Brokerage gets Q1 bounce, but yo gap is still wide

Most listed broking companies posted profit and revenue rise from January-March to June quarter, which was accelerated by improved trading activities following the stock market’s recovery. But their earnings representations still remain below their peak level in the volume, especially derivatives, compared to last year.

In the June quarter, Motilal Oswal Financial Services stooded at 2 532 crore after tax in the first quarter, compared to a loss of CRORE 8 crore in January-March. The IIFL Capital Services and a single profit of 5 Paisa Capital increased by 140% and 15%, respectively since the March quarter.

Angel One’s single net profit fell 26% to 134 million in the June quarter. The benchmark Nifty rose 8.5% in the April 50-June period, compared to January-March, when it was down 0.6%.

Suresh Shukla, chief business officer of SBI Securities, said that in the first quarter, the earnings of brokerage companies were muted, which was reduced by about 15% in the cash market volume and the derivatives premium was reduced by 25-30%. “Companies more dependent on derivatives income, like discount brokers, CASH faces more revenue pressure than those who come in contact with the cash market.”

Since 2024, due to some steps taken by the Securities and Exchange Board India (SEBI), the income and profit of the brokers remained under pressure, such as the termination of only one weekly index, as well as the same fee and ‘true-to-label’ standards, which are full of volume, which ends with volume-based exchange. Which is fully exchanged, which is constructed, which is fully exchanged, with a Market Retracture.

Shares of broking companies declined between 1% and 37% this year, while the Nifty 50 3.7% and the Nifty 500 rose.

Despite the recent decline for analysts, customers are not in a hurry to recommend sharing shares.

“Although the evaluations of the broking companies listed have been central to the decline in stock prices, we are cautious on the area,” said Upurva Sheth, head of Semco Securities Research. Shaeth said that the performance of broking companies would continue to track the overall market trends.

Exchange

In the exchanges, the profit of both BSE and NSE went beyond the March quarter. While NSE’s profit was up 14% over the previous year, the BSE increased by 103%. “The BSE has shown more performance behind getting a market share with its peer,” Shukla said. This year’s stock has risen 40%. Sheth said that BSE looks quite valuable after strong Q1 results and looks limited to current levels.

Front passage

The second quarter activity is still overwhelming, depending on the indicators of gaining momentum in the second half of the year’s meaningful redecovery in the broker’s income, Shukla said.

Sheth also said that the benchmark is expected to remain stable due to continuous SIP flow, they are unlikely to surpass the previous lifetime S.