Anand Rathi Wealth Limited — Q4 FY26 earnings call

Call held 10 Apr 2026

Management summary

Anand Rathi Wealth Limited reported strong Q4 and FY26 results, with underlying revenue growing 22% to INR 1,198 crores and PAT increasing 28% to INR 386 crores. The company surpassed INR 1 lakh crore AUM post quarter-end and announced a 1:1 bonus issue and INR 7 final dividend. Management provided FY27 guidance of INR 1,415 crores revenue and INR 460 crores PAT, while also detailing strategic moats and client retention efforts.

Highlights

  • FY26 (excluding fair value gains and ESOP effects) Total Revenue grew 22% to INR 1,198 crores.

  • FY26 (excluding fair value gains and ESOP effects) PAT grew 28% to INR 386 crores.

  • AUM crossed INR 1 lakh crores on April 9, 2026, fulfilling prior guidance.

  • Board approved a 1:1 bonus issuance and a final dividend of INR 7 per equity share.

  • Achieved 18th consecutive quarter of Y-o-Y PAT growth greater than 20%, with FY26 annualized ROE at 46.74%.

Concerns

  • Net flow for the last year grew only 7% (INR 13,457 crores), which management acknowledges is not ideal.

  • FY27 PAT guidance of INR 460 crores implies 18-19% growth, slightly below the long-term 20-25% range, though management clarifies it's within range from previous guidance base.

Key financials

  1. Total Revenue (ex-items) FY26 ₹1,198 Cr +22%YoY
  2. PAT (ex-items) FY26 ₹386 Cr +28%YoY
  3. PAT Margin (ex-items) FY26 32.2%
  4. ROE (annualized) FY26 46.7%
  5. AUM (as of Apr 9, 2026) ₹1.00L Cr
  6. Net Flow (last year) ₹13,457 Cr +7%YoY

What they filed

Q1 FY27: revenue up 17.5%, net profit up 73.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue242 237 222 274 297 +23%290 +22%288 +30%322 +18%
EBITDA104 107 91 128 137 +32%131 +22%85 −7%109 −15%
Net profit76 77 74 94 100 +32%100 +30%103 +39%163 +73%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Dividend ₹7/share (final)
    As a part of our policy to reward shareholders, the Board has approved the bonus issuance of 1:1 and has declared a final dividend of INR 7 per equity share, both subject to shareholders' approval.

Guidance & targets

Revenue

  • Total Revenue Revenue · FY27 · High confidence INR 1,415 crores
    We are guiding you INR 1,415 crores and INR 460 crores for PAT and INR 1,20,000 crores of AUM for the year ending FY '27 is our guidance.

    — Feroze Azeez

Profitability

  • PAT Profitability · FY27 · High confidence INR 460 crores
    We are guiding you INR 1,415 crores and INR 460 crores for PAT and INR 1,20,000 crores of AUM for the year ending FY '27 is our guidance.

    — Feroze Azeez

  • Long-term PAT growth Profitability · long periods of time · High confidence 20% to 25%
    Rakesh sir has guided for long periods of time, the 20% to 25% range, unless God has other plans. This seems intact.

    — Feroze Azeez

AUM

  • Total AUM AUM · FY27 · High confidence INR 1,20,000 crores
    We are guiding you INR 1,415 crores and INR 460 crores for PAT and INR 1,20,000 crores of AUM for the year ending FY '27 is our guidance.

    — Feroze Azeez

Clients

  • Platinum Clients Clients · next 2 years · Medium confidence 450 to 500
    my projection of the platinum number of clients in the next 2 years is about 450 to 500.

    — Feroze Azeez

What to watch in Q1 FY27

FY27 Revenue Guidance Progress

Next quarter (Q1 FY27 results)
Current INR 1,198 crores (FY26 ex-items)
Target Progress towards INR 1,415 crores (FY27 ex-items)

Why it matters

This is a key indicator of top-line growth and execution against the company's annual guidance.

We are guiding you INR 1,415 crores and INR 460 crores for PAT and INR 1,20,000 crores of AUM for the year ending FY '27 is our guidance.

Risks & concerns

  • High growth leading to instability

    medium

    Management explicitly stated that 'very high growth also scares us' as they prioritize consistent, sustainable growth over volatile, rapid expansion, implying a deliberate tempering of growth for stability.

    Management acknowledged

  • Impact of new SEBI TER structure on yields

    low

    Management believes the impact on mutual fund yields (currently 1.09%) will not be significant and will not affect PAT growth for the next 4-5 years due to base effects and revenue composition.

    Analyst downplayed

  • Client attrition

    low

    The client attrition rate in terms of AUM lost for FY26 was 0.54%, which management aims to reduce to 0, indicating a continuous focus on client retention.

    Management acknowledged

Q&A highlights

6 direct, 1 evasive
ARGFL Investment Details Direct
the total issue size, which was INR 512 crores, about 8% of that, that was about INR 40 crores that has been subscribed by Anand Rathi Wealth Limited just to continue to hold its holding in the NBFC at a price of INR 500 (per share).

Clarifies the specifics of a related party investment, including quantum, stake, and valuation, which was not fully detailed in prepared remarks.

Asked by Manas Agrawal

ESOP Accounting and Concentration Direct
this is with KMP, Rakesh sir and me to be more specific, if I'm not wrong. And it is in the public domain already.

Addresses a significant expense item (INR 39.3 crores in Q4 FY26) and clarifies its concentration among Key Management Personnel (KMPs).

