Earnings Impact! Geojit Financial shares slip over 6% as Q1 profit plummets 37% | Stock Market News

Shares of Geojit Financial Services tumbled over 6 percent on Wednesday, July 16, after the brokerage released underwhelming first-quarter results for FY26. A steep 37 percent year-over-year drop in consolidated net profit to ₹28.67 crore rattled investors, overshadowing the firm’s strategic updates and leading to renewed scrutiny of its financial health.

Profit and Revenue Take a Hit

Geojit Financial reported a sharp decline in both net and pre-tax profits. Consolidated net income fell to ₹28.67 crore from ₹45.49 crore in Q1 FY25, marking an 11 percent sequential drop from ₹32.12 crore in Q4 FY25. The company’s profit before tax (PBT) also dropped significantly, falling 39 percent year-over-year to ₹36.64 crore from ₹59.74 crore, and dipping 8 percent sequentially.

A key contributor to the reduced profitability was a decline in revenue. Total consolidated revenue for the quarter slid 15 percent year-over-year to ₹153.30 crore, down from ₹181.18 crore in the previous year. Sequentially, revenue decreased by 14 percent compared to ₹177.45 crore in Q4 FY25. Similarly, EBITDA plunged 53.0 percent to ₹32.78 crore, down from ₹69.77 crore recorded in Q1 FY25 — a clear indication of contracting margins.

Business Restructuring Gains Regulatory Nod

Despite weak earnings, Geojit Financial achieved significant progress in its strategic reorganisation. In February, the company announced it had secured all necessary regulatory approvals to transfer its core securities broking, margin financing, depository participant services, and research analyst operations to its wholly-owned subsidiary, Geojit Investments Ltd (GIL). The definitive Business Transfer Agreement, signed in December 2024, stipulates the migration of operations and personnel on March 21, 2025.

These segments collectively generated ₹300.23 crore in revenue during FY23 and represented 71.6 percent of standalone turnover. They also accounted for ₹336.25 crore — or 58 percent — of Geojit’s standalone net worth. The transfer is expected to streamline operations and sharpen the parent company’s focus on strategic growth and capital efficiency.

Stock Performance

The Q1 earnings slump triggered a sharp market reaction: shares slid to an intraday low of ₹77.26, plummeting about 51 percent from their 52-week high of ₹159.30 hit in July 2024. The stock briefly touched a 52-week low of ₹60.80 in March 2025 and has declined roughly 25 percent over the past year.

Meanwhile, just in July so far, the stock has shed 10 percent after 4 months of gains including a 2.5 percent rise in June, a 12.8 percent jump in May, and a 4 percent increase in April. This was preceded by two weak months: a 20 percent drop in February and a 23 percent loss in January.

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