Anand Rathi core PAT +24% to ₹116 Cr; reported ₹163 Cr lifted by fair-value gains
PAT +73.6% YoY · revenue +17.5% · margins compressing · inline vs street
₹321.99 Cr
+17.5% YoY
₹163.01 Cr
+73.6% YoY
37.71%
+4.7pp YoY
₹9.82
Anand Rathi Wealth's consolidated Q1 FY27 print reads spectacular at the headline — net profit ₹163.01 Cr, up 73.6% YoY from ₹93.91 Cr, and total income up 52% to ₹432.26 Cr — but the surge is almost entirely a treasury artifact. Other Income jumped to ₹110.28 Cr from just ₹10.11 Cr a year ago (mark-to-market/fair-value gains on the investment book), which alone adds roughly ₹100 Cr pre-tax. Strip it out and management's own normalized PAT is ₹116 Cr, up ~24% YoY — the figure that squares with the operating business. Revenue from operations, the cleaner gauge, rose 17.5% to ₹321.99 Cr, in line with the ~18% the company and media flagged.
Q1 FY-2027 vs prior quarters
Underneath, the operating story is margin compression, not expansion. Employee benefit expenses climbed ~53% YoY to ₹176.17 Cr (partly the new ESOP 2025 grant), outpacing revenue and pulling operating PBT margin (PBT ex-Other Income) down to ~30% from ~42% a year ago. So the reported NPM leap to ~51% is a fair-value illusion; on a core basis margins are flat-to-softer. Standalone tells the same story — PAT ₹163.22 Cr on revenue ₹312.95 Cr — so basis choice does not change the read.
The stock went into the print at ₹2,188, up 6.8% over the past month of trading.
For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 5 consecutive quarters; revenue is at a 6-quarter high.
What the summary numbers don't show
Consolidated EPS ₹9.82 (basic), standalone ₹9.83 — standalone PAT ₹163.22 Cr — same story on both bases
Management reiterated confidence in achieving full-year guidance for revenue and PAT, having already achieved 24% and 25% respectively in Q1 FY27. They project a 20-25% AUM growth driven by a combination of mark-to-market gains (10-12%) and net sales (10-12% of AUM per month). The company is strategically expanding int
— This quarter: met
The genuine business milestone is AUM crossing ₹1 lakh crore, reaching ₹1,06,300 Cr (+21% YoY), which underpins the distribution-fee topline. Against management's FY27 guidance of ₹1,415 Cr revenue and ₹460 Cr PAT, Q1 delivered ~24% and ~25% respectively, keeping the year on track and confirming the confident tone from the July concall. The board also advanced its strategic push beyond distribution — approving a SEBI application to sponsor a mutual fund and set up an AMC/trustee structure (in-principle fund-management approval since received), plus the earlier 1:1 bonus issue that reset per-share metrics.
W1
Employee cost trajectory: ₹176.17 Cr this quarter (+53% YoY) — whether the cost-to-income ratio normalizes or keeps compressing operating margins near ~30%
W2
AUM run-rate toward management's 20-25% growth target (10-12% net sales + 10-12% MTM) off the ₹1,06,300 Cr base — sustaining core fee growth once fair-value gains fade
W3
FY27 guidance checkpoints: ₹1,415 Cr revenue / ₹460 Cr PAT, at ~24%/25% after Q1 — plus progress on the mutual fund/AMC sponsor license
Digital PDF, clear headers, arithmetic ties. Reported PAT ₹163.01 Cr (+73.6% YoY) is flattered by Other Income surging to ₹110.28 Cr from ₹10.11 Cr YoY (fair-value/treasury gains); management's core PAT is ₹116 Cr (+24% YoY). Employee costs +53% YoY. 1:1 bonus issue (Jun 2026) — prior EPS restated. Freedom Wealth Solutions ceased to be a subsidiary Dec 2025. No exceptional line on face of P&L; the one-off sits inside Other Income.
Informational and educational content only. Not investment advice.