Anand Rathi Share and Stock Brokers delivered impressive financial results for Q2FY27, with consolidated net profit surging 50% year-on-year to ₹419 million compared to ₹297 million in the corresponding quarter of the previous fiscal year. According to the latest financial results, revenue from operations grew 20% YoY to ₹2,732 million in Q2FY27, demonstrating robust operational growth across the brokerage's business segments. The company's EBITDA stood at ₹999 million with a margin of 37%, showing absolute growth despite margin compression. However, shares fell around 6% on Wednesday despite the strong results, as investor sentiment was dented by margin compression concerns.
While the company achieved strong profit growth, EBITDA margin declined 421 basis points to 36.55% from 40.76% year-on-year, despite absolute EBITDA growth of 7.9% to ₹999 million. As reported in the latest financial results, operating expenses rose 14% YoY, primarily driven by a 31% increase in employee benefit costs. This margin compression suggests that cost structure relative to revenue faced pressure during the quarter, though the company's trail-based revenues now cover 76% of employee costs, indicating a strengthening resilience in the earnings profile and improved operational efficiency.
The company's growth was primarily driven by non-broking revenues, with interest income from the margin trading facility (MTF) business rising 36% year-on-year to ₹496 million. According to the latest results, revenue from broking and related services increased by 34.0% YoY, highlighting the growing contribution of diversified revenue streams. Distribution income rose to ₹32.7 crore during the quarter, reflecting the company's progress in building a diversified earnings profile with a higher share of recurring and non-broking revenues. Assets under management (AUM) increased more than 29% YoY to ₹9,999 crore while MTF book jumped over 38% YoY to ₹1,499 crore during the second quarter.
According to the latest earnings call transcript, Anand Rathi Wealth Limited achieved its highest net flow ever in the last 20 years, collecting ₹4,186 crores in new fresh moneys, representing a 39% increase from the corresponding quarter of FY26. The company also recorded its highest ever quarterly equity mutual fund net flow of ₹2,867 crores, up 39% year-on-year. As reported by The Economic Times, Pradeep Gupta, chairman and managing director, noted that the quarter was characterized by heightened market volatility arising from geopolitical issues and regulatory changes. The company continues to invest in technology to improve customer experience and remains confident about its long-term growth trajectory.
For the first half of FY27, EBITDA stood at ₹197.2 crore with a margin of 38%, while profit after tax (PAT), before an exceptional item, was ₹81 crore with a PAT margin of 16%. As reported by The Economic Times, Roop Kishor Bhootra, wholetime director, emphasized the company's focus on deepening client relationships, strengthening technology infrastructure, and broadening product and advisory capabilities to support sustainable growth and create long-term value for all stakeholders. The company has declared an interim dividend of ₹4 per share and achieved 52% penetration of the PAT guidance of ₹460 crores in the first half. 55% of clients have been associated with the company for more than three years, reflecting the strength of longstanding client relationships and the company's balanced and scalable business model.
