Prime Securities swings to loss as Trigen Wealth costs outpace 11.6% IB revenue growth

Prime Securities' consolidated bottom line swung to a loss of ₹3.84 Cr in Q2 FY27, against a profit of ₹13.77 Cr a year ago and ₹2.01 Cr last quarter, even as consolidated revenue (total income) grew 11.6% YoY to ₹34.84 Cr (₹31.23 Cr) and 3.4% QoQ (₹33.68 Cr) — fee and commission income from the core investment-banking business rose to ₹28.43 Cr. Consolidated PBT fell to -₹4.54 Cr from +₹5.31 Cr YoY, entirely an expense-side story: consolidated expenses rose 52% YoY to ₹39.38 Cr from ₹25.92 Cr, which management's press release attributes largely to Trigen Wealth's geographic and headcount expansion (+₹13.46 Cr YoY). Neither this quarter nor the year-ago quarter carries an exceptional item (both show nil, unlike the ₹1.33 Cr exceptional charge booked in Q1 FY27), so the YoY swing to loss is a clean, unadjusted comparison with no one-off distorting it either way.

The divergence between the two bases is stark enough to flag explicitly: standalone (the core advisory/IB entity alone) stayed profitable with PAT of ₹1.57 Cr and basic EPS of ₹0.46, against a consolidated EPS of -₹1.06. The entire gap is Trigen Wealth, which posted a total comprehensive loss of ₹9.43 Cr for the quarter on its own; consolidated NPM accordingly collapsed to negative territory from +44.09% a year ago and +5.97% last quarter, with the compression sitting squarely on the expense line rather than revenue.

The stock went into the print at ₹305, up 1.8% over the past month of trading.

Management's own framing — "very strong investment banking revenues" and a "strong pipeline of deals, significantly larger deals" — is borne out by the 11.6% YoY revenue growth, but it covers only the IB vertical; it does not extend to the group bottom line, which the same release attributes to Trigen's build-out. The company discloses Trigen Wealth's AUM/AUA crossed ₹6,000 Cr as of September 30, 2026 (1,550+ clients, 900+ families, 14 locations, 122 employees), but says income recognition on this base has been deferred by a year due to a regulatory change in trail-income rules, while the costs are already fully expensed — management guides to ~₹70 Cr of fixed Trigen costs in FY27 and a break-even horizon of about four quarters. There is no formal prior guidance in our records to grade this print against, and no Q2 FY27-specific street estimates turned up in search — the only analyst figures on file are a Q1 FY27 revenue estimate of ₹65-75 Cr and PAT estimate of ₹5-6 Cr, which the company had already missed materially (actual ₹33.68 Cr / ₹2.01 Cr) before this quarter's further slide to a consolidated loss.