Mumbai: Anand Rathi Wealth's September-quarter results presented a mixed picture on Friday: record client inflows and higher assets under management were not enough to prevent a decline in profitability.
For the second quarter of FY27, the wealth manager's revenue rose 15.7 per cent year on year to Rs 344 crore from Rs 297.4 crore. Net profit, however, fell 9.5 per cent to Rs 89.95 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) declined 15.1 per cent to Rs 116.8 crore. The EBITDA margin narrowed sharply to 34 per cent from 46.2 per cent in the year-ago quarter.
Record inflows, higher AUM
On the business front, the company saw strong client momentum despite a volatile market. Net inflows hit a record Rs 4,186 crore during the quarter, up 39 per cent from a year earlier, while equity mutual fund net inflows touched an all-time high of Rs 2,867 crore. Revenue from mutual fund distribution grew 18 per cent to Rs 145 crore.
Assets under management rose 18 per cent year on year to Rs 1.08 lakh crore as of September 30 — even as the Nifty declined 8 per cent over the same period. Active client families increased 12 per cent to 14,309, and the relationship manager count rose by 45 over the past year to 431.
Dividend and outlook
The board declared an interim dividend of Rs 4 per equity share for FY27, representing 80 per cent of the share's Rs 5 face value, and fixed October 15, 2026 as the record date. The company also reiterated its long-term growth outlook of 20 to 25 per cent.
Chief Executive Officer Rakesh Rawal and Joint CEO Feroze Azeez attributed the performance to the strength of the company's wealth-management model, citing geopolitical tensions, higher US bond yields, a stronger dollar, elevated crude oil prices and sustained foreign portfolio outflows as factors weighing on sentiment.
Sources: Anand Rathi Wealth Q2 Results — CNBC-TV18; Anand Rathi Wealth declares Rs 4 interim dividend — Zee Business
For the second quarter of FY27, the wealth manager's revenue rose 15.7 per cent year on year to Rs 344 crore from Rs 297.4 crore. Net profit, however, fell 9.5 per cent to Rs 89.95 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) declined 15.1 per cent to Rs 116.8 crore. The EBITDA margin narrowed sharply to 34 per cent from 46.2 per cent in the year-ago quarter.
Record inflows, higher AUM
On the business front, the company saw strong client momentum despite a volatile market. Net inflows hit a record Rs 4,186 crore during the quarter, up 39 per cent from a year earlier, while equity mutual fund net inflows touched an all-time high of Rs 2,867 crore. Revenue from mutual fund distribution grew 18 per cent to Rs 145 crore.
Assets under management rose 18 per cent year on year to Rs 1.08 lakh crore as of September 30 — even as the Nifty declined 8 per cent over the same period. Active client families increased 12 per cent to 14,309, and the relationship manager count rose by 45 over the past year to 431.
Dividend and outlook
The board declared an interim dividend of Rs 4 per equity share for FY27, representing 80 per cent of the share's Rs 5 face value, and fixed October 15, 2026 as the record date. The company also reiterated its long-term growth outlook of 20 to 25 per cent.
Chief Executive Officer Rakesh Rawal and Joint CEO Feroze Azeez attributed the performance to the strength of the company's wealth-management model, citing geopolitical tensions, higher US bond yields, a stronger dollar, elevated crude oil prices and sustained foreign portfolio outflows as factors weighing on sentiment.
Sources: Anand Rathi Wealth Q2 Results — CNBC-TV18; Anand Rathi Wealth declares Rs 4 interim dividend — Zee Business
