**Shardul Securities Limited** is a Mumbai-based financial services firm registered with the **Reserve Bank of India (RBI)** as a **Non-Banking Financial Company (NBFC)**. Classified as a **Base Layer NBFC** (formerly a Systemically Important Non-Deposit taking NBFC), the company is a specialized player in the Indian capital markets, focusing on proprietary investment, corporate lending, and financial intermediation through its subsidiaries. --- ### **Core Revenue Drivers and Business Model** The company’s primary objective is the generation of income through **dividends, interest, and capital gains** from a diversified portfolio of securities. Its operations are bifurcated into two primary activities: * **Investment Activities:** Principal engagement in the strategic purchase and holding of equity shares, mutual funds, bonds, and other debt instruments. The company manages a significant portfolio, with performance heavily dictated by market valuations. * **Lending Activities:** Provision of secured and unsecured loans and advances to corporate entities. To mitigate credit risk, the company employs a **collateral-based lending policy**, securing charges over business assets (premises, inventory, receivables) and financial instruments. --- ### **Group Structure and Subsidiary Ecosystem** Shardul Securities operates as a holding entity with two key wholly-owned subsidiaries. In **March 2025**, the company streamlined its hierarchy by acquiring **Shriyam Realtors Private Limited** directly, moving it from a "step-down" to a direct subsidiary status to simplify the corporate structure. | Entity Name | Relationship | Primary Business Focus | | :--- | :--- | :--- | | **Shardul Securities Limited** | Parent / Holding | Investment & Finance (NBFC) | | **Shriyam Broking Intermediary Limited** | Wholly Owned Subsidiary | Stock Broking & Financial Intermediation | | **Shriyam Realtors Private Limited** | Wholly Owned Subsidiary | Real Estate (Currently nominal transactions) | **Shriyam Broking Intermediary Limited** is classified as a **material non-listed Indian subsidiary**. It serves as a significant contributor to consolidated earnings, reporting a net income of **₹11.31 crores** in FY2024-25, a substantial increase from **₹3.53 crores** in the previous fiscal year. --- ### **Financial Performance and Capital Optimization** The company witnessed a massive surge in total income during **FY 2023-24**, driven by a rebound in the Indian capital markets and favorable fair value adjustments. #### **Standalone Financial Trajectory** | Particulars (₹ in Lakhs) | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | :--- | | **Total Income** | **17,370.93** | **664.16** | **1,550.73** | | **Total Expenses** | **1,096.57** | **378.10** | **306.19** | | **Profit Before Tax (PBT)** | **16,274.36** | **286.06** | **1,244.54** | | **Profit After Tax (PAT)** | **9,780.92** | **220.71** | **962.99** | | **Net Worth** | **-** | **44,568.80** | **47,627.67** | #### **Revenue Composition (FY 2023-24)** The **₹173.71 crore** income for FY24 was characterized by: * **Net Profit on Securities Dealing:** **₹7,946.55 Lakhs** (reversing a loss in the prior year). * **Net Gain on Fair Value Changes:** **₹6,940.41 Lakhs**. * **Sale of Investments:** **₹1,578.99 Lakhs**. * **Other Comprehensive Income:** A gain of **₹11,211.05 Lakhs** due to fair value changes in **FVOCI instruments**. * **Operating Profit Margin:** Reported at **28%** for the fiscal year. --- ### **Strategic Restructuring and Capital Market Actions** The company has recently undertaken several corporate actions to optimize its capital structure and regulatory standing: * **Stock Split (January 2025):** Executed a **1:5 sub-division** of equity shares. The face value was reduced from **₹10** to **₹2** per share to improve liquidity and broaden the retail investor base. The paid-up capital stands at **₹17.49 crore** across **8,74,92,165** shares. * **Regulatory Re-classification:** In **November 2024**, the Board applied to the **RBI** to transition from a **Type-II NBFC** to a **Type-I NBFC**. * **Voluntary Delisting Attempt:** Promoter Acquirers (including **A To Z Broking Services LLP** and the **Chaturvedi family**) proposed to acquire the **25.16%** public shareholding to delist from the **BSE**. * **Floor Price:** **₹150.15** | **Indicative Price:** **₹155.00** (pre-split). * **Outcome:** The offer failed in **June 2024** as the minimum tender threshold was not met, and promoter holding did not reach the required **90%**. * **Rationale:** The move was intended to provide financial flexibility and reduce the compliance burden of a listed entity. --- ### **Governance and Leadership** The leadership team has been refreshed to oversee the company's transition and growth: * **Chairman:** **Devesh D. Chaturvedi**. * **Executive Leadership:** **Yogendra Chaturvedi** (Executive Director, re-appointed through 2031) and **Viraf Katrak** (appointed **CEO** in August 2023 for a 5-year term). * **Board Additions:** Independent Directors **Mr. Gyanchand Pipara** and **Mrs. Anshu Agarwal** joined in late 2025. * **Auditors:** Statutory audits by **M/s Akkad Mehta & Co LLP**; Secretarial audits by **M/s D Maurya & Associates**. --- ### **Risk Management Framework** The company operates under a **Risk Management Committee** that utilizes an **Ind AS 109** compliant 'three-stage' model for **Expected Credit Loss (ECL)**. | Risk Category | Mitigation and Status | | :--- | :--- | | **Market & Volatility** | High exposure to quoted instruments; uses **derivative instruments** for hedging. | | **Interest Rate Risk** | Managed via bi-annual sensitivity gap reports and asset-liability matching. | | **Credit Risk** | Currently **negligible** due to minimal lending exposure. | | **Capital Risk** | Maintains **Net Owned Fund (NOF)** well above the RBI-mandated **₹2 crore**. | | **Liquidity Risk** | Maintains buffers for both normal and stressed market conditions. | #### **Contingencies and External Pressures** * **Taxation Disputes:** Disputed Income-Tax demands of **₹8.63 crore** are currently under appeal; no provisions have been made. * **Contingent Liabilities:** A **₹20 crore** Corporate Guarantee is provided for the subsidiary, Shriyam Broking. * **Macro Factors:** Profitability faces pressure from **higher freight costs** (35-40 bps impact) and global recessionary outlooks affecting IT-related market earnings through **FY26**. * **Regulatory Shifts:** Monitoring the **New Labour Codes** (effective Nov 2025), though no material impact is currently anticipated.