Why Did Emkay Global’s Profit Plunge 98% in Q2?
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Synopsis
Emkay Global Financial Services has reported a staggering 98% drop in net profit for Q2 FY26. This alarming decline, alongside a nearly 34% decrease in revenue, raises questions about the company's performance. Discover the reasons behind this financial downturn and what it means for investors and the market.
Key Takeaways
- Net profit fell to Rs 0.45 crore in Q2 FY26.
- Revenue dropped nearly 34% compared to last year.
- Expenses decreased to Rs 76.75 crore.
- Emkay Global operates through various subsidiaries.
- International expansion began in 2021.
Mumbai, Oct 31 (NationPress) Emkay Global Financial Services revealed a net profit of merely Rs 0.45 crore for the September quarter (Q2 FY26), a dramatic drop from Rs 25.90 crore during the same period last fiscal year (Q2 FY25), resulting in a staggering 98 percent year-on-year (YoY) decline.
Revenue from operations plummeted nearly 34 percent, falling to Rs 72.08 crore from Rs 108.56 crore in Q2 FY25, as per its recent stock exchange filing.
Comparatively, revenue remained relatively stable on a sequential basis, slightly down from Rs 72.97 crore in the previous quarter, while profits decreased from Rs 4.78 crore in Q1 FY26.
Total expenses for the quarter amounted to Rs 76.75 crore, which is lower than Rs 83.38 crore a year earlier, according to the company's regulatory submission.
On Friday, Emkay Global's shares were priced at Rs 314, reflecting an increase of Rs 5.15 or 1.67 percent during the intra-day trading session.
Within the past five days, the stock has seen a decline of Rs 5 or 1.56 percent. Over the last month, it dropped Rs 0.99 or 0.31 percent, while over six months, it has appreciated Rs 110.99 or 54.40 percent.
Year-to-date (YTD), the stock has risen Rs 56.7 or 1.84 percent, but over the past year, it has decreased by Rs 37.53 or 13.53 percent.
Founded in 1995 and based in Mumbai, Emkay Global Financial Services is a comprehensive financial services company. It provides an extensive range of offerings, including institutional and retail broking, investment banking, portfolio and wealth management, and research services. The firm has also ventured into currency and commodity broking and serves as a depository participant.
Emkay operates through various subsidiaries such as Emkay Investment Managers Limited, Emkay Fincap Limited, Emkay Commotrade Limited, and Emkay Insurance Brokers Limited.
In 2021, the firm took a significant step by launching its Singapore-based arm, Emkay Global Financial Services Pte Limited.
Emkay caters to a diverse clientele, including foreign institutional investors, domestic mutual funds, banks, corporations, and high-net-worth individuals.
Point of View
Emkay Global's significant profit decline underlines the volatility in the financial market. While the company has shown resilience in certain areas, the drastic drop in profitability raises concerns about its operational strategies. It’s essential for stakeholders to monitor these developments closely as they could influence broader market trends.
NationPress
31/10/2025
Frequently Asked Questions
What caused Emkay Global's profit decline?
The profit decline was primarily due to a significant drop in revenue from operations and higher total expenses.
How much did Emkay Global's revenue decrease?
Revenue from operations decreased by nearly 34%, from Rs 108.56 crore in Q2 FY25 to Rs 72.08 crore in Q2 FY26.
What is the current stock price of Emkay Global?
As of Friday, Emkay Global's shares were trading at Rs 314.
Is Emkay Global expanding internationally?
Yes, Emkay Global expanded its reach internationally by launching its Singapore-based arm in 2021.
What services does Emkay Global provide?
Emkay Global offers a range of services, including institutional and retail broking, investment banking, portfolio management, and research.
