Anand Rathi Q3 Profit Soars 72% to Rs 37 Crore in 2026

Introduction

Anand Rathi Share and Stock Brokers Ltd. reported a remarkable performance for the third quarter of fiscal year 2026, with its consolidated net profit surging by nearly 72%. The strong results, announced on January 16, 2026, prompted a positive market reaction, with the company's stock price climbing over 9%. The performance highlights the brokerage's resilience and growth across its business verticals despite a challenging market environment.

Exceptional Profitability in Q3

For the quarter ending December 31, 2025, the company's consolidated net profit after tax (PAT) stood at Rs 37 crore, a significant 71.77% increase from the Rs 21.5 crore reported in the same period of the previous fiscal year. This bottom-line growth was supported by a robust top line. Total revenue from operations grew 21.45% year-on-year to Rs 248.20 crore. Profit before tax (PBT) also saw a substantial jump, climbing 73.44% to Rs 49.76 crore.

Operational Efficiency and Margin Expansion

The company demonstrated strong operational efficiency during the quarter. Consolidated Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) reached Rs 101.15 crore, marking a 31.5% growth compared to Q3 FY25. The EBITDA margin improved notably, expanding to 40.8% from 37.6% in the corresponding quarter of the previous year, indicating better profitability from its core operations.

Broad-Based Growth Across Revenue Segments

Anand Rathi's revenue growth was not concentrated in one area but was spread across its various business segments.

• Broking-related Services: This core segment generated Rs 128.66 crore, up 12% year-on-year.
• Margin Trading Facility (MTF): Interest income from the MTF book was a key growth driver, surging 45.7% to Rs 43.83 crore.
• Distribution Income: This segment grew by 37.7% to Rs 25.06 crore.
• Other Income from Operations: This vertical also contributed significantly, with revenue of Rs 50.65 crore, a 22.8% increase.

Key Financial Highlights for Q3 FY26

Strong Momentum in Operational Metrics

The company's operational metrics underscore its expanding scale and client engagement. The Assets under Management (AUM) grew by 32.1% year-on-year to Rs 8,368.84 crore. The Margin Trading Facility (MTF) book expanded by an impressive 46.1% to Rs 1,231.67 crore, reflecting strong investor activity. Furthermore, Assets Under Custody (AUC) saw a significant 48% year-on-year jump to Rs 1.06 trillion, a testament to client trust. The total client base also increased by 14.6% to 9,92,531 clients.

Management Commentary on Performance and Strategy

Pradeep Gupta, the Chairman and Managing Director, acknowledged the challenging market conditions in FY26, noting that the Sensex and Nifty had delivered "lacklustre gains" amid sustained selling by foreign investors. He stated, "Despite this backdrop, our business continued to grow. We delivered strong broking revenues... an affirmation of our clients' trust and our disciplined approach to financial stewardship." Gupta emphasized the company's strategic focus on de-risking its earnings by increasing exposure to non-broking segments, which have shown meaningful growth.

A Relationship-Driven Approach

In an industry increasingly dominated by discount and algorithm-based broking, Gupta highlighted Anand Rathi's commitment to a customer-oriented, relationship-based model. This approach appears to be fostering client loyalty, as evidenced by the fact that over 54% of the company's clients have been associated with the firm for more than three years. This long-term relationship building is cited as a key strength of the brand.

Nine-Month Performance Overview

Looking at the nine-month period ending December 31, 2025, the company's performance was more modest. Consolidated net profit for 9M FY26 rose 2.95% year-on-year to Rs 87.72 crore, while revenue increased by 4.71% to Rs 676.50 crore compared to the same period in the previous fiscal year.

Market Reaction

Investors responded positively to the strong quarterly numbers. Following the announcement, the shares of Anand Rathi Share and Stock Brokers surged 9.30% to trade at Rs 691 on the stock exchange.

Conclusion

Anand Rathi's third-quarter results for FY26 demonstrate a strong capacity to deliver robust growth in both revenue and profitability, effectively navigating a subdued market. The significant expansion in its non-broking businesses, particularly the Margin Trading Facility, coupled with a steady increase in client assets, validates its diversification strategy. The company's continued focus on a relationship-based model appears to be a key differentiator, positioning it well for sustained growth.