RR Securities posts ₹598.14 thousand net loss in FY26; income falls 98%

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Reviewed by
Ashish TScanX News Team
Key Highlights
  • RR Securities posted a net loss of ₹598.14 thousand in FY26, reversing a profit of ₹758.85 thousand
  • Total income plummeted 98.5% to ₹44.12 thousand, driven by lower mutual fund redemption gains
  • Unsecured borrowings from related parties rose to ₹2,798.63 thousand from ₹2,060.63 thousand
  • The 33rd AGM is scheduled for September 29, 2026, with e-voting open until September 28
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RR Securities Limited reported a net loss of ₹598.14 thousand for the financial year ended March 31, 2026, reversing a net profit of ₹758.85 thousand in the previous year. The decline was driven by a sharp contraction in total income, which fell to ₹44.12 thousand from ₹2,965.49 thousand in FY25.

The company's earnings per share turned negative to (₹0.20) from ₹0.25 in the prior year. Given the operational loss, the Board did not recommend any dividend for FY26.

Financial performance

Total expenses decreased significantly to ₹637.53 thousand from ₹2,195.23 thousand in FY25. This reduction helped mitigate the impact of lower income but was insufficient to prevent a profit before tax loss of ₹593.41 thousand, compared to a profit of ₹770.26 thousand previously.

Metric FY26 FY25 Change
Total Income ₹44.12 thousand ₹2,965.49 thousand -98.5%
Total Expenses ₹637.53 thousand ₹2,195.23 thousand -71.0%
Profit Before Tax (₹593.41 thousand) ₹770.26 thousand Turned negative
Net Profit/(Loss) (₹598.14 thousand) ₹758.85 thousand Turned negative

Balance sheet highlights

As of March 31, 2026, total assets stood at ₹49,133.28 thousand, marginally up from ₹49,095.39 thousand in the previous year. Non-current assets were ₹9,803.41 thousand, while current assets totaled ₹39,329.87 thousand. Inventories, primarily comprising land valued at ₹31,707.56 thousand and shares/securities at ₹509.63 thousand, remained unchanged year-on-year.

Total liabilities increased to ₹3,032.10 thousand from ₹2,396.07 thousand. This rise was largely due to an increase in unsecured borrowings from related parties, which grew to ₹2,798.63 thousand from ₹2,060.63 thousand. Equity share capital remained stable at ₹30,181.00 thousand.

Corporate governance and AGM

The company will hold its 33rd Annual General Meeting on Tuesday, September 29, 2026, at 11:00 am in Ahmedabad. Key agenda items include:

  • Adoption of audited financial statements for FY26
  • Re-appointment of Rajendrabhai B. Shah as director
  • Ratification of M/s. S D P M & Co. as Statutory Auditors for FY27

Remote e-voting will be open from September 25 to September 28, 2026, through CDSL. The Register of Members will remain closed from September 23 to September 29, 2026.

What the Numbers Show

The drastic fall in total income is attributable to gains from mutual fund redemptions, which dropped to ₹23.58 thousand from ₹2,963.82 thousand in FY25. While operating expenses also contracted sharply—legal and professional charges fell to ₹27.54 thousand from ₹129.75 thousand—the company’s reliance on investment returns remains evident, as revenue from operations was nil for both years.

Historical Stock Returns for RR Securities

1 Day5 Days1 Month6 Months1 Year5 Years
0.0%0.0%0.0%-44.64%0.0%0.0%

What strategic initiatives will RR Securities undertake to generate operational revenue, given that revenue from operations was nil for both FY25 and FY26?

How does the company plan to manage the increasing reliance on unsecured borrowings from related parties, which rose by over 35% in FY26?

Given the drastic drop in mutual fund redemption gains, what is the current investment strategy for the company's portfolio of shares and securities?

