Anand Rathi Wealth Q2 Revenue Misses Forecast by 4.4%

Anand Rathi Wealth reported a revenue miss for the second quarter of fiscal 2026, posting INR 357 crore against market expectations of INR 361 crore. The firm maintained its full-year guidance despite the 4.4% shortfall, citing record client inflows and profit expansion as the primary drivers of its performance.

Consolidated net profit reached INR 122 crore, a 22% increase year-on-year. Revenue also rose 16% compared to the same period last year, according to the company's latest earnings transcript.

"In every quarter since listing, with God's grace, the PAT growth year-on-year has been greater than 20%, excluding the impact of non-business related items, fair value gains and ESOP expenses and related tax effects," said Feroze Azeez, Joint CEO of Anand Rathi Wealth.

Record Inflows Amid Market Volatility

The firm recorded its highest-ever quarterly net inflows of INR 4,186 crore. This performance occurred during a period of market volatility, where the Nifty index declined between 5% and 8%. The ability to capture capital during a market downturn demonstrates the effectiveness of the firm's client acquisition strategy.

Regarding the firm's fee structure and value proposition, Azeez noted, "If I don't deserve 1%, I don't want to be on that table. I will try and do my best to add value to you and earn my 1%."

Strategic Expansion Plans

Anand Rathi Wealth is pursuing two expansion initiatives to diversify its service offerings and geographic reach:

• Mutual Fund License: The company plans to file for a mutual fund license by the end of October 2026.
• GIFT City Operations: The firm expects to launch operations in GIFT City within two to three months.

Management clarified that they do not anticipate any revenue contribution from the GIFT City expansion within the current fiscal year. The focus remains on establishing the necessary infrastructure and regulatory approvals to support future growth.