Anand Rathi Share and Stock Brokers Limited — Investor Meet, 20-04-2026: Analysts/Institutional Investor Meet/Con. Call Updates

Anand Rathi Shares and Stock Brokers Limited held an earnings conference call to discuss the financial results for the fourth quarter and full financial year ended March 31, 2026. Management provided an overview of the company's financial and operating performance, followed by a Q&A session.

**Financial Performance:**

* **Q4 FY26:** Revenue ₹2,557 million, EBITDA ₹1,103 million, PAT ₹416 million. YoY growth: Revenue 28.1%, EBITDA 51.4%, PAT 125.7%. Margins: EBITDA 43.2%, PAT 16.2%.

* **FY26:** Revenue ₹9,322 million, EBITDA ₹3,796 million, PAT ₹1,293 million. YoY growth: Revenue 10.2%, EBITDA 21.9%, PAT 24.8%. Margins: EBITDA 40.7%, PAT 13.8%.

* Broking segment contributed 51% and non-broking 49% to full-year revenue.

* Distribution income grew 44.1% YoY to ₹1,129 million in FY26.

* MTF book stood at ₹11,019 million, up 61% YoY, though it saw a 10.53% dip in Q4 FY26 due to RBI policy changes and market conditions. Interest income from MTF grew 50.2% YoY in Q4.

**Management Commentary and Outlook:**

Management highlighted FY26 as a challenging year due to global headwinds but emphasized strong long-term structural drivers for the Indian market, including rising demat accounts and mutual fund AUM. The company focused on enhancing client servicing, completing its IPO, and obtaining a corporate agency license for insurance distribution. The strategic priority is a 50-50 revenue split between broking and non-broking segments, aiming for steady growth in both.

**Operational Updates:**

* Total assets under custody: ₹944,155 million (+16% YoY).

* Margin Trading Facility (MTF) book: ₹11,019 million (+61% YoY).

* Asset under Management (AUM): ₹77,876 million (+21% YoY).

* Zero NPA on MTF book maintained.

* 42% of active clients with the company for over five years.

* Debt-equity ratio improved to 0.62 from 1.8.

**Analyst Q&A Highlights:**

* **Business Strategy:** Company focuses on broking and distribution, with a "phygital" approach combining digital platforms and relationship managers.

* **Risk Management:** Conservative approach with internal risk controls stricter than regulations. MTF basket restricted and margins increased internally. Debt-equity ratio managed.

* **Revenue Mix:** Aiming for 50-50 broking/non-broking, projecting 15-20% overall revenue growth annually. Non-broking expected to grow 40-45% and broking around 15%.

* **MTF Yields:** Currently not facing significant pressure due to pent-up demand, but open to managing yields amid competition.

* **Broking Revenue:** Focus on stabilizing broking revenue by balancing cash and derivatives, with a 50-50 split. Emphasis on investment-focused and hedge positions rather than highly leveraged trading. No proprietary book exposure.

* **Client Base:** AUC growth primarily from existing clients, with total client base up 12.7% and active clients largely flat or down slightly in the last financial year.

**Investor Angle:**

Management expressed confidence in long-term growth driven by structural Indian market trends and the company's diversified business model. A strong focus on client relationships, risk management, and a balanced revenue mix underpins their strategy.