Modern Shares & Stockbrokers returned to profitability in the first quarter of FY27, reporting a net profit of ₹5.95 lakh for the period ended June 30, 2026. This stands in contrast to the net loss of ₹6.20 lakh recorded in the immediately preceding quarter ended March 31, 2026. The turnaround was supported by an 18% quarter-on-quarter rise in total revenue from operations to ₹86.71 lakh, while year-on-year revenue declined 12% from ₹99.05 lakh in Q1FY26.

The Board of Directors approved the unaudited standalone financial results during their meeting held on July 28, 2026. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, M/s B D G & Co LLP, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The financial statements were prepared in accordance with Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013.

Financial Performance Highlights

The company’s operational performance showed improvement in key revenue streams compared to the previous quarter. Brokerage and commission income, the primary driver of top-line growth, rose to ₹59.86 lakh from ₹51.88 lakh in Q4FY26. However, this figure remains below the ₹73.65 lakh recorded in the same quarter last year. Interest income remained stable at ₹19.39 lakh, while dividend income was negligible.

Total expenses decreased slightly to ₹79.68 lakh from ₹82.08 lakh in the previous quarter. Employee benefit expenses contributed significantly to the cost structure at ₹41.74 lakh, followed by administrative and other expenses at ₹36.52 lakh. Finance costs remained low at ₹0.55 lakh. The company incurred no net loss on fair value changes in the current quarter, unlike the ₹8.93 lakh loss recorded in Q4FY26.

What the Numbers Show

The shift from loss to profit in Q1FY27 is primarily attributable to the absence of fair value losses that impacted the previous quarter, alongside a modest increase in brokerage income. While the company achieved profitability, the net profit margin remains thin at approximately 6.9%, compared to 15% in Q1FY26. This divergence suggests that while operational efficiencies helped stabilize the bottom line, the overall scale of operations has contracted year-on-year. The earnings per share stood at ₹0.17, a significant improvement from the negative ₹0.42 in the prior quarter but lower than the ₹0.46 recorded a year ago.

Legal and Regulatory Updates

The filing disclosed ongoing litigation involving Bata India Limited. Modern Shares & Stockbrokers Limited had obtained an order from the Court of Small Causes at Bombay regarding mesne profits in T.E. Suit No. 146/192 of 2009. Bata India Limited appealed against this order, securing a stay conditional on depositing mesne profits as directed by the Court of Small Causes. An appeal filed by Bata India Limited with the Hon'ble High Court of Bombay against the order remains pending. The company stated there are no separate reportable segments as per Ind AS 108.

Modern Shares & Stockbrokers Limited has released its audited standalone financial results for the quarter and year ended March 31, 2026. The results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on May 8, 2026, with the statutory auditors issuing an unmodified audit opinion on the results.

Quarterly Performance: Q4 FY26

For the quarter ended March 31, 2026, the company reported a net loss after tax of Rs. 6.20 lacs, marginally wider than the net loss of Rs. 4.85 lacs recorded in the corresponding quarter of the previous year. On a sequential basis, the net loss also widened from Rs. 4.78 lacs in the quarter ended December 31, 2025. Total income from operations (net) for Q4 FY26 stood at Rs. 73.47 lacs, compared to Rs. 78.47 lacs in Q4 FY25 and Rs. 82.57 lacs in Q3 FY26. Total comprehensive income for the quarter was Rs. (12.39) lacs, compared to Rs. (14.29) lacs in Q4 FY25.

The following table summarises the key quarterly financial metrics (Rs. in Lacs):

Full-Year Performance: FY26 vs FY25

For the full financial year ended March 31, 2026, the company reported net profit after tax of Rs. 19.84 lacs, a decline from Rs. 22.09 lacs in FY25. Total income from operations (net) for FY26 stood at Rs. 358.65 lacs, compared to Rs. 370.53 lacs in FY25. Total comprehensive income for the year was Rs. 23.51 lacs, up from Rs. 16.34 lacs in the prior year. The full-year basic and diluted earnings per share (of Rs. 10/- each, not annualised) stood at Rs. 0.80, compared to Rs. 0.56 in FY25.

The following table presents the full-year financial comparison (Rs. in Lacs):

Capital Structure

The paid-up equity share capital of the company remained unchanged at Rs. 293.11 lacs (face value Rs. 10 per share) across all reported periods. Other equity (excluding revaluation reserves), as shown in the balance sheet of the previous year, stood at Rs. 980.63 lacs for FY25.

Regulatory Compliance

The audited financial results were filed with the stock exchange under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The full format of the quarterly financial results is available on the company's website at www.modernshares.com and on the stock exchange's website at www.bseindia.com . The results were signed on behalf of the Board of Directors by G. Shewakramani (Director, DIN: 00413343) and Anil S. Manghani (Whole Time Director, DIN: 00012806), and the newspaper extracts were published on May 9, 2026 in The Free Press Journal (English) and Navshakti (regional language), pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.