Inve News inve.money

Anand Rathi Wealth · ANANDRATHI

Anand Rathi Wealth's guided profit grew 22% while the profit in its accounts fell 9%

Adjusted profit rose 22% last quarter, but non-cash charges outside the guided figure pulled reported profit down 9.3%, and the one target management hedged is the one markets control.

Published · Inve Research Desk

Anand Rathi Wealth stock page → More news from 13 Oct 2026

A private banker's desk with an open folder and lamp beside a window overlooking a city skyline at dusk.
Illustration: Inve Research Desk

-9.3%

reported net profit, against a year ago

By our arithmetic, 88 cr against 97 cr, while the adjusted profit the company guides on rose 22%: non-cash charges, which include share-option expense, sit between the two.

How they did last quarter

Better on the adjusted profit the company guides and on net flows, worse on the profit in the filed results and on margin.

  • Reported net profit
    ₹88 crore, -9.3% on a year ago (ours)
    vs ₹97 crore a year ago and ₹163 crore in the quarter before
    Down on a year ago, while adjusted profit rose 22%.
  • Reported operating margin
    34.7%
    vs 46.9% a year ago and 34.5% in the quarter before
    The 12-point drop from a year ago has held for three quarters.
  • Net flows
    ₹4,186 crore
    vs ₹3,302 crore a year ago and ₹2,743 crore in the quarter before
    The highest of the last six quarters, though the half-year is only 1.5% above a year ago.
  • Assets under management
    About ₹1.08 lakh crore, +17.9% on a year ago, by our arithmetic
    vs ₹91,568 crore a year ago and ₹1,06,300 crore in the quarter before
    AUM added 1.6% in the quarter, and the year-end target needs 11.1% more.

One quarter, two profit numbers, opposite directions

Anand Rathi Wealth said its adjusted profit rose 22% in the September 2026 quarter. In the filed results, net profit went the other way: it fell, by our arithmetic, to ₹88 crore from ₹97 crore a year ago.

Both numbers are real, and the difference between them is a cost. The adjusted figure, the one the company's guidance is set on, leaves out share-option expense and fair-value gains. The Joint CEO put the non-cash charges for the quarter at about ₹40 crore, and another executive on the call said 46 crore.

Reported net profit and other income, last eight quarters

Reported profit swings with other income, which carries fair-value gains, so it is a noisy guide to the business.

₹ crore

Net profitOther income
Dec 2024766
Mar 20257218
Jun 2025929
Sept 2025979
Dec 202510016
Mar 202610267
Jun 2026163109
Sept 20268811

The cost arrived in FY26 and the margin has not come back

On 10 April 2026 the company disclosed a share-option expense for its fiscal fourth quarter, concentrated among key managerial personnel. In that fourth quarter the filed operating margin fell to 30.0%, and last quarter it was 34.7%.

Adding the charge back needs care. The Joint CEO's figure covers non-cash charges and mark-to-market together, and on the call it was not said how much of it sits in operating expenses. By our arithmetic, adding all of it back to operating profit would lift last quarter's operating margin to about 47-49%, against 46.9% a year ago; any part that sits in other income instead would leave the margin lower, by an amount the company did not give on the call. The charge explains most of the margin break, and nothing said on the call lets us say whether it explains all of it. The Joint CEO agreed with an analyst that the gap between adjusted and reported profit will narrow. That is a claim to test in the next two results.

Anand Rathi Wealth Limited: Operating margin, last eight quarters, Dec '24 to Sep '26. Margin sat near 47% for three quarters, broke in the fourth quarter of FY26 to 30.0% when the share-option expense appeared, and has stayed 12 or more points below its old level.
Chart: Inve Research Desk

Profit guide is undemanding; revenue guide asks more

Half the year is done, and the company has delivered just under half of its revenue guidance and just over half of its profit guidance. By our arithmetic the second half needs revenue growth to lift above last quarter's pace, while the profit guide is the easier one. Last year's guide was met on both lines: revenue and profit, each ahead of the figure guided, on the company's ex-items basis.

Asked about demand, the Joint CEO said he would cut the guide if growth fell short for two quarters, and added: "If that was the case with the slightest of the probabilities, I would have revised my PAT guidance down from 460."

The one target management hedged

The asset target for this fiscal year-end needs, by our arithmetic, another 11.1% in two quarters, against a far smaller gain in the last one. The Joint CEO answered: "So will we get to 120,000, I don't know". He called it the company's most volatile guidance, because markets move it, while revenue and profit were reaffirmed without that hedge. Last year's ₹1 lakh crore asset target was reached on 9 April 2026, just after the March year-end it was set for.

Net flows were the highest of the last six quarters, yet the half-year is barely above a year ago. Asset growth therefore rests on markets plus a flow rate that has barely grown over the half-year.

What would have to be true, and what we do not know

For the plan to work, markets must add to assets, revenue growth must lift, and the gap between adjusted and reported profit must narrow as promised. The Joint CEO also said a long run of structured products delivering their expected return has ended, with some paying about half or less of the return they were designed for. On the call, management did not say how many products fell short or how much client money sits in them.

This management has hedged the target it cannot control. The test of the one it can control is whether the profit shareholders receive moves closer to the profit it guides.

