Geojit Financial Services Q2 FY27 results: net profit down 30.6% to ₹16.28 crore, revenue down 2.3%

How did Geojit Financial Services perform in Q2 FY27?

Geojit Financial Services reported consolidated revenue of ₹165.82 crore for the quarter ended 30 September 2026, up ₹5.42 crore or 3.4% from Q1 FY27 but down ₹3.98 crore or 2.3% from Q2 FY26. Total income was ₹171.35 crore, down 0.9% from ₹172.95 crore a year earlier. On a standalone basis, revenue was ₹70.32 crore and profit after tax was ₹6.08 crore.

EBITDA for the quarter was ₹30.34 crore, down ₹1.40 crore or 4.4% from Q1 FY27 and ₹8.61 crore or 22.1% from Q2 FY26. The EBITDA margin was 18.3%, against 19.8% in the previous quarter and 22.9% a year earlier, a fall of 4.6 percentage points year on year. Profit before tax was ₹20.62 crore and net profit was ₹16.28 crore, down 17.9% from the previous quarter and 30.6% from a year earlier. Basic EPS was ₹0.59 against ₹0.71 in Q1 FY27 and ₹0.80 in Q2 FY26.

What changed in Geojit Financial Services' costs and profit?

Total expenses rose ₹8.09 crore or 5.7% from Q2 FY26 to ₹150.73 crore. Employee cost increased ₹8.17 crore or 10.8% to ₹83.57 crore, and other expenses increased ₹18.22 crore or 54.1% to ₹51.92 crore. Depreciation rose ₹3.41 crore or 38.3% to ₹12.32 crore, while finance costs were ₹2.92 crore against ₹2.87 crore. There was no exceptional item in the quarter.

Other income was ₹5.52 crore, up ₹2.38 crore or 75.8% from ₹3.14 crore a year earlier, while tax was lower at ₹5.18 crore against ₹8.12 crore. Management said the employee cost increase was mainly attributable to a higher sales headcount, recruitment for the DIFC subsidiary, expansion of the IT team for the technology transformation programme and higher incentives linked to distribution business growth.

How did the first half of FY27 go?

For the first half of FY27, consolidated revenue was ₹326.23 crore, up ₹3.27 crore or 1.0% from ₹322.96 crore in H1 FY26. Total income was ₹340.31 crore against ₹326.24 crore, an increase of ₹14.07 crore or 4.3%.

Profit before tax for H1 FY27 was ₹46.61 crore, down ₹20.34 crore or 30.4% from ₹66.95 crore in H1 FY26. Net profit was ₹36.11 crore, down ₹16.03 crore or 30.7% from ₹52.14 crore, and EPS was ₹1.30 against ₹1.79. Management said the half-year result reflected top-line resilience alongside higher operating cost and lower transaction-linked activity in the cash market.

What do the balance sheet and cash flow show?

Total assets stood at ₹1,997.11 crore as on 30 September 2026, against ₹2,134.00 crore as on 31 March 2026. Total equity was ₹1,288.80 crore, compared with ₹1,295.16 crore at the previous balance sheet date. Borrowings were ₹100.15 crore at the end of the quarter. Cash declined to ₹32.50 crore from ₹152.88 crore, while trade receivables were ₹113.08 crore and trade payables were ₹61.23 crore.

For H1 FY27, operating cash flow was negative ₹137.08 crore, against positive ₹23.17 crore in H1 FY26. Investing cash flow was positive ₹37.13 crore, compared with negative ₹34.80 crore a year earlier, and financing cash flow was negative ₹20.55 crore against negative ₹80.29 crore. Capital expenditure was ₹46.24 crore for the first half, against ₹30.12 crore in H1 FY26.

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

Revenue across the reported quarters reached its high of ₹188.01 crore in Q4 FY26 and its low of ₹153.15 crore in Q1 FY26. In Q2 FY27, revenue was ₹165.82 crore, above Q1 FY27 but below Q4 FY26. Net profit peaked at ₹37.05 crore in Q3 FY25 and fell to a low of ₹13.97 crore in Q3 FY26, with ₹16.28 crore reported in Q2 FY27.

