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    Anand Rathi Wea.

    ANANDRATHI
    Financial Services·14 Oct 2025
    Management Summary

    Anand Rathi Wealth Limited delivered its 16th consecutive quarter of consistent performance, achieving significant AUM growth to INR 91,568 crores. The company reported robust revenue and PAT growth for both Q2 and H1 FY26, alongside improved PAT margins and a strong annualized ROE of 45.5%. Management highlighted strong equity mutual fund net flows and effective client retention, reaffirming their client-centric approach and confidence in long-term growth drivers.

    Highlights

    8
    • AUM reached INR 91,568 crores as of Sep 30, 2025, more than doubling from IPO levels.

    • Q2 FY26 consolidated total revenue stood at INR 307 crores, marking a 23% YoY growth.

    • Q2 FY26 Profit After Tax (PAT) was INR 99.89 crores, up 31% YoY.

    • Q2 FY26 PAT margin improved to 32.5% from 30.6% in Q2 FY25.

    • H1 FY26 consolidated total revenue grew 19% YoY to INR 591 crores.

    • H1 FY26 PAT increased 29% YoY to INR 194 crores.

    • H1 FY26 annualized Return on Equity (ROE) was 45.5%.

    • An interim dividend of INR 6 per equity share (120%) was declared.

    Key financials

    Metrics

    15

    Periods

    2

    Headline

    9
    • Total AUM
      ₹91,568 Cr
    • H1 FY26 Consolidated Revenue
      ₹591 Cr
      YoY+19%
    • H1 FY26 PAT
      ₹194 Cr
      YoY+29.0%
    • H1 FY26 PAT Margin
      32.8%
    • H1 FY26 Annualized ROE
      45.5%

    Q2 FY26

    6
    • Consolidated Revenue
      ₹307 Cr
      YoY+23%
    • PAT
      ₹99.89 Cr
      YoY+31%
    • PAT Margin
      32.5%
    • Equity MF Net Flows
      ₹2,062 Cr
      YoY+101%
    • Total Net Flows
      ₹3,302 Cr
      YoY+28.0%

    Segment breakdown

    Digital Wealth Business
    ₹2,211 Cr AUM21% AUM YoY Growth6,570 count Clients20% Clients YoY Growth
    OFA Business
    6,790 count Subscribers₹1.6L Cr Platform Assets
    List

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Dividend

    ₹6/share (interim)

    Guidance & targets

    6
    CategoryTargetPriority
    AUM
    Total AUM
    INR 1 lakh crores
    Medium
    Revenue
    Full Year Revenue
    INR 1,175 crores
    High
    Profitability
    Full Year PAT
    INR 375 crores
    High
    Profitability
    PAT Margin
    Not below 30%
    High
    Growth
    Long-term Growth Rate
    20% - 25%
    High
    Revenue Mix
    MF & SP Revenue Stream Mix
    50-50
    Medium

    Diversification of Structured Product Issuers

    Next quarter / Ongoing
    CurrentAnand Rathi Global Finance is primary, Nuvama recently approved.
    TargetFurther approvals and deployment with new issuers.

    Why it matters

    Reduces concentration risk and enhances product offering.

    Is diversification on the cards? The answer is a big yes. Have we approved one more just now again? Nuvama, like you mentioned.

    How to verify

    detailed_narrative

    Risks & concerns

    3
    RiskSeverity

    RM Attrition

    While RM attrition has occurred, the company has successfully retained about 79% of the AUM associated with departing RMs, attributing it to client-centricity.Analyst downplayed

    low

    Concentration in Structured Products Issuers

    Analyst raised concern about high concentration in Anand Rathi Global Finance for structured products; management confirmed diversification is a priority and new issuers (like Nuvama) are being approved.Analyst acknowledged

    medium

    Base Effect on Growth

    As AUM grows, the percentage growth rate might decrease from current high levels (28-30%) to the long-term target of 20-25%, but absolute rupee value growth will be higher.Analyst acknowledged

    medium

    Q&A highlights

    8

    “RM attrition in our company is reasonably low... we've been able to retain about 79% of the 4 people so far of the assets they had.”

    Addresses concerns about AUM loss when RMs leave, highlighting the company's client-centric approach and ability to retain assets.

    asked by Aakash Jha

    2 min read6 chapters

    Detailed Narrative

    01

    Consistent Performance & AUM Milestones

    Anand Rathi Wealth Limited reported its 16th consecutive quarter of consistent performance, defying challenging market conditions where Nifty declined 3-4%. The company's AUM has grown significantly, reaching INR 91,568 crores by September 30, 2025, more than doubling from INR 30,200 crores at the time of its IPO approximately four years ago. This growth underscores the effectiveness of its market-agnostic and client-centric approach.

    02

    Robust Financial Performance in Q2 & H1 FY26

    For Q2 FY26, consolidated total revenue increased by 23% year-on-year to INR 307 crores, with Profit After Tax (PAT) rising 31% year-on-year to INR 99.89 crores. The PAT margin improved to 32.5% from 30.6% in Q2 FY25. For the first half of FY26, total revenue grew 19% year-on-year to INR 591 crores, and PAT increased 29% year-on-year to INR 194 crores, achieving 50.3% of its full-year revenue guidance of INR 1,175 crores and 52% of PAT guidance of INR 375 crores. The annualized Return on Equity (ROE) for H1 FY26 stood at 45.5%.

    03

    Strong Net Flows and Client Retention

    Equity mutual fund net flows surged by 101% year-on-year to INR 2,062 crores in Q2 FY26, contributing to a total net flow of INR 3,302 crores for the quarter and INR 6,827 crores for H1 FY26. The company's market share in equity mutual fund net inflows for H1 FY26 stood at 2.33%, a significant increase from 0.16% in FY20. Client attrition, measured by AUM loss, remained exceptionally low at 0.09% for Q2 FY26 and 0.18% for H1 FY26, demonstrating strong client trust and the effectiveness of their uncomplicated client-centric approach.

    04

    Strategic Growth Drivers & Market Outlook

    Management outlined four key growth engines: implied growth from client performance, increased capacity utilization by existing RMs, deeper penetration within the client base, and the addition of new RMs. The company maintains a long-term growth target of 20-25%. Despite market volatility🌐, management believes the probability of a catastrophic fall is near zero, citing light margin funding books, FII short positions, and strong DII inflows, suggesting resilience in the Indian market.

    05

    Structured Products and Diversification Efforts

    The company aims for a 50-50 revenue mix between mutual funds and structured products, currently at approximately 43-44% for structured products. Management emphasized that structured products are essentially bonds with variable returns linked to underlying assets like Nifty, and they prioritize client-centricity and risk-adjusted returns. Efforts are underway to diversify structured product issuers beyond Anand Rathi Global Finance, with Nuvama recently approved, to mitigate concentration risk.

    06

    Capital Allocation and Shareholder Returns

    In line with its policy of rewarding shareholders, the Board of Directors declared an interim dividend of INR 6 per equity share, translating to a 120% payout. The company's NBFC arm, Anand Rathi Global Finance, has shown significant improvement in asset quality, with GNPA reducing to 0.6% in financial year 2025, attributed to meticulous management and a secured portfolio approach, ensuring net NPA remains under 1%.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.