Financial Performance Summary (Adjusted)

The financial results are adjusted to exclude fair value gains on investments, ESOP expenses, and related tax effects to reflect business performance.

Q2 FY27 Performance (YoY):

  • Revenue from Operations: ₹344.0 Cr (up 15.7% from ₹297.4 Cr in Q2FY26)
  • Total Revenue: ₹356.6 Cr (up 16.1% from ₹307.0 Cr)
  • Employee Benefit Expenses: ₹141.4 Cr (up 13.2% from ₹124.9 Cr)
  • Other Expenses: ₹52.1 Cr (up 8.3% from ₹48.1 Cr)
  • Total Cost: ₹193.5 Cr (up 11.8% from ₹173.0 Cr)
  • PBT: ₹163.1 Cr (up 21.7% from ₹134.0 Cr)
  • PAT: ₹121.95 Cr (up 22.2% from ₹99.8 Cr)
  • PAT Margin: 34.2% (vs. 32.5% in Q2FY26)
  • AUM: ₹1,08,377 Cr (up 18.4% from ₹91,568 Cr)

H1 FY27 Performance (YoY):

  • Revenue from Operations: ₹666.0 Cr (up 16.6% from ₹571.4 Cr in H1FY26)
  • Total Revenue: ₹693.0 Cr (up 17.2% from ₹591.2 Cr)
  • Employee Benefit Expenses: ₹271.6 Cr (up 13.3% from ₹239.7 Cr)
  • Other Expenses: ₹102.0 Cr (up 11.9% from ₹91.2 Cr)
  • Total Cost: ₹373.6 Cr (up 12.9% from ₹330.9 Cr)
  • PBT: ₹319.4 Cr (up 22.7% from ₹260.2 Cr)
  • PAT: ₹237.8 Cr (up 22.8% from ₹193.6 Cr)
  • PAT Margin: 34.3% (vs. 32.8% in H1FY26)

Actuals vs. Guidance for FY27

  • Revenue Guidance: ₹1,415 Cr | H1FY27 Actual: ₹693 Cr (49% achieved)
  • PAT Guidance: ₹460 Cr | H1FY27 Actual: ₹238 Cr (52% achieved)
  • AUM Guidance: ₹1,20,000 Cr | Current AUM: ₹1,08,377 Cr

Business and Operational Highlights

AUM Composition (as of 30th September 2026):

  • Mutual Funds (Equity & Debt): ₹61,159 Cr (15.5% YoY growth)
  • Structured Products: ₹27,896 Cr (11.5% YoY growth)
  • Others: ₹19,322 Cr (42.1% YoY growth)

Market Share (Category II Growth/Equity Oriented Schemes - AMFI Data):

  • Net Inflows Market Share:
  • FY20: 0.18% (₹153 Cr vs Industry ₹83,787 Cr)
  • FY25: 1.85% (₹7,706 Cr vs Industry ₹4,17,053 Cr)
  • Q1FY27: 2.11% (₹1,902 Cr vs Industry ₹90,321 Cr)
  • AUM Market Share:
  • Mar-19: 1.01% (₹8,098 Cr vs Industry ₹8,04,856 Cr)
  • Mar-25: 1.38% (₹40,781 Cr vs Industry ₹29,30,645 Cr)
  • Jun-26: 1.54% (₹55,636 Cr vs Industry ₹36,12,941 Cr)

Client and RM Focus:

  • The company is focused on upgrading clients from the ₹50 lakh to ₹5 Cr segment to above ₹5 Cr segment through increased wallet share and portfolio returns.
  • Survey of 6,298 investors across locations, age groups, and risk profiles showed risk-adjusted return is a top priority for 90% of investors.

Investment Performance:

  • ARWL Strategy performance since June 2013 to September 2026:
  • CAGR: 14.81% (Value of ₹10 Cr invested grew to ₹52.99 Cr)
  • Outperformed Nifty 50 CAGR of 10.49% by 4.32%
  • Beta to Nifty 50: 0.59
  • Jensen's Alpha: 5.97%

Consistent Financial Performance:

  • The company demonstrated consistent PAT growth over the last 18 quarters with a mean growth of 31.1% and median of 32.7%, showing market-agnostic performance.

Shareholder Rewards:

  • Dividend History:
  • FY22: ₹5.5/share (₹45.82 Cr total)
  • FY23: ₹6.0/share (₹50.02 Cr total)
  • FY24: ₹7.0/share (₹58.52 Cr total)
  • FY25: ₹10.5/share (₹87.17 Cr total, excluding charges & taxes)
  • FY26: ₹13.0/share (₹107.93 Cr total)
  • H1FY27: Interim dividend of ₹4.0/share (₹66.42 Cr)
  • Bonus Share History: 32:1 (FY17), 1:2 (FY22), 1:1 (FY25), 1:1 (FY27)

Leadership and Governance

Board of Directors:

Non-Independent Directors:

  • Mr. Anand Rathi (Chairman & Non-Executive Director)
  • Mr. Pradeep Kumar Gupta (Non-Executive Director)
  • Mr. Rakesh Rawal (Executive Director & CEO)

Independent Directors:

  • Mr. Adesh Gupta
  • Mr. Debashish Panda
  • Mrs. Deena Mehta

Key Leadership Personnel:

  • Mr. Rakesh Rawal (Executive Director & CEO) - Joined in 2007
  • Mr. Feroze Azeez (Joint Chief Executive Officer) - Joined in 2012
  • Mr. Jugal Mantri (Group Chief Financial Officer) - Among first to join Anand Rathi Group in 1994

Company Philosophy and Strategy

The presentation outlines the company's wealth management philosophy through eight key principles:

1. Wealth management is not a capital business but a credibility marathon

2. Business of patience and time, not speed

3. Business of backward integration (distribution first → manufacturing later)

4. Every leader must first be a relationship manager

5. Transparency with clients is non-negotiable

6. Relationship managers do not scale like startups

7. Focus on wealth, not on capital

8. Platform must think longer-term to retain RMs

Market Context and Opportunity

The presentation highlights India's wealth management opportunity:

  • Huge scope for penetration of professionally managed financial assets (MF penetration ~4x lower than global average)
  • Increasing HNI population in India
  • Growing financial assets of Indian households
  • Flow of annual household financial savings showing increasing allocation to mutual funds

Digital Initiatives

  • Digital Wealth business targeting mass affluent segment (₹10 lakhs - ₹5 Crores in existing financial assets)
  • OFA (Online Financial Advisor) platform leveraging technology to cater to retail segment through subscription model for MFDs/IFAs

Disclaimer

The presentation includes standard safe harbor statements noting that it is for information purposes only and does not constitute an offer of securities. It contains forward-looking statements subject to risks and uncertainties.