SKP Securities net profit up 3.6% to ₹1,034.75 crore in FY26
SKP Securities reported a net profit of ₹1,034.75 crore for FY26, up 3.6% from the prior year, with total income rising 10.3% to ₹4,102.38 crore. The board recommended a final dividend of ₹2 per share, subject to AGM approval on September 12, 2026. The company issued detailed guidelines for TDS deduction on dividends, requiring shareholders to submit KYC and tax exemption documents by September 5, 2026, under the Income Tax Act, 2025.
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SKP Securities reported a net profit of ₹1,034.75 crore for FY26, an increase of 3.6% from the ₹998.95 crore recorded in FY25. The Kolkata-based stockbroker saw its total income rise 10.3% to ₹4,102.38 crore, reflecting growth in core revenue streams despite a volatile market environment characterized by geopolitical tensions and macroeconomic headwinds.
The Board of Directors has recommended a final dividend of ₹2 per equity share (face value ₹10), representing a 20% payout. This dividend is subject to shareholder approval at the 36th Annual General Meeting scheduled for September 12, 2026. In accordance with the Income Tax Act, 2025, as amended by the Finance Act, 2026, the dividend is taxable in the hands of members. The company will deduct tax at source (TDS) from the dividend at prescribed rates if approved at the AGM.
Financial Performance
The company’s financial results for the fiscal year ended March 31, 2026, highlight steady top-line expansion with modest bottom-line growth.
| Metric: | FY26 | FY25 | Change |
|---|---|---|---|
| Total Income: | ₹4,102.38 crore | ₹3,720.85 crore | +10.3% |
| Profit Before Tax: | ₹1,386.30 crore | ₹1,328.30 crore | +4.4% |
| Net Profit: | ₹1,034.75 crore | ₹998.95 crore | +3.6% |
| EPS (Basic): | ₹15.20 | ₹14.67 | +3.6% |
Revenue from operations stood at ₹4,102.27 crore, comprising interest income of ₹716.96 crore and brokerage and fees income of ₹3,383.87 crore. Interest income grew significantly, driven by higher margin funding activities, while brokerage income expanded due to increased distribution and broking services.
What the Numbers Show
While total income grew by over 10%, net profit growth lagged at 3.6%, indicating pressure on margins. Total expenses rose 13.5% to ₹2,716.08 crore, outpacing revenue growth. This divergence was primarily driven by a sharp increase in finance costs, which jumped 67.4% to ₹140.25 crore from ₹83.85 crore in the prior year. The company attributed this rise to higher borrowing quantum, particularly for providing Margin Trading Facility (MTF) to clients. Despite the interest income from MTF increasing by 44%, EBITA remained stagnant, leading to a decline in the Interest Service Coverage Ratio from 14.84 times to 8.88 times.
Dividend Taxation Details
Shareholders are required to update their KYC details to ensure correct TDS deduction. For resident individual members, no TDS is deducted if the aggregate dividend does not exceed ₹10,000. For amounts exceeding this limit, a 10% TDS applies with valid PAN. A 20% TDS rate applies if PAN is not linked with Aadhaar or is invalid. Non-resident shareholders face a 20% TDS plus applicable surcharge and cess, though they may claim benefits under Double Tax Avoidance Agreements (DTAA) by submitting requisite documents such as Tax Residency Certificates and Form 41.
Documents must be submitted via the registrar’s portal or by post on or before September 5, 2026. Failure to provide valid documents may result in withholding tax at the higher prescribed rates. Shareholders holding shares in demat mode are advised to keep bank details updated with their depository participants.
Corporate Governance and Leadership
The AGM will also see the re-appointment of Mr. Anil Shukla as Whole-time Director and Chief Financial Officer. Additionally, shareholders will vote on the re-appointment of Mr. Nikunj Pachisia as Executive Director for three years, with his remuneration increasing from ₹50 lakh to ₹65 lakh per annum.
Mr. Santanu Ray, an Independent Director, ceased to be a director on April 18, 2026, following his demise. The Board appointed Ms. Suparna Chakrabortti as an Independent Director effective October 1, 2025.
Future Outlook
Management described the operating environment as "VUCA" (Volatile, Uncertain, Complex, Ambiguous), citing geopolitical issues and tariff-related challenges. However, it noted that India remains the fastest-growing large economy with moderating inflation. The company expects equity valuations to have moderated, potentially setting the stage for a recovery in financial markets if geopolitical crises resolve. It plans to maintain cautious optimism while keeping a close watch on expenses and risks.
Historical Stock Returns for SKP Securities
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.53% | -4.69% | -16.71% | +1.14% | -18.49% | +230.40% |
How will SKP Securities manage the rising finance costs associated with Margin Trading Facility (MTF) to prevent further erosion of net profit margins in FY27?
What specific strategies is management implementing to offset the impact of geopolitical tensions and macroeconomic headwinds on brokerage revenue growth?
Will the re-appointment of key leadership and the increase in executive remuneration signal a shift in strategic priorities or operational restructuring for the coming year?
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