Geojit Financial Services Q2 FY26 results: net profit down 59.1% to ₹23.47 crore, revenue down 22.3%

How did Geojit Financial Services perform in Q2 FY26?

Geojit Financial Services reported consolidated revenue of ₹169.80 crore for Q2 FY26, down 22.3% from ₹218.46 crore in Q2 FY25 but up 10.9% from ₹153.15 crore in Q1 FY26. Total income was ₹172.95 crore, down 20.9% year on year and up 12.8% sequentially. Standalone revenue was ₹90.45 crore, with a standalone net profit of ₹22.05 crore.

EBITDA declined 58.6% year on year to ₹38.95 crore and fell 18.1% from ₹47.56 crore in the previous quarter. The EBITDA margin was 22.9%, down 20.2 percentage points from 43.1% in Q2 FY25 and 8.2 percentage points from 31.1% in Q1 FY26. PBT was ₹30.31 crore, down 59.9% year on year and 17.3% sequentially, while the net profit was ₹23.47 crore, down 59.1% and 18.1%, respectively.

Basic EPS fell to ₹0.80 from ₹2.34 in Q2 FY25 and ₹0.99 in Q1 FY26. Profit attributable to owners was ₹22.37 crore, down 60.1% from ₹56.03 crore a year earlier and 19.2% from ₹27.69 crore in the previous quarter. The consolidated profit margin was 13.8%, compared with 26.3% in Q2 FY25 and 18.7% in Q1 FY26.

What changed in Geojit Financial Services' costs and profit?

Employee cost rose 5.4% year on year to ₹75.40 crore, an increase of ₹3.89 crore, while other expenses increased by ₹10.71 crore to ₹33.70 crore. Depreciation rose by ₹1.40 crore to ₹8.91 crore. Total expenses were ₹142.64 crore, down 0.3% from ₹143.02 crore in Q2 FY25.

Other income increased by ₹3.05 crore to ₹3.14 crore from ₹0.09 crore in the year-ago quarter, while finance costs fell by ₹8.28 crore to ₹2.87 crore from ₹11.15 crore. Tax expense declined by ₹11.82 crore to ₹8.12 crore from ₹19.94 crore. There was no exceptional item in either quarter.

Sequentially, total expenses rose by ₹25.99 crore to ₹142.64 crore from ₹116.65 crore in Q1 FY26. Employee cost accounted for a ₹16.56 crore increase, other expenses for a ₹6.62 crore increase, depreciation for a ₹0.50 crore increase and finance costs for a ₹0.23 crore increase; other income rose by ₹3 crore, and tax fell by ₹1.22 crore.

Management said the profit decline reflected higher planned spending on field sales employees, IT infrastructure and general technology hiring, along with increased marketing expenditure. Chairman and Managing Director C.J. George said the company was hiring more employees in the field, increasing offices and making further investments in IT.

How did the first half of FY26 go?

In the first half of FY26, consolidated revenue was ₹322.96 crore, down 19.2% from ₹399.53 crore in H1 FY25. Total income fell 18.4% to ₹326.24 crore from ₹399.73 crore. PBT declined 50.5% to ₹66.95 crore from ₹135.26 crore.

Net profit for H1 FY26 was ₹52.14 crore, down 49.5% from ₹103.23 crore in H1 FY25, while basic EPS fell to ₹1.79 from ₹4.20. The revenue decrease was ₹76.57 crore, and the net profit decrease was ₹51.09 crore.

What do the balance sheet and cash flow show?

At 30 September 2025, total assets were ₹2,024.72 crore, compared with ₹2,036.36 crore at 31 March 2025. Total equity was ₹1,255.25 crore, compared with ₹1,243.50 crore at the previous balance-sheet date, while cash and cash equivalents were ₹77.64 crore versus ₹169.05 crore. Borrowings were not available in the reported figures.

