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Economic Times
2 days ago
- Business
- Economic Times
Brokerages get a Q1 bounce, but the YoY gap's still wide
Broking firms witnessed a profit rebound in the June quarter, recovering from a weak January-March. Motilal Oswal Financial Services reported significant profit. IIFL Capital Services and 5Paisa Capital also saw gains. Angel One's profits declined. Market regulator SEBI's regulations impacted broker revenues. BSE's profits surged, gaining market share. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Exchanges Road Ahead Most listed broking firms posted a rebound in profits and revenues in the June quarter from January-March, boosted by improved trading activity in the wake of the stock market recovery. But their earnings performances still paled in comparison to last year as volumes, especially derivatives, remained below their peak levels in the June quarter, Motilal Oswal Financial Services ' standalone profit after tax stood at ₹532 crore in the first quarter, against a loss of ₹8 crore in January-March. The standalone profits of IIFL Capital Services and 5Paisa Capital went up by 140% and 15% respectively, from the March One's standalone net profits declined 26% to ₹134 crore in the June quarter. The benchmark Nifty 50 advanced 8.5% in the April-June period, compared to January-March, when it declined 0.6%."Brokerage firms' earnings remained muted in the first quarter, weighed down by a nearly 15% year-on-year drop in cash market volumes and a 25-30% decline in derivatives premiums," said Suresh Shukla, chief business officer at SBI Securities. "Firms more reliant on derivatives income, like discount brokers, faced steeper revenue pressure than those with higher cash market exposure."Since 2024, revenues and profits of brokers have remained under pressure due to some of the steps taken by the Securities and Exchange Board of India (Sebi), like allowing only one weekly index expiry per exchange, as well as uniform fee and 'true-to-label' norms introduced last July, which ended volume-based discounts and required brokers to pass on full exchange charges to MIIs ( market infrastructure institutions ), hurting their of the broking companies have declined between 1% and 37% this year, whereas the Nifty 50 is up 3.7% and Nifty 500 has gained 1%.Analysts are in no hurry to recommend broking shares to clients despite the recent declines."Although valuations of listed broking firms have moderated amid a decline in share prices, we remain cautious on the sector," said Apurva Sheth, head of research at Samco Securities. Sheth said the performance of broking firms will continue to track overall market the exchanges, profits of both BSE and NSE advanced from the March quarter. While NSE's profits went up 14% from the previous year, BSE gained 103%. "BSE has shown stronger performance on the back of gaining market share from its peer," said Shukla. The stock is up 40% this year. Sheth said BSE appears fairly valued following strong Q1 results and sees limited upside from current second-quarter activity still subdued, a meaningful recovery in broker incomes will depend on indices regaining momentum in the second half of the year, said also said while benchmarks are expected to remain stable due to steady SIP inflows, they are unlikely to surpass previous lifetime highs in the near term.
Business Standard
29-07-2025
- Business
- Business Standard
IIFL Capital Services rallies after Q1 PAT jumps 37% QoQ
IIFL Capital Services climbed 8.33% to Rs 325.85 after the company posted a robust operational performance for the June quarter. The numbers painted a story of solid quarter-on-quarter growth, even as year-on-year comparisons showed a few soft spots. On a sequential basis, the companys total income rose 19% to Rs 680.4 crore, buoyed by a 15% increase in revenue from operations to Rs 617.4 crore and a sharp 73% jump in other income to Rs 63 crore. This top-line momentum came despite a 10% rise in total expenses, which stood at Rs 452.9 crore. Employee costs inched up 8%, while finance costs saw a 7% decline. Fee and commission expenses rose 24%, reflecting growing business activity. The bottom line saw a strong uptick as well. Profit before tax surged 39% to Rs 227.5 crore, while net profit came in at Rs 175.5 crore, registering a 37% jump from Q4 March 2025. Operationally, the company continued to show traction in its key segments. Distribution AUM rose 14% to Rs 35,719 crore, while DP assets climbed 10% to Rs 2,08,352 crore, an encouraging sign for its wealth and distribution business. However, on a year-on-year basis, the picture was more nuanced. Revenue from operations slipped 4%, weighed down by softer broking volumes. That said, the companys other income skyrocketed by 1524%, more than making up for the decline in core revenues. Still, net profit fell slightly by 4%, and profit before tax declined 8%. Broking volumes, too, took a hit, with the average daily market turnover for the quarter down 31% YoY at Rs 2,23,232 crore, largely due to regulatory changes in derivatives trading. R. Venkataraman, managing director said, "Our Institutional Broking witnessed good transaction for block deals and our Investment banking segment continues to win mandates. Our long term strategy is to transform our legacy retail broking business to wealth management practice and we are seeing good progress towards the same." IIFL Capital Services offers broking services, wealth management, financial products distribution, institutional broking & research and investment banking services.
