Anand Rathi Wealth Q1 FY26: PAT up 28% to ₹94 cr

Results at a glance

Anand Rathi Wealth Ltd (BOM: 543415; NSE: ANANDRATHI) reported a strong start to FY26, posting a year-on-year rise in profit alongside steady growth in revenue and assets under management (AUM). For the quarter ended June 2025 (Q1 FY26), the company reported consolidated profit after tax (PAT) of about ₹94 crore, up from about ₹73 crore a year ago. Total revenue for the quarter was reported at about ₹284 crore, rising about 16% year-on-year despite what the coverage described as macroeconomic uncertainties and customer-specific issues.

The stock reaction was immediate. On Friday, July 11, 2025, Anand Rathi Wealth shares surged more than 5% in early trade after the company’s Q1 FY26 numbers. Another reported data point showed the stock rallying 5.63% to ₹2,241.30 following the earnings update.

Key consolidated financial highlights

The company’s headline growth was driven by a rise in profit before tax (PBT) and an increase in revenue. In the results summary shared in the coverage, both PBT and PAT grew 28% year-on-year in Q1 FY26.

Revenue from operations vs total revenue

The quarterly financial table in the provided data also breaks out “revenue from operations” at ₹274.02 crore for the June 2025 quarter, versus ₹237.61 crore in the year-ago quarter (June 2024). That implies 15.3% year-on-year growth in revenue from operations.

Separately, “total revenue” for the quarter is presented around ₹284.26 crore to ₹284.3 crore in the coverage. This distinction matters for readers tracking operating momentum versus reported total income, especially when comparing line items across different disclosures.

Profitability and cost lines in the quarter

Alongside growth in operating income, expenses and other operating costs moved higher. The quarterly table shows total operating expense at ₹153.91 crore for the June 2025 quarter compared with ₹137.24 crore in June 2024. Depreciation and amortisation rose to ₹7.68 crore from ₹5.67 crore year-on-year.

Operating income was reported at ₹120.10 crore in June 2025 compared with ₹100.37 crore a year ago. Net income was shown at ₹93.62 crore versus ₹73.24 crore year-on-year in the same table.

The disclosures also note that EPS was adjusted for a 1:1 bonus issued in March 2025 for comparability.

AUM growth and product mix

A key operating metric for wealth managers is AUM. The company’s AUM was reported as up 27% year-on-year to ₹87,797 crore in Q1 FY26, compared with ₹69,018 crore in Q1 FY25. One section of the provided material also cited AUM at ₹89,797 crore for Q1 FY26, while still referencing ₹69,018 crore in Q1 FY25. Across the coverage, the direction of travel is consistent: AUM rose sharply year-on-year.

The equity mutual fund share in AUM was reported at 54% as of June 2025, and another line stated this share remained flat at 54% versus June 2024. This points to a continued tilt toward equity-led portfolios within the overall mix.

Record net flows and private wealth mobilisation

The quarter was also highlighted for client activity and flows. In its flagship private wealth segment, the company reported record mobilisation of ₹3,825 crore during Q1 FY26. The company also reported its highest-ever net flows in a quarter at ₹3,825 crore.

For the mutual fund distribution business, revenue rose 27% year-on-year to ₹113 crore, according to the coverage. This metric is closely tracked because it captures the annuity-style distribution economics that typically scale with client activity and market participation.

Digital wealth and subsidiary performance

Digital channels remain an incremental growth lever in the disclosed numbers. Digital Wealth (DW) AUM increased 19% year-on-year to ₹2,055 crore. In addition, total revenue of subsidiary companies rose 18% year-on-year to ₹10.5 crore.

The company also reported adding about 600 new client families during the quarter, taking the total client families to 12,330. This client expansion, coupled with higher AUM, was a central part of the quarter’s operating narrative.

How the stock reacted on the day

The market’s immediate response reflected the combination of profit growth, higher revenue, and stronger AUM. The coverage said shares surged more than 5% in early trades on Friday, July 11, 2025 after the Q1 FY26 print. Another reported move showed the stock up 5.63% to ₹2,241.30.

While the move itself is a short-term indicator, it highlights that the market was closely watching the quarter for signals on flows and profitability in a period described as uncertain.

Management commentary highlighted in the coverage

Management commentary included a clear restatement of the quarter’s headline performance. The provided text cites the management saying Q1 FY26 was another strong quarter, with PAT rising 28% year-on-year to about ₹94 crore and total revenue increasing 16% to about ₹284 crore. The management also reiterated that AUM reached ₹87,797 crore, up 27% year-on-year.

No additional forward-looking numbers were provided in the text beyond the note that “FY26 guidance on track” appeared as part of a headline.

Context from prior quarters

The broader context included a reference to Q3 results from an earlier period: net profit of ₹77.3 crore for the quarter ended December 31, 2024, revenue from operations of ₹237 crore, EBITDA of ₹107 crore, and EBITDA margin of 45.2%. These older numbers help frame the company’s operating trajectory, but the market focus in this update remains Q1 FY26.

The provided material also includes later-period figures for Q2 FY26 and H1 FY26: Q2 FY26 net profit of ₹100 crore with revenue of ₹307 crore, and H1 FY26 net profit of ₹194 crore with revenue of ₹591 crore. Those figures were presented as additional disclosures alongside contact details for investor relations and public relations.

Why the Q1 FY26 print matters

For investors tracking listed wealth managers, this quarter brought three measurable signals: profit growth of about 28%, revenue growth in the mid-teens, and AUM growth of about 27% year-on-year. The product mix remained equity-heavy, with equity mutual funds at 54% of AUM, and the quarter’s flow metric of ₹3,825 crore stood out as a record.

At the same time, expense lines such as total operating expense and depreciation moved higher, which is relevant for readers watching operating leverage as the business scales.

What to watch next

Based on the information provided, the next checkpoints are subsequent quarterly updates that confirm whether net flows and AUM growth remain at similar levels, and whether revenue from operations continues to outpace expense growth. Investors will also track mutual fund distribution revenue and digital wealth AUM as disclosed metrics, since both were specifically called out in the Q1 FY26 coverage.