ANANDRATHINSEQ4 & FY26April 10, 2026

Anand Rathi Wealth Limited

7,890words
75turns
12analyst exchanges
4executives
Management on call
Feroze Azeez
JOINT CHIEF EXECUTIVE OFFICER
Jugal Mantri
GROUP CHIEF FINANCIAL OFFICER
Rajesh Bhutara
CHIEF FINANCIAL OFFICER
Vishal Sanghavi
HEAD - INVESTOR RELATIONSHIP
Key numbers — 40 extracted
INR1 lakh crore
st, I would like to share some good news with all of you. As of yesterday's date, we have crossed INR1 lakh crores of AUM post the recent positive movement in the equity markets. This is a 5-digit number. So we
INR1 lakh crore
ecorded Nifty at an unusual 22,331. So we were intrigued to see whether -- when would we meet our INR1 lakh crore guidance, which we had given for the last year. Unfortunately, we didn't meet it on the 30th Marc
rs,
release as well because this was one of our guidance. As a part of our policy to reward shareholders, the Board has approved the bonus issuance of 1:1 and has declared a final dividend of INR 7 per eq
INR 7
areholders, the Board has approved the bonus issuance of 1:1 and has declared a final dividend of INR 7 per equity share, both subject to shareholders' approval. We continued to deliver another quarter
20%
ment. And this is our 18th quarter where we've been able to declare PAT growth Y- o-Y greater than 20%, which is, again, a rarity in Nifty 500. We are one of the very few, which can be counted on a fi
32.2%
he mean of the year-on-year growth of our last 16 quarter profits has been -- the mean has been 32.2%, with a median of 33.2% and a standard deviation of our PAT growth is 4.5%, which we -- in our ju
33.2%
-year growth of our last 16 quarter profits has been -- the mean has been 32.2%, with a median of 33.2% and a standard deviation of our PAT growth is 4.5%, which we -- in our judgment, is a very good b
4.5%
-- the mean has been 32.2%, with a median of 33.2% and a standard deviation of our PAT growth is 4.5%, which we -- in our judgment, is a very good barometer of consistency of PAT growth for the 16 qu
22%
value gains on the ESOP expense and the related tax effects for FY '26, our total revenue grew by 22%, and we ended the year at INR 1,198 crores with a PAT growth of 28% for the year, ending at INR 3
INR 1,198 crore
e and the related tax effects for FY '26, our total revenue grew by 22%, and we ended the year at INR 1,198 crores with a PAT growth of 28% for the year, ending at INR 386 crores against the INR 375 crores guide
28%
26, our total revenue grew by 22%, and we ended the year at INR 1,198 crores with a PAT growth of 28% for the year, ending at INR 386 crores against the INR 375 crores guided.
INR 386 crore
y 22%, and we ended the year at INR 1,198 crores with a PAT growth of 28% for the year, ending at INR 386 crores against the INR 375 crores guided. We have given FY '27 revenue guid
Guidance — 20 items
Feroze Azeez
opening
“So we were intrigued to see whether -- when would we meet our INR1 lakh crore guidance, which we had given for the last year.”
Feroze Azeez
opening
“So we've just given out the press release as well because this was one of our guidance.”
Feroze Azeez
opening
“We have given FY '27 revenue guidance of INR 1,415 crores and PAT guidance of INR 460 crores, again, going with the principles which Rakesh sir Rawal and Rathi ji has always taught and every elder in the company has taught us that under commit, over deliver.”
Feroze Azeez
opening
“Under the same principle, we are guiding you INR 1,415 crores and INR 460 crores for PAT and INR 1,20,000 crores of AUM for the year ending FY '27 is our guidance.”
Feroze Azeez
opening
“Of course, there should be hardly any attrition, and we always aspire to have not even a single client family to be upset with us to leave, but 0.54 is a number which we want to see at 0.”
Feroze Azeez
qa
“Even support functions, product team at least 15 - 20 people out of the 163 will be RMs.”
Feroze Azeez
qa
“How I would like to look at it is INR 460 crores projection is, that is incorporating all my projections.”
Feroze Azeez
qa
“But yes, we can give you that specific projection one on one.”
Feroze Azeez
qa
“Is it okay if you can be patient, Vishal ji, if you can have any projection, we can give.”
Feroze Azeez
qa
“But yes, INR 460 crores is our PAT guidance before any of those adjustments.”
