SKP Securities' Q1 profit slips 21% as expenses rise
Revenue flat at ₹10.43 cr as employee and finance costs erode margins; auditor raises no red flags.
— 1 earlier story on SKP Securities Ltd. →What's new
- Net profit fell 21% YoY to ₹2.24 cr in Q1 FY27.
- Revenue unchanged at ₹10.43 cr; total expenses rose to ₹7.60 cr.
- Statutory auditor's limited review raised no concerns.
Why this matters
For a ₹76 cr nano-cap, this is a standard quarter. The profit decline is driven by cost inflation, not revenue weakness. With a P/E of 7.4 and ROE of 19.7%, the stock is not priced for surprises, so the result likely reinforces the status quo.
What we're watching
- Whether cost pressures persist into Q2 FY27.
- Any new business initiatives or strategic updates from the board.
- How the stock reacts given low liquidity and limited coverage.
The full read
SKP Securities' Q1 FY27 numbers are as routine as they come for a nano-cap. Revenue was flat at ₹10.43 cr, but expenses climbed 12% to ₹7.60 cr, led by higher employee and finance costs. That squeezed net profit to ₹2.24 cr, down 21% from ₹2.85 cr a year ago. The auditor's limited review found nothing amiss. The board met, approved the results, and moved on — no guidance, no strategy updates. For a stock with a ₹76 cr market cap, a P/E of 7.4, and ROE of 19.7%, this quarter doesn't change the narrative. It's a holding pattern: costs are rising, revenue isn't, and the market is unlikely to react until something breaks that pattern.
Questions answered
- Why did SKP Securities' profit drop despite flat revenue?
- The profit decline was driven by higher employee costs and finance charges, which pushed total expenses up 12% to ₹7.60 cr from ₹6.76 cr a year ago.
- What drove the increase in expenses?
- Employee costs and finance charges both rose, but the filing does not break out individual line items beyond the aggregate expense figure.
- Did the auditor flag any concerns?
- No. The statutory auditor's limited review of the unaudited results was unqualified, meaning no material issues were identified.
- How does this quarter compare to SKP Securities' trailing growth?
- The trailing twelve-month revenue growth was 27.8%, but this quarter's revenue was flat — a sharp slowdown. Profit growth of 64.4% on a trailing basis also contrasts with the 21% drop this quarter.
- What is the outlook for SKP Securities?
- The company did not provide forward guidance. The board approved the results with no strategic announcements, so the next catalyst is likely the Q2 results.
SKP Securities Ltd.
Latest quarter · Mar 2020
Leverage & growth
Story so far
All notes on SKPSEC →- 25 Jul 2026 · 12:43 PM IST SKP Securities' Q1 profit slips 21% as expenses rise
- 3d ago SKP Securities profit slips 21% in Q1 as costs climb