Khandwala Securities reported a standalone loss of Rs 1.27 crore for FY26, widening from Rs 0.80 crore in the previous year, as total income fell 38% to Rs 9.36 crore. The company faces auditor-raised concerns regarding Rs 5.67 crore in long-standing share application money and deposits currently under litigation. Management is pivoting toward an advisory-led business model and has implemented cost-cutting measures, including payroll reductions, to navigate market volatility.
Khandwala Securities FY26 Results and Audit Disclosures
Standalone total income fell to Rs 9.36 crore, while net loss increased to Rs 1.27 crore.
Reader Takeaway: The firm is shifting to an advisory-led model while facing significant auditor-qualified litigation regarding dues.
What just happened
Khandwala Securities has released its financial performance for the year ended March 31, 2026. The company reported a significant contraction in top-line growth, with income dropping from Rs 15.13 crore in the previous fiscal to Rs 9.36 crore. The bottom line also saw a further deterioration, with losses climbing to Rs 1.27 crore from Rs 0.80 crore in FY 2024-25. The diluted EPS for the period stands at (Rs 0.83).
Auditor Qualifications
Statutory auditors, M/s. Pravesh Agarwal & Associates, have issued a qualified opinion. Two primary issues were cited:
- Share Application Money of Rs 2.17 crore remains outstanding for 288 months, currently sub-judice in the Mumbai High Court.
- Long-term deposits of Rs 3.50 crore provided to Vimpsan Investments Private Ltd remain unrecovered, with no provisions made for potential losses as the company pursues legal recovery.
Why this matters
The auditor-flagged items represent a significant portion of the company’s capital, raising questions regarding asset quality. Shareholders should note that the company has opted not to recommend a dividend for the fiscal year.
What changes now
Management is actively transitioning the business model from traditional transaction-led brokerage to an advisory-led approach. This includes a strategic focus on Investment Banking, PMS, and Wealth Management. To manage operational efficiency, the firm initiated payroll reductions toward the end of FY26.
Governance and Appointments
The 33rd Annual General Meeting is set for September 18, 2026. The Board has also seen changes, with the appointment of Mrs. Suzan Vakil as a Non-Executive Independent Director, replacing Mr. Homiar N. Vakil, who ceased his tenure in September 2025.
What to track next
Investors should closely monitor the outcome of the High Court litigation regarding the share application money and the progress of the legal recovery efforts for the outstanding deposits.