Risks & concerns — 7 flagged
We continued to deliver another quarter of consistent performance and one more indication which we had given to our shareholders that we will try and deliver market-agnostic performance, which seems difficult in a financial services firm, but actually, it's reasonably easy in our judgment.
— Feroze Azeez
Excluding the impact of fair value gains on the ESOP expense and the related tax effects for FY '26, our total revenue grew by 22%, and we ended the year at INR 1,198 crores with a PAT growth of 28% for the year, ending at INR 386 crores against the INR 375 crores guided.
— Feroze Azeez
But just to confirm, so there will be yield impact of 2 to 4 basis points.
— Niranjan Kumar
Calculating Jensen's Alpha for clients, which is nothing but the extra return over risk-adjusted measures, Jensen's Alpha, no one measures, right?
— Feroze Azeez
And they say the first thing which we want from a wealth management industry is risk-adjusted return.
— Feroze Azeez
Which wealth management outfit is measuring risk-adjusted return in any of these 4 measures, Jensen's Alpha, Treynor, Sortino and Sharpe.
— Feroze Azeez
As of now, there is an office potential in most of the Tier 2, Tier 3 cities in India, getting 40, 50, 70 HNIs who are thinking like you, who are more mathematical about their money is not very difficult.
— Feroze Azeez
Q&A — 12 exchanges
Q
So a couple of questions. One, I think in the statutory results, there is some discussion around subscription to ARGFL shares. I want to just understand what is the quantum and how much stake do we have now? What valuation this transaction is happening at? Because I understand this is a group company, which is unlisted. Part B is, can you just explain what is the asset sale that is leading to profit being recognized in other income? And third is ESOP at fair value (he was referring to face value instead of fair value in subsequent part of question also). A lot of companies issue ESOPs at a dis
Feroze Azeez
Super. So I'll take the first part and then give the valuation part to Jugal sir. So Manas, the INR 40 crores rights issue subscription of ARGFL from AR Wealth Limited is a rights issue where Feroze as an individual has participated with INR 94 crores. Rakesh sir has participated with INR 56 crores and the holding company has participated with INR 270 crores and the rest of the other group entities might have participated to a sum total of INR 500 crores. That's the total amount, which has been subscribed as equity capital in ARGFL. And since there was a rights issue, and I think we own close
Q
Congratulations, everyone, for a fantastic result. So my question is specifically for Feroze. I was just going through the investor presentation and the latest one. And I came across this slide which talks about credibility marathon. If you could just throw some light on that, I think would help me understand it better?
Feroze Azeez
Yes, Navin. Yes, we have included one interesting slide emanating from a few questions which came when I was speaking to a few industry CEOs who want to potentially someday build a very strong wealth management franchise. So we said, why don't we make that public information of what has been our learning so far of why -- how should a wealth management business, what we learned from our mistakes. So the slide will say, it is not a capital race. It's a credibility marathon. Quite a few wealth management outfits are wanting to be built and have been in the past every couple of years, there's some
Q
First of all, congratulations on a 5-digit AUM number. I have a few questions. First is, like this quarter, we saw an ESOP cost of INR 39.3 crores. So can you help us understand how ESOP costs could trend over the next few years?
Feroze Azeez
How I would like to look at it is INR 460 crores projection is, that is incorporating all my projections. Under commit, overdeliver is the principle. Do we go too much in detailing, of course, you can write to Vishal Ji. I have always, on this call, said, if you wish to understand the total number, I can give you. INR 460 crores is the guidance, right? That does not include ESOP, Vishal corrects me. Should we guide that as well? So how is the projection? I don't know about the projection. But yes, we can give you that specific projection one on one. Is it okay if you can be patient, Vishal ji,
Q
So I just wanted to ask 2 questions. On the first one, so we make around 1.09% yield on mutual funds, right. But with the new SEBI TER structure, like new TER structure by SEBI, which is effective from 1st April. So will the yields be impacted? That is the first question. And the second question maybe on similar lines, if you look at the mutual fund industry, maybe top 5 or top 10 AMCs. So how much do they account for in our mutual fund AUM portfolio? And have they come for any negotiations regarding the distributor payout. These are the broad 2 questions.
