Adjusted profit rose 22% to Rs 121.9 crore, but reported profit fell about 10.6% to Rs 89.26 crore. Record net inflows of Rs 4,186 crore lifted AUM to Rs 1.08 lakh crore, and the board declared a Rs 4 interim dividend.
Anand Rathi Wealth’s September-quarter results carry two consolidated profit numbers that point in opposite directions. Adjusted consolidated profit after tax (PAT) rose 22 per cent year-on-year to Rs 121.9 crore. Reported consolidated PAT was Rs 89.26 crore against Rs 99.80 crore a year earlier, a fall of about 10.6 per cent.
Behind both sits a record quarter for client money. The AUM of Rs 1.08 lakh crore rose 18 per cent while the Nifty fell about 8 per cent over the same period, the company noted, as reported by CNBC-TV18. Figures are from the company’s Q2 FY27 results as summarised by EquityBulls, Kotak Neo, CNBC-TV18 and Economic Times.
WHY THE PROFIT NUMBERS DISAGREE
Revenue from operations grew 15.68 per cent to Rs 343.99 crore from Rs 297.37 crore. Total income, which includes other income, was Rs 356.60 crore against Rs 307.04 crore, up about 16.1 per cent.
The adjusted figures exclude fair-value gains on investments, ESOP expenses and related tax effects. Adjusted profit before tax was Rs 163.1 crore.
Reported profit before tax from continuing operations was Rs 116.93 crore against Rs 134.02 crore a year earlier, a decline of about 12.8 per cent. At the PAT level, the excluded items net out to about Rs 32.6 crore in Q2.
By our calculation, reported pre-tax profit was about 33 per cent of total income, against about 44 per cent a year ago. The adjusted pre-tax figure works out to about 46 per cent. That gap is the margin story behind the two profit numbers.
The first half uses the same two measures, and the gap reverses direction. Adjusted H1 PAT rose 23 per cent to Rs 237.8 crore. The reported H1 PAT rose 30 per cent to Rs 252.27 crore, from Rs 193.81 crore a year earlier.
By our calculation, that implies Q1 reported a PAT of about Rs 163 crore against an adjusted PAT of about Rs 116 crore. In Q2 the adjusted number is the higher one.
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AUM UP 18% DESPITE A WEAKER NIFTY
AUM reached Rs 1,08,377 crore, up from Rs 91,568 crore a year ago. AUM moves with market values as well as flows, so inflows are the cleaner signal of new money.
Quarterly net inflows were a record Rs 4,186 crore, up 39 per cent, including record equity mutual fund net inflows of Rs 2,867 crore. Mutual fund distribution revenue rose 18 per cent to Rs 145 crore.
The six-month picture is quieter. According to company data summarised by Multibagg, H1 net inflows were Rs 6,928 crore against Rs 6,825 crore a year earlier, nearly flat.
Q1 FY26 inflows were a then-record Rs 3,825 crore. By our calculation, this year’s Q1 was about Rs 2,742 crore, roughly 28 per cent lower. A softer first quarter is why a record second quarter produced only flat half-year inflows.
The client base keeps expanding. Active client families rose to 14,309 from 12,781, and relationship managers to 431 from 386, while AUM per relationship manager climbed to Rs 246 crore from Rs 231 crore.
WHAT MANAGEMENT SAID ABOUT THE MARKET
CEO Rakesh Rawal and Joint CEO Feroze Azeez credited the company’s wealth-management model, according to CNBC-TV18. They listed geopolitical tensions, higher US bond yields, a stronger dollar, elevated crude oil prices and sustained foreign portfolio outflows as pressures on sentiment. They added that domestic investors kept showing conviction. Management reiterated its long-term growth expectation of 20 to 25 per cent.
RS 4 DIVIDEND: RECORD DATE OCTOBER 15
The board declared an interim dividend of Rs 4 per share on a face value of Rs 5, with a record date of October 15, 2026, and a total payout of Rs 66.42 crore.
The record date was revised from October 14 in a filing dated October 8. Payment is expected within 30 days of declaration. Under T+1 settlement, buyers would typically need to purchase the stock by October 14 to qualify.
The Rs 4 equals 80 per cent of face value, not a return on the market price. It is lower than the Rs 6 interim dividend declared a year ago, which was 120 per cent of face value. The sources reviewed give no reason for the change.
FY27 GUIDANCE: THE SECOND-HALF TEST
Management guidance for FY27 is Rs 1,415 crore of revenue, Rs 460 crore of profit after tax and AUM of Rs 1,20,000 crore. The H1 comparison uses total income and adjusted profit. H1 total income of Rs 693 crore is 49 per cent of the revenue target, and adjusted H1 PAT of Rs 237.8 crore is 52 per cent of the profit target.
The AUM target is the demanding one. Reaching Rs 1.2 lakh crore needs about Rs 11,600 crore of additional AUM, roughly 10.7 per cent, in six months. That is faster than the roughly Rs 16,800 crore added over the past 12 months.
STOCK CHECK BEFORE MONDAY
The stock ended Friday’s NSE session near Rs 2,040, down about 4.5 per cent, per Kotak Neo and CNBC-TV18. CNBC-TV18 published its results report at 6:24 pm IST, after the market had closed, so the fall appears to have come before the numbers were widely digested. It should not be attributed to the results.
A year ago the reaction was very different. After Q2 FY26 results, the stock jumped 13 per cent to a record Rs 3,323.85. Friday’s level is roughly 38 to 39 per cent below that BSE intraday peak.
Trading resumes on Monday, October 12. Investors will weigh the adjusted number against the reported one, the sustainability of Q2-level inflows, and progress towards the AUM target. For how institutional money is moving across financial stocks, see the NiftyTrader FII-DII Tracker at niftytrader.in/fii-dii-data.
BOTTOM LINE
Anand Rathi Wealth’s business engine is strong: record inflows, AUM up 18 per cent against a weaker Nifty, and more client families. The profit story depends on the measure. Adjusted PAT is up 22 per cent, reported PAT is down about 10.6 per cent, reported pre-tax profit has fallen about 12.8 per cent, and the Rs 4 dividend is below last year’s Rs 6. The second half must now close a sizeable AUM gap to meet guidance.
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