B.N. Rathi Securities Reports 31% Drop in Q2 Profit, Approves ESOP Allotment
BN Rathi Securities experienced a 31.17% year-on-year decrease in standalone profit for Q2 FY2026, dropping to ₹262.58 lakhs from ₹381.49 lakhs in Q2 FY2025. Total income fell by 13.51% to ₹1469.60 lakhs. Consolidated profit declined by 41.19% to ₹234.36 lakhs. The company's subsidiary, B.N. Rathi Comtrade Private Limited, reported a loss of ₹31.75 lakhs for the half-year. The Board approved allotment of 2,50,000 equity shares under the BNRSL-ESOP Scheme 2022 at an exercise price of ₹10 per share.
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BN Rathi Securities , a prominent player in the Indian financial services sector, has reported a decline in its standalone profit for the quarter ended September 30, 2025. The company's performance reflects the challenges faced in the equity broking industry during this period.
Financial Performance
The standalone financial results for Q2 FY2026 show:
| Particulars (in lakhs) | Q2 FY2026 | Q2 FY2025 | YoY Change |
|---|---|---|---|
| Profit | ₹262.58 | ₹381.49 | -31.17% |
| Total Income | ₹1469.60 | ₹1699.20 | -13.51% |
| Equity Brokerage Income | ₹972.78 | ₹1073.31 | -9.37% |
BN Rathi Securities witnessed a significant 31.17% year-on-year decrease in standalone profit, dropping from ₹381.49 lakhs in Q2 FY2025 to ₹262.58 lakhs in Q2 FY2026. This decline was accompanied by a 13.51% reduction in total income, which fell to ₹1469.60 lakhs from ₹1699.20 lakhs in the same period last year.
Consolidated Results
On a consolidated basis, the company's performance showed a similar trend:
- Q2 FY2026 profit: ₹234.36 lakhs
- Q2 FY2025 profit: ₹398.52 lakhs
- Year-on-year decline: 41.19%
Subsidiary Performance
B.N. Rathi Comtrade Private Limited, a wholly-owned subsidiary of the company, registered a loss of ₹31.75 lakhs for the half-year ended September 30, 2025. This compares to a loss of ₹38.73 lakhs for the entire financial year ended March 31, 2025.
Employee Stock Option Plan
The Board of Directors has approved the allotment of 2,50,000 equity shares under the BNRSL-ESOP Scheme 2022. Key details of the allotment include:
- Number of shares: 2,50,000
- Face value: ₹5 per share
- Exercise price: ₹10 per share
This decision may potentially boost employee morale and retention, which could be crucial given the current challenging market conditions.
Market Outlook
The decline in BN Rathi Securities' financial performance may be indicative of broader challenges in the equity broking sector. Factors such as market volatility, regulatory changes, and increasing competition from discount brokers could be contributing to the pressure on traditional broking firms.
As the company navigates through these challenges, investors and market observers will be keenly watching how BN Rathi Securities adapts its strategies to maintain its market position and return to growth in the coming quarters.
Historical Stock Returns for BN Rathi Securities
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.34% | -2.25% | -8.11% | -29.70% | -61.31% | +340.59% |
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