Anand Rathi Q3 PAT Soars 71.8% on Strong Revenue Growth

Introduction

Anand Rathi Share & Stock Brokers Limited (ARSSBL) has reported a significant 71.8% year-on-year (YoY) increase in its Profit After Tax (PAT) for the third quarter of fiscal year 2026, which ended on December 31, 2025. The company's net profit reached Rs 37 crore, supported by robust operational performance despite challenging market conditions. This strong bottom-line growth was driven by a healthy rise in revenue and expansion across key business verticals.

Stellar Financial Performance in Q3

The brokerage firm's revenue from operations for the quarter stood at Rs 248.2 crore, marking a 21.5% increase compared to the same period last year. On a sequential basis, revenue grew by 9% from the September 2025 quarter. The company maintained a strong Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) margin of 40.8%, reflecting its operational efficiency. The net profit also saw a substantial 33% increase from the preceding quarter's Rs 27.9 crore, aided by higher revenue and lower finance costs.

Robust Operational Growth

ARSSBL's operational metrics showed strong momentum across the board. The company's Assets under Management (AUM) expanded by 32.1% YoY, reaching Rs 8,368.8 crore. Another key indicator, the Margin Trading Facility (MTF) book, grew by an impressive 46.1% YoY to Rs 1,231.7 crore. This growth in the MTF book, which now contributes 18% to the company's topline, signals high investor engagement and confidence in the platform's offerings.

Expanding Client Base and Assets

The company's client base continued to grow steadily. The number of active clients reached over 158,000 by the end of the December quarter, a 6% increase from the 149,000 reported in September. Furthermore, Assets Under Custody (AUC) saw a significant 48% YoY jump to Rs 1.06 trillion. Management attributes this substantial increase to the sustained trust of its clients and a disciplined approach to financial stewardship.

Key Performance Indicators (Q3 FY2026)

Management Commentary on Market Resilience

Mr. Pradeep Gupta, Chairman and Managing Director, acknowledged the difficult market environment in FY26, which was marked by 'lacklustre gains' from the Sensex and Nifty and sustained selling by foreign investors citing concerns over valuations and currency volatility. 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."

Strategic Focus on De-risking

Gupta further elaborated on the company's strategy, emphasizing a continued focus on de-risking and stabilizing earnings by increasing exposure to non-broking segments. He highlighted the firm's relationship-based approach as a key differentiator in an era dominated by discount and algorithm-based broking. This focus is evidenced by the fact that over 54% of their clients have been with the firm for more than three years, affirming the consistency of its service and the strength of its brand.

Stock Performance and Market Position

As of January 14, 2026, shares of Anand Rathi Share & Stock Brokers closed at Rs 632.7. While the stock has corrected approximately 20% from its 52-week high of Rs 794, it remains over 100% above its IPO price of Rs 414 per share. This performance indicates significant value creation for its early investors since its market debut.

About Anand Rathi

Established in 1991, Anand Rathi Share and Stock Brokers Limited is a full-service brokerage firm in India. It offers a wide range of services, including stock broking, margin trading, and distribution of financial products like mutual funds. The company serves a diverse clientele, from retail investors to high-net-worth individuals and institutions, through a hybrid model combining a network of over 60 physical branches with advanced digital platforms.

Conclusion

Anand Rathi's third-quarter results demonstrate a strong ability to navigate market volatility and deliver substantial growth in both revenue and profitability. The company's focus on expanding its non-broking businesses, coupled with a steadfast commitment to its relationship-driven model, positions it to sustain its growth trajectory in the evolving financial services landscape.