Anand Rathi Wea. Q2 FY27 Results (NSE: ANANDRATHI)
Signal: Earnings declined
The read
The trajectory has shifted from the prior growth-and-margin expansion phase: Q2FY27 revenue grew 15.7% YoY, but EBITDA margin contracted to 34.0% from 46.2% as employee costs rose 50.1%; this is the third consecutive quarter with YoY margin contraction after Q4FY26 and Q1FY27, while revenue growth also decelerated from 17.5% in Q1FY27.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹343.99 Cr | 15.7% | 6.8% |
| EBIT | ₹107.53 Cr | -16.7% | |
| Net profit | ₹89.26 Cr | -10.6% | |
| EPS | ₹5.38 | -10.5% | |
| EBIT margin | 34.0% |
P&L walk
Revenue increased 15.7% YoY to ₹34,398.98 lakh, but employee costs rose 50.1% and reduced EBITDA margin to 34.0% from 46.2%; PAT fell 10.6% to ₹8,925.80 lakh despite lower finance costs.
Segments
The Group operates in one business segment, sale and distribution of financial products in India; the ₹8,925.80 lakh consolidated PAT was only ₹96.58 lakh above standalone PAT of ₹8,829.22 lakh, so subsidiaries did not materially change the quarter's result.
Key positives
- Revenue reached ₹34,398.98 lakh, up 15.7% YoY and 6.8% QoQ, with growth remaining positive despite decelerating from 17.5% in Q1FY27.
- The balance sheet remains net-cash positive at ₹27,857.63 lakh, with ₹29,401.07 lakh of cash against ₹1,543.44 lakh of borrowings.
- Finance costs fell 33.8% YoY to ₹320.16 lakh, and EPS tracked PAT closely at ₹5.38 versus ₹6.01 a year earlier.
Key concerns
- Employee costs rose 50.1% YoY to ₹18,755.65 lakh against 15.7% revenue growth, compressing operating margin by 1,227bps to 34.0%.
- PAT fell 10.6% YoY to ₹8,925.80 lakh despite revenue growth, showing that current earnings momentum is not converting into bottom-line growth.
- Operating cash flow declined 6.5% YoY to ₹10,705.26 lakh for H1FY27 while H1 PAT increased 30.3% YoY, partly reflecting working-capital movements and a ₹6,408.41 lakh increase in other financial assets.
Research and educational content only. Not investment advice.