Capital markets player Anand Rathi Wealth's shares rallied over five percent in trade on Friday, July 11, after the firm reported stronger-than-expected earnings for the first quarter of the current financial year (Q1FY26).
The firm's net profit climbed 27.9 percent year-on-year to Rs 93.9 crore, up from Rs 73.4 crore in the corresponding quarter of the previous year. Operating revenue came in at Rs 274 crore, reflecting a 15.3 percent increase over Rs 237.6 crore reported in Q1 FY25.
EBITDA rose sharply by 30.1 percent to Rs 127.7 crore, compared to Rs 98.23 crore in the same period last year. As a result, the EBITDA margin witnessed a healthy improvement, rising to 46.6 percent from 41.3 percent a year ago.
At 9.50 a.m., shares of Anand Rathi Wealth were quoting Rs 2,228.2, higher by 5.2 percent on the NSE compared to the previous session's closing price.
Mutual fund revenue rose 27 percent YoY to Rs 110 crore, while revenue from the distribution of financial products grew 8 percent YoY to Rs 160 crore for the quarter. The total AUM for the quarter stood at Rs 87,800 crore, (+14 percent QoQ and +27 percent YoY). Digital wealth business AUM increased by 19 percent YoY to Rs 2,060 crore in Q1FY26.
Domestic brokerage Motilal Oswal noted that Anand Rathi Wealth is one of the few companies in the listed space that has consistently outperformed its stated guidance. For FY26, management guided for revenue/PAT of Rs 1,175 crore/Rs 375 crore, against the brokerage's expectations of Rs 1,078 crore/Rs 340 crore.
Going ahead, Motilal Oswal expected the firm to post a CAGR of 19 percent/17 percent/19 percent in AUM/revenue/PAT during FY25-27. It maintained its 'neutral' rating on the stock, with a price target of Rs 1,900 per share.
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