Anand Rathi Wealth Ltd (ANANDRATHI) Q2 FY27 Results Analysis: Normalized PAT Jumps 25.7%, Revenue Grows 15.7% Despite Nifty Fall
Anand Rathi Wealth Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 343.99 Cr (+15.68% YoY) and PAT growth of -10.65% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 09, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 343.99 Cr (+15.68% YoY) |
| PAT (Q2) | Rs. 89.26 Cr (-10.65% YoY) |
| EBITDA margin | 33.97% (-1226 bps YoY) |
| EPS (Q2) | Rs. 5.38 (-10.48% YoY) |
| Market cap | Rs. 33,770.31 Cr |
| CMP | Rs. 2,038.70 |
Quarter Snapshot
Q2 FY27 revenue from operations grew 15.7% YoY to Rs.343.99 Cr despite a 6.6% Nifty decline, while reported PAT fell 10.7% to Rs.89.26 Cr on the new ESOP charge and the absence of Q1 fair-value gains; normalized PAT grew 25.7% YoY to Rs.125.53 Cr. H1 adjusted PAT of Rs.237.84 Cr stands at 51.7% of management's FY27 guidance of Rs.460 Cr, with adjusted revenue at 47.9% of the Rs.1,415 Cr target. The FY27 AUM target of Rs.1,20,000 Cr requires a 12.9% gain from the Q1 level of Rs.1,06,300 Cr.
Key Investment Insights
Key Positives
- Revenue from operations grew 15.7% YoY to Rs.343.99 Cr (+6.8% QoQ) in a quarter when the Nifty fell 6.6%; H1 revenue grew 16.6% YoY to Rs.665.97 Cr
- Normalized PAT grew 25.7% YoY to Rs.125.53 Cr in Q2 and 22.8% YoY to Rs.237.84 Cr in H1 after removing fair-value gains and adding back ESOP expense
- H1 adjusted PAT of Rs.237.84 Cr equals 51.7% of the FY27 guidance of Rs.460 Cr, ahead of the 50% linear run-rate; adjusted revenue of Rs.678.24 Cr is 47.9% of the Rs.1,415 Cr guidance
- Employee cost as a share of revenue was flat sequentially at 54.52% in Q2 vs 54.71% in Q1; other expenses grew 13.2% YoY, below revenue growth
- Net worth grew 28.6% in six months to Rs.1,283.35 Cr; borrowings of Rs.15.43 Cr are 1.2% of net worth against cash of Rs.294.01 Cr
- H1 free cash flow of Rs.101.39 Cr covers the interim dividend of Rs.66.42 Cr (Rs.4 per share) declared October 9, 2026
- GIFT City subsidiary Anand Rathi FME (IFSC) received IFSCA Certificate of Registration as a non-retail Fund Management Entity on September 11, 2026
- Effective tax rate fell to 23.67% from 25.53% YoY; finance costs declined 33.8% YoY to Rs.3.20 Cr
Risk Factors
- Reported PAT declined 10.65% YoY to Rs.89.26 Cr (EPS Rs.5.38 vs restated Rs.6.01), reflecting the new ESOP charge (Rs.92.15 Cr in H1) and the absence of Q1 fair-value gains
- Employee benefit expenses rose 50.1% YoY to Rs.187.56 Cr, taking employee cost/revenue to 54.52% from 42.01%; EBITDA margin compressed 1226 bps YoY to 33.97%
- Q2 revenue growth of 15.68% trails management's long-term 20–25% growth objective
- Operating cash flow was 0.42× PAT in H1 (Rs.107.05 Cr vs Rs.252.27 Cr), with direct taxes paid rising to Rs.103.85 Cr from Rs.47.51 Cr
- FY27 AUM guidance of Rs.1,20,000 Cr requires a 12.9% increase from the Q1 level of Rs.1,06,300 Cr; the Q2 Nifty correction of 6.6% may have widened the gap
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.