Anand Rathi Wealth stock page →

The record: notes, full financial tables

Notes

  1. Impact 4/5 Margin Mixed

    Anand Rathi Wealth: reported profit fell 9.3% to ₹88 cr as adjusted profit rose 22%

    The Joint CEO said adjusted profit, which excludes fair-value gains and share-option expense, was ₹122 crore, up 22%, and agreed the gap to reported profit will narrow. Reported net profit in the September 2026 quarter was ₹88 crore against ₹97 crore a year ago, a fall of 9.3% by our arithmetic. Reported expenses were ₹217 crore, up 42.8%, and on 10 April 2026 the company had disclosed a ₹39.3 crore share-option expense for the fourth quarter of FY26. The FY27 profit guidance of ₹460 crore is on the adjusted basis.

  2. Impact 3/5 Guidance Negative

    Anand Rathi Wealth hedges its ₹1.2 lakh crore AUM target, 11.1% above today's level

    Asked about new money and net inflows, the Joint CEO restated the ₹1.2 lakh crore target for the year and said he did not know if assets would reach it. Assets were about ₹1.08 lakh crore in the September 2026 quarter, up 17.9% on a year ago but only 1.6% above the quarter before, and by our arithmetic the target needs another 11.1% in two quarters. On 14 October 2025 he had declined to raise the earlier ₹1 lakh crore figure, calling it an aspiration. Last year's ₹1 lakh crore asset target was reached on 9 April 2026, just after the March year-end it was set for.

    “So will we get to 120,000, I don't know”— Feroze Azeez, Joint CEO

  3. Impact 3/5 Demand Mixed

    Anand Rathi Wealth net flows hit ₹4,186 cr; half-year only 1.5% up

    Net flows of ₹4,186 crore in the September 2026 quarter were the highest of the last six quarters, against ₹3,302 crore a year ago and ₹2,743 crore in the quarter before. The first-half total of ₹6,929 crore is 1.5% above ₹6,827 crore a year ago, by our arithmetic. The first half runs at about ₹1,155 crore a month, inside the ₹1,100-1,200 crore a month the company guided on 10 July 2026.

    “The highest net flow ever in the history of Anand Rathi Wealth over the last 20 years, happened in this quarter”— Feroze Azeez, Joint CEO

  4. Impact 3/5 Risk Negative

    Anand Rathi Wealth says a 1,190-product run of expected returns has broken

    Asked about the market-linked debenture business, the Joint CEO said 1,190 structured products in a row, from December 2020 to May or June 2026, each delivered its expected return, and that the run has now ended. Some products meant to pay 14-15% paid 6-7%. The company said none of its issuances since December 2012 has lost money at maturity.

    “that streak broke in this year and some products still deliver the full 14%, 15%, but delivered 6%, 7%.”— Feroze Azeez, Joint CEO

  5. Impact 3/5 Guidance Positive

    Anand Rathi Wealth has 52% of its profit guide done at half-year, 49% of revenue

    The company reaffirmed FY27 guidance of ₹1,415 crore revenue and ₹460 crore profit on its adjusted basis, which excludes fair-value gains and share-option expense, with the first half delivering 49% and 52%. By our arithmetic the second half needs revenue growth of 19.0% against 16% last quarter, but profit growth of only 15.6%. The FY26 guides of ₹1,175 crore revenue and ₹375 crore profit were met at ₹1,198 crore and ₹386 crore on the company's ex-items basis. The Joint CEO said he would cut guidance if profit growth ran below 20-25% for two quarters, above the 19.2% the guide itself implies (₹460 crore against ₹386 crore, by our arithmetic).

    “If that was the case with the slightest of the probabilities, I would have revised my PAT guidance down from 460.”— Feroze Azeez, Joint CEO

  6. Impact 2/5 One-off Positive

    Anand Rathi Wealth gets GIFT City approval with no revenue in the FY27 guide

    The company received regulatory approval to operate in GIFT City, with operations expected within two or three months, and said nothing from it is included in FY27 revenue or profit guidance. A mutual fund licence application is described as due this month or next. On 10 July 2026 it had said it was in the process of obtaining a GIFT City licence and the board had consented to an application for a fund licence.

    “I think we will be able to give them a good news in January results.”— Feroze Azeez, Joint CEO

Financials

Income statement, last 8 quarters

₹ crore; YoY and margin in %
Quarter endSalesYoYOperating profitOp. marginOther incomePBTNet profit
Sept 2026334+16.8%11634.7%1111688
Jun 2026313+18.1%10834.5%109206163
Mar 2026277+30.0%8330.0%67138102
Dec 2025279+22.4%13046.6%16134100
Sept 2025286+22.2%13446.9%913097
Jun 2025265+15.7%12547.2%912492
Mar 2025213+20.3%8941.8%189872
Dec 2024228+30.3%10445.6%610276

Balance sheet

₹ crore
As ofEquityDebtInvestmentsFixed assetsCWIPTotal assets
Sept 20261,31068.04151640.01,606
Mar 20261,02683.03161800.01,332
Sept 202580982.02271900.01,120
Mar 202570379.03201720.0969