Anand Rathi Wealth share price extended its winning streak for the second straight session on Monday, July 14, gaining another 10% in intraday trade and scaling a new all-time high of ₹2428.80 apiece.
The demand for the stock surged after the company’s June quarter performance beat Street estimates, resulting in sharp gains despite broader market weakness. The strong results have also made the company’s FY26 guidance on PAT, revenue, and AUM appear well within achievable reach.
Strong start to FY26
The company, on Thursday, reported a consolidated net profit of ₹94 crore for Q1FY26, marking a 28% YoY jump, while the revenue from operations stood at ₹284 crore, up 16% from ₹237.6 crore in Q1FY25, primarily driven by 27% YoY growth in MF revenue.
On the operational front, EBITDA rose 30% YoY to ₹127.7 crore, with the EBITDA margin expanding significantly to 46.6% from 41.3% a year earlier.
The company’s total₹87,800 crore, a growth of 27% YoY”> AUM stood at ₹87,800 crore, a growth of 27% YoY, driven by consistently strong inflows and larger ticket sizes from clients. The company recorded its highest-ever quarterly net inflows at ₹3,830 crore in Q1FY26, up 14% YoY, supported by favorable market sentiment.
The company is on track to meet its FY26 guidance, having already achieved 25% of its full-year PAT target and 24% of its revenue target in Q1FY26. It is also just 14% short of reaching its ₹1 lakh crore AUM milestone.
The share of clients with AUM above ₹50 crore increased to 27% in Q1FY26 from 25% in Q1FY25. During the quarter, it onboarded 598 net new client families, bringing the total to 12,300 families.
Anand Rathi Wealth reported one of the lowest client attrition rates in the industry, with only 0.11% of AUM lost in Q1FY26. Relationship Manager (RM) attrition also remained minimal, with just two exits in the quarter.
Can Anand Rathi Wealth’s share price extend its rally?
According to a domestic brokerage, Motilal Oswal, Anand Rathi Wealth is one of the few listed companies that consistently outperforms its stated guidance. For FY26, the management has guided for revenue and PAT of ₹1,175 crore and ₹375 crore, versus the brokerage’s estimates of ₹1,140 crore and ₹380 crore.
The brokerage expects the company to deliver a CAGR of 24%, 22%, and 28% in AUM, revenue, and PAT over FY25–27E, supported by robust cash generation ( ₹920 crore in OCF expected during FY25–27E), an RoE of over 40%, and a strong balance sheet. It has retained its ‘Neutral’ rating on the stock with a target price of ₹2,100.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
