Anand Rathi Share And Stock Brokers Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Anand Rathi Share And Stock Brokers Ltd filed with BSE on 20 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Anand Rathi Share and Stock Brokers reported Q1 FY27 revenue of Rs 2,461 million, up 22.37% year-on-year, with EBITDA growing 30.19% to Rs 973 million and a 39.54% EBITDA margin. The company recognized an exceptional expense of about Rs 209.96 million related to restoration of client securities following fraudulent off-market transfers in its depository business, which reduced PAT after exceptional items to Rs 233.51 million. Management also discussed growth in its MTF book and distribution AUM, a Dubai subsidiary plan for NRI customers, and the impact of regulatory changes on the broking and derivatives segments.
Numbers mentioned
Revenue from operations: ₹2,461 million (Q1 FY27)
p. 4
“our total revenue from operations for the quarter stood at about ₹2,461 million, representing a growth of 22.37% Y-o-Y”
Pradeep Gupta, page 4 of the filed PDF · View the filing
EBITDA: ₹973 million (Q1 FY27)
p. 4
“EBITDA grew by 30.19% to ₹973 million, translating into a healthy EBITDA margin of 39.54%”
Pradeep Gupta, page 4 of the filed PDF · View the filing
PAT before exceptional items: ₹391 million (Q1 FY27)
p. 4
“PAT before exceptional items grew by almost 71.2% to ₹391 million, translating to PAT margin (before exceptional item) before exceptional item of 16%”
Pradeep Gupta, page 4 of the filed PDF · View the filing
PAT after exceptional item: ₹233.51 million (Q1 FY27)
p. 6
“PAT (after exceptional item) is ₹233.51 million, growing by 2.35% Y-o-Y basis, with a PAT margin (after exceptional item) of 9.49%”
Roop Bhootra, page 6 of the filed PDF · View the filing
Asset under custody: ₹1.13 lakh crores (Q1 FY27)
p. 5
“Our asset under custody stood at about ₹1.13 lakh crores, representing an annual growth of about 21.44% from Q1 FY26”
Pradeep Gupta, page 5 of the filed PDF · View the filing
MTF book: ₹13,318 million (Q1 FY27)
p. 5
“Our MTF book stood at ₹13,318 million with a strong rise of about 55% from last year”
Pradeep Gupta, page 5 of the filed PDF · View the filing
Distribution AUM: ₹94,791 million (Q1 FY27)
p. 5
“the distribution AUM, which gives us a long trail income, reached to ₹94,791 million, growing by about 25.82% Y-o-Y”
Pradeep Gupta, page 5 of the filed PDF · View the filing
Exceptional expense: ₹209.96 million (Q1 FY27)
p. 5
“we have recognized an exceptional expense of about ₹209.96 million towards the restoration of securities of two of our clients in depository segment businesses”
Pradeep Gupta, page 5 of the filed PDF · View the filing
Debt-equity ratio: 0.81 (as of 30th June)
p. 6
“Our debt-equity ratio stands at 0.81 as of 30th June, which enables to increase our borrowing limit at reasonable cost”
Roop Bhootra, page 6 of the filed PDF · View the filing
Employee base: 2,263 (Q1 FY27)
p. 6
“Our employee base has grown to 2,263 during the quarter, up from 2,148 in quarter 1 FY26”
Roop Bhootra, page 6 of the filed PDF · View the filing
MTF yield: around 14% (Q1 FY27)
p. 15
“Our yield in terms of MTF book is around 14% kind of level”
Roop Bhootra, page 15 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
MTF book size — ₹1,750 crores to ₹1,800 crores · by end of FY27
stated firmly by Pradeep Gupta
p. 5
“we expect our MTF book to reach around ₹1,750 crores to ₹1,800 crores by end of this financial year”
Pradeep Gupta, page 5 of the filed PDF · View the filing
Distribution AUM growth — 40%
stated as an aspiration by Pradeep Gupta
p. 5
“distribution AUM is targeted to scale by 40%, driven by higher wallet share of existing client and disciplined risk management”
Pradeep Gupta, page 5 of the filed PDF · View the filing
Broking vs non-broking revenue mix — 50-50 mix
stated firmly by Pradeep Gupta
p. 5
“we will continue to move towards maintaining a 50-50 mix between our broking and non-broking income, despite active growth in both the businesses”
Pradeep Gupta, page 5 of the filed PDF · View the filing
Revenue growth — 20% to 25%
stated as an aspiration by Pradeep Gupta
p. 12
“our typical endeavour is going to be that we are going constantly going to grow between, you know, 20% to 25%”
