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Anand Rathi Wealth Ltd
NSE: ANANDRATHI Financial Services Cap Markets 🔎 Screen
NIFTY 500 Smallcap 50 Smallcap 100 Smallcap 250
₹29,876 Cr
Market Cap
30.36
P/B
57.5%
ROCE
45.3%
ROE
0.08
D/E
43.3%
Fin. Margin
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

Anand Rathi Wealth Ltd was incorporated on March 22, 1995. It is an AMFI registered mutual fund distributor and is one of the leading non-bank wealth solutions firms in India, being ranked amongst the top three non-bank mutual fund distributors in the country. The company offers a wide product portfolio of wealth solutions, financial product distribution, and technology solutions to its clients.

✓ Strengths 5
  • Company is almost debt free.
  • Company has delivered good profit growth of 54.7% CAGR over last 5 years
  • Company has a good return on equity (ROE) track record: 3 Years ROE 42.2%
  • Company has been maintaining a healthy dividend payout of 31.1%
  • Company's median sales growth is 29.8% of last 10 years
! Concerns 2
  • Stock is trading at 29.0 times its book value
  • Promoter holding has decreased over last 3 years: -5.62%
Key Ratios Snapshot
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📈 Growth Pattern
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Mixed quarter: Revenue and PAT beat FY26 guidance, but AUM missed the ₹1,00,000 Cr target (actual ₹93,037 Cr), and Q4 PAT declined 8.1% sequentially with regret RM attrition rising to 7 from 2. quarter Investor Presentation One-Pager Mar 2026
Revenue
₹301.6 Cr
+25% YoY (Q4 total revenue)
PAT
₹92.0 Cr
+24.9% YoY (Q4 adjusted)
PAT Margin
30.5%
Flat YoY (Q4)
AUM
₹93,037 Cr
+20.7% YoY (as of Mar-26), missed FY26 guidance of ₹1,00,000 Cr
What Went Right
  • FY26 total revenue of ₹1,198 Cr beat guidance of ₹1,175 Cr by 2.0%.
  • FY26 PAT of ₹386 Cr exceeded guidance of ₹375 Cr by 2.9%.
  • AUM grew 20.7% YoY to ₹93,037 Cr, driven by net inflows of ₹7,969 Cr (FY26) and market performance.
  • High ROE of 46.7% for FY26 (annualized), up 215 bps from 44.6% in FY25.
  • Digital wealth AUM grew 22.4% YoY to ₹2,218 Cr and active client families increased to 401 from 380 (Mar-25).
What to Watch
  • AUM missed FY26 guidance of ₹1,00,000 Cr by ~7.0%, primarily due to market drawdowns and slower-than-expected net inflows in Q4.
  • Q4 FY26 PAT of ₹92.0 Cr was 8.1% lower than Q3 FY26 PAT of ₹100.1 Cr, marking a sequential decline.
  • Regret RM attrition worsened: 7 RMs left in FY26 vs 2 in FY25, though 75% of their AUM was retained (81% excluding market moves).
  • Equity MF net inflows in Q4 were almost flat at ₹1,887 Cr vs ₹1,875 Cr in Q4FY25 (only +0.6% YoY), indicating slower HNI acquisition.
  • Muted Q4 sequential revenue growth from operations: Q4FY26 ₹287.8 Cr vs Q3FY26 ~₹280 Cr (implied) — a deceleration from Q3’s growth rate.
Management Guidance
  • FY27 Revenue guidance: ₹1,415 Cr (from FY26 actual of ₹1,198 Cr).
  • FY27 PAT guidance: ₹460 Cr (from FY26 actual of ₹386 Cr).
  • FY27 AUM guidance: ₹1,20,000 Cr (from Mar-26 actual of ₹93,037 Cr).
Investor Lens
Anand Rathi’s core wealth franchise remains strong, with FY26 revenue and PAT modestly exceeding guidance and ROE expanding. However, the AUM miss and elevated RM attrition signal near-term headwinds. The sequential PAT dip and flat MF inflows in Q4 raise questions about growth momentum. The company guides for 23% revenue and PAT growth in FY27, implying confidence, but achieving the ₹1.2 L Cr AUM target requires a ~29% increase, partly dependent on market recovery. Key watch items: progress on AUM run-rate in early FY27, RM attrition trend, and ability to sustain high ROE while investing in new hires and digital. The low regret RM attrition (75% AUM retention) is a positive, but the higher absolute loss of RMs needs monitoring. Long-term thesis of compounding trust and transparent advice is intact, but execution against FY27 guidance will be tested.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Net Profit up 41.7% to ₹102 Cr
Revenue
Revenue grew 30.0% YoY to ₹277.0 Cr, but declined 0.7% QoQ. This indicates a strong annual growth trend, albeit with a minor quarterly blip.
Profitability
Net Profit increased 41.7% YoY to ₹102.0 Cr, with EPS rising to 12.31. This suggests improved profitability, driven by other income and controlled expenses.
Margins
OPM % declined to 30% from 42% YoY, and 46% QoQ, indicating margin pressure. This could be a concern, despite the strong revenue and profit growth.
Balance Sheet
Borrowings stood at ₹83.0 Cr, with reserves at ₹984.0 Cr, indicating a healthy balance sheet with minimal debt. Total Assets were ₹1,332.0 Cr.
Key Risks
Margin pressure, high tax rate of 26%, and potential impact of interest expenses on profitability are key risks. Additionally, the minor QoQ revenue decline could be a concern.
Outlook
The strong annual growth trend in revenue and profitability is a positive sign, but the company needs to address margin pressure to sustain growth. The healthy balance sheet provides a solid foundation for future growth.
Generated by AI · Mar 2026 results · Not investment advice
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Investment Risk:
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