Quarterly Financial Results
Anand Rathi Share and Stock Brokers Q1 FY27 Results: Revenue Rises 22% YoY, EBITDA Margin Expands to Nearly 40%
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Anand Rathi Share and Stock Brokers Limited reported a strong Q1 FY27 performance with revenue from operations growing 22.4% YoY to ₹2,461 million. EBITDA increased 30.2% YoY with margin improving to 39.5%, while Margin Trading Facility (MTF) assets and Assets Under Management (AUM) continued to record healthy double-digit growth, reflecting sustained client engagement and diversified revenue streams.Â
PRICE-SENSITIVE TRIGGER
Event: Announcement of Q1 FY27 Consolidated Financial Results.
Type: Quarterly Financial Results
Impact: Positive
Immediate Effect:Â The company delivered strong growth across revenue, operating profitability, MTF financing and AUM despite a volatile market environment, reinforcing its balanced business model and recurring revenue potential.Â
Financials:
Metrics:
- Revenue from Operations: ₹2,461 million (↑22.4% YoY | ↓3.7% QoQ)
- EBITDA: ₹973 million (↑30.2% YoY | ↓11.8% QoQ)
- EBITDA Margin:Â 39.5% (vs. 37.2% last year)
- PAT (Before Exceptional Item): ₹390.6 million (↑71.2% YoY)
- PAT Margin (Before Exceptional Item):Â 15.8%
- PAT (After Exceptional Item): ₹233.5 million
- PAT Margin (After Exceptional Item):Â 9.5%
- Broking Revenue: ₹1,279.6 million (↑15.4% YoY)
- Interest Income from MTF: ₹427.7 million (↑52.3% YoY)
- Distribution Income: ₹275.2 million (↑31.1% YoY)
- Other Operating Income: ₹478.5 million (↑16.5% YoY)
- Assets Under Management (AUM): ₹94,791 million (↑25.8% YoY)
- Margin Trading Facility (MTF) Book: ₹13,318 million (↑54.6% YoY)
Highlight:
- Revenue from operations grew 22.4% YoY to ₹2,461 million, while EBITDA margin expanded to 39.5%, supported by strong growth in MTF financing and diversified fee-based income.Â
What Happened ?
Anand Rathi Share and Stock Brokers Limited reported robust consolidated financial performance for Q1 FY27 despite heightened market volatility and geopolitical uncertainties. Revenue and profitability improved significantly on the back of strong momentum across broking, margin funding, distribution and other operating businesses.
The company also strengthened its balance sheet by expanding its MTF portfolio and AUM, reflecting increasing client participation in capital markets and higher recurring revenue potential. Management highlighted continued investments in technology, client experience and nationwide expansion to support long-term growth.
key details
Q1 FY27 Business & Operational Highlights:
- Revenue from operations increased 22.4% YoY to ₹2,461 million.
- EBITDA grew 30.2% YoY, with operating margin improving to 39.5%.
- PAT before exceptional items surged 71.2% YoY to ₹390.6 million.
- Margin Trading Facility (MTF) book expanded 54.6% YoY to ₹13,318 million.
- Assets Under Management (AUM) increased 25.8% YoY to ₹94,791 million.
- Broking-related services revenue grew 15.4% YoY.
- Interest income from MTF rose 52.3% YoY, reflecting higher client leverage and participation.
- Distribution income increased 31.1% YoY, strengthening non-broking revenue.
- The company expanded its presence to 319 cities across India.
- Approximately 57.4% of clients have remained associated with the company for more than three years, highlighting strong client retention.
Note:
- Management attributed the quarter’s performance to a diversified revenue mix, growing investor participation, higher recurring income and continued investments in technology and customer experience.Â
Risk Analysis
Summary:
- While operational performance remained strong, the company’s earnings continue to be influenced by equity market activity, regulatory developments and investor participation levels.
Key Risks:
- Capital market volatility may affect trading volumes.
- Regulatory changes could influence brokerage and margin funding businesses.
- QoQ moderation in revenue and EBITDA indicates sensitivity to market conditions.
- Continued dependence on retail investor participation remains an important business driver.
Worst Case:
- A prolonged slowdown in capital market activity or tighter regulatory norms for leverage products could reduce brokerage income, margin funding growth and overall profitability.
Risk Level: Medium
Company Commentary
- Management believes the company’s diversified business model enabled strong performance despite a challenging market environment.
- Non-broking revenue significantly outpaced broking revenue growth, strengthening business resilience.
- Rising AUM and MTF balances demonstrate continued investor confidence and client engagement.
- The company remains focused on technology investments, expanding its national footprint and strengthening long-term client relationships to deliver sustainable growth.
Official Exchange Filing: Anand Rathi Share and Stock Brokers Limited
