Anand Rathi Wealth Q2 adjusted profit rises 22% as AUM reaches Rs 1.08 lakh crore

Anand Rathi Wealth, which looks after investments for affluent families through dedicated relationship managers, filed its investor presentation for the quarter and half year ended 30th September 2026 on 9th October 2026 . Adjusted total revenue rose about 16% and profit after tax, or PAT, rose about 22% in Q2, with assets under management up 18.4% to Rs 1,08,377 crore, leaving the firm about half-way to its full-year targets .

Adjusted profit grew faster than sales as costs stayed below revenue

Costs grew slower than revenue on an adjusted basis

The company shows its main read on an adjusted basis that excludes fair value gains on investments, ESOP expenses and related tax effects to reflect business performance . On that basis, employee and other costs grew slower than revenue, so profit grew faster than sales.

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Employee benefit expenses and other expenses both grew below revenue on this basis in Q2 and H1 . That operating leverage explains the margin gain in both periods.

The longer adjusted run points to consistency. Q2FY27 PAT growth was 22.2% and Q1FY27 was 23.5%, with mean growth of 31.1% and median of 32.7% over the last 18 quarters .

Reported Q2 profit fell once ESOP and market gains are included

The including basis, which the deck describes as adjusted to include fair value gains, ESOP expenses and related tax effects, tells a different quarterly story .

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Employee costs jumped on this basis while total costs rose well above revenue, so Q2 PAT declined . H1 PAT on the same basis still rose to Rs 252.3 crore from Rs 193.6 crore .

Larger asset base lifts recurring fees

Mutual fund assets anchor growth while other assets grow fastest

Consolidated AUM and Private Wealth AUM both rose year on year . Private Wealth AUM was Rs 1,05,847 crore in Sep-26 against Rs 89,357 crore in Sep-25 .

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That stock has compounded over years from a much smaller base.

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Revenue follows the same two engines, with other financial products larger than mutual funds but mutual funds growing slightly faster in Q2 .

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Recurring fees on assets held also moved with AUM.

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New money rebounded sharply in Q2

Q2 inflows jumped after a soft start to the year

New money added after withdrawals plus market gains drives next-period AUM . Q2 was strong on both total and equity flows.

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Both lines grew 39% in Q2 . Monthly systematic flows also rose.

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Half-year equity inflows still grew despite Q1 softness

The half-year shows a smaller total gain because Q1 total inflows were lower than a year ago .

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H1 equity inflows grew 18% . The H1 equity total equals Q1 equity of Rs 1,902 crore plus Q2 equity of Rs 2,867 crore .

Rising share of industry flows supports future assets

The company links a higher share of industry inflows plus market gains to a higher share of industry assets .

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On the Q1 call, management recalled the 0.18% starting point and put FY26 at about 2.3% to 2.47%, and spoke of a long desire to reach 4% of Category II assets over 8 to 10 years .

Company sits about half-way to full-year targets

Guidance is given on the same adjusted basis that excludes fair value, ESOP and tax effects . After Q1, the company had reached 24% of revenue guidance and 25% of PAT guidance and said it remained confident of achieving guidance .

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H1 revenue and H1 PAT both grew over 17% and 22% on the adjusted basis . For the AUM path, management described a rule of about 1% of AUM as monthly net sales, or about Rs 1,060 crore a month on Rs 1,06,000 crore of assets, with an intent to do Rs 1,100 to Rs 1,200 crore a month .

Each adviser handles more money without adding many clients

Home-grown hiring keeps client load steady

The company calls wealth management a credibility marathon, not a capital race, where a manager cannot handle thousands of clients and growth is linear . Its rule is to build managers rather than buy them, since it takes nearly five years for a manager to succeed .

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AUM per manager rose while clients per manager stayed flat . On the Q1 call, management said 33 clients per manager leaves room for about 6,500 more families on existing capacity, plus 490 trained future managers .

More senior advisers now manage over Rs 200 crore each

The mix shifted toward higher-ticket managers .

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Exits among larger managers stayed low. Regret attrition covers managers with AUM above Rs 40 crore .

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The deck cites a consistent incentive structure for 19 years and over 12,000 person-hours of capability building in H1FY27, with pay for results not years of service . On the Q1 call, management reported zero regret exits and 0.09% client attrition by AUM lost .

Richer clients bring a larger share of assets

Clients moved up the wealth ladder as wallet share and returns rose .

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Newer families lowered the over-three-year share by count but raised it by value, pointing to stickiness of older money .

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Attrition by AUM lost ticked up but stayed low.

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Lower-risk mix aims to keep clients invested

A survey of 6,298 investors put best risk-adjusted return first, and management lists risk-adjusted returns, lower risk than Nifty and servicing as top priorities, answered by equity mutual funds plus structured products .

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The strategy shows beta to Nifty of 0.59 and Jensen Alpha, or extra return after equalising risk, of 5.97% for the same period . Management summarises outcomes as about 14% to 15% returns with beta of 0.6 for Alpha of 4% to 5% . On the Q1 call it put its highest-beta portfolio at 0.6 to 0.65, with about Rs 55,000 crore in equity and Rs 4,500 crore in debt within Rs 1,06,300 crore of AUM .

Small digital arms grow as cash payouts continue

Digital platforms add clients slowly

Digital Wealth serves mass affluent families with Rs 10 lakh to Rs 5 crore of assets .

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On the Q1 call that business was at Rs 2,526 crore and 7,320 clients, up 23% and 16% year on year .

The distributor platform also edged up.

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In Q1 it had 6,890 subscribers with Rs 1.66 lakh crore of platform assets .

Dividends and bonuses reward shareholders

Payouts rose over time alongside bonuses and a buy-back .

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H1FY27 interim was Rs 66.42 crore, FY25 buy-back was Rs 164.65 crore, and bonuses were 32:1 in FY17, 1:2 in FY22, 1:1 in FY25 and 1:1 in FY27 . Around this deck, the board on 9th October 2026 declared a Rs 4.00 per share interim dividend for FY 2026-27 to be paid within 30 days . The record date for the interim dividend is 15th October 2026.

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Sources

1. 1 Submission of Investor Presentation for the second quarter and half year ended 30th September, 2026
2. 2 Earnings-call transcript, 2026-07-15
3. 3 Board Meeting Outcome for Outcome Of Board Meeting Held On Friday, 09Th October, 2026
4. 4 Anand Rathi Wealth Ltd - 543415 - Revised Outcome Of Board Meeting Held On Thursday, 09Th July, 2026