## **Table of Contents** 1. [Q4FY26 vs Q3FY26 Concall Overview and Performance Context](#anchor1) 2. [Assets Under Custody and Management Comparison](#anchor2) 3. [Revenue Growth and Financial Performance Analysis](#anchor3) 4. [Management Guidance and Strategic Targets](#anchor4) 5. [Margin Trading Finance and Business Metrics](#anchor5) 6. [Operational Efficiency and Profitability Enhancement](#anchor6) --- <h2 id="anchor1">Q4FY26 vs Q3FY26 Concall Overview and Performance</h2> [Anand Rathi Share & Stock Brokers Ltd](isin#INE549H01021) conducted its Q4FY26 earnings concall following the completion of the financial year ended March 31, 2026, addressing the company's performance across its broking, distribution, and margin trading finance segments. The Q4FY26 concall revealed accelerated growth momentum compared to Q3FY26, with the company achieving revenue of ₹255.7 crore in Q4FY26 versus ₹248.2 crore in Q3FY26, representing sequential growth alongside sustained YoY expansion. The concall emphasized the company's strategic achievement of maintaining a balanced revenue mix between broking and non-broking segments, with Q4FY26 showing 47% broking and 53% non-broking revenue composition. The comparison between Q4FY26 and Q3FY26 concalls demonstrated the company's operational resilience during varying market conditions, with Q4FY26 benefiting from improved market sentiment toward the year-end while Q3FY26 had navigated challenges from foreign investor outflows and market volatility. The Q4FY26 concall highlighted the successful completion of the company's IPO in September 2025, raising ₹745 crore, which provided additional capital for business expansion and strategic initiatives. Management emphasized the achievement of zero NPA maintenance on the MTF book throughout both quarters, reflecting consistent risk management practices across the comparative periods. Q4FY26 demonstrated superior financial performance with revenue from operations reaching ₹255.7 crore, up 28.1% YoY, compared to Q3FY26's ₹248.2 crore with 21.5% YoY growth. EBITDA for Q4FY26 achieved ₹110.3 crore with a 43.2% margin, while Q3FY26 recorded ₹101.15 crore with a 40.8% margin, indicating continued operational leverage expansion. ### **Sequential Performance Trajectory** The sequential improvement from Q3FY26 to Q4FY26 showed revenue growth of approximately 3% QoQ, while EBITDA expanded by 9% sequentially, demonstrating the company's ability to enhance operational efficiency across consecutive quarters despite market uncertainties. ### **Full Year FY26 Performance** The Q4FY26 concall provided full year FY26 context, with revenue from operations reaching ₹932.2 crore (10.2% YoY growth), EBITDA of ₹379.6 crore (21.9% YoY growth with 40.7% margin), and PAT of ₹129.3 crore (24.8% YoY growth with 13.8% margin). These annual figures provided perspective on the quarterly performance trajectory from Q3FY26 to Q4FY26. The Q4FY26 concall emphasized the successful completion of strategic initiatives including IPO completion, insurance license acquisition, and product expansion across mutual funds, PMS, AIF, structured products, bonds, and insurance distribution. These developments supported the performance improvements observed between Q3FY26 and Q4FY26, while positioning the company for continued growth in subsequent periods. The comparison between Q4FY26 and Q3FY26 concalls demonstrated the company's ability to maintain growth momentum while adapting to changing market conditions, with Q4FY26 showing enhanced profitability metrics and strategic achievement of balanced revenue composition targets outlined in earlier quarterly discussions. The sequential revenue growth of 3% from Q3FY26 to Q4FY26, combined with EBITDA margin expansion of 240 basis points, reflected operational excellence and strategic execution across both comparative quarters. <h2 id="anchor2">Assets Under Custody and Management Comparison</h2> Q4FY26's Assets Under Custody is at ₹94,415.5 crore, representing a 16% YoY growth, while Q3FY26 had achieved ₹1,05,772.7 crore, indicating some sequential moderation likely due to market movements and portfolio rebalancing activities. The Q4FY26 figure reflects the company's measured approach toward asset custody growth, focusing on quality client relationships rather than aggressive expansion. Assets under management stood at ₹7,787.6 crore in Q4FY26, showing 21% YoY growth, compared to Q3FY26's ₹8,368.8 crore with 32% YoY growth. The sequential decline from Q3FY26 to Q4FY26 in AUM can be attributed to market volatility and client portfolio adjustments during the quarter-end period, though the YoY growth remained positive. ### **AUM Composition and Distribution Performance** The Q4FY26 concall highlighted distribution income of ₹35.3 crore, up 34.3% YoY, indicating strong performance in the wealth management segment despite AUM fluctuations. This compared favorably with Q3FY26's distribution performance, demonstrating the resilience of trail income generation and new client acquisition activities. | **Asset Metrics** | **Q4FY26** | **Q3FY26** | **Sequential Change** | **Q4FY26 YoY** | **Q3FY26 YoY** | |-------------------|------------|------------|---------------------|----------------|----------------| | Assets Under Custody (₹ crore) | 94,415.5 | 1,05,772.7 | -10.7% | +16% | +47.7% | | Assets Under Management (₹ crore) | 7,787.6 | 8,368.8 | -6.9% | +21% | +32% | | Distribution Income (₹ crore) | 35.3 | ~26.0 | +35.8% | +34.3% | ~26% |  <h2 id="anchor3">Revenue Growth and Financial Performance Analysis</h2> Q4FY26 revenue from operations reached INR 255.7 crore, demonstrating 28.1% YoY