Shares of wealth management firm Anand Rathi Wealth surged 6 percent in intraday trade on Friday, July 11, after the company reported a strong financial performance for the quarter ended June 30, 2025 (Q1FY26). The firm delivered robust growth across key metrics, including profit, revenue, operating margin, and assets under management (AUM), bolstering investor confidence.

Anand Rathi Wealth reported a consolidated net profit of ₹94 crore for Q1FY26, registering a 28 percent year-on-year (YoY) increase from ₹73.4 crore in the same quarter last year. Revenue from operations stood at ₹284 crore, marking a 16 percent rise from ₹237.6 crore in Q1FY25. The company also witnessed a sharp improvement in its operating efficiency, as EBITDA grew 30 percent YoY to ₹127.7 crore, up from ₹98.23 crore. Consequently, the EBITDA margin expanded significantly to 46.6 percent from 41.3 percent in the year-ago period.

Anand Rathi Wealth’s assets under management (AUM) reached ₹87,797 crore, reflecting a 27 percent growth over the previous year. This rise was supported by record-high net inflows of ₹3,825 crore during the quarter. The company’s mutual fund distribution revenue also rose by 27 percent YoY to ₹113 crore. Equity mutual funds continued to dominate, maintaining a 54 percent share in total AUM.

The company reported a stellar return on equity (ROE) of 44.4 percent (annualized), showcasing its strong profitability and capital efficiency. In its private wealth division (the holding company), Anand Rathi Wealth saw its active client families grow by 19 percent YoY to 12,330, while the number of relationship managers increased by 22 during the past year, bringing the total to 382.

Subsidiary businesses also showed healthy growth. Revenue from subsidiaries grew 18 percent YoY to ₹10.5 crore. The Digital Wealth (DW) vertical saw its AUM increase by 19 percent YoY to ₹2,055 crore.

Management Commentary

Commenting on the performance, the management said, “Q1 FY26 was another strong quarter for Anand Rathi Wealth, with profit after tax growing 28 percent and AUM crossing ₹87,000 crore. We achieved our highest-ever quarterly net inflows and continued expanding our client base with 598 new families. Client attrition remained low at just 0.11 percent, highlighting our strong client relationships and focus on a straightforward, client-first model.”

The management further noted that the broader equity market rebounded sharply in the first quarter, with the Nifty rising 8.5 percent and the Nifty 500 gaining 10.7 percent. This recovery, coupled with improving domestic demand, a strong financial sector, and a projected 6.6 percent GDP growth for FY26, creates an ideal backdrop for growth in the wealth management industry.

Stock Price Trend

The stock rose as much as 6 percent to hit an intraday high of ₹2,250. It is now trading just 3 percent below its 52-week high of ₹2,320.28, touched in December 2024. On the downside, it had hit a 52-week low of ₹1,586.05 in March 2025.

In the last one year, the stock has gained around 3 percent. However, it has added over 14 percent in 2025 so far, delivering positive returns in three out of the seven months this year.

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