Financial Performance Highlights
Anand Rathi Share and Stock Brokers Limited reported strong financial results for FY26 with consolidated revenue growth of 10.2% to ₹9,322 million and profit after tax increasing 24.8% to ₹1,293 million. On a standalone basis, net profit rose 27% to ₹1,318 million. The company maintained robust operational metrics with Assets Under Custody growing 16% to ₹944,155 million and MTF book size increasing 60.7% to ₹11,019 million while maintaining zero NPAs.
Capital Markets Activity and IPO
The company successfully completed its Initial Public Offering in September 2025, raising ₹7,450 million through issuance of 18.01 million shares at ₹414 per share. IPO proceeds were utilized to strengthen the capital base (₹5,500 million for working capital) and expand the MTF business. Post-IPO shareholding stands at Promoters & Promoter Group (69.92%) and Others (30.08%).
Business Segment Performance
The broking segment contributed 51% of total income (₹4,755 million), while non-broking segments accounted for 49%. Distribution income grew 44.1% to ₹1,129 million, and the company commenced insurance distribution in July 2025. The research team produced 1,075 fundamental research reports and 1,928 technical research calls during the year.
Corporate Actions and Capital Structure
The Board recommended a final dividend of ₹5 per equity share (100% of face value) subject to shareholder approval at the 35th AGM scheduled for June 30, 2026. The company also issued 359,150 shares under ESOP Scheme 2023 and allotted NCDs aggregating ₹27.45 crore. Debt-equity ratio improved to 0.62 from 1.80 in FY25.
Corporate Governance and AGM Matters
The 35th Annual General Meeting will be held virtually on June 30, 2026, with book closure from June 15-30, 2026. Key resolutions include reappointment of statutory auditors (R Kabra & Co. LLP) and secretarial auditor (Shruti Somani), reappointment of Whole-Time Directors Roop Kishor Bhootra (remuneration up to ₹25 crore) and Vishal Laddha (remuneration up to ₹10 crore), increase in authorized share capital to ₹35 crore, and launch of new ESOP 2026 scheme for up to 20 lakh options.
Risk Incident Disclosure
The company disclosed a fraudulent off-market transfer of shares worth approximately ₹13 crore from a client demat account. An FIR has been registered with Pune Police Economic Offences Wing, and the matter is under investigation with involvement suspected of unknown individuals in connivance with employees of a group company.
Credit Ratings and Compliance
The company maintains strong credit ratings with CARE upgraded to A1+ (short-term) and A (long-term), and CRISIL ratings of A1 (short-term) and A (long-term). The company confirmed compliance with all regulatory requirements including no benami property holdings, no crypto currency investments, and no wilful defaulter status.
Future Outlook
Anand Rathi remains confident in India's capital markets growth potential, focusing on expanding geographic reach in tier 2 & 3 markets, strengthening digital capabilities, deepening client relationships, and maintaining balanced revenue mix between broking and non-broking segments.