Anand Rathi Wealth FY26 Results: PAT Soars 32%, Announces 1:1 Bonus Issue

Introduction

Anand Rathi Wealth Limited has reported a strong financial performance for the fourth quarter and the full fiscal year ending March 31, 2026. The company announced a significant 32.2% year-on-year increase in its consolidated Profit After Tax (PAT) to ₹397.2 crore for FY26. Alongside these robust results, the board has recommended a 1:1 bonus share issue and a final dividend of ₹7 per share, underscoring its confidence in future growth and commitment to shareholder value. The company also provided optimistic guidance for FY27, projecting continued momentum in revenue, profitability, and asset management.

Full-Year FY26 Financial Performance

For the fiscal year 2026, Anand Rathi Wealth demonstrated consistent growth. The company's reported total income grew by 27.8% to ₹1,253.1 crore from ₹980.2 crore in FY25. The reported Profit After Tax (PAT) for the year stood at ₹397.2 crore, a substantial 32.2% increase from ₹300.5 crore in the previous fiscal year. Excluding certain one-time items like fair value gains, the adjusted total revenue was ₹1,198 crore, up 22% YoY, with an adjusted PAT of ₹386 crore, reflecting a 28% YoY growth. This marks the 18th consecutive quarter where the company has delivered PAT growth exceeding 20% year-on-year, a notable achievement in the NIFTY 500 space. The PAT margin for the year improved to 32.2% from 30.7% in FY25, and the Return on Equity (ROE) stood at an industry-leading 46.74%.

Quarterly Performance Breakdown (Q4 FY26)

The final quarter of the fiscal year continued the growth trend. For Q4 FY26, total income surged by 47.6% year-on-year to ₹356.2 crore compared to ₹241.3 crore in Q4 FY25. The reported PAT for the quarter was ₹103.4 crore, a 40.5% increase from ₹73.6 crore in the corresponding quarter of the previous year. On an adjusted basis, excluding fair value gains and ESOP expenses, the total revenue for Q4 FY26 was ₹302 crore, up 25% YoY, while the adjusted PAT was ₹92 crore, also registering a 25% YoY growth. The performance highlights the company's stable and scalable business model.

Asset Management and Client Growth

The company's Assets Under Management (AUM) grew 21% year-on-year to ₹93,037 crore as of March 31, 2026. While this was slightly short of the ₹1 lakh crore guidance for FY26, the company confirmed it crossed this significant milestone shortly after the fiscal year ended, driven by positive equity market movements. Net inflows for FY26 increased by 6.66% to ₹13,457 crore. The client base also expanded, with the number of active client families growing by 14.17% to 13,395. The company maintained a low client attrition rate of 0.54% for the full year, indicating strong client trust and retention.

Shareholder Returns: Bonus Issue and Dividend

In a move to reward shareholders, the board of directors has approved the issuance of one bonus equity share for every one equity share held (1:1 ratio). The bonus shares are expected to be credited by June 7, 2026, subject to shareholder approval. Additionally, a final dividend of ₹7 per share was declared. This, combined with the interim dividend of ₹6 per share, takes the total dividend for FY26 to ₹13 per share.

Financial Summary Table

Management Outlook for FY27

The management has provided a strong and clear guidance for the upcoming fiscal year, FY27. The company projects its revenue to reach ₹1,415 crore, which would be a 20.42% increase over FY26. The Profit After Tax is expected to grow by 22.67% to ₹460 crore. For Assets Under Management, the company has set a target of ₹1.2 lakh crore, aiming for approximately 20% growth. Management attributed the strong performance to a disciplined investing approach and stated that market corrections present attractive opportunities for clients.

Digital and SaaS Business Performance

The company's other business verticals also showed healthy growth. The Digital Wealth business, a B2B2C platform, saw its AUM increase by 22% year-on-year to ₹2,218 crore, with a 17% rise in its client base to 7,106. The Omni Financial Advisor (OFA) business, a SaaS platform for financial advisors, reported 6,906 subscribers with platform assets totaling ₹1.47 lakh crore as of March 31, 2026.

Conclusion

Anand Rathi Wealth concluded FY26 with strong, multi-faceted growth in revenue, profits, and assets under management. The announcement of a 1:1 bonus issue and a healthy dividend payout reflects a solid financial position and a positive outlook. With clear guidance for over 20% growth in key metrics for FY27, the company appears well-positioned to continue its growth trajectory, driven by its consistent strategy, expanding client base, and operational efficiencies.