Financial Performance Overview
Khandwala Securities Limited reported a consolidated net loss of ₹12.71 crore for FY26, worsening from a loss of ₹8.00 crore in FY25. Total income declined 38% to ₹935.63 lakh from ₹1,512.96 lakh in the previous year. The company reported a standalone net loss of ₹127.03 lakh with earnings per share of -₹0.83 compared to -₹0.52 in FY25.
Segment-wise Performance
The company operates through four main segments: equity capital markets, investment banking, asset management (PMS), and wealth management. Investment banking contributed over 50% of revenue at ₹468.86 lakh. Segment results showed Fee-based operations generating a profit of ₹3.22 crore while Investment/Stock operations incurred a loss of ₹1.55 lakh. Brokerage income was ₹285.75 lakh with institutional broking showing 138% growth.
Legal Disputes and Contingent Liabilities
The company faces multiple long-standing legal disputes, including ₹216.69 lakh in share application money outstanding for 288 months (pending before Mumbai High Court) and ₹350 lakh in long-term deposits with recovery uncertainty. Other disputes include execution applications for rental recovery, arbitral awards, and a disputed income tax demand of ₹496.27 thousand for AY 2007-08. Preference dividends in arrears from FY2008-09 to FY2020-21 aggregate to ₹2.49 crores.
Auditor Qualifications and Corporate Governance
Auditors M/s. Pravesh Agarwal & Associates issued a qualified opinion due to recovery uncertainties surrounding the share application money and long-term deposits. The board consists of 6 directors including Mr. Paresh J. Khandwala as Managing Director and Mr. Pranav Khandwala as Whole-time Director/CFO. Managerial remuneration totaled ₹492.50 lakh for the year.
Employee Benefits and Related Party Transactions
Gratuity liability resulted in a net liability of ₹211.95 lakhs with an expense of ₹55.80 lakhs recognized in P&L. The company had 43 employees as of March 31, 2026. Related party transactions included brokerage received of ₹112.06 lakh, remuneration paid of ₹492.50 lakh, and advisory fees paid of ₹175.74 lakh, all conducted at arm's length.
Corporate Calendar and Forward Outlook
The 33rd AGM is scheduled for September 18, 2026, to adopt financial statements and re-appoint Mrs. Bhagyashree Khandwala as director. The company aims to strengthen its core broking and advisory businesses while building wealth and portfolio management as a growth engine, despite challenges from macroeconomic volatility, regulatory compliance intensity, and fee compression from digital competitors.