Feroze Azeez
Sir, I missed your name. Can I know your name again? Niranjan. Niranjan sir. Do AMC's come for negotiation, the answer is yes. Do I see any material change in 1.09, not significant. Like we have guided, we are at the fag end of any cycle, like 2016, we went all trail before SEBI made it mandatory in 2018, okay? That's something which I take pride in till date because we were the first one who's voluntarily said, I don't want upfront income. So that's one. So if you ask my personal opinion, where are we in the cycle of change because there is also a direct, right? So, the squeeze, which was sup
Q
My name is Shubham, and I want to start by congratulating the entire management team and Anand Rathi Wealth team on a truly consistent performance this year. I have two questions also. Firstly, on the guidance. The company has consistently guided and delivered around 20% to 25% long-term PAT growth and you have beaten your own guidance every year. But for the financial year '27, the PAT guidance of around INR 460 crores roughly is around 18 - 19%, which is a bit lower than the stated range, like 25%. Is there a specific reason management is being more conservative this year? Or is it more arou
Feroze Azeez
Great question, sir. INR 460 crores on a base of INR386 crores is a number which is 18 - 19% of PAT growth. But if you also see it from my last year guidance, INR 375 crores, then it will come into that range of 22%. So Rakesh sir has guided for long periods of time, the 20% to 25% range, unless God has other plans. This seems intact. And we work on a plan of not 2026. We play -- we work on a plan of 2031, which is 5-year hence, because most of our structured products have a rollover option now. So 99% of our business comes with a rollover option that implies. If clients, no need money, it rol
Q
Thanks for the opportunity to ask again. I will again ask on the ESOP. One part of the question was not answered, maybe missed out, so I just want to check. Is the INR 40 crores ESOP spread out across the company? Is it concentrated in KMP? And I'll clarify why I'm asking. Stock options are a retention tool, and that is why they're given at CMP usually. There's nothing barring companies from issuing it at face value, but the gap between face value and CMP essentially is a free gift today. So you ideally want to give it at CMP so that future growth in the company is shared with employees. So th
Feroze Azeez
Yes. So this is with KMP, Rakesh sir and me to be more specific, if I'm not wrong. And it is in the public domain already. Understood. So all of it. ESOPs are going to be issued at the face value, okay? And that is why there need to be the hit, the P&L hit has to be taken where the differential amount of the market value as well as on the face value, that hit has to be incorporated. That is where you see the ESOP hit has been included in the employee cost, and it is as per the EGM and the resolution which is already passed in the past. I understand the accounting. I am still not convinced on t
Q
Just one question from my side. So in an increasingly competitive wealth management landscape with the banks and new age platforms scaling rapidly, what do you believe is your most defensible moat? And how are you strengthening it over time.
Feroze Azeez
What is our moat, right? Is that the question, sir? Yes, yes, correct. The moat -- there's -- everything is a moat, like 6 things which I read out to Navin are a moat. Is there any wealth management outfit wanting to create a culture by hiring people and designing their minds to not sell products which are not good and they don't buy it themselves, that's a moat. Second, creating a process-driven company is a moat, right? Getting private bankers to do what is right for the client and follow a process is not an easy task. It has to be built brick by brick. When Rakesh sir hired the first Divya
Q
Congratulations, Feroze, and the entire Anand Rathi family, thanks for a super FY '26. Wonderful thing. Sir, just the numbers, we are like 400 RMs, 13,000-plus clients and the AUM per RM about 226. So all the points you mentioned about the moat are clearly there. Now the thought which I have is the next level of growth. Sir, what I want to share here is more of a suggestion, not more of a question, is that we have a track record of delivering this kind of Jensen Alpha. How about approaching global institutes, institutions for as our client prospect. The thought which I have is because they are
Feroze Azeez
Sunil sir, I'm always grateful for the suggestions you have given in the previous earnings calls, and they're invaluable to the rest of the shareholders as well. So of course, anything coming from you would be taken with utmost seriousness. But having said which, we have had a certain thought process of saying how do we want a client segment. That's what Rakesh sir has said that don't go to the really rich ones. Go to those guys who actually will respect math. I'm sure the foreign institutions who can cut large checks can. So this has to be a great intense debate with Rakesh sir, but this is d
Q
Congratulations on another great result. It's very evident that you are a people's company. Therefore, you've really contained the attrition. But it looks like last year, it's bumped up a little. I'm just trying to understand if that has any kind of impact on the business?
