Financial Performance
Shardul Securities Limited reported a dramatic reversal in fortunes for FY 2025-26, posting a standalone net loss of ₹589.54 crore compared to a profit of ₹215.88 crore in the previous year. This significant loss was primarily driven by ₹545.23 crore in fair value losses on investments. Revenue from operations plummeted to ₹5.37 crore from ₹42.49 crore in FY25, while finance costs surged to ₹15.33 crore from ₹1.18 crore, reflecting increased borrowings.
Balance Sheet and Investment Position
The company's investment portfolio increased to ₹745.06 crore, with quoted equity shares comprising ₹729.59 crore. Borrowings surged to ₹274.02 crore, primarily from a ₹264.38 crore Margin Trading Funding facility from Kotak Securities at 9.90% p.a., secured by pledged equity shares valued at ₹377.59 crore. The company maintained an equity share capital of ₹17.50 crore with 8.75 crore shares of ₹2 each.
Proposed Buyback
In response to the challenging financial performance, the Board proposed a special resolution for a buyback of up to 1.92 crore equity shares (21.94% of paid-up capital) at ₹60 per share, aggregating ₹115.20 crore. The buyback will be funded from free reserves and/or securities premium account via tender offer route. Post-buyback debt-equity ratio is projected at 0.79 (standalone) and 0.39 (consolidated), compliant with Companies Act requirements.
Corporate Governance and Meetings
The 41st Annual General Meeting is scheduled for 25th September 2026 via video conference to adopt financial statements and seek shareholder approval for the buyback and re-appointment of Mr. Devesh Chaturvedi as director. Remote e-voting will be available from 22nd to 24th September 2026. The company transferred ₹3.02 lakh of unclaimed dividend for FY 2018 and 2.24 lakh equity shares to the Investor Education and Protection Fund (IEPF) during the year.
Regulatory Compliance and Subsidiaries
As an NBFC-ND-SI, the company maintained CRAR of 62.21% (down from 84.92% in FY25) and disclosed significant related party transactions with subsidiaries Shriyam Broking Intermediary Limited and Shriyam Realtors Private Limited. The secretarial audit report contained no qualifications, and statutory auditors Akkad Mehta & Co LLP issued an unmodified opinion on the financial statements.