According to reports from Moneycontrol, Motilal Oswal has recommended a Neutral rating on Anand Rathi Wealth with a target price of Rs 3,100 in its research report dated April 13, 2026. The brokerage's assessment is based on 45x FY28E EPS valuation, reflecting cautious optimism about the wealth management company's prospects.
As reported by Moneycontrol, Anand Rathi Wealth posted operating revenue of ₹2.9 billion in Q4FY26, which was in line with expectations and grew 30% YoY but remained flat quarter-on-quarter. The revenue growth was primarily driven by 35% YoY growth in revenue from distribution of financial products and 24% YoY growth in mutual fund distribution. For the full fiscal year FY26, the company achieved 22% YoY growth to ₹11.5 billion.
According to the research report, operating expenses for Q4FY26 grew 55% YoY to ₹2 billion, with employee costs and other expenses increasing by 67% and 15% YoY respectively. EBITDA stood at ₹848 million, down 7% YoY, primarily due to one-time ESOP impact, resulting in EBITDA margin of 29.5% compared to 40.9% in Q4FY25. Excluding the impact, EBITDA was ₹1.2 billion with margins at 43.1%.
As reported by Motilal Oswal, consolidated PAT for Q4FY26 stood at ₹1 billion, up 40% YoY, while excluding one-time impacts, PAT came in at ₹920 million, up 25% YoY. For the full fiscal year FY26, PAT reached ₹3.9 billion, up 28% YoY and slightly better than the company's guidance of ₹3.75 billion. The brokerage expects AUM, revenue, and PAT to expand at a CAGR of 22%, 20%, and 20% respectively over FY26-28, with robust cash generation of ₹8.3 billion during this period.
According to the research report, Motilal Oswal projects a healthy balance sheet with RoE of over 35% and expects strong performance metrics. The brokerage reiterates its Neutral rating based on the company's expected growth trajectory and financial projections, maintaining a one-year target price of ₹3,100 for Anand Rathi Wealth.
