Anand Rathi Wealth reported its Q3 FY26 numbers, showing solid profit growth even though revenue fell a bit short of expectations.
Key Financial Highlights
- Revenue: ~₹2.9 billion, 5% below consensus, but up 22% year‑on‑year.
- EBITDA: ₹1.3 billion, 23% higher YoY, margin 45.4%.
- Net profit (PAT): ₹1.0 billion, up 30% YoY, margin 34.6%.
- Operating expenses: ₹1.6 billion, flat quarter‑on‑quarter, up 22% YoY.
Quarterly Performance Explained
The revenue rise came mainly from a 25% increase in income from distributing financial products and mutual funds. However, the overall top line missed analysts’ estimates by 5%.
Cost growth was driven by higher staff and other expenses, but the company kept quarter‑to‑quarter spending steady, which helped maintain a healthy profit margin.
Future Outlook
Management expects assets under management, revenue and profit to grow around 22‑26% per year through FY28. They forecast strong cash generation (about ₹12.6 billion over FY25‑28) and a return on equity above 36%.
With 393 relationship managers and around 450 trainees ready to become managers, the firm believes it can support its growth for the next 3‑4 years.
Analyst Rating & Target Price
The research house maintains a Neutral rating and sets a one‑year target price of ₹3,100 per share, based on a 42× FY28 earnings estimate.
Disclaimer
Remember, this is just an analysis, not a prediction. Do your own research or talk to a qualified advisor before making any investment decisions.