Anand Rathi has approved the issuance of one bonus share for every one share held as of the record date, along with a final dividend of ₹7 per equity share, according to CNBC TV18, Live Mint, Upstox, and The Economic Times. The bonus share announcement was made in conjunction with the company's Q4FY26 results, representing a significant shareholder reward initiative. This marks the second bonus issue in as many years for the company, following a similar 1:1 ratio bonus issue in March 2025. The record date for the bonus issue will be intimated at a later date. Following the bonus issue, Anand Rathi Wealth's paid-up share capital will increase from ₹41.51 crore to ₹83.02 crore, with the total number of shares rising from 8.30 crore to 16.60 crore shares. The bonus shares will rank pari passu with existing shares, meaning they will carry identical rights, including voting and dividend entitlements. The company has strong financial backing for this issuance, with free reserves exceeding ₹950 crore as of March 31, 2026, ensuring that the bonus issue is well-supported by internal accruals.
For the fourth quarter, Anand Rathi reported strong financial results with standalone net profit zooming 40.5% to ₹103 crore compared to ₹73.37 crore in the same quarter last year, as reported by Upstox and The Economic Times. Revenue from operations increased by 29.67% year-on-year to ₹287.82 crore in Q4FY26 from ₹221.96 crore in the year ago period. However, the company faced margin pressure with EBITDA falling 6.7% to ₹84.7 crore from ₹90.8 crore last year. EBITDA margin contracted by 1,000 basis points to 29.4% from 40.9% in the year-ago period, indicating operational efficiency challenges despite strong top-line growth. The growth was driven by robust performance in the company's core wealth management business, with the performance underscoring the company's ability to capitalise on rising investor participation and demand for wealth advisory services amid buoyant financial markets.
For the fourth quarter, Anand Rathi Wealth's assets under management (AUM) stood at ₹93,037 crore for the January-March quarter of FY26, reflecting a 21% YoY jump from ₹77,103 crore in the same period of FY25, supported by steady net inflows and strong client engagement. The company's private wealth holding company saw its active client families grow by 14% YoY to 13,395 in FY26, with its relationship managers increasing to 401 from 380 last year. The digital wealth of its subsidiary companies surged by 22% YoY to ₹2,218 crore, and its omni financial advisor's (OFA) subscriber base increased to 6,906 compared to 6,447 in FY25. The company onboarded 1,663 new client families during the last one year on a net basis, bringing its total client base to 13,395 families, while maintaining a client attrition rate of just 0.54% measured by AUM lost. The company achieved a return on equity (RoE) of 46.7% during the quarter, demonstrating strong operational efficiency.
For the full financial year ended March 31, 2026, Anand Rathi achieved significant growth with total income of ₹1,25,311.47 lakh and net profit after tax of ₹39,744.05 lakh on a consolidated basis. In FY26, the company posted a 32.4% increase in profit at ₹391.43 crore, compared with ₹295.42 crore in FY25, as reported by The Hindu BusinessLine. The steady growth in annual earnings reflects consistent expansion in its client base and improved operating efficiencies over the year. The performance underscores the company's ability to capitalise on rising investor participation and demand for wealth advisory services amid buoyant financial markets, with the company's ability to maintain strong financial backing with free reserves exceeding ₹950 crore as of March 31, 2026.
At the end of the third quarter, promoters held 43.1% stake in the firm, while mutual funds owned 9.12% stake, according to latest reports. Around ₹70,000 retail shareholders, or those with an authorised share capital of up to ₹2 lakh, held 17% stake, while retail shareholders with authorised share capital of over ₹2 lakh held 14.78% stake. Shares of Anand Rathi are currently trading 2.40% higher at ₹3,480.20 on the NSE following the results announcement, as reported by Upstox. The stock has gained 10% so far this year, reflecting positive investor sentiment despite the margin contraction concerns. The dividend is subject to approval by shareholders at the upcoming Annual General Meeting and will be disbursed within 30 days of the meeting date. In FY26, the company's total dividend stood at ₹13 per share, including the aforementioned final dividend and an interim dividend of ₹6 per unit.
In addition to the bonus share issuance, the company has announced a significant expansion of its authorized share capital from ₹50 crore to ₹100 crore, reflecting continued confidence in its growth trajectory and commitment to enhancing shareholder value. The authorized share capital will be divided into 20 crore equity shares of ₹5 each, providing substantial flexibility for future capital requirements. This strategic move demonstrates the company's long-term growth plans and reflects management's confidence in maintaining strong financial backing, with free reserves exceeding ₹950 crore as of March 31, 2026. The bonus shares are expected to be credited to shareholders' demat accounts on or before June 7, 2026, subject to completion of all required formalities. As per The Economic Times, the bonus issue will be implemented using ₹41.51 crore from free reserves out of the total ₹950.22 crore available.
