Anand Rathi shares in focus after Q1 net profit jumps 24%, AUM crosses Rs 1 lakh crore

Shares of Anand Rathi Wealth will be in focus on Friday after the company reported a 24% year-on-year rise in consolidated profit after tax for the June quarter, supported by an 18% increase in revenue as assets under management crossed the Rs 1 lakh crore milestone.

Profit after tax rose to Rs 116 crore in Q1FY27 from Rs 93.8 crore a year earlier, while total revenue increased to Rs 336 crore from Rs 284.1 crore. Profit before tax also grew 24% year-on-year to Rs 156 crore.

Assets under management rose 21% year-on-year to Rs 1,06,300 crore, taking the company past the Rs 1 lakh crore mark during the quarter. Net inflows came in at Rs 2,743 crore despite volatile market conditions.


Also read: Anand Rathi reports Rs 13 crore fraud by unknown individuals, group company employees

The company said these numbers exclude fair value gains on investments, ESOP expenses and the related tax impact to enable a like-for-like comparison with the previous year. Including these items, total revenue for the quarter stood at Rs 432.3 crore, while profit after tax came in at Rs 163 crore. Earnings per share increased to Rs 9.8 from Rs 5.7 in the year-ago period.

Segment-wise numbers

Revenue from mutual fund distribution climbed 16% year-on-year to Rs 132 crore. The private wealth business continued to expand its client base, with the number of active client families rising 13% year-on-year to 13,941. The company also added 35 relationship managers over the past year, taking the total headcount to 417.

The digital wealth business maintained its growth momentum, with assets under management increasing 23% year-on-year to Rs 2,526 crore. Omni Financial Advisor's subscriber base rose to 6,890 from 6,627 in Q1FY26. The company also said its UK subsidiary has commenced operations.

Read more: TCS Q1 Results: Profit rises 5% YoY to Rs 13,349 crore; co declares Rs 12/share dividend

Management commentary

Chief Executive Officer Rakesh Rawal and Joint Chief Executive Officer Feroze Azeez said the company delivered consistent growth despite a volatile equity market environment, attributing the performance to its "uncomplicated business model" and focus on client outcomes.

The management said the company achieved 24% of its full-year revenue guidance of Rs 1,415 crore and 25% of its full-year profit after tax guidance of Rs 460 crore in the first quarter.

Over the past 12 months, Anand Rathi Wealth added 1,611 client families on a net basis. Client attrition, measured by AUM lost, remained low at 0.09%, while the company reported zero regret relationship manager attrition during the quarter.

The management described wealth management as a "slow compounding trust business", adding that sustainable growth is driven by patience, transparency, long-term relationships and putting client interests first.

Anand Rathi shares have risen 37% in 2026 and have doubled in the last 1 year.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)