KHANDSE - Khandwala Sec.
📢 Recent Corporate Announcements
Khandwala Securities reported a weak performance for the quarter ended December 31, 2025, swinging to a consolidated net loss of ₹48.77 lakhs from a profit of ₹53.92 lakhs in the previous year. Total revenue from operations saw a sharp decline of 61% YoY, falling to ₹105.53 lakhs. This downturn was primarily driven by a significant contraction in fee-based operations, which dropped from ₹323.10 lakhs in the preceding quarter to just ₹98.80 lakhs. Total expenses of ₹220.98 lakhs outpaced total income, leading to negative margins for the period.
- Consolidated Revenue from Operations fell 60.9% YoY to ₹105.53 lakhs from ₹270.02 lakhs.
- Reported a Net Loss of ₹48.77 lakhs for Q3 FY26 compared to a Net Profit of ₹53.92 lakhs in Q3 FY25.
- Fee-based operations revenue plummeted 69.4% on a sequential (QoQ) basis to ₹98.80 lakhs.
- Total expenses stood at ₹220.98 lakhs, resulting in a loss before tax of ₹49.03 lakhs.
- Earnings Per Share (EPS) turned negative at (₹0.32) for the quarter.
Khandwala Securities Limited has announced the closure of its trading window starting January 1, 2026, in compliance with SEBI (Prohibition of Insider Trading) Regulations. The closure is related to the upcoming declaration of un-audited financial results for the quarter ending December 31, 2025. The window will remain closed for all designated persons and their relatives until 48 hours after the results are made public. This is a standard regulatory procedure for listed companies in India.
- Trading window closure effective from January 1, 2026
- Closure pertains to the quarter ending December 31, 2025
- Window to reopen 48 hours after the announcement of un-audited financial results
- Applies to all directors, officers, employees, promoters, and designated persons
Khandwala Securities has issued revised financial results for Q2 and H1 FY25 to correct manual posting errors in its balance sheet. Standalone trade receivables and payables were both significantly reduced by approximately ₹1,045 lakhs to ₹470.06 lakhs and ₹804.57 lakhs, respectively. The company clarified that these adjustments have no impact on the reported profit or loss for the period. For Q2 FY25, the company maintained a standalone net profit of ₹24.32 lakhs, though the half-year (H1) performance resulted in a net loss of ₹34.26 lakhs.
- Standalone Trade Receivables revised downward from ₹1,515.03 lakhs to ₹470.06 lakhs.
- Standalone Trade Payables revised downward from ₹1,849.54 lakhs to ₹804.57 lakhs.
- Q2 FY25 standalone net profit reported at ₹24.32 lakhs, nearly flat compared to ₹23.62 lakhs YoY.
- H1 FY25 standalone performance shows a net loss of ₹34.26 lakhs versus a profit of ₹71.45 lakhs in H1 FY24.
- Fee-based operations revenue for Q2 FY25 grew to ₹323.10 lakhs from ₹300.22 lakhs YoY.
Khandwala Securities Limited (KHANDSE) announced the successful passing of a special resolution for the appointment of Mrs. Suzan Vakil as an Independent Director. The resolution was approved via postal ballot with a requisite majority. Total of 9,410,673 votes were cast in favor, representing 99.9996% of the total votes polled. Only 37 votes were cast against the resolution. This appointment strengthens the board and signals a commitment to corporate governance.
- Mrs. Suzan Vakil appointed as an Independent Director (DIN:11289012)
- 9,410,673 votes cast in favor of the resolution
- 37 votes cast against the resolution
- 99.9996% of votes polled were in favor
- Total of 4615 shareholders as on cut-off date October 31, 2025
Financial Performance
Revenue Growth by Segment
Consolidated operating income grew 39% YoY to INR 8.70 Cr in FY24 from INR 6.26 Cr in FY23. However, the Institutional Dealing Desk revenue saw a significant decline of 30.48% in FY25, falling to INR 14.45 Lakhs from INR 110.78 Lakhs in FY24. Feebased operations segment assets grew 27.4% to INR 3,471.44 Lakhs by September 2025 from INR 2,723.45 Lakhs in March 2025.
Geographic Revenue Split
Not disclosed in available documents, though the company is headquartered in Mumbai and targets expansion into smaller Indian cities.
Profitability Margins
Consolidated PAT margin compressed significantly from 7.08% in FY23 to 2.00% in FY24. Standalone PAT margin was 7.09% in FY23, up from 1.94% in FY22, indicating high volatility in profitability linked to market cycles.
