CRISIL Rates Share India Securities

Share India Securities Limited (SISL) has secured a strong 'CRISIL A1+' rating on its ₹250 crore commercial paper issuance. CRISIL Ratings also reaffirmed the 'CRISIL A+/Stable/CRISIL A1+' ratings on the company's existing bank loans and debentures. This validation reflects SISL's solid financial footing and its established position in the market.

The agency highlighted SISL's robust capital position, noting a consolidated net worth of ₹2,509 crore as of September 2025. A conservative gearing ratio of 0.23 times further underscores its prudent financial management. The company benefits from the extensive experience of its promoters, spanning over three decades, and employs sophisticated risk management strategies, including market-neutral approaches and automated algorithmic trading to navigate market volatility.

Despite these strengths, SISL's revenue profile exhibits significant concentration. Proprietary and high-frequency trading activities contribute between 61 per cent and 80 per cent of its total income. While the company is expanding into merchant banking, lending, and insurance distribution to diversify its earnings, its performance remains inherently tied to the cyclical nature of capital markets. The cost-to-income ratio stood at 66 per cent in H1 FY26, emphasizing the need for sustained operational efficiency.

The outlook remains 'Stable', bolstered by SISL's strong standing in proprietary trading and its decade-long track record of generating consistent profits. Nevertheless, the rating is susceptible to shifts in the regulatory environment, including SEBI's revised equity index derivatives framework and changes in transaction charges. Future rating actions will hinge on SISL's success in diversifying revenue streams and adapting to regulatory changes without impacting its credit profile.

Share India Securities, founded in 1994, has evolved from serving High-Net-Worth Individuals with algorithmic trading to becoming a prominent retail fintech brokerage. The company reported H1 FY26 Total Revenue from Operations at ₹682 crore and Profit After Tax (PAT) at ₹178 crore, marking year-on-year declines of 21 per cent and 22 per cent, respectively. However, sequential performance showed recovery, with Q2 FY26 PAT growing 10 per cent quarter-on-quarter to ₹93 crore and EBITDA rising 16 per cent QoQ to ₹164 crore. The Board declared a second interim dividend of ₹0.40 per share.

Operationally, the broking business serviced 46,549 clients with an Average Daily Turnover of ₹7,500 crore. The NBFC division maintained a loan book of ₹253 crore, reporting NIMs of 4.24 per cent. With a market capitalization of ₹3,200 crore, SISL's stock trades at a PE of 12x against a sectoral average of 21x, offering a ROE of 16 per cent. The stock has seen a 17 per cent rise from its 52-week low of ₹127.70.