NDA Securities profit falls 95% as it loses LIC as a client
Annual profit collapsed to ₹7.47 lacs from ₹159.59 lacs. A new trading segment drove a Q4 revenue spike, but the loss of a key client hurts the bottom line.
What's new
- Net profit fell 95% to ₹7.47 lacs even as revenue rose 36% to ₹847.60 lacs.
- LIC was removed from the company's approved broker panel, taking a key client off the books.
- New securities trading and investment segments drove a 3x jump in Q4 revenue to ₹525.31 lacs.
Why this matters
A brokerage that loses its largest client and pivots to trading for itself is a very different animal. The profit collapse shows the old model is broken. The new segments may replace revenue but the risk profile has fundamentally changed for a nano-cap with thin capital.
What we're watching
- Whether the new securities trading segment can generate sustainable profit, not just revenue.
- The next quarter's client list to see if the LIC loss is permanent or if others follow.
- How the first-time subsidiary consolidation affects the balance sheet and capital adequacy.
The full read
NDA Securities grew revenue 36% to ₹847.60 lacs in FY26. Profit didn't follow. Net income plunged 95% to ₹7.47 lacs, down from ₹159.59 lacs a year earlier, as expenses overwhelmed the top line. A one-off stock-in-trade purchase of ₹305.32 lacs inflated Q4 revenue to ₹525.31 lacs, more than triple the prior-year figure. That revenue came from a new business: securities trading and investment, which the company started during the year. The shift comes after the loss of LIC, which was removed from NDA's approved broker panel. The result is a nano-cap brokerage earning less than 1% net margin on a revenue base that now includes proprietary trading. The new segments may have replaced lost client fees, but the risk profile is different. The thin profit gives the company almost no buffer.
Questions answered
- How did revenue grow 36% while profit crashed 95%?
- The revenue growth was driven by a new securities trading segment and a one-off stock-in-trade purchase of ₹305.32 lacs in Q4. But expenses rose sharply, wiping out the top-line gain and leaving a net profit of just ₹7.47 lacs.
- What happened with LIC and why does it matter?
- LIC was removed from NDA Securities' approved broker panel during the year. As a key client, its departure likely contributed to the profit decline despite higher overall revenue.
- What is the new securities trading segment?
- NDA Securities began investment and trading in securities on a delivery and intraday basis during the year. This new activity drove the Q4 revenue spike but also appears to have compressed margins.
- What is the scale of the company's profit now?
- The full-year net profit is ₹7.47 lacs on revenue of ₹847.60 lacs, a net margin of less than 1%. This is down from a ₹159.59 lacs profit the prior year.