Anand Rathi Wealth's margin stays well below last year's level
Revenue grew 15.68% year on year, but expenses rose 42.06%; sequential profit was also hit by an 88.57% fall in other income.
Filed 09 Oct 2026, 17:49 IST · after market close · Anand Rathi Wealth Ltd (ANANDRATHI)
Key takeaways
- Consolidated operating margin recovered 0.23 percentage points sequentially to 33.97%, but remained 12.26 percentage points below last year.
- Revenue grew 15.68% year on year, while expenses rose 42.06%, pulling operating profit down 15.00%.
- Net profit fell 45.24% sequentially as other income dropped 88.57%, with other income still contributing 10.78% of pre-tax profit.
Price around the results
Revenue growth did not translate into operating profit
Consolidated revenue rose 15.68% year on year and 6.83% sequentially to Rs 343.99 cr. Expenses grew 42.06% year on year, more than twice the revenue growth rate, so operating profit declined 15.00%. Sequentially, revenue growth slightly outpaced expense growth, allowing operating margin to improve 0.23 percentage points.
Margin recovered from Q4FY26 but remains below 46%
Operating margin fell 12.26 percentage points year on year to 33.97%, as costs grew faster than revenue; the lower tax rate of 23.67% provided some support to net profit. The trend shows margin falling from 46.63% in Q1FY26 to 45.38% in Q3FY26 and 29.46% in Q4FY26, before recovering to 33.74% in Q1FY27 and 33.97% now. Sequential profit before tax also fell 43.29% because other income declined 88.57%; other income accounted for 10.78% of pre-tax profit this quarter.
Management highlights client upgrades and capability building
Management said clients in the Rs 50 lakh to Rs 5 crore AUM segment moved above Rs 5 crore. The company said its capability-building programme delivered more than 12,000 person-hours in H1FY27. Its presentation also reported a 1.54% equity mutual fund AUM market share in June 2026.
Results were filed after market close
The results were filed after market close, so there was no reported market reaction yet. After the last eight results, the stock rose six times and fell twice, with a median absolute move of 2.44%; that history provides the context for the eventual response to this quarter.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹344 cr | ₹322 cr | +6.83% | +15.68% |
| Other income | ₹13 cr | ₹110 cr | -88.57% | +28.54% |
| Expenses | ₹227 cr | ₹213 cr | +6.47% | +42.06% |
| Operating profit | ₹117 cr | ₹109 cr | +7.55% | -15.00% |
| Operating margin (%) | 33.97% | 33.74% | — | — |
| Interest | ₹3 cr | ₹4 cr | -10.61% | -33.75% |
| Depreciation | ₹9 cr | ₹9 cr | +1.97% | +12.41% |
| Profit before tax | ₹117 cr | ₹206 cr | -43.29% | -12.84% |
| Tax | ₹28 cr | ₹43 cr | -35.91% | -19.18% |
| Net profit | ₹89 cr | ₹163 cr | -45.24% | -10.65% |
| EPS (₹) | ₹5.38 | ₹9.82 | -45.21% | -55.28% |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Clients in the Rs. 50 lakh to Rs. 5 crore AUM segment upgraded to above Rs. 5 crore.
New initiatives
- The company’s capability-building program delivered more than 12,000 person-hours in H1FY27.
Competition
- ARWL had a 1.54% equity mutual fund AUM market share in June 2026.
What to watch
- Whether operating margin holds above 33.97% after the two-quarter recovery from 29.46% in Q4FY26.
- Whether expenses continue to grow more slowly than revenue after the sequential gap of 6.47% versus 6.83%.
- Whether other income remains near its 10.78% share of pre-tax profit or changes the quality of reported earnings.