Anand Rathi Share and Stock Brokers Q1 PAT rises 2% YoY to Rs 23 crore

The reported PAT was impacted by an exceptional expense of Rs 21 crore related to compensation for losses arising from fraudulent off-market transfers in certain demat accounts.

Profit before exceptional items and tax rose 71.8% year-on-year (YoY) to Rs 52.37 crore in the first quarter of FY27, compared with Rs 30.49 crore in the corresponding quarter last year. The company reported an exceptional item of Rs 20.99 crore during the quarter.

During the quarter, consolidated EBITDA stood at Rs 97.3 crore, registering a growth of 30.18% compared with Rs 74.74 crore posted in Q4 FY25. EBITDA margin improved to 39.5% in Q1 FY27 from 37.2% in Q1 FY26.

On the segmental front, revenue from broking-related services stood at Rs 127.95 crore (up 15.34% YoY), interest income from the Margin Trading Facility (MTF) was Rs 42.77 crore (up 52.3% YoY), distribution income came in at Rs 27.52 crore (up 31.1% YoY) and other income from operations stood at Rs 47.85 crore (up 16.5% YoY) during the quarter.

During the quarter, margin trading facility book stood at Rs 13,318 million, reflecting a 54.6% YoY growth, driven by strong demand for leveraged investment solutions and increased client participation in capital markets.

Assets under Management grew by 25.8% YoY to Rs 94,791 million in Q1 FY27, further enhancing the Company's recurring revenue potential.

Pradeep Gupta, Chairman & Managing Director, said, ?Indian equity markets navigated a challenging quarter marked by geopolitical uncertainty, market volatility and regulatory recalibration. Despite these headwinds, we delivered a strong quarterly performance demonstrating the resilience of our business model. Broking revenue increased 15.35% year-on-year, while non-broking revenue grew 43.20% reinforcing the strength of our balanced revenue profile. Assets under Management book rose by 25.82% to Rs 94,791 million and our Margin Trading Funding book expanded 54.62% to Rs 13,318.46 million, reflecting continued client trust and engagement.

We remain confident in the long-term potential of India?s capital markets, supported by a strengthening investor base and increasing financialization of savings. As we continue to invest in technology, enhance client experience and deepen our product capabilities, we are well positioned to deliver sustainable growth and create enduring value for all stakeholders.?

Roop Kishor Bhootra, Wholetime Director, added, ?We commenced FY27 on a strong note despite a challenging macroeconomic backdrop and heightened market volatility. During the quarter, Revenue from Operations increased 22.37% year-on-year to Rs 2,461.03 million, while adjusted EBITDA grew 30.19% to Rs 973.00 million, translating into a healthy EBITDA margin of 39.54%. Our earnings profile continues to be supported by multiple growth drivers with MTF interest income increasing 52.26% to Rs 427.70 million and distribution income growing 31.07% to Rs 275.24 million during the quarter.

Client loyalty remains one of our key differentiators, with 57.4% of our clients associated with us for more than three years, reflecting the trust and long-standing relationships we have built over time. We also continued to deepen our pan-India presence, with our footprint expanding to 319 cities as of quarter-end. As we move forward, we remain steadfastly focused on strengthening client relationships, enhancing our technology platform and driving sustainable growth through a balanced and scalable business model.?

Separately, the board approved raising up to Rs 500 crore through the issuance of rated or unrated, listed or unlisted, secured or unsecured redeemable non-convertible debentures (NCDs) on a private placement basis in one or more tranches. It also constituted a Debenture Allotment and Redemption Committee to finalise the terms of the issue.

The board also approved the incorporation of a wholly owned subsidiary in Dubai, United Arab Emirates, to expand the company's international business. The proposed entity will cater to non-resident Indians (NRIs), high-net-worth individuals (HNIs) and family offices in the UAE and other overseas markets by offering investment solutions and financial services.

Anand Rathi Share and Stock Brokers will hold 100% of the share capital in the proposed subsidiary through cash subscription. The incorporation is subject to approvals from the Dubai Department of Economy and Tourism and the Securities and Exchange Board of India (SEBI).

Anand Rathi Share and Stock Brokers is an established full-service broking house in India with over 30 years of experience. The company offerings and services are categorized in 3 categories: broking services, margin trading facility and distribution of financial products. The company caters to a diverse set of clients across retail, high-net-worth individuals, ultra-high-net-worth individuals, and institutions. The investment offerings of the company span across a wide array of asset classes like equity, derivatives, commodities, and currency markets.

The scrip fell 3.74% to Rs 558 on the BSE.

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