Anand Rathi: consol PAT +50% YoY to ₹41.9 Cr, margins expand as revenue grows 20%

Anand Rathi Share and Stock Brokers' consolidated revenue rose 20.2% YoY to ₹273.21 Cr (₹2,732.14 Mn) in Q2 FY27, while consolidated PAT jumped 50.3% YoY to ₹41.94 Cr (₹419.39 Mn) — comfortably ahead of management's standing FY27 guidance of 30-35% PAT growth, even as revenue growth sat at the low end of the guided 20-25% band. The print also lines up well against the pre-result Street framing: our preview had flagged ~₹250-280 Cr of expected Q2 revenue (actual ₹273.21 Cr, within range) with margins cast as the 'wild card' given cost inflation — that risk did not materialise into compression; both operating and net margins expanded instead. Operating profit margin (profit before exceptional items/revenue, the company's own disclosed metric) rose to 20.55% from 16.52% a year ago, and net profit margin to 15.35% from 12.28%. The expansion came despite genuine cost inflation on exactly the lines the Street was watching — employee costs rose 31.1% YoY to ₹92.93 Cr and other expenses rose 31.9% YoY to ₹52.04 Cr — because finance costs fell 24.1% YoY to ₹37.87 Cr (from ₹49.90 Cr), pulling total expense growth (+13.8% YoY) below revenue growth and driving the operating leverage. Standalone PAT of ₹42.30 Cr tracked closely with consolidated; the small gap owes to a ₹0.36 Cr quarterly loss at the IFSC-registered subsidiary, Anand Rathi International (IFSC) Ventures. Sequentially, PAT looks up 79.6% QoQ, but that is a base-effect artifact: Q1 FY27 PAT was depressed by a one-off ₹20.996 Cr exceptional expense (compensation to two Depository Participant clients for securities lost to fraudulent off-market transfers, reported to the Economic Offences Wing) that does not recur this quarter. Adjusted for that one-off, Q1's underlying PAT (~₹44.35 Cr) was actually about 5% above this quarter's ₹41.94 Cr — a mild sequential slowdown, not the growth the headline QoQ number implies. Basic EPS (consolidated) rose only 6.1% YoY to ₹6.65 despite the 50% PAT growth — the gap is equity dilution from the ~₹736 Cr premium raise completed in H1 FY26, which lifted the weighted-average share base from ~44.5 Mn to ~63 Mn shares. The company continued NCD fundraising through the quarter (₹4.5 Cr in July, ₹11.4 Cr in August, ₹1 Cr and ₹10.85 Cr in September), consistent with the half-year debt-equity ratio ticking up to 1.02x from 0.93x a year ago and the balance-sheet optimisation flagged pre-result for UAE expansion. No management press release or earnings-call commentary accompanied this filing to corroborate forward framing.