Earnings Impact! Geojit Financial shares slip over 6% as Q1 profit plummets 37%
Geojit Financial reported a sharp decline in both net and pre-tax profits. Consolidated net income fell to ₹ 28.67 crore from ₹ 45.49 crore in Q1 FY25, marking an 11 percent sequential drop from ₹ 32.12 crore in Q4 FY25. The company's profit before tax (PBT) also dropped significantly, falling 39 percent year-over-year to ₹ 36.64 crore from ₹ 59.74 crore, and dipping 8 percent sequentially.
A key contributor to the reduced profitability was a decline in revenue. Total consolidated revenue for the quarter slid 15 percent year-over-year to ₹ 153.30 crore, down from ₹ 181.18 crore in the previous year. Sequentially, revenue decreased by 14 percent compared to ₹ 177.45 crore in Q4 FY25. Similarly, EBITDA plunged 53.0 percent to ₹ 32.78 crore, down from ₹ 69.77 crore recorded in Q1 FY25 — a clear indication of contracting margins.
Despite weak earnings, Geojit Financial achieved significant progress in its strategic reorganisation. In February, the company announced it had secured all necessary regulatory approvals to transfer its core securities broking, margin financing, depository participant services, and research analyst operations to its wholly-owned subsidiary, Geojit Investments Ltd (GIL). The definitive Business Transfer Agreement, signed in December 2024, stipulates the migration of operations and personnel on March 21, 2025.
These segments collectively generated ₹ 300.23 crore in revenue during FY23 and represented 71.6 percent of standalone turnover. They also accounted for ₹ 336.25 crore — or 58 percent — of Geojit's standalone net worth. The transfer is expected to streamline operations and sharpen the parent company's focus on strategic growth and capital efficiency.
The Q1 earnings slump triggered a sharp market reaction: shares slid to an intraday low of ₹ 77.26, plummeting about 51 percent from their 52-week high of ₹ 159.30 hit in July 2024. The stock briefly touched a 52-week low of ₹ 60.80 in March 2025 and has declined roughly 25 percent over the past year.
Meanwhile, just in July so far, the stock has shed 10 percent after 4 months of gains including a 2.5 percent rise in June, a 12.8 percent jump in May, and a 4 percent increase in April. This was preceded by two weak months: a 20 percent drop in February and a 23 percent loss in January.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India Today
3 days ago
- India Today
Sensex tumbles over 600 points: Why stock markets are in the red today
Equity markets opened weak on Friday, extending their losing streak as volatility spiked and broader sentiment turned sour. The benchmark S&P BSE Sensex fell 624.64 points to 81,559.53 by 10:41 am, while the NSE Nifty50 slipped 215.85 points to 24, broader market indices were in the red, reflecting nervousness among investors despite a landmark India-UK Free Trade Agreement (FTA) that promises long-term benefits for exports and key Meena, Head of Research, Swastika Investmart Ltd, said that the primary reason for this decline is the continuous selling by Foreign Institutional Investors (FIIs) in both the equity and Futures & Options (F&O) markets. "FIIs remain uncomfortable with the valuations of the Indian equity market, even with improving macroeconomic and microeconomic indicators. Furthermore, the current earnings season, while not entirely disappointing, has also not been particularly encouraging. Adding to the uncertainty is the stalled trade deal between the US and India," he for now, traders remain firmly focused on near-term VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, flagged persistent foreign institutional investor (FII) selling as a major overhang.'Sustained FII selling of Rs 11,572 crore in the last four trading days will weigh on the market,' he said.'The weakness in the broader market, particularly in smallcaps, might continue since valuations had turned excessive and difficult to justify.'Anand James, Chief Market Strategist at Geojit, warned of a possible breakdown in Nifty if key levels are breached.'The 25,215 region has forced a consolidation as feared, that now threatens to evolve into a strong down move,' he said.'Slippage past 24,900 could set an immediate objective of 24,750–650. Further supports are near 24,450 and 24,000. However, with momentum low, favoured view expects downsides to slow down near 24,900 initially, prompting sideways moves again, with upsides capped near 25,130.'Akshay Chinchalkar, Head of Research at Axis Securities, pointed out a rare technical pattern emerging on the charts.'Technically speaking, yesterday's candle completed yet another bearish engulfing, which means we've had two in quick succession—a rare event,' he said.'The battle lines are clear: 25,000 is vital support, while 25,245 is key resistance. Bears will continue to have the upper hand until we have a daily close above 25,340.'He also said that while US index futures are trading higher, Asian cues remain mixed, offering little support to bulls."Technically, the Nifty is falling from the same supply zone of 25500-25800, a level from which we observed a sharp decline in October of last year. It appears the Nifty might take a full year to surpass its fresh all-time high of 26277, which was achieved on September 27, 2024," said immediate demand zone for Nifty is identified between 24800-24735. Below this, 24500 stands as a critical support level where some stability might be observed. However, there remains a risk of the index testing its 200-DMA (Daily Moving Average) around the 24000 level. Upside movement is currently capped around the 20-DMA of 25300. A sustained move above this level is essential to expect any positive momentum," he profit-booking underway and technical patterns favouring the bears, the mood on Dalal Street appears cautious. For now, all eyes are on whether Nifty can hold the crucial 25,000 mark, or if a deeper correction is on the cards.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- EndsMust Watch
