Prime Securities FY26 Results: Revenue Soars, Profitability Impacted by Wealth Management Push

Prime Securities Limited reported a significant 59% year-on-year increase in consolidated revenue from operations for the financial year ended March 31, 2026, reaching ₹127.68 crore. This strong top-line growth was primarily driven by its core Investment Banking and Advisory business. However, the company's consolidated Profit After Tax (PAT) saw a decline, falling to ₹13.16 crore for FY26 from ₹38.27 crore in FY25.

Reader Takeaway: Revenue growth driven by core business; PAT hit by new venture investments.

What just happened

The company has released its audited financial results for the fiscal year ended March 31, 2026. Consolidated revenue from operations grew substantially to ₹127.68 crore, up from ₹79.80 crore in the previous fiscal year. The total income also increased to ₹137.99 crore from ₹89.40 crore. Despite this revenue surge, consolidated PAT declined to ₹13.16 crore from ₹38.27 crore. On a standalone basis, revenue from operations saw a slight decrease to ₹46.25 crore from ₹48.24 crore, but standalone PAT also decreased to ₹17.68 crore from ₹32.25 crore.

Why this matters

The results highlight Prime Securities' strategic investment in its new wealth management subsidiary, Trigen Wealth. While Trigen Wealth, in its first full year of operations, generated ₹21.48 crore in revenue, it also incurred a Profit Before Tax (PBT) loss of ₹23.75 crore due to significant upfront expenses. This investment is impacting the consolidated profitability in the short term, even as the core Investment Banking business remains robust, reporting revenues of ₹116.50 crore and a PBT of ₹42.14 crore.

The backstory

FY26 is being viewed by the management as a transition year. The company is actively building annuity revenue streams through its franchise businesses like Trigen Wealth to offset the typically episodic nature of its Investment Banking operations. Trigen Wealth has successfully onboarded over 850 clients and 600 families in its initial operational year.

What changes now

Prime Securities is focused on achieving an expected break-even for Trigen Wealth in approximately six quarters. The company also successfully raised about ₹30 crore from investors for Trigen Wealth at a pre-money valuation of ₹550 crore, resulting in a 5% dilution. The core Investment Banking business continues to be a strong contributor to the company's financial performance.

Risks to watch

The wealth management vertical is expected to incur fixed expenses of around ₹60 crore in FY27. Regulatory changes affecting trail income recognition have led to a one-year deferral of revenues. Furthermore, a claim of ₹27.95 crore is under adjudication at the NCLT, against which the company has provisioned an Expected Credit Loss (ECL) allowance of ₹11.78 crore.

Peer comparison

While detailed peer comparisons are not provided in the filing, the strategy to build a wealth management arm alongside investment banking is common among financial services firms seeking diversified and stable revenue streams.

Context metrics (time-bound)

• Trigen Wealth Management generated ₹21.48 crore in revenue in its first year.
• Trigen Wealth is expected to break even in approximately six quarters.
• Trigen Wealth raised ₹30 crore at a ₹550 crore pre-money valuation.
• A ₹27.95 crore claim is under NCLT adjudication.
• Prime Securities held approximately ₹250 crore in cash and investments at the end of FY26.

What to track next

Investors will be closely watching Trigen Wealth's progress towards its break-even target and the company's ability to manage the fixed expenses for the vertical in FY27. The performance of the core Investment Banking business will also be critical in balancing the overall financial results.