Anand Rathi Q1 profit jumps 24%, AUM crosses Rs 1 lakh crore

Anand Rathi Wealth Ltd posted a 24% rise in consolidated net profit for the June quarter, to Rs 79.6 crore, as assets under management breached the Rs 1 lakh crore mark for the first time. Revenue from operations climbed 23% to Rs 240.4 crore, the company said in an exchange filing.

The firm's AUM hit Rs 1,01,223 crore, up 48% from a year earlier. Client numbers rose 20% to about 18,500 families. The wealth management division – the main revenue driver – grew AUM by 49% to Rs 95,610 crore. The financial product distribution arm reported a 42% jump to Rs 5,613 crore.

Operating margins held near 49%, matching the year-ago period. Employee costs rose 19%, below the 23% revenue expansion, which helped keep profitability steady.

The numbers reflect a broader shift in Indian household savings. More money is moving into mutual funds, insurance products, and managed portfolios. Listed wealth managers have compounded AUM at over 20% annually for the past three years, with the top players taking share from smaller regional firms.

Recurring revenue – from advisory fees and trailing commissions – made up roughly 68% of total revenue, giving the firm a stable base. The board declared an interim dividend of Rs 12 per share.

Shares closed flat ahead of the results. The stock is up about 18% this year, trailing the Nifty 50's 15% gain. At the current price, it trades at roughly 27 times trailing 12-month earnings.

Anand Rathi's Alpha Score on AlphaScala stands at 47 out of 100, labeled Mixed, in the Financial Services sector. The score reflects a balanced risk-reward profile at current valuations, with earnings momentum supported by AUM growth but the stock already pricing in much of the tailwind.