RR Securities Q1FY27 net profit flat at ₹88.36 lakh, revenue zero

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Reviewed by
Anirudha BScanX News Team
Key Highlights

R R Securities Limited reported a standalone net profit of ₹88.36 lakh for Q1FY27, nearly flat compared to ₹89.60 lakh in Q1FY26. The firm recorded zero revenue from operations, with all income coming from other business sources. Expenses dropped significantly from the previous quarter, aiding profitability despite the lack of operational turnover.

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R R Securities Limited reported a standalone net profit of ₹88.36 lakh for the quarter ended June 30, 2026, marking the first quarter of fiscal year 2027 (Q1FY27). This figure represents a marginal decline from the ₹89.60 lakh profit recorded in the same quarter of FY25. The Ahmedabad-based financial services firm disclosed zero revenue from operations for the period, indicating that its core trading or brokerage activities did not generate reportable turnover in this quarter.

The company’s total income for Q1FY27 was ₹10.47 lakh, derived entirely from other business income, up slightly from ₹10.23 lakh in Q1FY25. This income structure suggests that the reported profitability is not driven by operational scale but by ancillary financial activities or investment returns classified under other income.

Financial Performance Overview

Total expenses for the quarter amounted to ₹1.64 lakh, a significant reduction from the ₹14.94 lakh incurred in the preceding quarter (Q4FY26). The drop in expenses was largely due to the absence of one-time or periodic costs that impacted the previous quarter, such as fair value adjustments and other miscellaneous expenses. Specifically, share registration expenses stood at ₹1.50 lakh and fair value changes on current investments were ₹0.13 lakh.

Metric Q1FY27 (Unaudited) Q1FY26 (Unaudited)
Revenue from Operations ₹0.00 lakh ₹0.00 lakh
Other Business Income ₹10.47 lakh ₹10.23 lakh
Total Income ₹10.47 lakh ₹10.23 lakh
Total Expenses ₹1.64 lakh ₹1.27 lakh
Net Profit After Tax ₹88.36 lakh ₹89.60 lakh
EPS (Basic) ₹0.293 ₹0.297

Earnings per share (basic) stood at ₹0.293, compared to ₹0.297 in the year-ago quarter. The company’s paid-up equity capital remained unchanged at ₹301.81 lakh. Other equity capital (reserves and surplus) increased to ₹168.04 lakh as on June 30, 2026, from ₹159.20 lakh at the end of FY26.

What the Numbers Show

A notable divergence exists between the company’s income statement and its profit figure. While total income from operations and other business sources combined to just ₹10.47 lakh, the net profit after tax is reported at ₹88.36 lakh. This discrepancy implies that the majority of the profit—approximately ₹77.89 lakh—is likely attributable to non-operational factors, such as the reversal of tax provisions, utilization of MAT credit entitlements, or other comprehensive income items not explicitly detailed as separate line items in the summary table but reflected in the final net profit calculation. Specifically, the tax expense line shows a current tax provision of ₹1.35 lakh offset entirely by a MAT credit entitlement of ₹1.35 lakh, resulting in zero net tax expense. However, this alone does not explain the gap between total income and net profit, suggesting potential adjustments in reserves or prior period items that are consolidated into the final profit figure under Ind AS reporting standards.

The results were reviewed by the Audit Committee and approved by the Board of Directors on August 12, 2026. Statutory auditors SDPM & Co. issued an unmodified limited review conclusion on the unaudited financial statements. The company declared that it had no outstanding disputed tax liabilities and had not raised any finance through public issues or rights issues during the quarter or the last 12 months.

Historical Stock Returns for RR Securities

1 Day5 Days1 Month6 Months1 Year5 Years
0.0%0.0%0.0%-44.64%0.0%0.0%

What strategic initiatives is R R Securities pursuing to generate reportable revenue from its core brokerage and trading operations in upcoming quarters?

How sustainable is the company's profitability model given that the majority of net profit stems from non-operational adjustments rather than core business income?

Will the company consider divesting non-core assets or restructuring its investment portfolio to stabilize income streams beyond 'other business income'?

More News on RR Securities

1 Year Returns:0.00%