Business Standard
29-07-2025
- Business
- Business Standard
IIFL Capital Services consolidated net profit declines 3.76% in the June 2025 quarter
Sales decline 3.52% to Rs 617.37 crore Net profit of IIFL Capital Services declined 3.76% to Rs 175.34 crore in the quarter ended June 2025 as against Rs 182.19 crore during the previous quarter ended June 2024. Sales declined 3.52% to Rs 617.37 crore in the quarter ended June 2025 as against Rs 639.92 crore during the previous quarter ended June 2024. Particulars Quarter Ended Jun. 2025 Jun. 2024 % Var. Sales 617.37639.92 -4 OPM % 35.8146.81 - PBDT 243.74259.41 -6 PBT 227.54247.64 -8 NP 175.34182.19 -4
Economic Times
01-07-2025
- Business
- Economic Times
July to bring positive returns for Nifty indices amid easing geopolitical tensions
Historically, July has been a positive month for Indian equities, with Nifty 50 and Nifty 500 gaining in nine of the last ten years. Analysts anticipate a similar trend this July, potentially driven by easing geopolitical tensions, a normal monsoon, and strong global seasonality. Positive factors like domestic institutional buying and better earnings expectations could further fuel market momentum. Tired of too many ads? Remove Ads Mumbai: July may turn out to be the fifth consecutive month for benchmark indices to earn a positive return going by the historical trend. Data on monthly returns of indices over the past decade shows that Nifty 50 and Nifty 500 have gained in July on nine out of 10 instances. Additionally, analysts expect the benchmarks to move up this July as well and Nifty 50 may be on track to scale a new peak amid tapering geopolitical tensions and possibility of a normal to the data from Motilal Oswal Financial Services , the Nifty 50 on an average has moved up 3.6% and Nifty 500 index is up 3.8% in the month of July between 2015 and global indices have shown strong seasonality trends, as US benchmarks S&P 500 and Dow Jones have ended higher in July in each of the 10 years since 2015."July is one of the most consistent and profitable months on a seasonal basis, and stands out as the best-performing month in the entire calendar year,"said Chandan Taparia, head of technical and derivatives research at Motilal Oswal Financial Services. Taparia said currently, easing out in global tensions, stability in crude price, sustained buying from domestic institutions, sustained SIP Flow, short covering from foreign investors, better monsoon and expectation of better quarterly earnings are the reasons which could fuel the momentum on the to Sriram Velayudhan, senior vice president, IIFL Capital Services , July has been a positive month for Indian equity markets , driven by the monsoon trigger which boosts sentiment. "Additionally, global seasonality trends in July also remain strong, which has a rub-off effect on Indian equities."
Time of India
01-07-2025
- Business
- Time of India
July to bring positive returns for Nifty indices amid easing geopolitical tensions
Agencies Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: July may turn out to be the fifth consecutive month for benchmark indices to earn a positive return going by the historical trend. Data on monthly returns of indices over the past decade shows that Nifty 50 and Nifty 500 have gained in July on nine out of 10 instances. Additionally, analysts expect the benchmarks to move up this July as well and Nifty 50 may be on track to scale a new peak amid tapering geopolitical tensions and possibility of a normal to the data from Motilal Oswal Financial Services , the Nifty 50 on an average has moved up 3.6% and Nifty 500 index is up 3.8% in the month of July between 2015 and global indices have shown strong seasonality trends, as US benchmarks S&P 500 and Dow Jones have ended higher in July in each of the 10 years since 2015."July is one of the most consistent and profitable months on a seasonal basis, and stands out as the best-performing month in the entire calendar year,"said Chandan Taparia, head of technical and derivatives research at Motilal Oswal Financial Services. Taparia said currently, easing out in global tensions, stability in crude price, sustained buying from domestic institutions, sustained SIP Flow, short covering from foreign investors, better monsoon and expectation of better quarterly earnings are the reasons which could fuel the momentum on the to Sriram Velayudhan, senior vice president, IIFL Capital Services , July has been a positive month for Indian equity markets , driven by the monsoon trigger which boosts sentiment. "Additionally, global seasonality trends in July also remain strong, which has a rub-off effect on Indian equities."
