Anand Rathi Shar Q1 FY27 Results (NSE: ARSSBL)
Signal: Margin expansion
The read
Operating momentum remains strong with 22% revenue growth and 237bps margin expansion; the exceptional charge of ₹15.7 Cr distorts headline PAT, but underlying earnings quality is solid driven by MTF book expansion (+55% YoY) and AUM growth (+26% YoY) supporting recurring income.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹246.1 Cr | 22.4% | -3.7% |
| Net profit | ₹39.06 Cr | 71.2% | |
| EPS | ₹0 | ||
| EBIT margin | 39.5% |
P&L walk
Revenue grew 22% YoY but slipped 3.7% QoQ; EBITDA margin expanded 237bps YoY to 39.5% on operating leverage; PAT (before exceptional) surged 71% YoY to ₹39.1 Cr; PAT (after exceptional) was ₹23.4 Cr due to a one-time exceptional charge of ₹15.7 Cr.
Key positives
- MTF book grew 54.6% YoY to ₹1,331 Cr, driving interest income +52% YoY
- AUM up 25.8% YoY to ₹9,479 Cr, underpinning recurring revenue
- EBITDA margin expanded 237bps YoY to 39.5% on operating leverage
- PAT (before exceptional) up 71% YoY to ₹39.1 Cr, outpacing revenue growth
Key concerns
- Exceptional item of ₹15.7 Cr (undisclosed nature) cut reported PAT by 40%
- Sequential revenue declined 3.7% QoQ — typical Q1 seasonal softness but needs monitoring
- Distribution income fell 21.9% QoQ, partly seasonal but also suggests lumpy income
Research and educational content only. Not investment advice.