/** blogpostTitle: Anand Rathi Wealth in FY26: Steady compounding, cleaner disclosures, and a bigger AUM milestone blogpostSlug: anandrathi-fy26 blogpostCoverImageDescription: Ultra-realistic corporate finance scene: a modern office desk with a laptop showing a clean dashboard featuring a rising line chart for total revenue from about 980 to 1,198, a second line for PAT from about 301 to 386, and a third line for AUM from about 77,103 to 93,037. Nearby, a simple pie chart shows AUM mix with four slices (equity mutual funds about half, structured products about a little under one-third, debt mutual funds small, others moderate). Neutral lighting, no logos, no text labels. blogpostShortTitle: Anand Rathi Wealth FY26 growth snapshot */

Anand Rathi Wealth in FY26: Steady compounding, cleaner disclosures, and a bigger AUM milestone

Anand Rathi Wealth Limited ended FY26 with another year of strong, relatively steady growth. On an adjusted basis that excludes fair value gains on investments, ESOP expenses, and related tax effects, consolidated total revenue was Rs. 1,198.5 crores, up 22.3% year on year. Profit after tax was Rs. 385.7 crores, up 28.4%, with PAT margin improving to 32.2% from 30.7%.

For Q4 FY26, the same adjusted basis shows total revenue of Rs. 301.6 crores (25% YoY) and PAT of Rs. 92.0 crores (25% YoY), with PAT margin steady at 30.5%. The business ended the year with reported AUM of Rs. 93,037 crores as of March 2026, up 20.7% YoY.

Management also highlighted that after the year-end, AUM crossed Rs. 1,00,000 crores due to equity market movement. It was a notable milestone because the company’s FY26 AUM guidance was Rs. 1,00,000 crores, which was not met on the March 2026 closing number but was achieved shortly after.

What drove FY26 performance

The investor presentation provides a clear view of how revenue is earned. For FY26 (reported basis), mutual fund distribution (equity and debt) contributed Rs. 494.1 crores, while other financial products contributed Rs. 648.2 crores. IT-enabled services remained small at Rs. 6.5 crores, and “others” rose to Rs. 104.3 crores.

AUM growth was supported by a combination of market appreciation and net inflows. Total net inflows for FY26 were Rs. 13,457 crores, up 7% YoY. Equity mutual fund net inflows for FY26 were Rs. 7,969 crores, up 3% YoY. Monthly SIP inflows increased to Rs. 92 crores in March 2026 from Rs. 70 crores in March 2025.

The AUM mix remained tilted toward market-linked products. As of March 2026, equity mutual funds were 51% of AUM, structured products 28%, debt mutual funds 5%, and others 16%.

Note: Adjusted numbers exclude fair value gains on investments of Rs. 54.6 crores, ESOP expenses of Rs. 39.3 crores, and related tax effects, as stated by the company.

Private Wealth engine: people-led scaling, with measurable productivity

Anand Rathi Wealth repeatedly frames wealth management as a “credibility marathon” and not a capital race. The model is relationship-manager-led and linear, and the company reinforces that RMs do not scale like startups.

Operational metrics show improving productivity. In the Private Wealth business, AUM increased from Rs. 75,291 crores (Mar-25) to Rs. 90,819 crores (Mar-26). Relationship managers rose from 380 to 401, while active client families increased from 11,732 to 13,395. AUM per RM improved to Rs. 226 crores from Rs. 198 crores, and clients per RM increased to 33 from 31.

The company also reported very low client attrition on an AUM basis: 0.54% for FY26, similar to 0.52% for FY25.

A key disclosure in the deck is “regret RM attrition” (RMs with AUM greater than Rs. 40 crores). Regret attrition increased to 7 in FY26 from 2 in FY25. Management addressed the impact in the call and stated that the seven departing RMs had AUM of Rs. 1,212 crores at the time of resignation, and the firm retained 81% of that AUM without considering market movements.

The company is also pushing its HNI mix up the curve. As of March 2026, clients with Rs. 50 crores and above accounted for 28.9% of AUM, up from 15.6% in March 2021, while the Rs. 50 lakhs to Rs. 5 crores segment fell to 21% from 35.1%.

New businesses: Digital Wealth and OFA continue to expand

Outside its flagship private wealth franchise, the company highlighted two growth engines.

Digital Wealth, targeted at mass affluent clients with financial assets between Rs. 10 lakhs and Rs. 5 crores, reported AUM of Rs. 2,218 crores as of March 2026 versus Rs. 1,812 crores in March 2025. Client count rose to 7,106 from 6,087.

OFA (Omni Financial Advisors), described as a SaaS platform with a subscription model for mutual fund distributors and IFAs, reported 6,906 subscribers as of March 2026 versus 6,447 a year earlier. Platform assets were Rs. 1,47,192 crores versus Rs. 1,42,935 crores, and platform clients increased to 24 lakhs from 22 lakhs.

Guidance, bonuses, and what to track next

The company’s FY26 guidance table shows it exceeded revenue and PAT guidance on an adjusted basis but fell short on AUM at the March 2026 cut. For FY27, management guided consolidated revenue of Rs. 1,415 crores, PAT of Rs. 460 crores, and AUM of Rs. 1,20,000 crores, excluding fair value gains, ESOP expenses, and related tax effects.

In corporate announcements dated 09 April 2026, the board recommended a final dividend of Rs. 7 per share for FY26 (subject to shareholder approval) and recommended a 1:1 bonus issue. The company also announced an increase in authorised share capital to support the bonus issue.

One accounting theme also stood out this quarter. Reported results include a fair value gain of Rs. 54.6 crores linked to revaluation of its stake in group NBFC Anand Rathi Global Finance Limited. Management clarified this was mark-to-market and not a sale. Separately, ESOP expense of Rs. 39.3 crores was recognised in Q4. Management stated the ESOP grants were concentrated in key management personnel and issued at face value, resulting in a higher accounting charge.

The main investor takeaways from FY26 are straightforward. Growth remained strong, margins improved on the adjusted view, and operating metrics such as AUM per RM and client count continued to trend up. At the same time, AUM remains market-sensitive, reported results can be influenced by fair value movements and ESOP accounting, and RM retention remains a variable to watch given higher regret attrition in FY26.