H1 FY26 operating cash flow was ₹23.17 crore, compared with an outflow of ₹124.85 crore in H1 FY25. Investing cash flow was an outflow of ₹34.80 crore versus ₹7.74 crore, while financing cash flow was an outflow of ₹80.29 crore compared with an inflow of ₹39.69 crore. Capital expenditure was ₹30.12 crore, against ₹11.75 crore a year earlier.

How has Geojit Financial Services done over the last 8 quarters?

Revenue reached a high of ₹218.46 crore in Q2 FY25 and a low of ₹152.22 crore in Q3 FY24 within the reported series. It fell to ₹153.15 crore in Q1 FY26 before recovering to ₹169.80 crore in Q2 FY26, although the latest quarter remained below the year-ago level.

Net profit peaked at ₹57.42 crore in Q2 FY25 and fell to ₹23.47 crore in Q2 FY26, the lowest quarterly profit in the reported period. EBITDA margin also peaked at 43.1% in Q2 FY25 and declined to 22.9% in the latest quarter, while revenue rose sequentially from ₹153.15 crore.

Which businesses drove the quarter?

Wealth Management reported revenue of ₹158.21 crore and EBIT of ₹23.89 crore for Q2 FY26, with an EBIT margin of 15.1%. The filing did not provide a year-ago revenue or EBIT figure for this segment, so growth against Q2 FY25 could not be stated.

Other services reported revenue of ₹7.13 crore and EBIT of ₹1.09 crore loss, with an EBIT margin of -15.3%. Unallocated revenue and EBIT were ₹7.51 crore. Year-ago comparative figures for these reported segments were not provided.

What else did the company announce?

The board approved the unaudited consolidated results for the quarter ended 30 September 2025 and the year-to-date results for 1 April to 30 September 2025. A limited review report from the statutory auditor was filed as an annexure, and the review did not identify any material misstatement in the required disclosures.

Executive Director A Balakrishnan retired from the board effective 20 October 2025 after more than twenty-seven years with the company. He would continue as an advisor, while Jayakrishnan Sasidharan, who joined in June 2025, would take over his executive leadership responsibilities. The company also announced a postal ballot seeking shareholder approval for Vishnuraj P as the KSIDC nominee director.

What did Geojit Financial Services' management say?

Management said the company was expanding its distribution network through field-sales hiring, additional offices and investment in IT infrastructure and technology applications. Chairman and Managing Director C.J. George said the planned spending was expected to yield results by the end of the year. He also said: “Customers who need help and guidance to create long-term wealth, they come to us. We have branches all over. So we develop long-term relationships with the clients.”

Management identified subdued exchange volumes over the previous two to three quarters as a risk to brokerage revenue, while the margin-funding business remained exposed to volatile markets with an upward bias. The company expected its DIFC wealth entity to become operational by the end of Q2 and said a new UAE CEO would take over on 1 January. The company did not provide forward-looking numbers, Executive Director Jones George said: “We do not provide forward-looking numbers, I'm sorry.”

How did Geojit Financial Services shares react?

Geojit Financial Services shares fell 0.9% on the reaction day from the pre-results close of ₹78.61. By the next day’s close, the stock was down 5.1% from that close, and by five sessions it was down 5.5%. The stock also fell 7.2% over one month. The Stockbroking & Allied industry median moved up 0.7% on the reaction day and was down 0.5% by five sessions.

Earlier reaction-day moves were negative on four of the six listed results dates: -7.4% on 15 July 2025, -0.7% on 21 May 2025, -3.6% on 30 January 2025 and positive moves of 0.7% on 17 October 2024, 16.5% on 13 July 2024 and 10.3% on 30 April 2024.

How did other Stockbroking & Allied companies do?

Among 33 Stockbroking & Allied companies compared for the quarter, the median revenue growth was -17.5%. Thirteen peers grew revenue more slowly than Geojit Financial Services, while 20 peers grew faster. Nine of the 35 peers compared on profit reported higher profit.