Anand Rathi Wealth Q1 FY27: Strong PAT Growth, AUM Crosses INR 1,06,300 Crore

Anand Rathi Wealth Limited reported another quarter of growth for the period ended 30th June 2026. On an adjusted basis (excluding fair value gains on investments, ESOP expenses, and related tax effects), consolidated total revenue rose to INR 336 crore in Q1 FY27 from INR 284 crore in Q1 FY26, a year-on-year increase of 18%. Profit after tax increased to INR 116 crore from INR 94 crore, up 24%. The adjusted PAT margin improved to 34.4% from 33.0%.

The quarter was marked by market volatility, but the company continued to position itself as a market agnostic wealth manager, citing its business model and focus on client outcomes. AUM grew 21.1% year on year to INR 1,06,300 crore as of 30th June 2026, supported by net inflows of INR 2,743 crore during the quarter.

AUM growth remains the centrepiece

The investor presentation shows AUM mix moving modestly over the year. Equity mutual funds remained the largest component at 52% of AUM (54% in the previous year), while debt mutual funds stayed stable at 27%. Structured products were shown at 4% and others at 17%.

Operationally, the private wealth business continued to expand its capacity. Relationship managers increased to 417 from 382. Active client families increased to 13,941 from 12,330. AUM per RM rose to INR 249 crore from INR 224 crore.

The company also highlighted client stickiness. Client attrition as a percentage of AUM lost was 0.09% in Q1 FY27 (0.11% in Q1 FY26). The deck also reported regret RM attrition at zero for the quarter.

Note: Adjusted metrics exclude fair value gains on investments, ESOP expenses, and related tax effects, as stated by the company.

Revenue mix and the impact of mark-to-market income

The annexure P and L summary shows that reported consolidated revenue can vary materially based on other income items. For Q1 FY27, the detailed revenue lines were:

• MF equity and debt: INR 131.5 crore
• Other financial products: INR 188.8 crore
• IT enabled services: INR 1.6 crore
• Others: INR 110.3 crore

On the earnings call, management clarified that the INR 110 crore other income was largely mark-to-market gains. Specifically, INR 96 crore was mark-to-market gain on the holding in Anand Rathi Global Finance Limited, with the remainder being regular other income such as interest income on surplus.

This distinction is important because the company separately presents adjusted results excluding fair value gains and ESOP effects, while also disclosing reported figures. Management stated reported Q1 FY27 total revenue was around INR 430 crore and reported PAT was INR 163 crore, including fair value gains on investments, ESOP expenses, and the related tax effects.

Digital businesses: steady scale-up

The company continues to report two digital business lines.

Digital Wealth, positioned as a technology-enabled wealth offering for the mass affluent segment (financial assets of INR 10 lakh to INR 5 crore), reported AUM of INR 2,526 crore as of June 2026 compared to INR 2,055 crore a year ago. Clients increased to 7,320 from 6,284.

OFA, described as a SaaS platform for MFDs and IFAs and their clients, reported 6,890 subscribers and platform assets of INR 1,65,561 crore as of June 2026 (INR 1,57,870 crore in June 2025). Platform clients increased to 24 lakh from 23 lakh.

Guidance and strategic moves

The company provided FY27 guidance (excluding fair value gains on investments, ESOP expenses, and related tax effects) and tracked quarterly progress against it.

• Revenue guidance: INR 1,415 crore
• PAT guidance: INR 460 crore
• AUM guidance: INR 1,20,000 crore

For Q1 FY27, the company reported achievement of 24% of full-year revenue guidance and 25% of full-year PAT guidance. Management stated it remains confident of achieving the guidance.

Two strategic updates from the earnings call stood out.

First, management stated the company has started operations in the United Kingdom and expects the business to start contributing over time. However, it also stressed a gradual approach, stating it intends to build the business brick-by-brick rather than scaling aggressively.

Second, management stated it has obtained board approval to apply for a mutual fund AMC license. The rationale was positioned as backward integration after establishing a long distribution franchise, consistent with how management describes wealth management as a business that should first build distribution and then manufacturing.

Takeaways from Q1 FY27

Anand Rathi Wealth delivered another quarter of strong adjusted earnings growth, with PAT up 24% year on year and margins improving. AUM crossed INR 1,06,300 crore with 21% year-on-year growth, although net inflows moderated versus the previous year.

The company continues to emphasise low client attrition and RM retention as the foundations of scalability. At the same time, it is adding new optionalities through international presence in the UK and the decision to apply for an AMC license, while keeping expectations calibrated and timelines undisclosed.