Company Update : Anand Rathi by Motilal Oswal Financial Services Ltd
In-line performance across parameters
* Anand Rathi Wealth’s (ARWM) reported revenue from operations of ~INR3b in 2QFY26 (in line with est.), resulting in 23% YoY and 9% QoQ growth.
* MF revenue rose 16% YoY to INR1.2b, while revenue from the distribution of financial products grew 28% YoY to INR1.7b for the quarter.
* Operating expenses for 2QFY26 grew 16% YoY and 9% QoQ to INR1.6b. Employee cost/other expense grew 14%/21% YoY to INR1.2b/INR350m.
* EBIDTA came in at INR1.4b, rising 32% YoY and 8% QoQ (in line), with EBIDTA margin at 46.2% in 2QFY26 vs. 42.9% in 2QFY25 and 46.6% in 1QFY26.
* Other income for the quarter came in at INR 98m, rising 37% YoY but declining 4% QoQ. In 2QFY26, Anand Rathi reported PBT of INR1.3b, registering ~31% YoY growth.
* AUM for the quarter came in at INR916b (+4% QoQ and +22% YoY), with Private Wealth/Digital Wealth business AUM growing ~22%/21% YoY to INR893.6b/INR22.1b in 2QFY26.
* For 2QFY26, the consolidated PAT stood at INR999m, reflecting 31% YoY growth and 6% QoQ growth (in line).
* The Board has declared an interim dividend of INR6/share.
Valuation and view
* ARWM is one of the few companies in the listed space that has consistently outperformed its stated guidance.
* For FY26, management guided revenue/PAT of INR11.8b/INR3.8b vs. our estimates of INR11.7b/INR4.1b.
* We expect ARWM to post an AUM/revenue/PAT CAGR of 23%/21%/26% during FY25-28E. We have a Neutral rating on the stock with a one-year TP of INR2,600 (premised on 42x Mar’27E P/E).
* We will update more details after the conference call scheduled for 14th Oct’25.
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