Key Financial Performance (Q1 FY27 Consolidated)

Reported Numbers (Including Fair Value Gains & ESOP):

  • Total Revenue: INR430 crores
  • Profit After Tax (PAT): INR163 crores

Adjusted Numbers (Excluding Fair Value Gains on Investments, ESOP Expenses, and Related Tax Effects):

  • Total Revenue: INR336 crores, representing an 18% Year-on-Year (YoY) growth from INR284 crores in Q1 FY26.
  • Profit After Tax (PAT): INR116 crores, representing a 24% YoY growth from INR94 crores in Q1 FY26.
  • PAT Margin: 34.4% for Q1 FY27, compared to 33% in Q1 FY26.

Guidance Achievement:

  • The company achieved 24% of its full-year revenue guidance of INR1,415 crores.
  • It achieved 25% of its full-year PAT guidance of INR460 crores.

Management expressed confidence in achieving the full-year guidance.

Assets Under Management (AUM) & Business Metrics

Core Wealth Business (Anand Rathi Wealth Limited):

  • Total AUM: INR1,06,300 crores as of June 30, 2026, a 21% YoY growth.
  • Net Flows: INR2,743 crores for the quarter.
  • Net Sales in Equity Mutual Funds: INR1,900 crores for the quarter.
  • Client Families: Total reached 13,941, with a net addition of over 1,600 new client families in the last 12 months.
  • Client AUM Attrition Rate: 0.09% for Q1 FY27.
  • Relationship Manager (RM) Attrition: Zero for the quarter.
  • AUM per RM: Not capped; highlighted as growing due to low attrition.

Subsidiary Performance:

  • Digital Wealth (B2B2C) Business: AUM grew 23% YoY to INR2,526 crores. Number of clients increased 16% to 7,320.
  • OFA (SaaS Platform): 6,890 subscribers with platform assets of INR1.66 lakh crores.
  • UK Operations: Operations have started, with contributions expected soon.

Other Income Breakdown

Other income for the quarter was INR110 crores, comprising:

  • INR96 crores: Mark-to-market gain on the holding of Anand Rathi Global Finance Limited.
  • Remaining amount: Normal other income, primarily interest income on surplus funds.

The revaluation of the NBFC (Anand Rathi Global Finance) is performed every six months by a third-party investment banker and is obligatory.

Product & Business Strategy Updates

Mutual Fund License: The Board has given consent to apply for an Asset Management Company (AMC) license. This is viewed as a strategic move for backward integration and long-term capability building.

Structured Products (MLDs):

  • Primary Issuances (Gross): INR2,187 crores in Q1 FY27 (INR1,875 crores for group companies + INR312 crores for third parties), compared to INR1,704 crores in Q1 FY26.
  • Secondary Issuances: INR968 crores in Q1 FY27, compared to INR755 crores in Q1 FY26.
  • Risk Management: The business is considered de-risked due to a focus on products from the group company (Anand Rathi Global Finance) over third-party issuers.

Growth Strategy: Management outlined four growth cylinders: 1) Embedded portfolio growth (returns), 2) New client acquisition by existing RMs (capacity utilization), 3) Hiring new RMs, and 4) Increased penetration of existing clients' wealth.

International Expansion:

  • UK subsidiary has commenced operations.
  • A GIFT City license application is in process (second stage).
  • Expansion into products for global indices (e.g., S&P 500 structured products) was discussed as a future possibility but is not an immediate focus.

Market Share Aspiration & Outlook

The company reaffirmed its long-term aspiration to capture a 4% market share of the equity-oriented mutual fund schemes (AMFI Category II). This would imply growing AUM to approximately INR6 lakh crores over 8-10 years, requiring a sustained AUM growth rate of 22-23%.

Q&A Session Highlights

Client Segmentation: The Platinum client segment (higher net worth) has grown to approximately 230 from 211. The company aims to grow this segment to 400-500.

Asset Allocation Philosophy: The company maintains a low-beta portfolio strategy (highest beta 0.6-0.65) and does not recommend gold, citing its existing high allocation in Indian household savings.

Regulatory Impact: Management viewed the recent RBI circular on bank guarantees for capital market entities positively, believing it will reduce frothy volumes and high-frequency trading, leading to smoother market volatility with negligible impact on their business.

Fee Pressure: Management acknowledged potential minor transmission of TER pressure from AMCs (1-3 bps) but considered it immaterial on their yield base of approximately 1.09%.

Retention Rates: In a specific case where three RMs left, the company retained approximately 80-90% of the assets managed by those individuals.