1. At a Glance
LKP Securities is that quiet uncle of Dalal Street who has been around since 1948, doesn’t tweet, doesn’t podcast, doesn’t shout on TV, but still shows up every morning in a crisp shirt. Market cap sits at ₹122 Cr, stock price around ₹14.9, and the last 3 months return is a painful -20%, reminding shareholders that nostalgia does not protect portfolios.
The latest Q3 FY26 numbers look decent at first glance: ₹24.4 Cr revenue, ₹0.98 Cr PAT, and 20% operating margin. But then you blink twice and realise profits are down ~49% YoY, debt is ₹68 Cr, and promoter-level drama has entered the chat.
The stock trades at ~11.5x P/E, below industry averages, with a 2% dividend yield, ROCE of 18.4%, and ROE of 12.8%—not bad, not great, very “middle-class brokerage vibes”.
So is this a boring cash-generating dinosaur… or a structurally challenged broking firm stuck between discount brokers and wealth managers? Let’s open the ledger.
2. Introduction
LKP Securities is not a startup. It is not a fintech. It does not have an app that crashes on volatile days because of “unexpected traffic”. It is old-school, relationship-driven, commission-heavy, and proudly offline-online hybrid.
Founded in 1948, this company has seen Harshad Mehta, Ketan Parekh, NSE’s birth, discount brokers, meme stocks, and probably still uses Excel sheets that pre-date Excel. That longevity deserves respect—but markets don’t pay respect, they pay for growth.
Over the years, LKP has built a presence across 150+ cities, offering equity broking, debt products, PMS, structured products, and third-party distribution. Revenue is still ~87% fee & commission driven, which means no wild trading book risks—but also no explosive operating leverage like new-age brokers.
The problem? The broking industry has changed. Zerodha doesn’t charge brokerage. Angel One monetises scale and tech. Wealth managers sell solutions, not trades. LKP is stuck in the middle—too traditional to scale fast, too small to dominate niches.
And then 2025 happened. Promoter demise. Preferential issue drama. Share price collapse. Let’s
decode calmly.
3. Business Model – WTF Do They Even Do?
Imagine explaining LKP Securities to a smart investor who hasn’t updated their broker since 2010.
LKP earns money primarily through:
- Equity & debt broking commissions
- Research-based advisory
- Portfolio Management Services
- Distribution of third-party financial products
In FY22, revenue mix was:
- Fees & commission: ~87%
- Interest income: ~10%
- Other income: ~3%
This is a low-risk, low-thrill business. No proprietary trading heroics. No crypto experiments. No YOLO derivatives desks. That’s good for survival, bad for excitement.
Client base includes individuals, corporates, and retail clients—spread across India. Think of them as the “family doctor” of broking: trusted, steady, but not Instagram-famous.
They’ve also tried to modernise:
- Set up LKP IFSC Pvt Ltd to enable US stock trading (pending approvals)
- Acquired Wise Tech Platforms, now a subsidiary (still warming up)
But so far, these initiatives are more PowerPoint than P&L.
4. Financials Overview
Quarterly Performance Table (₹ Crore)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 24.41 | 24.93 | 26.69 | -2.1% | -8.5% |
| EBITDA | 4.91 | 5.50 | 6.62 | -10.7% | -25.8% |
| PAT | 0.98 | 1.91 | 2.69 | -48.7% | -63.6% |
| EPS (₹) | 0.12 | 0.23 | 0.33 | -48% | -64% |
Now the fun part.
Revenue is flat-ish. Margins are still healthy. But profits collapsed due to:
- Higher interest costs
- Lower operating leverage
- Volatile other income
- Rising depreciation
This is not a business imploding—it’s a business struggling to grow while costs don’t politely wait.
Annualised EPS
Q3 EPS (₹0.12)
Average of Q1, Q2, Q3
