diff --git a/erpnext/accounts/report/share_balance/share_balance.py b/erpnext/accounts/report/share_balance/share_balance.py
index db475a86265..b58c439a14c 100644
--- a/erpnext/accounts/report/share_balance/share_balance.py
+++ b/erpnext/accounts/report/share_balance/share_balance.py
@@ -22,7 +22,7 @@ def execute(filters=None):
 	else:
 		share_type, no_of_shares, rate, amount = 1, 2, 3, 4
 
-		all_shares = get_all_shares(filters.get("shareholder"), filters.get("date"))
+		all_shares = get_all_shares(filters.get("shareholder"), filters.get("date"), filters.get("company"))
 		for share_entry in all_shares:
 			row = False
 			for datum in data:
@@ -61,16 +61,35 @@ def get_columns(filters):
 	return columns
 
 
-def get_all_shares(shareholder, date):
+def get_all_shares(shareholder, date, company=None):
 	"""Share movements for the shareholder up to (and including) `date`, signed by direction:
-	shares received are positive, shares transferred/sold out are negative."""
-	transfers = frappe.get_all(
-		"Share Transfer",
-		filters={"docstatus": 1, "date": ("<=", date)},
-		fields=["share_type", "no_of_shares", "rate", "amount", "from_shareholder", "to_shareholder"],
-		order_by="date",
+	shares received are positive, shares transferred/sold out are negative.
+
+	The shareholder and company predicates are pushed into the query so only the
+	relevant transfers are fetched instead of scanning the whole table."""
+	share_transfer = frappe.qb.DocType("Share Transfer")
+	query = (
+		frappe.qb.from_(share_transfer)
+		.select(
+			share_transfer.share_type,
+			share_transfer.no_of_shares,
+			share_transfer.rate,
+			share_transfer.amount,
+			share_transfer.from_shareholder,
+			share_transfer.to_shareholder,
+		)
+		.where((share_transfer.docstatus == 1) & (share_transfer.date <= date))
+		.where(
+			(share_transfer.to_shareholder == shareholder) | (share_transfer.from_shareholder == shareholder)
+		)
+		.orderby(share_transfer.date)
 	)
 
+	if company:
+		query = query.where(share_transfer.company == company)
+
+	transfers = query.run(as_dict=True)
+
 	shares = []
 	for transfer in transfers:
 		if transfer.to_shareholder == shareholder:
diff --git a/erpnext/accounts/report/share_balance/test_share_balance.py b/erpnext/accounts/report/share_balance/test_share_balance.py
index bb6da5a133d..0b91d1525f3 100644
--- a/erpnext/accounts/report/share_balance/test_share_balance.py
+++ b/erpnext/accounts/report/share_balance/test_share_balance.py
@@ -42,6 +42,30 @@ class TestShareBalanceReport(ERPNextTestSuite):
 		self.assertEqual(row[3], 10)  # average rate
 		self.assertEqual(row[4], 1000)  # amount = 100 * 10
 
+	def test_company_filter_scopes_transfers(self):
+		# the transfer is booked under `_Test Company`
+		create_share_transfer(
+			transfer_type="Issue",
+			to_shareholder=self.shareholder,
+			share_type=self.share_type,
+			from_no=1,
+			to_no=100,
+			no_of_shares=100,
+			rate=10,
+			date="2026-06-01",
+		)
+
+		# matching company: the holding shows up
+		self.assertEqual(self.get_row(date="2026-06-05")[2], 100)
+
+		# a different company must not surface this shareholder's transfer
+		other_company_data = execute(
+			frappe._dict(
+				{"date": "2026-06-05", "company": "_Test Company 1", "shareholder": self.shareholder}
+			)
+		)[1]
+		self.assertEqual(other_company_data, [])
+
 	def test_balance_increases_on_second_issue(self):
 		create_share_transfer(
 			transfer_type="Issue",