.
Abhinav Gupta
Hello ma’. Am.
Sajel
Hi sir. Thanks for the opportunity. So I just wanted to ask a question regarding the insurance segment. So what would be the reason for the declining revenue from that segment?
Sachin Gupta
Please answer.
Abhinav Gupta
Please continue.
Sachin Gupta
No, I don’t think revenues. Can you please check? Revenues have not shown any declining revenues are up.
Abhinav Gupta
Insurance as you would appreciate is a little structural issue where a lot of business happens in the Q4 onwards. So for an insurance company measuring only Q1 or Q2 or Q3 numbers would be an appropriate number. JFN quarter is a very strong quarter and the company, the overall growth number should be on a growth trajectory. In terms of Q2 Q3 to Q3 comparison. If you look on year on year basis there might be a little drop but I think that’s a very minute drop in terms of numbers. The projections for the full year are on track.
Sachin Gupta
For that full year projection we are expecting at least 20 to 25% growth year on year basis from April to March because as Abhinav said, JFM is very crucial. So a lot of business discussions are going on and we hope that that will convert into the real business and we expecting 20 to 20% growth, 20 25% growth in the overall business in the inshore side.
Sajel
All right. And also sir, about our joking business. So what would be driving the growth in that segment?
Abhinav Gupta
If you look at the micro level analysis, the biggest contributor has been the NPF in the last couple of quarters and especially in the last fiscal year. So the interest income which is driven by the cash market as sir already explained in his opening comments, the volumes have stabilized in this fiscal year. So the cash market turnovers are more or less back on track what they were in the earlier levels. So the interest income would be driving as a component of the broking income. Plus the new age products that we are doing with utad, Algos and Algo Wire which will help us create a new segment will continue to bring more broking clientele into the forex.
Sachin Gupta
Also I would like to add here like as Abhinav said, MTS is one driving force and Algo based platform that’s a really good forward looking platform has been created by utrend2,3 all the wealth based products distribution which we are starting. So that will add lot of value to the retailers. Like there is a lot of demand for EIS structure, AIs, PMS and debt based investment. So which right now Share India is not providing to the clients. So once all these things will be in kitty as I said from Q1 of Next Financial year. So along with that we are opening so many branches on ground entire three cities.
So once all the products will be introduced we believe that you know Share India it will help Share India to grow their retail base on the ground.
Sajel
Thank you.
operator
The next question is from the line of Nitin an individual investor. Please go ahead.
Nitin
Actually what are the plan growth plans of going retail broken in the segment. By sharing like Grove and Zerodha are. Expanding massively to capture the retail clientele. What are our plans to go to these segments and all and what are the plans of getting MTS books to reach to mass. People of India what are our plans?
Sachin Gupta
So as Sadi said grow and they are also focusing on you know so everyone is struggling with the numbers so they are also focusing on MTS and well for us so you can see you know grow and grow has started MTF last year. Zerodha started MTF last year. So MTF is one thing which is very sticky to the retailer.
So Share India is also so there is a you know as per sebi circular there is a limitation that a broker cannot fund more than the 50% of their network in MTS so that gives a lot of scope for the business entire three cities. So Share India is also focusing on mps like they are. They are creating their book online, we are book focusing on offline. Everyone is working on this trend. So MTF is one thing and as I said how to grow next year target is to double the book from 450 odd crores to anywhere between 904 figures to 1000 crores are aim and how we’ll grow it is very simple.
Like as I said we are planning to start opening our branches on the entire three cities where there is still a lot of scope people who are associated with the, you know brokers whose network is not so much that they can offer, you know good mtf, good MTF line to the clients. So there is a scope of increasing the business. So type 3 cities are focused and going further like if we get, you know if we are successful in running these five pilot branches will then keep on increasing the branches on the ground and also we are focusing on adding more associates on the ground in central part of India and southern part of India and also on the west side.
So right now we are mainly in the northern part of India. So we’ll increase our base in terms of branches and more associates and using all this network we try to increase our MTF book and target is four figures in next two years nearly doubling the book from here. And I think that that was your question. Is there anything else in your question? I just mean I got distracted
Nitin
actually I want to know what sharing day is doing to to reach the mass people. Like we are seeing daily advertisements are coming in the TV channels of by. Every brokerage house. Bank. They are showing like there are some more of like them. They are continuously giving ads and all of MTS books come and have a MTS event. What we are doing to capture these clients or what we are doing digitally to capture these claims,
Sachin Gupta
you have to answer this.
Abhinav Gupta
Sure sir. So you need to understand, you know when you say mass level there are different sort of business packages that are involved in it. Comparing company like Share India would directly like the grow or zero would be a very unfair assessment. We are more of a physical presence, brick and mortar kind of a player. Our strategy is more on the lines explained already in offering multiple products with high touch base points also in terms of being focused towards insurance and other wealth management products. In terms of retail network neither do we want to, neither are we Targeting being the biggest player in terms of the number of retail customers.