growth and 3% sequential growth from Q3FY26's INR 248.2 crore. The Q4FY26 performance showed acceleration in growth momentum compared to Q3FY26's 21.5% YoY growth, indicating strengthening business fundamentals across the company's diversified revenue streams. EBITDA performance showed significant improvement, with Q4FY26 achieving INR 110.3 crore (43.2% margin) compared to Q3FY26's INR 101.15 crore (40.8% margin). The sequential margin expansion demonstrated continued operational leverage realization and cost optimization initiatives implemented across both quarters. ### **Profitability Enhancement Trajectory** Profit After Tax reached INR 41.6 crore in Q4FY26 with a 16.2% margin, compared to Q3FY26's INR 37.0 crore with a 14.9% margin. The sequential PAT growth of 12.4% alongside margin expansion of 130 basis points reflected the company's ability to convert revenue growth into bottom-line profitability enhancement. The Q4FY26 concall emphasized the achievement of 125.7% YoY PAT growth, building upon Q3FY26's strong 71.8% YoY PAT growth, demonstrating sustained profitability momentum across consecutive quarters. | **Financial Metrics** | **Q4FY26** | **Q3FY26** | **Sequential Change** | **Q4FY26 YoY** | **Q3FY26 YoY** | |----------------------|------------|------------|---------------------|----------------|----------------| | Revenue (INR crore) | 255.7 | 248.2 | +3.0% | +28.1% | +21.5% | | EBITDA (INR crore) | 110.3 | 101.15 | +9.0% | +51.4% | +31.5% | | EBITDA Margin | 43.2% | 40.8% | +240 bps | +666 bps | +320 bps | | PAT (INR crore) | 41.6 | 37.0 | +12.4% | +125.7% | +71.8% | | PAT Margin | 16.2% | 14.9% | +130 bps | +703 bps | +440 bps | <h2 id="anchor4">Management Guidance and Strategic Targets</h2> The Q4FY26 concall provided comprehensive guidance for future growth, with management targeting 40-45% annual growth for the non-broking segment and approximately 15% annual growth for the broking segment. This compared with Q3FY26 guidance that focused on achieving INR 9,500-10,000 crore distribution AUM and INR 1,500 crore MTF book targets, which were largely met by year-end. Management outlined an overall revenue growth target of 15-20% annually, emphasizing the strategic focus on maintaining a balanced 50:50 revenue mix between broking and non-broking segments. The Q4FY26 concall revealed achievement of 47% broking and 53% non-broking revenue composition, indicating successful execution of this strategic objective. ### **Strategic Focus Areas and Targets** The Q4FY26 concall emphasized the target MTF book size of INR 1,500 crore, with current achievement of INR 1,101.9 crore representing 61% YoY growth. This compared with Q3FY26's MTF book of INR 1,231.7 crore, showing some sequential moderation but maintaining strong YoY growth trajectory. | **Strategic Targets** | **Q4FY26 Status** | **Q3FY26 Status** | **Management Guidance** | |----------------------|-------------------|-------------------|------------------------| | MTF Book Size (INR crore) | 1,101.9 | 1,231.7 | Target: 1,500 | | Revenue Mix (Non-Broking) | 53% | ~48% | Target: 50% | | Overall Revenue Growth | 28.1% YoY | 21.5% YoY | Target: 15-20% annually | <h2 id="anchor5">Margin Trading Finance and Business Metrics</h2> The Q4FY26 concall revealed MTF book size of INR 1,101.9 crore, representing 61% YoY growth, though showing sequential decline from Q3FY26's INR 1,231.7 crore. Interest income from MTF reached INR 43.2 crore in Q4FY26, up 2.2% YoY, compared to Q3FY26's INR 43.8 crore, showing relatively stable performance in this segment. The Q4FY26 concall emphasized the maintenance of zero NPA on the MTF book throughout the year, consistent with Q3FY26's risk management performance. Management highlighted that the majority of MTF exposure remained from clients with individual balances below INR 1 crore, ensuring portfolio granularity and risk diversification across both quarters. ### **Broking Segment Performance** Q4FY26 broking revenue reached INR 120.1 crore, up 14.5% YoY, while representing 47% of total revenue compared to Q3FY26's higher broking contribution. The revenue mix within broking showed equity cash contributing 51%, equity derivatives 41%, and others 8%, indicating a balanced approach across trading segments. The Q4FY26 concall revealed client demographics with 83% of active clients over 30 years of age and 42% of active clients associated for over 5 years, demonstrating client loyalty and relationship stability that supported both Q4FY26 and Q3FY26 performance. | **Business Metrics** | **Q4FY26** | **Q3FY26** | **Sequential Change** | **Q4FY26 YoY** | |---------------------|------------|------------|---------------------|----------------| | MTF Book Size (INR crore) | 1,101.9 | 1,231.7 | -10.5% | +61% | | MTF Interest Income (INR crore) | 43.2 | 43.8 | -1.4% | +2.2% | | Broking Revenue (INR crore) | 120.1 | ~129 | -6.9% | +14.5% | | Distribution Income (INR crore) | 35.3 | ~26 | +35.8% | +34.3% | <h2 id="anchor6">Operational Efficiency and Profitability Enhancement</h2> The Q4FY26 concall highlighted significant operational efficiency improvements, with EBITDA margin reaching 43.2% compared to Q3FY26's 40.8%, representing 240 basis points sequential expansion. The debt-to-equity ratio improved to 0.62 in Q4FY26, demonstrating enhanced capital structure management compared to previous periods. Employee count reached 2,214 in Q4FY26, representing an addition of 132 employees YoY, indicating controlled expansion in human resources aligned with business growth requirements. This compared with Q3FY26's focus on operational leverage through existing workforce optimization.