Modern Shares FY26 Profit Rebounds, But Q4 Sees Loss and Legal Uncertainty

Modern Shares & Stockbrokers Ltd has reported its financial results for the fiscal year ending March 31, 2026, revealing a significant turnaround in full-year profit, though the final quarter saw a dip.

For FY26, the company generated a total income of ₹3.59 crore (₹358.65 lakh). This income supported a net profit after tax (NPAT) of ₹22.09 lakh (₹0.22 crore), marking a positive shift from the net loss recorded in the previous fiscal year, FY25. The Board of Directors has decided not to recommend any dividend for the current financial year.

Q4 Dip into Loss

Despite the annual profit, the company's performance in the final quarter of FY26 was negative. Modern Shares reported a net loss after tax of ₹6.20 lakh (₹0.06 crore) for the three months ending March 31, 2026. This quarterly setback follows a net loss of ₹5.02 lakh reported in the third quarter of FY26.

Legal Appeal Adds Uncertainty

Adding a layer of risk to its outlook, the company has disclosed a pending appeal in the High Court of Bombay concerning a suit filed against Bata India Limited. The final outcome of this legal matter remains uncertain.

Auditor's Report Unmodified

Statutory auditors Jayant & Associates issued an unmodified opinion on the standalone audited financial results, signaling no major accounting concerns. The firm was also re-appointed as internal auditors for FY2026-27.

Market Standing: A Small Player

In the competitive stockbroking sector, Modern Shares is a small entity. For comparison, larger listed peers include Angel One Ltd, which reported FY24 revenue of approximately ₹2,800 crore and profit of ₹1,200 crore, and 5paisa Capital Ltd, with FY24 revenue of about ₹500 crore and profit of ₹75 crore. Modern Shares' FY26 revenue was ₹3.59 crore.

What Investors Will Watch

Key points for investors moving forward include the developments and resolution status of the High Court appeal involving Bata India Limited. Additionally, the company's ability to achieve and sustain consistent quarterly profitability, as indicated by the Q4 loss, will be closely monitored.