Feroze Azeez
I missed your name, sir. Manav. Manav sir, you've identified rightly. In FY '24-25, we had two people leave. they had INR 295 crores of assets under management on the date of resignation. One resigned on 17th March. Last working day was 17th March 2025, and one guy had 30th December '24. These were the only 2 attritions in FY '25. And we retained INR203 crores out of the INR295 crores, which is 69%. Why am I going back to FY '24-25 because that's how we see it as a department. So now in FY '25, '26, we had six people leave. And on the date of the -- seven people, I'm sorry, Vishal sir corrects
Q
I just wanted to ask because Anand Rathi Wealth has subscribed to the rights issue of ARGFL. Can you tell what is the ROE and capital adequacy ratio of this NBFC?
Feroze Azeez
Jugal sir can answer that. I don't have the P&L of Anand Rathi Global Finance handy right now. So what I suggest is, Vishal, please note down his number and the e-mail ID and share the same with him. Okay. One thing I can tell you, ARGFL is now in terms of -- okay, let me -- because provisional balance sheet, done. So please feel free to write to Vishal Ji. Because still not finalized the March balance sheet, I'm sure if otherwise, Jugal sir would have had it on fingertips. So I don't want to shoot jump to that.
Q
Sir, I'm asking if are we looking to open new branches in any particular geography.
Feroze Azeez
So we are looking at opening branches, yes. In fact, again, let me tell you, Rathi Ji has very good aspiration of having a greater footprint. If that is our Guru's aspiration, should we have more footprint? Yes. Where will we open branches, we will not open branches on the basis of opportunity only. We will open branches in those places where we have somebody to send back. And I've said this in the previous calls, I'm again saying, let's assume if I was not the joint CEO. I could have worked from Mysore because Mysore is where my parents live. So if there are people who can go back to their to
Q
Sorry, I was on mute unintentionally. Thank you, Renju. I'm very grateful to each one of you to join us consistently for the 18 quarters. And I'm very, very grateful for the suggestions and the questions which have some learnings for us in the process, extremely grateful to spend a Friday afternoon with us. Vishal Sanghavi is our Investor Relationship Head; and Rajesh Bhutara is our CFO. He is Rajesh Bhutara, again, whenever I mention Rajesh Bhutara, I like to highlight that he has finished 24 - 25 years in the group, and that's what the kind of understanding he has. So please write to them to
Management
Speaking time
Feroze Azeez
25
Moderator
14
Jugal Mantri
9
Manas Agrawal
6
Prabhav Shah
4
Niranjan Kumar
3
Navin Mathur
2
Shubham Gautam
2
Akshay Jain
2
Sunil Shah
2
Opening remarks
Feroze Azeez
Thank you so much, Renju. Good afternoon, and thank you, everyone, for joining the earnings conference call for the fourth quarter of the year ending FY26. Today, we have with us the Group CFO - Mr. Jugal Mantri; the CFO - Mr. Rajesh Ji Bhutara; and the Head Investor Relations - Mr. Vishal Ji Sanghavi. First, I would like to share some good news with all of you. As of yesterday's date, we have crossed INR1 lakh crores of AUM post the recent positive movement in the equity markets. This is a 5-digit number. So we were very intrigued to see when we would reach there. 30th March, which was the year-end number, recorded Nifty at an unusual 22,331. So we were intrigued to see whether -- when would we meet our INR1 lakh crore guidance, which we had given for the last year. Unfortunately, we didn't meet it on the 30th March number. So we checked it. Now we have reached the INR1 lakh crores number. So we've just given out the press release as well because this was one of our guidance. As a par
Jugal Mantri
Yes. Thank you, and good afternoon, everyone. Let me give you all brief about Q4 FY '26 consolidated financial performance followed by full year FY '26 financial numbers. Excluding fair value gain on investments, ESOP expenses and related tax effects, our consolidated total revenue for the Q4 FY '26 stood at INR 302 crores compared to INR 241 crores for Q4 FY '25, registering a 25% Y-o-Y growth. Profit after tax stood at INR 92 crores depicting a 25% Y-o-Y growth compared to INR 74 crores in Q4 FY '25. Profit after tax margin remained flat at 30.5% for Q4 FY '26, which was at the same level in Q4 FY '25 too. The reported number that is including fair value gains on investments of INR 54.6 crores, ESOP expenses of INR 39.3 crores and the related combined net tax effect of INR 3.8 crores, total revenue for Q4 FY '26 was INR 356 crores, showing a growth of 47.6% and PAT was INR 103 crores, showing a growth of 40%. Now let me give you all brief about full year FY '26 financial numbers. Exc
← All transcriptsANANDRATHI stock page →