Anand Rathi Wealth Q2 Profit Up 22% to Rs 122 Crore with Record Inflows

Anand Rathi Wealth has reported a notable 22 percent increase in its consolidated business profit after tax for the second quarter ending September 2026, reaching Rs 122 crore. This growth comes alongside a 16 percent rise in revenue, which climbed to Rs 357 crore during the same period.

Despite challenging conditions in the equity markets, the firm’s assets under management (AUM) grew 18 percent year-on-year, touching Rs 1.08 lakh crore. This expansion was supported by the highest-ever quarterly net inflows of Rs 4,186 crore, a 39 percent increase compared to the previous year.

The board of directors declared an interim dividend of Rs 4 per equity share, each with a face value of Rs 5. On a standalone level, Anand Rathi Wealth posted a net profit of Rs 121 crore for the quarter, a 25 percent increase from the same quarter last year. Revenue on a standalone basis rose 17 percent to Rs 345 crore. For the first half of the financial year 2026-27, the company’s standalone profit was Rs 237 crore, up 25 percent, with revenue reaching Rs 671 crore, an 18 percent increase.

The performance comes amid a difficult market environment marked by pressure on Indian equities due to foreign portfolio outflows, elevated crude oil prices, a strong US dollar, and rising bond yields in the United States. Anand Rathi Wealth highlighted that its results reflect the strength of its wealth management solutions and the loyalty of its client base.

Rakesh Rawal, CEO, along with Feroze Azeez, Joint CEO, remarked on the company’s consistent results despite market headwinds, citing geopolitical tensions involving the US, Israel, and Iran as well as economic factors such as bond yields and foreign investor sentiment as contributors to market softness.

For the first half of FY27, the consolidated business profit after tax increased 23 percent to Rs 238 crore, with revenue expanding 17 percent to Rs 693 crore. The company has achieved 52 percent of its full-year profit guidance of Rs 460 crore and 49 percent of its revenue target of Rs 1,415 crore within six months.

Net inflows during the quarter were a standout feature. Equity mutual fund net inflows reached a record Rs 2,867 crore, rising 39 percent year-on-year. The company’s mutual fund distribution revenue grew 18 percent to Rs 145 crore. Management noted continued confidence from domestic investors even as foreign investors remained cautious, emphasizing that market corrections offer opportunities for disciplined investors. A significant portion of the inflows came from existing clients deepening their engagement with Anand Rathi Wealth.

The client base also expanded steadily, with active client families increasing 12 percent year-on-year to 14,309. The number of relationship managers grew by 45 over the past year, totaling 431. Over the last twelve months, the firm added over 1,500 client families net of attrition.

On a reported consolidated basis, which includes fair value gains, employee stock option expenses, and related tax impacts, the profit after tax for Q2 was Rs 89.3 crore, compared to Rs 99.8 crore a year earlier. For the first half of FY27, reported profit after tax stood at Rs 252.3 crore, up from Rs 193.6 crore in the year-ago period.

Anand Rathi Wealth expressed confidence in sustaining long-term growth rates of 20 to 25 percent, citing the scalable nature of its business model. The company provides wealth management services to high and ultra-high-net-worth individuals across 19 cities in India and has international operations in Dubai and London. It has recently secured regulatory approval to commence operations in GIFT City.

As a significant player in India’s wealth management sector, Anand Rathi Wealth’s results illustrate resilience and growth potential amid volatile financial markets. The company’s ability to attract strong client inflows during uncertain times reflects investor trust and the appeal of its diversified wealth solutions.