Anand Rathi Wea. Q1 FY27 Results (NSE: ANANDRATHI)
Signal: Earnings grew
The read
The operating trajectory remains positive but moderated to revenue growth of 17.5% YoY from 29.7% in Q4FY26, while the apparent PAT acceleration to +73.6% was driven disproportionately by other income of ₹11,027.79 lakh, equal to 53.5% of consolidated PBT; the key thesis issue is whether core wealth-distribution earnings can sustain growth without this non-operating uplift.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹321.99 Cr | +17.5% | +11.9% |
| EBIT | ₹209.78 Cr | +66.2% | |
| Net profit | ₹163.01 Cr | +73.6% | |
| EPS | ₹9.82 | +73.8% | |
| EBIT margin | 68% |
P&L walk
Revenue rose to ₹32,198.50 lakh, +17.5% YoY and +11.9% QoQ, while reported EBITDA margin was 68%; PAT increased to ₹16,300.77 lakh, +73.6% YoY, but ₹11,027.79 lakh of other income represented 53.5% of PBT and explains a substantial part of the bottom-line acceleration.
Segments
The group has one business segment, sale and distribution of financial products within India; standalone PAT of ₹16,322.36 lakh exceeded consolidated PAT of ₹16,300.77 lakh by ₹21.59 lakh, so subsidiaries had no material earnings contribution in the quarter.
Key positives
- Consolidated revenue reached ₹32,198.50 lakh, up 17.5% YoY and 11.9% QoQ, extending the revenue growth trajectory despite deceleration from Q4FY26's 29.7% YoY.
- Standalone revenue growth of 18.2% YoY to ₹31,294.92 lakh exceeded consolidated growth, confirming that the parent business remains the primary growth engine.
- Finance costs declined 10.4% YoY to ₹357.75 lakh while consolidated EBIT rose 66.2% YoY to ₹20,978 lakh.
- The company is pursuing a new growth avenue by proposing an application to SEBI to act as sponsor of a mutual fund and, subject to approvals, establish an AMC and trustee company.
Key concerns
- Other income surged 990.8% YoY to ₹11,027.79 lakh and represented 53.5% of consolidated PBT, making the 73.6% PAT growth less representative of recurring operating momentum.
- Employee benefit expenses rose 53.4% YoY to ₹17,617.00 lakh, materially faster than revenue growth of 17.5% YoY.
- Revenue growth decelerated from 29.7% YoY in Q4FY26 to 17.5% YoY in Q1FY27, while the prior-results series shows OPM contracting in both Q4FY26 and Q1FY27.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.