Summary of Key Information:
Reporting Period (Quarter/Year): Quarter ended June 30, 2026 (Q1 FY27)
Nature of Filing / Announcement: Outcome of Board Meeting under SEBI LODR Regulations
Audit Opinion:
Unmodified conclusion with Emphasis of Matter on exceptional item.
Auditor’s Comment:
The statutory auditors, R Kabra & Co. LLP, issued a limited review report with an unmodified conclusion. Their attention was drawn to Note 4 regarding compensation of loss of ₹209.96 million to clients for fraudulent off-market transfer of shares from their demat account in the DP segment, which was classified as an exceptional item. The conclusion was not modified in this regard.
Key Financial Highlights [Unit: ₹ Millions]
Standalone Results:
Revenue from Operations: 2,456.83
- Interest Income: 1,083.39
- Fees and Commission Income: 1,373.56
- Net gain on fair value changes: 0.12
Total Income: 2,461.32
Other Income: 4.49
Total Expenses: 1,936.05
- Finance Costs: 399.20
- Fees and commission expense: 278.75
- Impairment on financial instruments: 2.86
- Employee Benefits Expenses: 776.17
- Depreciation, Amortisation and Impairment Expenses: 53.72
- Other Expenses: 425.35
Profit before exceptional item and tax: 525.27
Exceptional item: 209.96 [Compensation for client fraud losses]
Profit before tax (after exceptional item): 315.31
Total Tax Expense: 80.25
- Current tax: 80.22
- Deferred Tax: 0.03
Profit for the Year: 235.06
Total Comprehensive Income for the Period: 237.23
Paid-up Equity Share Capital (Face Value of ₹5/- each): 315.13
Reserves (excluding revaluation reserve): 13,216.01
Earning Per Equity Share (EPS):
- Basic: 3.73
- Diluted: 3.66
Consolidated Results:
Revenue from Operations: 2,461.03
- Interest Income: 1,083.70
- Fees and Commission Income: 1,377.45
- Net gain on fair value changes: 0.12
Total Income: 2,465.52
Other Income: 4.49
Total Expenses: 1,941.80
- Finance Costs: 399.31
- Fees and commission expense: 278.75
- Impairment on financial instruments: 2.86
- Employee Benefits Expenses: 779.66
- Depreciation, Amortisation and Impairment Expenses: 54.45
- Other Expenses: 426.77
Profit before exceptional items and tax: 523.72
Exceptional item: 209.96 [Compensation for client fraud losses]
Profit before tax (after exceptional item): 313.76
Total Tax Expense: 80.25
- Current tax: 80.22
- Deferred Tax: 0.03
Profit for the Year: 233.51
Total Comprehensive Income for the Period: 236.60
Paid-up Equity Share Capital (Face Value of ₹5/- each): 315.13
Reserves (excluding revaluation reserve): 13,167.66
Earning Per Equity Share (EPS):
- Basic: 3.71
- Diluted: 3.63
Segment-wise Performance:
The Company operates only in one Business Segment i.e. "Broking and related services", hence it does not have any reportable Segments defined as per Ind-AS 108 "Operating Segments".
Corporate Actions:
Dividend declarations: Not Specified
Share split, bonus issue, buyback: Not Specified
Capital Raising:
The Board approved raising capital through issuance of Rated / Unrated, Listed/ Unlisted, Unsecured / Secured Redeemable Non-Convertible Debentures, for an amount not exceeding ₹500 crores (Rupees Five Hundred Crores only), in one or more tranches. The Board authorized a Debenture Allotment and Redemption Committee to finalize terms of issuance and allotment.
Other Significant Information:
The Board approved the incorporation of a wholly owned subsidiary, directly or indirectly, in Dubai, United Arab Emirates ("UAE") ("Foreign WOS"). The entity is intended to support and expand ARSSBL's international business, providing investment solutions/services to NRI, HNI and family office clients. 100% subscription will be infused by ARSSBL in cash. Governmental approvals from Dubai Department of Economy and Tourism (DET) and SEBI are required.
The Company's short-term rating was upgraded to A1+ from CARE on April 08, 2026, and a long-term rating A+ was assigned by ICRA Ratings on April 30, 2026.
Exceptional Item Details:
During the quarter, the Company recognized an exceptional expense of ₹209.96 million for compensation of loss towards replenishment/restoration of securities to two clients of its Depository Participant (DP) business who suffered losses due to fraudulent off-market transfers from their demat accounts. The amount includes a contingent liability disclosed in the previous quarter. The Company reported the incident to relevant authorities including Depositories, Stock Exchanges, and lodged an FIR with the Economic Offences Wing (EOW). The EOW has traced the money trail and attached certain assets and bank accounts. The Company has filed insurance claims to recover eligible losses.