Emkay Global Financial Services Limited announced its unaudited financial results for the third quarter and nine months ended December 31, 2025, along with significant corporate developments including a key board appointment and successful debt fundraising.

Financial Performance Overview

The company's consolidated financial results showed mixed performance across different metrics for Q3FY26:

For the nine months ended December 31, 2025, the company reported consolidated net profit of ₹954.41 lakhs compared to ₹4,834.56 lakhs in the corresponding period of the previous year.

Revenue Composition and Segment Performance

The company's revenue from operations reached ₹8,707.65 lakhs in Q3FY26, driven primarily by fees and commission income of ₹7,702.34 lakhs. Interest income contributed ₹790.71 lakhs, while net gain on fair value changes added ₹124.46 lakhs to the top line.

The consolidated segment results showed:

Key Corporate Developments

Board Appointment

The Board of Directors approved the appointment of Raunak Karwa (DIN: 08632290) as Whole Time Director designated as Executive Director for a period of three years, effective February 1, 2026, subject to shareholder approval.

Raunak Karwa holds a B.A. (Economics) and has been Managing Director & CEO of Finlearn Edutech Private Limited since 2021. He founded FinLearn Academy & Trade:able in January 2020 and has five years of experience as an Analyst with Ernst & Young and ICICI Securities.

Debt Fundraising Success

The company successfully completed a Non-Convertible Debenture (NCD) issuance during the quarter:

Warrant Conversion Activity

During the quarter, the company received the remaining 75% consideration from Krishna Kumar Karwa (Promoter and Managing Director) for the conversion of 2,78,300 warrants into equal number of equity shares. The Management Committee allotted these equity shares on December 12, 2025, at an issue price of ₹239.50 including premium of ₹229.50 per share.

Operational Highlights

The company allotted 26,789 equity shares to eligible employees during the quarter pursuant to stock option exercises. As of December 31, 2025, the Group has 21,74,237 stock options outstanding under various ESOP schemes.

The company's operations continue to focus on two main business segments: Advisory, Transactional & Other Related Activities, and Financing and Investment Activities, with business operations primarily concentrated in India.

Indian investor Mahi Madhusudan Kela has acquired a significant stake in Emkay Global Financial Services during the quarter ended December 31, 2025. The investment comes at a time when the smallcap financial services firm faces challenging market conditions and recent underperformance.

Stake Acquisition Details

Kela's investment represents a 1.12% holding in the company, translating to nearly 2.9 lakh equity shares. She is the wife of veteran investor Madhusudan Kela and joins other marquee investors in the company's shareholder base, including Dolly Khanna and Sanjiv Dhireshbhai Shah.

Stock Performance Analysis

The stake purchase comes amid a period of prolonged underperformance for Emkay Global Financial Services. The stock has faced significant headwinds in recent months, with notable declines across different timeframes.

Despite recent weakness, the stock continues to trade above key technical levels, remaining above its 50-day simple moving average of Rs 281 and 200-day simple moving average of Rs 256, according to Trendlyne data.

Financial Performance Challenges

The company's recent financial performance has been concerning, particularly in the July-September quarter (Q2FY26). The results showed significant year-over-year declines across key metrics.

The company operates across multiple segments including investment banking, wealth management, and portfolio management services. While Q3FY26 earnings have not yet been announced, the previous quarter's performance highlights the challenges facing the financial services sector.

Market Position and Volatility

Emkay Global Financial Services currently maintains a market capitalisation of around Rs 725 crore on the BSE. The stock exhibits elevated volatility, with a one-year beta of 1.2 according to Trendlyne data. A beta reading above 1 indicates higher-than-average volatility compared to market movements, reflecting the stock's sensitivity to broader market conditions.

The investment by Mahi Madhusudan Kela demonstrates continued confidence in the company's long-term prospects despite near-term challenges and recent underperformance in the financial services sector.