SKP Securities Limited reported a net profit of ₹223.59 lakh for the first quarter ended June 30, 2026, marking a 21.96% year-on-year decline from ₹285.25 lakh in the corresponding period of FY25. The drop in profitability occurred despite total revenue remaining largely stable at ₹1,042.91 lakh, reflecting only a marginal 0.25% increase over the prior year’s ₹1,040.28 lakh. This divergence highlights significant margin compression driven by rising operational costs, particularly in employee benefits and other expenses, which eroded bottom-line gains even as core brokerage income held steady.

The Board of Directors approved the unaudited financial results on July 25, 2026, pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by M/s S K Agrawal and Co Chartered Accountants LLP, the statutory auditors of the company, who issued a limited review report confirming that the statement disclosed all required information without material misstatement. The figures for the previous quarter ended March 31, 2026, are balancing figures between audited full-year data and published year-to-date figures.

Financial Performance Breakdown

Revenue from operations stood at ₹1,042.91 lakh in Q1FY27, compared to ₹1,040.28 lakh in Q1FY26. Brokerage and fee income, the primary revenue driver, decreased slightly to ₹737.59 lakh from ₹771.38 lakh in the previous year. However, this was partially offset by an increase in net gain on fair value changes, which rose to ₹126.63 lakh from ₹111.74 lakh. Interest income also contributed to stability, declining modestly to ₹178.69 lakh from ₹157.16 lakh.

Total expenses increased by 12.50% to ₹760.18 lakh from ₹675.70 lakh in the corresponding quarter of FY26. Other expenses saw a significant jump to ₹198.99 lakh from ₹194.96 lakh, while employee benefit expenses rose sharply to ₹244.32 lakh from ₹195.12 lakh. Finance costs also increased to ₹37.16 lakh from ₹29.45 lakh. Brokerage and fee expenses remained relatively contained at ₹264.15 lakh.

What the Numbers Show

The divergence between flat revenue growth and double-digit expense inflation highlights margin compression for SKP Securities in Q1FY27. While the company managed to stabilize its core brokerage revenue, the inability to control operating costs—particularly employee benefits and other expenses—directly impacted net profitability. The profit before tax fell by 22.45% to ₹282.74 lakh, indicating that operational efficiency challenges outweighed the benefits from fair value gains. Earnings per share (basic) declined to ₹3.28 from ₹4.19 in the previous year, signaling reduced value creation for shareholders during the period.

SKP Securities Limited held its Board of Directors meeting on May 09, 2026, to approve the audited financial results for the quarter and financial year ended March 31, 2026. The statutory auditors, M/s S K Agrawal and Co Chartered Accountants LLP, issued an unmodified opinion on the results, confirming they give a true and fair view in conformity with Indian Accounting Standards. The results were reviewed by the Audit Committee and approved by the Board at their respective meetings held on May 08 and May 09, 2026.

Financial Performance

SKP Securities delivered a strong financial performance for FY26. Revenue from operations for the year stood at Rs 4,102.27 lacs, driven by Brokerage and Fee Income of Rs 3,383.87 lacs and Interest Income of Rs 716.96 lacs. The company reported a Net Profit of Rs 1,034.75 lacs for the full year, compared to Rs 998.95 lacs in the previous year. Basic and Diluted EPS for FY26 were reported at Rs 15.20.

The following table presents the key financial metrics for the quarter and full year:

Total expenses for FY26 were Rs 2,716.08 lacs, with key components including Brokerage and Fee Expenses of Rs 1,019.07 lacs, Employee Benefits Expenses of Rs 863.46 lacs, Other Expenses of Rs 636.30 lacs, Finance Cost of Rs 140.25 lacs, and Depreciation and Amortisation Expenses of Rs 57.00 lacs.

Balance Sheet Highlights

The company's balance sheet as at March 31, 2026, reflects healthy growth in total assets, which increased to Rs 10,610.85 lacs from Rs 8,858.72 lacs in the previous year. Total Equity grew to Rs 6,040.03 lacs from Rs 5,071.52 lacs, while Other Equity stood at Rs 5,359.15 lacs. The paid-up equity share capital remained unchanged at Rs 680.88 lacs.

Cash Flow Summary

The cash flow statement for the year ended March 31, 2026, prepared under the Indirect Method as per Ind AS-7, reflects the following key movements:

Proceeds from short-term borrowings (net) stood at Rs 951.04 lacs, while dividend paid during the year amounted to Rs 136.17 lacs. Finance costs paid were Rs 140.25 lacs.

Dividend Recommendation and Appointments

The board recommended a final dividend of Rs 2/- per equity share of face value Rs 10/- each for the financial year 2025-26, subject to shareholder approval at the ensuing Annual General Meeting. The record date for payment of dividend and the date and time of the 36th Annual General Meeting will be intimated in due course.

The board also approved the re-appointment of M/s G. P. Agrawal & Co. (FRN: 302082E), Chartered Accountants, Kolkata, as Internal Auditor for FY 2026-2027. M/s G. P. Agrawal & Co. is one of the large audit, financial advisory, and consultancy firms in India, with its head office at Kolkata and branches at Mumbai and Delhi, founded in 1954. Additionally, the board approved the re-appointment of Mr. Nikunj Pachisia (DIN: 06933720) as Executive Director for a further term of three consecutive years, effective August 01, 2026 to July 31, 2029, subject to shareholder approval. Mr. Nikunj Pachisia brings 17 years of experience in capital markets across Equity Research, Institutional Equities, Investment/Merchant Banking, Broking & DP Services, Investment/Wealth Advisory, Portfolio Management, and Distribution of Financial Products. Mr. Nikunj Pachisia is related to Mr. Naresh Pachisia and Mr. Vaibhav Pachisia.