EBITDA Margin
Standalone PBDIT/Interest ratio improved to 3.35x in FY23 from 1.49x in FY22, reflecting better coverage of interest obligations despite a modest scale of operations.
Capital Expenditure
Property, Plant and Equipment increased by INR 4.85 Lakhs, reaching INR 153.31 Lakhs as of September 30, 2025, compared to INR 148.46 Lakhs as of March 31, 2025.
Credit Rating & Borrowing
The company holds an ACUITE A4 rating on INR 4.00 Cr bank facilities, which was downgraded to 'Issuer Not-Cooperating' due to information risk and failure to provide No Default Statements (NDS).
Operational Drivers
Raw Materials
Not applicable as KHANDSE is a financial services provider; its primary 'inputs' are human capital and financial liquidity.
Key Suppliers
Not applicable; the company relies on financial exchanges (BSE, NSE) and technology providers for its brokerage and advisory infrastructure.
Capacity Expansion
Not applicable in manufacturing terms; however, the company is expanding its reach into smaller cities to drive the next wave of wealth management growth.
Raw Material Costs
Not applicable; operating expenses are primarily driven by employee costs and technology infrastructure for trading platforms.
Manufacturing Efficiency
Not applicable; efficiency is measured by the Institutional Dealing Desk's ability to execute transactions, which contributed INR 14.45 Lakhs in FY25.
Logistics & Distribution
Not applicable; services are distributed digitally through trading platforms and advisory offices.
Strategic Growth
Growth Strategy
KSL aims to achieve growth by transitioning from financial inclusion to financial empowerment, focusing on wealth management, deeper penetration into Tier-2 and Tier-3 cities, and leveraging technology to democratize access to capital market products.
Products & Services
Investment banking (IPOs, M&A, Private Equity), Institutional Equities (sales, research), Broking and Distribution (equity, insurance, mutual funds), and Investment Advisory (portfolio management, wealth management).
Brand Portfolio
Khandwala Securities Limited (KSL).
New Products/Services
Expansion of the Investment Advisory business focusing on private and corporate wealth management is expected to provide more stable revenue compared to volatile brokerage fees.
Market Expansion
Targeting smaller cities in India to capitalize on rising affluence and expanding financial literacy.
Market Share & Ranking
Not disclosed; company is characterized as a 'modest scale' player competing against larger brokerages and new-age digital firms.
External Factors
Industry Trends
The wealth management industry is growing due to rising affluence and technology-driven access, but is being disrupted by digital-only brokers offering low-cost trading.
Competitive Landscape
Intense competition from established large brokerages and technology-focused new entrants (digital discount brokers) which impacts sustainable brokerage revenue growth.
Competitive Moat
Moat is based on 25+ years of operational experience and high-quality research recognized by international agencies; however, this is challenged by the capital strength of new global and corporate entrants.
Macro Economic Sensitivity
Highly sensitive to Indian GDP growth and industrial production; a slowdown in economic growth would reduce corporate fund-raising mandates and investor participation.
Consumer Behavior
Shift toward financial empowerment and increased financial literacy among retail investors in smaller cities is driving demand for advisory services.
Geopolitical Risks
Political climate changes and global economic factors directly influence investor sentiment and capital market volatility, impacting KSL's transaction-based revenue.
Regulatory & Governance
Industry Regulations
Operations are governed by the Companies Act 2013 (specifically Section 134 and 149 regarding board reports and independent directors) and general corporate governance standards.
Environmental Compliance
Not applicable for financial services; ESG focus is primarily on business ethics, anti-fraud measures, and board compensation.
Taxation Policy Impact
The company maintains a Deferred Tax Asset of INR 37.74 Lakhs as of September 2025.
Risk Analysis
Key Uncertainties
Liquidity risk poses a potential impact where client defaults on financial commitments could significantly affect cash flow; market volatility remains the primary driver of revenue uncertainty.
Geographic Concentration Risk
Operations are primarily concentrated in the Indian capital markets, with a focus on the Mumbai financial hub.
Third Party Dependencies
High dependency on market intermediaries and financial information providers like Bloomberg and Thomson-Reuters for research ranking and market data.
Technology Obsolescence Risk
Risk from 'new age digital share broking companies' which utilize superior technology to offer lower costs, potentially making traditional brokerage models obsolete.
Credit & Counterparty Risk
KSL exercises prudence in client selection and internal audits to manage credit extension and counterparty risk.