Modern Shares & Stockbrokers Limited reported challenging third-quarter results for FY26, posting a net loss of ₹4.78 lakhs for the quarter ended December 31, 2025. This represents a significant decline from the profit of ₹15.90 lakhs achieved in the previous quarter and a loss of ₹0.62 lakhs in the corresponding quarter of the previous year.

Financial Performance Overview

The company's financial performance showed mixed results across different time periods:

Revenue Composition and Analysis

The company's revenue streams showed varying performance during Q3FY26. Brokerage and commission income, the primary revenue driver, declined to ₹61.75 lakhs from ₹77.39 lakhs in the previous quarter. Interest income remained relatively stable at ₹19.44 lakhs compared to ₹20.03 lakhs in Q2FY26.

Expense Structure

Total expenses increased to ₹86.53 lakhs in Q3FY26 from ₹78.86 lakhs in the previous quarter. Employee benefit expenses remained the largest cost component at ₹42.74 lakhs, while administrative and other expenses rose significantly to ₹39.52 lakhs from ₹30.86 lakhs in Q2FY26.

Nine-Month Performance

Despite the quarterly challenges, the company maintained steady performance over the nine-month period. Total revenue for nine months FY26 stood at ₹285.18 lakhs compared to ₹292.06 lakhs in the corresponding period of FY25. Net profit for the nine-month period was ₹26.03 lakhs, marginally lower than ₹26.95 lakhs achieved in 9M FY25.

Corporate Governance and Compliance

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on January 30, 2026. The meeting commenced at 1:45 PM and concluded at 2:40 PM. Statutory auditors BDG & Co LLP conducted a limited review of the quarterly results in accordance with Regulation 33 of SEBI Listing Regulations.

Regulatory Compliance

Pursuant to Regulation 47 of SEBI Listing Regulations, the company published newspaper extracts of its unaudited financial results on February 1, 2026. The publication appeared in The Free Press Journal (English) and Navshakti (local regional language). Whole Time Director Anil S Manghnani communicated the compliance to BSE Limited through reference MSSL/046/2025-2026 dated February 2, 2026.

Key Financial Metrics

The company maintained a paid-up equity share capital of ₹293.11 lakhs with a face value of ₹10 per share. Other equity stood at ₹980.63 lakhs as per the previous year's balance sheet. The total comprehensive income for Q3FY26 was negative ₹6.33 lakhs after accounting for other comprehensive income items, primarily related to re-measurement losses on defined benefit plans.

Modern Shares & Stockbrokers Limited has formally notified the Bombay Stock Exchange that it does not qualify as a Large Corporate under the Securities and Exchange Board of India's regulatory framework. The confirmation was submitted on January 2, 2026, through a letter referenced MSSL/040/2025-2026.

SEBI Large Corporate Framework Clarification

The submission relates to SEBI Circular SEBI/HO/DDHS/CIR/P/2018/144 dated November 26, 2018, which addresses fund raising by issuance of debt securities by large entities. Under this circular, listed entities meeting specific criteria are classified as "Large Corporate" and must make mandatory disclosures to stock exchanges.

Company's Position on Classification

Modern Shares & Stockbrokers Limited explicitly stated that it does not fall within the criteria prescribed under Clause 2.2 of the aforementioned SEBI circular. The company emphasized that since it maintains no debt securities, the Large Corporate framework and associated disclosure obligations do not apply to its business operations.

Regulatory Compliance Communication

The formal communication was signed by Anil S Manghnani, Whole Time Director of the company, bearing DIN No: 00012806. The letter was addressed to the Listing Department of Bombay Stock Exchange Limited at Phiroze Jeejeebhoy Towers, Mumbai, ensuring proper regulatory compliance and transparency.

This confirmation serves as an official record for the stock exchange and regulatory authorities, clarifying the company's status under the SEBI Large Corporate framework and confirming that related disclosure requirements are not applicable to Modern Shares & Stockbrokers Limited.