BN Rathi Securities Limited disclosed that Darshan P Desai HUF sold 545,163 equity shares through the open market. The transaction reduced the Hindu Undivided Family's stake to 4.11% of the company's total voting capital.

The disclosure was submitted to BSE Limited on October 16, 2026, under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The filing acknowledged a delay in reporting the transaction, which occurred between January 10, 2025, and February 11, 2025. Darshan P Desai serves as the Karta of the HUF and belongs to the public category, not the promoter group.

Transaction Details and Holding Changes

The sale involved a significant reduction in holdings for both Darshan P Desai HUF and Priyanka Darshan Desai, who acts in concert with the acquirer. The combined entity moved from a total holding of over 14% prior to the transaction to approximately 7.5% post-transaction.

Note: Pre-sale percentages are calculated based on the share capital structure applicable before the specific transaction dates.

Capital Structure Context

The disclosure highlights a change in the company's equity share capital during the transaction period. On or before January 24, 2025, the equity share capital stood at 10,37,50,000 with a face value of ₹10 per share. From January 25, 2025, onwards, the capital increased to 20,87,50,000 following a split or bonus issue that reduced the face value to ₹5 per share.

The mode of acquisition and sale was exclusively through the open market. No warrants, convertible securities, or encumbrances were involved in this specific transaction. The acquirers did not hold any voting rights otherwise than by shares.

What the Numbers Show

A notable divergence exists between the number of shares held and the percentage ownership reported. While Darshan P Desai HUF sold 545,163 shares, the post-sale holding is reported as 1,716,613 shares, which is significantly higher than the pre-sale figure of 767,776 shares. This discrepancy is explained by the corporate action occurring during the transaction window: the increase in total share capital from 10.37 crore to 20.87 crore shares likely involved a stock split or bonus issue. Consequently, while the absolute number of shares held increased due to the corporate action, the percentage ownership decreased from 7.400% to 4.11%, indicating a net reduction in relative stake despite the higher absolute share count.

BN Rathi Securities Limited reported a significant improvement in profitability for the first quarter of FY27, with standalone net profit rising 40% year-on-year to ₹224.83 lakh. The Hyderabad-based broker saw its consolidated net profit attributable to owners surge 79% to ₹258.82 lakh, reflecting strong top-line growth across its equity broking operations.

The company’s Board of Directors, led by Managing Director Hari Narayan Rathi, approved the unaudited financial results on August 12, 2026. Statutory auditors M/s M Anandam & Co issued a limited review report with an unmodified opinion on both standalone and consolidated figures.

Financial Performance

Total income for the quarter reached ₹1,760.96 lakh on a standalone basis, up from ₹1,334.35 lakh in Q1FY26. This growth was primarily fueled by equity brokerage and related income, which climbed 32% to ₹1,190.79 lakh. Other operating income also expanded 46% to ₹345.37 lakh.

On a consolidated basis, total income stood at ₹1,826.25 lakh, compared to ₹1,352.31 lakh in the corresponding period last year. Consolidated profit before tax rose 40% to ₹376.53 lakh. Basic earnings per share (EPS) for the quarter were ₹0.62, up from ₹0.35 in Q1FY26.

Expense Management

Total expenses increased 34% to ₹1,430.34 lakh on a standalone basis, mirroring the revenue growth. Brokerage expenses, the largest cost component, rose 42% to ₹869.68 lakh. Employee benefit expenses grew 10% to ₹238.46 lakh, while finance costs more than doubled to ₹29.14 lakh from ₹14.49 lakh.

Other expenses ticked up 28% to ₹271.33 lakh. Depreciation and amortisation expense nearly doubled to ₹21.73 lakh. Despite the rise in costs, the company maintained a healthy pre-tax margin, with profit before tax expanding 24% year-on-year.

Subsidiary Performance

The consolidated results include contributions from wholly-owned subsidiary B.N. Rathi Comtrade Private Limited and partially owned subsidiary B-Fly Asset Manager LLP.

• B.N. Rathi Comtrade Private Limited reported a profit before tax of ₹44.31 lakh, a sharp increase from ₹1.97 lakh in Q1FY26.
• B-Fly Asset Manager LLP recorded a loss before tax of ₹3.11 lakh, contrasting with a profit of ₹0.26 lakh in the prior year quarter.

What the Numbers Show

A notable divergence exists between operational earnings and comprehensive income. While standalone net profit grew steadily at 40%, total comprehensive income rose 4.6% to ₹280.24 lakh. This muted growth in comprehensive income is driven by fair value changes in financial assets, which contributed ₹55.13 lakh in OCI, down significantly from ₹108.05 lakh in Q1FY26. This suggests that while core broking operations are expanding robustly, gains from financial assets have moderated compared to the previous year.

Tax expense remained stable at ₹105.79 lakh on a standalone basis, identical to the previous year’s figure despite the higher pre-tax profit. This indicates a slight compression in the effective tax rate due to lower deferred tax provisions and no earlier years’ tax adjustments in the current quarter.