Geojit Financial Services shares fall over 6 pc after weak Q1 results
Shares of Geojit Financial Services fell sharply by over 6 per cent on Wednesday during the intra-day trade, after the company posted disappointing financial results for the first quarter (Q1) of FY26.
The stock dropped to an intra-day low of Rs 77.26, reacting to a 37 per cent year-on-year (YoY) decline in consolidated net profit, which stood at Rs 28.67 crore.
The brokerage firm’s profits saw a sharp fall both on a yearly and quarterly basis. The net profit dropped from Rs 45.81 crore in Q1 FY25 to Rs 28.67 crore in Q1 FY26 and also fell 11 per cent compared to Rs 32.12 crore reported in Q4 FY25.
Profit before tax (PBT) also declined significantly, down 39 per cent YoY to Rs 36.64 crore, and 8 per cent from the previous quarter.
The company reported total consolidated revenue of Rs 153.30 crore for the quarter, which is 15 per cent lower than Rs 181.18 crore in the same quarter previous year.
On a quarter-on-quarter (QoQ) basis, revenue dropped 14 per cent from Rs 177.48 crore in Q4 FY25.
Operating margins also came under pressure, with EBITDA falling by 53 per cent to Rs 32.78 crore from Rs 69.77 crore in the year-ago quarter.
Despite the poor earnings, Geojit Financial has made progress on its business restructuring.
Earlier this year, the company received all necessary regulatory approvals to transfer its core operations -- including broking, margin financing, depository services and research -- to its wholly-owned subsidiary, Geojit Investments Limited (GIL).
This move was formalised under a Business Transfer Agreement signed in December 2024, with the migration planned for March 21.
Meanwhile, the stock has lost over 25 per cent over the past year and has declined around 10 per cent in July so far.
This comes after a four-month rally, during which it rose by 2.5 per cent in June, 12.8 per cent in May, and 4 per cent in April.
The positive momentum had followed steep losses of 20 per cent in February and 23 per cent in January.
