SKP Securities Ltd Q2 FY26 Half Yearly Results – Broking Bosses of Bengal See Profit Fall, But ROE Still Shines at 21.6%
1. At a Glance
Welcome to the world of SKP Securities Ltd, Kolkata’s capital-market connoisseurs who have somehow managed to keep calm while the rest of Dalal Street keeps screaming “margin call!” Incorporated in 1990, this mid-sized brokerage-merchant banking combo operates in nearly every corner of the financial services world—broking, investment banking, wealth management, and advisory—and still finds time to distribute mutual funds to your uncle in Salt Lake.
As of December 2025, SKP’s market cap stands at a modest ₹73 crore, trading around ₹107 per share, which is roughly half its 52-week high of ₹247. The company’s P/E ratio sits at 8.48, way below the industry average of 21.0, hinting that either the market doesn’t get it—or knows something it’s not telling us. Return on Equity is a spicy 21.6%, while ROCE stands even taller at 27.6%. Debt-to-equity? Just 0.35, which means the company still remembers how to say no to bankers.
Q2 FY26 (September 2025) wasn’t their dream quarter though. Sales dipped to ₹10.85 crore, down 3.64% QoQ, and profit after tax (PAT) fell to ₹2.93 crore, marking a 25.8% QoQ decline. Still, a 40%+ operating margin keeps them floating comfortably. With a dividend yield of 1.87%, SKP Securities remains that quiet cousin who earns well, saves more, and never flaunts.
2. Introduction
In the era where brokers turn influencers and traders turn meme-makers, SKP Securities stands as a charming relic of discipline and decency. Established in 1990, when phones had wires and IPO forms had carbon copies, SKP has evolved from a regional stockbroker into a full-fledged financial services powerhouse.
From equity dealing to private wealth, from institutional equities to depository participant services, SKP has mastered the art of making money out of other people making money. Based out of Kolkata, they’ve managed to build a solid franchise across India—proving once again that good things do come out of the Howrah Bridge.
But this isn’t just another sleepy brokerage story. SKP is SEBI-registered as a Research Analyst, Merchant Banker, and Portfolio Manager, which basically means: if it’s legal in finance, they’re allowed to do it. Their mutual fund distribution arm is among the strongest in Eastern India, and their institutional equities division is cozy with mutual funds, insurance firms, and banks.
So why’s the stock down over 50% in one year? Maybe because FY25’s fairy tale EPS of ₹14.67 couldn’t hold ground against market volatility, or maybe the market just hates Kolkata’s weather. Either way, SKP’s numbers say one thing loud and clear: this company is efficient, disciplined, and financially fit—just not very exciting for traders looking for thrillers.
3. Business Model – WTF Do They Even Do?
Let’s decode SKP’s business model like you’d explain crypto to your grandmother.
SKP Securities is a multi-line financial services firm, operating mainly in:
Broking Services (65% of FY22 revenue): Equity, currency, and derivatives trading on NSE & BSE. Their bread and butter.
Distribution (23%): One of Eastern India’s leading distributors of mutual funds—basically the agent who gets your SIP started while you’re still watching YouTube tutorials.
Private Wealth (3%): Personalized wealth management for HNIs who don’t trust online calculators.
Depository Services (1%): NSDL and CDSL participation for clients who like their shares demat and drama-free.
Investment Banking (8%): Handling M&A, private placements, and merchant banking—basically matchmaking for companies that want to marry money.
Customer-wise, they’re nicely balanced: 58% of revenue from institutions (mutual funds, insurance firms, banks) and 42% from retail & HNIs. That’s like being a Bollywood actor with both critics and box office on your side.
So, what’s their edge? Efficient operations, sharp capital allocation, and the rare gift of not blowing up.
4. Financials Overview
Let’s dive into the juicy numbers from the Quarterly Results (Q2 FY26 = Sept 2025).
Commentary: The brokerage world is cyclic, but SKP’s quarterly rhythm sounds like a tabla solo—some beats louder, others lost. Revenue took a mild YoY dip, but margins stayed healthy at over 40%, which many NBFCs would kill for. QoQ growth is positive, proving they can bounce faster than your demat OTP.
5. Valuation Discussion – Fair Value Range Only
Method 1: P/E Method
Industry P/E = 21
SKP EPS (annualised) = ₹17.2
Fair Value = ₹17.2 × 10–16 = ₹172–₹275
Method 2: EV/EBITDA Method
EV/EBITDA = 4.48 (current)
Industry average = ~9x
EBITDA (TTM) = ₹13.0 Cr
Fair EV = ₹13 × 9 = ₹117 Cr → minus debt ₹19.5 Cr → equity value ≈ ₹97 Cr → per share ≈ ₹142