NDTV
21-07-2025
- NDTV
Sensex, Nifty Open Flat Amid Global Cues, India-US Trade Deal Awaited
Mumbai: The Indian equity market opened almost flat on Monday amid mixed cues from global markets, as investors continue to look for some positive news on the interim India-US trade deal. At 9:20 am, Sensex was down 50 points or 0.05 per cent at 81,714 and Nifty was down 17 points or 0.07 per cent at 24,951. Marginal selling was also seen in midcap and smallcap stocks. Nifty midcap 100 index was down 87 points or 0.15 per cent at 59,017 and Nifty smallcap 100 index was down 65 points or 0.36 per cent at 18,892. According to analysts, the single-most important factor which the market will be focusing on in the coming days will be the outcome of the trade talks between the US and India. "If an interim trade deal between the two countries is reached with a tariff rate of less than 20 per cent on India, that would be a positive from the market perspective," said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd. On the sectoral front, auto, IT, PSU bank, pharma, FMCG, media, energy, infra, consumption and PSE were major losers, while financial services, metal and realty were trading in the green. In the Sensex pack, Axis Bank, Reliance, Infosys, HCL tech, Tech Mahindra, TCS, Sun Pharma, Titan, M&M, HUL, Asian Paints, NTPC, Tata Motors and BEL were losers. Tata Steel, HDFC Bank, ICICI Bank, Eternal, UltraTech Cement, Bajaj Finance and Trent were major gainers. Most Asian markets were trading with gains. Shanghai, HongKong, Seoul, Bangkok and Jakarta were in the green, while Tokyo was trading in the red. US markets closed in mixed zone. Main indices Dow Jones was down 0.32 per cent and Nasdaq was up 0.05 per cent. On the institutional front, foreign institutional investors (FIIs) turned net buyers on July 18 with purchases worth Rs 374.74 crore, while domestic institutional investors (DIIs) continued their tenth session of buying, with net purchases worth Rs 2,103.51 crore. Considering the current environment of elevated volatility and mixed global cues, traders should maintain a cautious sell-on-rise strategy, especially when using leverage, said Mandar Bhojane from Choice Equity Broking Private Limited.
Economic Times
20-07-2025
- Economic Times
FPIs exit secondary market in July, but stay active in IPOs. What's fueling the shift?
Foreign portfolio investors (FPIs) have turned net sellers in India's secondary markets in July, offloading over Rs 10,000 crore in equities amid valuation concerns and underperformance. However, their primary market investments remain strong, indicating a shift in strategy. Despite near-term caution, FPIs continue to tap IPO and QIP opportunities, reflecting selective optimism toward Indian equities. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Foreign portfolio investors (FPIs) have turned net sellers in Indian equities this July, but their activity in the primary market remains strong — highlighting a strategic shift amid concerns over valuations and the relative underperformance of Indian to data from NSDL, FPIs sold equities worth Rs 10,775 crore through the secondary market between July 1 and July 18, 2025. However, during the same period, they invested Rs 5,251 crore in the primary market, mainly via initial public offerings ( IPOs ) and qualified institutional placements (QIPs).Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services , said this trend reflects a valuation-sensitive approach by foreign investors.'The important takeaway from this dualistic behaviour of FPIs is that whenever valuations get stretched in the secondary market, they sell — but consistently buy in the primary market (QIP), where valuations are fair,' Vijayakumar said.'So long as valuations remain elevated, this trend will continue,' he added. 'India's underperformance relative to other emerging markets and the MSCI EM Index may also have contributed to FPI selling through the exchanges.'Vijayakumar pointed out that for the calendar year 2025 up to July 19, FPIs have sold equities worth Rs 1.10 lakh crore in the secondary market, while investing Rs 27,239 crore in the primary market. Despite the outflows via exchanges, their continued interest in new issuances suggests that FPIs are not exiting Indian equities entirely, but are reallocating their exposure based on value and return after rallying over 15% between March and June, Indian equity markets have taken a breather in July. So far this month, the Sensex and Nifty have declined more than 2%, weighed down by weaker-than-expected earnings from key financial and IT companies, as well as global trade Friday, July 18, the Nifty50 slipped 0.57% to close at 24,968, while the BSE Sensex fell 0.61% to settle at 81,757. The indices also logged their third consecutive weekly loss, with the Nifty50 down 0.7% and the Sensex losing 0.9% for the banks led the sectoral declines, falling nearly 2% for the week, followed by losses in financials and IT, which were down 1.1% and 1.5%, respectively. Axis Bank shares tumbled 5.2% on Friday and 6.3% for the week after posting a surprise drop in quarterly profit. HCLTech, India's third-largest IT services firm, also fell 5.5% for the week after it cut its full-year operating margin focus now shifts to the upcoming earnings season and potential developments in India-US trade talks ahead of the August 1 deadline. Earlier this week, US President Donald Trump said a deal with India is 'close,' which could lend some support to market now, FPI data underscores a cautious yet opportunistic approach. While the secondary market may remain under pressure due to elevated valuations and global headwinds, sustained activity in IPOs and primary issuances could continue—particularly if pricing remains attractive.