The EBITDA margin has moved lower over the reported period, from 36.5% in Q3 FY25 to 19.4% in Q4 FY26. It was 19.8% in Q1 FY27 and 18.3% in Q2 FY27. Profit was ₹17.47 crore in Q4 FY26, ₹19.83 crore in Q1 FY27 and ₹16.28 crore in Q2 FY27, with revenue of ₹160.40 crore in the June 2026 quarter and ₹165.82 crore in the September 2026 quarter.

Which businesses drove the quarter?

Wealth Management reported revenue of ₹161.53 crore for Q2 FY27, up 2.1% from ₹158.21 crore in Q2 FY26. Segment EBIT was ₹18.79 crore, against ₹23.89 crore a year earlier, with an EBIT margin of 11.6%.

Other services reported revenue of ₹8.60 crore, up 20.5% from ₹7.13 crore in the year-ago quarter, and segment EBIT was a loss of ₹2.91 crore against a loss of ₹1.09 crore. The segment's EBIT margin was -33.8%. Unallocated EBIT was ₹4.74 crore, against ₹7.51 crore a year earlier.

What else did the company announce?

In its 23 October 2026 filing, the company said the board approved the re-appointment of Sebastian Morris as a Non-Executive Independent Director for a second term of 45 consecutive months with effect from 16 November 2026. The board also approved withdrawing applications seeking reclassification of certain promoter group members from the promoter category to the public category.

The board approved seeking shareholders' approval through a postal ballot for resolutions relating, among other things, to changes in the directorate and management. It appointed Satheesh Kumar N, a practising company secretary in Kochi, as scrutinizer for the voting and remote e-voting process, with the postal ballot notice to be sent to shareholders and filed with the exchanges in due course.

What did Geojit Financial Services' management say?

Management said recurring revenue reached 40% of total income in the first half, up from 25% in FY23, as it prioritises AUM-led growth. PMS and AIF AUM rose 39% from March to ₹2,018 crore, with net inflows of ₹322 crore in Q2 FY27. Management also said it was moving from aggressive hiring to productivity gains, selective hiring and tighter capital allocation.

Executive Director Satish Menon said, “If it remains like this, EBITDA margin for the next one, two quarters also looks to be subdued for us.” Management expects EBITDA margin to remain subdued over the next one to two quarters if capital-market activity stays weak, and plans cautious and selective increases in sales-force headcount in the near term.

Executive Chairman C.J. George said, “Our plan is to significantly increase the recurring revenue income. This will eventually take care of the cyclicality risk as far as our cash flows are concerned.” Management plans to expand cross-selling aggressively across existing clients in H2 FY27 and the coming quarters, with particular headroom in life and health insurance, and to grow asset management including third-party distributor empanelling, though distribution fees may reduce the EBITDA percentage. On branches, management said there would be no aggressive expansion and that it would prioritise Tier 2 and Tier 3 locations.

How did Geojit Financial Services shares react?

The results were announced after market hours on 23 October 2026. From the price when the filing appeared, the stock fell 1.3% after 5 minutes, 1.9% after 15 minutes and 1.1% after 30 minutes. On the reaction day it was down 0.1% from the previous close of ₹69.00.

By the next day's close the stock was down 1.3% from its pre-results close, and by the fifth session it was down 0.7%. Over the same closes, the Stockbroking & Allied industry median moved down 0.3% on the reaction day, up 1.7% by the next day and up 2.1% by the fifth day, leaving the stock behind the industry median by 3.1 percentage points on the next day and 2.8 percentage points by the fifth day.

Past results-day moves were mixed: the stock fell 4.8% on 22 July 2026 and 7.4% on 15 July 2025, rose 0.9% on 29 April 2026 and 0.7% on 17 October 2024, and fell on the other reported result dates, including 3.6% on 16 January 2026.

How did other Stockbroking & Allied companies do?

Among 27 Stockbroking & Allied companies compared for this quarter, the median revenue growth was 16.8%, as of 4 November 2026. Six peers grew more slowly than Geojit Financial Services and 21 grew faster. Of the 26 peers for which profit was compared, 16 reported higher profit.