Asked by Manas Agrawal

Impact of New SEBI TER Structure on Yields Direct
Do I see any material change in 1.09, not significant. Like we have guided, we are at the fag end of any cycle, like 2016, we went all trail before SEBI made it mandatory in 2018, okay? That's something which I take pride in till date because we were the first one who's voluntarily said, I don't want upfront income.

Management downplays the impact of regulatory changes on mutual fund yields, providing a detailed explanation of why it won't significantly affect PAT growth for the next 4-5 years.

Asked by Niranjan Kumar

Conservatism of FY27 PAT Guidance Direct
INR 460 crores on a base of INR386 crores is a number which is 18 - 19% of PAT growth. But if you also see it from my last year guidance, INR 375 crores, then it will come into that range of 22%.

Clarifies management's guidance philosophy, explaining that the FY27 PAT target, while appearing lower, is consistent with their long-term 20-25% growth range when viewed from the previous year's guidance base.

Asked by Shubham Gautam

Net Inflow Growth and Strategy Partial
I'm happy that it is 7%. Of course, would I be happy if it is 10% growth? The answer is yes. What I'm happy about as a professional is that in a year or a quarter like last year, last quarter, we got monies. People lose money also, right?

Provides context on the 7% net inflow growth, acknowledging it's not ideal but highlighting broader market challenges (negative net purchases in active equity funds ex-SIP) and the company's conservative approach to counting inflows.

Asked by Shubham Gautam

Defensible Moat in Competitive Landscape Direct
Wealth management is not a capital business. A relationship manager cannot handle thousands of clients. The business is actually a linear business, not an exponential business. So it's not a capital business and quite a few think otherwise.

Management articulates its core competitive advantages, emphasizing a long-term, culture-driven approach over capital or speed, and focusing on client transparency and talent development.

Asked by Akshay Jain

ROE and Capital Adequacy Ratio of ARGFL Evasive
I don't have the P&L of Anand Rathi Global Finance handy right now. So what I suggest is, Vishal, please note down his number and the e-mail ID and share the same with him.

Management was unable to provide immediate financial details for a related party investment, indicating a lack of ready transparency on this entity.

Asked by Rajat Patel

Branch Expansion Strategy Direct
Always own, sir. Managing culture on a franchise basis is, again, something which we very passionately feel about. No, it will always at least at this point in time, as a professional, I can say I don't see a franchise model for years, if not decades.

Outlines the company's cautious and culture-centric approach to physical expansion, prioritizing owned branches with internal talent over a franchise model.

Asked by Vikas Arora

3 min read 7 chapters

Detailed narrative

Strong FY26 Performance and AUM Milestone Achieved

Anand Rathi Wealth Limited delivered robust financial results for FY26, with total revenue (excluding fair value gains and ESOP effects) growing 22% to INR 1,198 crores and PAT increasing 28% to INR 386 crores. The company also announced that its AUM crossed the significant milestone of INR 1 lakh crores on April 9, 2026, fulfilling prior guidance. The annualized Return on Equity (ROE) for FY26 stood at an impressive 46.74%.

Shareholder Returns and Consistent Profitability Track Record

The Board approved a 1:1 bonus issuance and a final dividend of INR 7 per equity share, both subject to shareholders' approval. This marks the 18th consecutive quarter of year-on-year PAT growth exceeding 20%. Management highlighted that the mean PAT growth over the last 16 quarters has been 32.2%, with a median of 33.2% and a low standard deviation of 4.5%, underscoring consistent performance.

FY27 Guidance and Long-Term Growth Outlook

Management provided FY27 guidance, targeting INR 1,415 crores in revenue, INR 460 crores in PAT, and INR 1,20,000 crores in AUM. While the implied FY27 PAT growth of 18-19% is slightly below the stated long-term 20-25% range, management clarified this aligns with their 'under commit, over deliver' philosophy and is within range when compared to the previous year's guidance base of INR 375 crores.

Business Segment Performance and Client Metrics

The core Wealth Management business added 1,600 net new client families in the last 12 months, bringing the total to 13,395, with a low client attrition rate of 0.54% of AUM for FY26. The Digital Wealth business saw its AUM grow 22% Y-o-Y to INR 2,218 crores and client count increase 17% to 7,106. The Omni Financial Advisors (OFA) SaaS platform now serves 6,906 subscribers with INR 1.47 lakh crores in platform assets.

Strategic Moats and Client-Centric Approach

The company emphasized its strategic moats, including its belief that wealth management is a 'credibility marathon' rather than a capital or speed-driven business. Key principles include backward integration (distribution first), transparency with clients (e.g., disclosing 1.09% yield on mutual funds), and a culture where every leader is an RM. Approximately 28-29% of their clients have an average ticket size exceeding INR 50 crores.

ESOP and Related Party Investment Details

An ESOP expense of INR 39.3 crores was incurred in Q4 FY26, concentrated among KMPs and issued at market price. Anand Rathi Wealth Limited subscribed to INR 40 crores in a rights issue of Anand Rathi Global Finance Limited (ARGFL) at INR 500 per share, maintaining its ~8% stake. A fair value gain of INR 54.6 crores was recognized on this investment, contributing to the reported Q4 and FY26 'including' financials.

Cautious Branch Expansion and Talent Strategy

The company plans to open new branches but will adopt a cautious, culture-driven approach. Expansion will prioritize locations where suitable internal talent is available to lead, rather than solely based on market opportunity. Management explicitly stated they would pursue an 'always own' model over a franchise model to maintain service quality and cultural alignment, indicating no franchise model for years, if not decades.

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