Anand Rathi Wea.

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.

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%.

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.

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.

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.

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%.