Anand Rathi Wealth Ltd. delivered a strong first quarter in FY26, reporting a 16% year-on-year rise in revenue to ₹274 crore and a 28% increase in net profit to ₹93.9 crore. The company’s profit margin improved to 34.27% from 30.9% in the same quarter last year, largely due to controlled employee costs. Many of the recently hired relationship managers (RMs) are still in their early stages, earning lower bonuses, which helped boost margins. With this performance, the company has already achieved 24% of its full-year revenue target of ₹1,175 crore and 25% of its profit target of ₹375 crore in just one quarter.
Highest-Ever Quarterly Net Inflows of ₹3,825 Cr
The company recorded its best-ever quarterly net inflows of ₹3,825 crore, supporting a 27% year-on-year growth in assets under management (AUM), which now stands at ₹87,797 crore. This puts Anand Rathi just ₹12,200 crore away from its FY26 goal of ₹1 lakh crore in AUM. A large share of these inflows about 65%, came from existing clients, demonstrating strong client retention and engagement. The inflows were distributed across equity mutual funds (₹1,983 crore), market-linked debentures or MLDs (₹1,063 crore), debt mutual funds (₹300 crore), and other products (₹480 crore). The growing share of equity mutual funds, which rose to 54%, also improves revenue quality through steady trail income.
In-House Talent Driving Scalable Growth
The company’s RM base remained stable at approximately 380 during the quarter, with only two exits, highlighting strong employee retention. Rather than hiring externally, about 80% of the new team capacity was developed internally through promotions. This approach has helped control costs while building a more experienced team. Notably, 54 relationship managers are still managing AUMs of less than ₹40 crore each. As these team members scale up their client portfolios, they are expected to contribute meaningfully to revenue without putting much pressure on operating expenses.
Global Expansion: GIFT City and UK on the Horizon
Anand Rathi is preparing to expand its footprint internationally by setting up new offices in GIFT City and the United Kingdom. The company has already filed for licenses and is confident that these platforms will help tap into the growing pool of NRI wealth, which sees approximately $150 billion in annual remittances. Management expects these international locations to bring in ₹10,000–20,000 crore in fresh AUM over time. The Dubai office, which has been profitable for over a decade, will serve as a blueprint for these expansions, helping the firm scale efficiently across borders.
Clear FY26 Targets and Capital Allocation Strategy
For the current financial year, Anand Rathi has set clear performance goals: reaching ₹1 lakh crore in AUM, generating ₹1,175 crore in revenue, and achieving ₹375 crore in net profit. The company does not plan to undertake a share buyback this year, as tax benefits linked to buybacks have been removed. Instead, the firm will use surplus cash to fund business growth, expand into new markets, and invest in technology and talent development. The management’s focus remains on activating underperforming RMs and successfully launching international offices to ensure long-term, scalable growth.