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Prime Securities Ltd

| Quarterly Financial Results Q3 FY 2025–26

NEUTRAL SENTIMENT

Report Source

⬤20th Jan 26

Summary : Prime Securities reported strong revenue growth driven by expansion in investment banking and wealth management, despite audit concerns regarding receivables and deferred tax assets.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated Employee Expenses: Q3 FY26: INR 1,574 lakhs, 9M FY26: INR 4,252 lakhs (vs INR 2,208 lakhs 9M FY25).
  2. Consolidated Total Expenses: Q3 FY26: INR 2,763 lakhs, 9M FY26: INR 8,354 lakhs (vs INR 3,860 lakhs 9M FY25).
  3. Non-recovery of Rs. 2,795 lakhs revenue from a client by Prime Research and Advisory Limited, leading to CIRP proceedings.
  4. Consolidated Fees and commission income: Q3 FY26: INR 2,938 lakhs, 9M FY26: INR 9,834 lakhs (vs INR 6,901 lakhs 9M FY25).
  5. Consolidated Total Income: Q3 FY26: INR 3,019 lakhs, 9M FY26: INR 10,787 lakhs (vs INR 7,893 lakhs 9M FY25).
  6. Material uncertainty regarding recoverability of Rs. 2,795 lakhs revenue, currently sub judice.
  7. Paid-up equity share capital (face value Rs. 5 each): INR 1,695 lakhs (Consolidated and Standalone).
  8. Other equity (Consolidated): INR 18,927 lakhs.
  9. Other equity (Standalone): INR 16,191 lakhs.
  10. Both consolidated and standalone financial results are presented.
  11. Consolidated results include the Parent, its subsidiaries, and share of loss in its associate.
  12. Standalone results are for Prime Securities Limited only.

Corporate Overview

  1. India (Holding Company, subsidiaries, associates).
  2. United Kingdom (UK) (Subsidiary).
  3. United Arab Emirates (UAE) (Subsidiary).
  4. Singapore (Step-down Subsidiary, ceased October 2025).
  5. Prime Trigen Wealth operates from 8 locations.
  6. Material uncertainty regarding recoverability of Rs. 2,795 lakhs revenue from corporate advisory services.
  7. Realization of deferred tax assets dependent on achieving future taxable profits.
  8. Lumpiness of the episodic nature of the Investment Banking business.
  9. Financial Advisory and Intermediation services.
  10. Investment Banking and Wealth Management verticals.
  11. Building annuity income flows and transactional revenue streams.
  12. Management remains optimistic on the Company's prospects over the next few years.
  13. Global institutional investors and family offices.
  14. 725+ clients and 360+ families onboarded by Prime Trigen Wealth.
  15. Fees and commission income.
  16. Interest income.
  17. Dividend income.
  18. Net gain on fair value changes (realised and unrealised).
  19. Other income.
  20. Total Group headcount stands at 120 as of December 31, 2025 (vs 42 in December 2024).
  21. Prime Trigen Wealth operates with over 90 employees.

Risk Factors

  1. Uncertainty in recovering significant corporate advisory revenue.
  2. Deferred tax asset realization depends on future profits.
  3. Investment banking business revenue can be lumpy.
  4. Achieving projected performance is crucial for tax assets.

Key Drivers

  1. Consolidated revenues exceeded INR 100 Cr.
  2. Significant personnel growth in key verticals.
  3. Wealth management AUA crossed INR 2,400 Cr.
  4. Onboarded many new clients and families.

Auditor’s Report

  1. Unmodified audit conclusion on consolidated and standalone financial results.
  2. Auditors do not express an audit opinion for the review engagement.
  3. Recognition of Minimum Alternate Tax (MAT) for the first time, with management expecting to utilize the tax credit in future years.
  4. Material uncertainty regarding the recoverability of Rs. 2,795 lakhs revenue by Prime Research and Advisory Limited, due to Corporate Insolvency Resolution Process.
  5. Realization of deferred tax assets amounting to Rs. 405 lakhs by Prime Trigen Wealth Limited dependent on achieving management's projections of future taxable profits.
  6. Recognition of deferred tax assets by Ark Neo Financial Services Private Limited dependent on achieving projected performance.

Board Commentary

  1. Material uncertainty regarding recoverability of Rs. 2,795 lakhs revenue from corporate advisory services.
  2. Realization of deferred tax assets dependent on achieving future taxable profits and projected performance.
  3. Corporate Insolvency Resolution Process (CIRP) initiated against a debtor for non-recovery of Rs. 2,795 lakhs revenue, matter is sub judice.
  4. Subscribed to Optionally Convertible Debentures of INR 150 lakhs in Ark Neo Financial Services Private Limited, acquiring 41.68% equity stake.

Corporate Governance

  1. Audit Committee reviewed and recommended the financial results.

Management Discussion & Analysis

Future Strategy

  1. Building a combination of annuity income flows and transactional (success based) revenue streams.
  2. Creating annuity revenue flows through franchise businesses like Prime Trigen Wealth to smoothen Investment Banking lumpiness.
  3. Envisage Prime Trigen Wealth Limited to break-even over the next 6 quarters.

Performance Drivers

  1. Consolidated Revenues crossed INR 100 Cr for the first time.
  2. Substantial increase in personnel in Investment Banking and Wealth Management verticals.
  3. Establishment of the wealth management vertical, Prime Trigen Wealth Limited.
  4. Number and size of deals in advisory business have been steadily rising.
  5. Creation of new lines of business.

Risk Control Measures

  1. Management's assessment and legal advice obtained for PRAL's receivable.
  2. Management's projections of future taxable profits and business plans for deferred tax assets.

Critical Risks

  1. Material uncertainty regarding recoverability of Rs. 2,795 lakhs revenue from corporate advisory services (sub judice).
  2. Realization of deferred tax assets (Rs. 405 lakhs for PTWL, and for Ark Neo) dependent on achieving future taxable profits and projected performance.
  3. Lumpiness of the episodic nature of the Investment Banking business.
Prime Securities Ltd (PRIMESECU) Quarterly Report Analysis & Insights | Dhanarthi