Anand Rathi Wealth Limited

Anand Rathi Wealth Limited delivered its 18th consecutive quarter of over 20% YoY PAT growth. For FY26, adjusted total revenue grew 22% to INR 1,198 crores, and adjusted PAT increased 28% to INR 386 crores, surpassing the guided INR 375 crores. The company's PAT margin for FY26 improved to 32.2% from 30.7% in FY25, and its Return on Equity (RoE) stood at an impressive 46.74%. The Board approved a 1:1 bonus issuance and a final dividend of INR 7 per equity share, both subject to shareholders' approval.

The company successfully crossed INR 1 lakh crores (INR 100,000 crores) in AUM post the quarter-end, a significant milestone that was a key guidance for the previous year. For FY27, management provided forward-looking guidance, targeting INR 1,415 crores in revenue, INR 460 crores in PAT, and INR 120,000 crores in AUM. This PAT guidance, representing 18-19% growth, was noted by analysts as conservative, to which management reiterated its 'under commit, over deliver' philosophy.

The Wealth Management business added 1,600 net new client families, bringing the total to 13,395 individual families. The client attrition rate, measured by AUM lost, remained low at 0.54% for FY26. Despite 7 RMs leaving in FY25-26 with INR 1,212 crores AUM, the company successfully retained INR 987 crores (81%) from those client families, demonstrating strong client stickiness and effective relationship management.

The Digital Wealth business continued its growth trajectory, with AUM increasing 22% YoY to INR 2,218 crores and client numbers rising 17% to 7,106. The Omni Financial Advisors (OFA) business, which operates as a SaaS platform, now serves 6,906 subscribers and manages platform assets of INR 1.47 lakh crores for the year ended March 31, 2026, showcasing diversified growth across different segments.

Management articulated its core moats, emphasizing that wealth management is a 'credibility marathon' built on principles like not selling products they wouldn't personally buy, maintaining transparency with clients (e.g., disclosing 1.09% yield on MFs), and a process-driven culture. The company also highlighted its focus on internal talent development, with 78% of new RMs trained from colleges, and its unique approach to measuring risk-adjusted returns (Jensen's Alpha) for clients.

The company reported an ESOP expense of INR 39.3 crores in Q4 FY26, clarifying that ESOPs are issued at market price, not at a discount, and are concentrated among Key Management Personnel (KMPs). Additionally, a fair value gain of INR 54.6 crores on investments in Anand Rathi Global Finance Limited (ARGFL) was recognized. This gain resulted from a rights issue subscription where Anand Rathi Wealth Limited maintained its 8% stake in the unlisted entity, with the valuation based on INR 500 per share.

The company plans to expand its physical footprint by opening new branches, particularly in Tier 2 and Tier 3 cities. This expansion will be strategically driven by the availability of local RMs who can lead these units, ensuring cultural alignment and service quality. Management confirmed that all new branches would be opened on an 'own' basis, explicitly avoiding franchise models to maintain control over the company's unique culture and client-centric approach.