So when you say mass mass there are the different strategies that is involved and as extended we will be focused more on high touch businesses with more physical presence rather than being focused more on branding or advertisement purposes.
Sachin Gupta
No, no, I. I just want to add two things as. As you said. So Sharon is also planning to digitally advertise the products like future Dalgos and MTF and other products. Basically, you know, marketing or branding for the branding purpose. Also the shared is planning to start that in house. Earlier we were trying to deal it through the vendors which was an unsuccessful attempt. So sharing is trying to setting the base in house and we’ll start marketing our products online on all the digital platforms possible. And also the TV ads and all these things they are continuously coming on the different channels and we’ll be marketing our products as I said NPS and other products.
So we are hopeful that you know, by way of marketing and physical branches on the ground it will help us to connect with the masses of the tire three cities.
Nitin
Okay, thank you. And one question more. How much sharing is having stake in MSC the new exchange which is going to launch on 1st of February?
Sachin Gupta
I think we are holding 3% equities
Abhinav Gupta
3% plus
Sachin Gupta
3% plus equity sharing their holdings in MSCI.
Nitin
Okay, thank you.
operator
Thank you. The next question is from the line of Rahul, an individual investor. Please go ahead.
Rahul
Hi, good evening everyone.
Sachin Gupta
Yeah, good evening sir.
Rahul
Yeah, so the turnover has shown a significant growth in the quarter three. How should we interpret this trend? And the management look out for this.
Abhinav Gupta
You want me to take that?
Sachin Gupta
Yeah, we are going to see.
Abhinav Gupta
Yeah. The ADTO numbers that you referred to have seen some growth in Q3 specifically which are contributed by the stability that has come in the cash market and also the commodity market growth that has been there. Commodity market especially in the last quarter has been a really seen a really uptick which we believe is a structural number and should continue at those similar levels going forward. We continue to believe that our NDT numbers should remain in the similar numbers with plus minus 5% kind of a variation going forward as the cash market and the entire F and O market is now the entire downside has been priced in and has seen a lot of stability last couple of quarters and commodity uptake we believe will continue or it’s not even continue will be standard at this level going forward at least for a couple of few more quarters.
Sachin Gupta
So I want to add some points. So I tell you sir, overall see how the market behaves and there were a lot of regulatory challenges were coming, changes were coming. So people tend to stop, wait and watch and then plan their strategy. Then slowly and gradually they get stabilized in the market. So I give you very simple information. Even yesterday was a nifty monthly expiry. Correct. And Nifty options has the highest volume in nifty options yesterday only. So that was more than 90,000 crores. Correct. So this was the highest volume in nifty options after the, you know, when Sebi stopped banking.
Nifty and five day expiry. So this was the highest volume in nifty especially on Tuesdays. Correct. So we can easily see participation has started going up slowly in, gradually and in all the products like by the retailers, by the traders, by the speculators, by everyone. And secondly, volatility is high. So when the volcano is high, so regular activity tends to go up. So as I said in my early comments, we believe that at least stabilization is there. So the earlier trend was going down. Then we see a stability for 2. To 3/4 now from Q3 we have. Started seeing some, you know, growth in the volumes. But all the segments and also commodity has added lot of numbers in in HCU again thanks to the multity gold and silver prizes, all the metals and everything. So all these things put together, overall participation in the market by all the segments is actually growing. So as I share the nifty numbers of yesterday’s fiery. It was highest number in nifty after the shifted to the Tuesday. Thank you.
Rahul
Thank you sir.
operator
Thank you. The next question is from the line of Danish, an individual investor. Please go ahead.
Danish
Good evening, sir. Sir, I have just one question. So basically merchant banking revenues appear to be lumpy. Can you please provide some visibility on the current IPO pipeline and your confidence in sustaining deal flow for this?
Kamlesh Vadilal Shah
Yeah, so you’re absolutely right that merchant banking numbers would continue to have some cyclical effect because of the market conditions. We have around six approvals in hand going forward could give you a little bit more visibility. As you know said earlier, we will continue to focus more on main boards because the cyclicity has far bigger impact in SME markets rather than the main board markets. We have filed one main board IPO in September which we are awaiting approval which we should hopefully open in next quarter. We have also filed one more mainboard IPO in January this year.
So our strategy in terms of deal pipeline would be to let the market stabilize a bit when we go ahead and complete the approvals that we have in hand for the FDA market and continue to focus on the main board IPOs, plus work on the new companies and the Dell pipeline from our next year onward. We believe in terms of market conditions next quarter would also be crucial before we start seeing some sort of a very significant uptick in the market.
operator
Thank you. [Operator Instructions] As there are no further questions from the participants, I now hand over the conference to management for closing comments.