Pradeep Gupta, page 12 of the filed PDF · View the filing
Revenue growth minimum — 15% to 20%
stated conditionally by Pradeep Gupta
p. 12
“till the time we are not going to achieve the 50-50% kind of a module in broking and non-broking, we will constantly see that our revenue growth should be minimum around 15% to 20%”
Pradeep Gupta, page 12 of the filed PDF · View the filing
PAT growth — 30% to 35%
stated as an aspiration by Pradeep Gupta
p. 12
“our bottom line which is PAT should grow by somewhere around 30% to 35%”
Pradeep Gupta, page 12 of the filed PDF · View the filing
Debt-equity ratio — around two times
stated as an aspiration by Pradeep Gupta
p. 14
“I believe in this scenario, uh, in this industry, two-time kind of a debt-equity is reasonable”
Pradeep Gupta, page 14 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the MTF book is only used for cash market transactions, not F&O, with diversification controls and per-customer limits, and no delinquencies since 2017.
Answered by Pradeep Gupta
Asked by Nachiket Kale: What is the risk management approach for the MTF book given rising MTF volumes across the industry?
p. 8
“we have been working in this space since 2017 and there is not a single paisa or pie is being lost or we have seen any kind of a delinquencies in our, this MTF book”
Pradeep Gupta, page 8 of the filed PDF · View the filing
Management explained the average book size was similar between quarters because the book had declined in March before recovering in Q1.
Answered by Roop Bhootra
Asked by Yash Jhurani: Why did MTF interest income stay flat despite loan book growth this quarter?
p. 9
“since the average book size in both the quarter was at par, so that's why the interest income was at a flat level, but the positive thing that book is now continuously growing in this particular quarter”
Roop Bhootra, page 9 of the filed PDF · View the filing
Management described appointing an external agency including EY for forensic audit and process review, reporting to police and EOW, and pursuing insurance claims.
Answered by Pradeep Gupta
Asked by Arka Bhattacharjee: What specific measures were taken to prevent repeat of the fraudulent transfer incident?
p. 11
“we appointed, you know, outside agency including EY to do forensic audit as well as to run through a complete check of our processes and systems”
Pradeep Gupta, page 11 of the filed PDF · View the filing
Management maintained its 15%-25% long-term revenue growth range and 30-35% PAT growth target rather than revising guidance.
Answered by Pradeep Gupta
Asked by Arka Bhattacharjee: Given 22% revenue growth already at the upper end of prior guidance, is there room to revise the annual growth guidance upward?
p. 12
“15% to 25% is a range which we have set for ourselves and obviously we will keep on doing it and addressing this issue”
Pradeep Gupta, page 12 of the filed PDF · View the filing
Management attributed the dip to seasonality in insurance distribution revenue, which is concentrated in the January-March quarter.
Answered by Pradeep Gupta
Asked by Shweta Sharma: Why did the non-broking segment show a Q-o-Q dip and how will the company avoid this in future?
p. 13
“Most of the insurance businesses happen in January, February, March”
Pradeep Gupta, page 13 of the filed PDF · View the filing
Management said the ratio had fallen after IPO capital infusion and that they intend to increase borrowing to expand the MTF book and overall business.
Answered by Roop Bhootra
Asked by Shweta Sharma: Why is the debt-equity ratio elevated and should further leverage increase be expected?
p. 14
“Our idea is surely there to increase the debt-equity ratio”
Roop Bhootra, page 14 of the filed PDF · View the filing
Management stated the MTF yield is around 14%, with separate brokerage income from cash delivery.
Answered by Roop Bhootra
Asked by Deep Himani: What is the blended yield on the MTF book and average cost of funds?
p. 15
“Our yield in terms of MTF book is around 14% kind of level and naturally on that particular additional income in terms of brokerage is generated towards the cash market delivery side, that is separate”
Roop Bhootra, page 15 of the filed PDF · View the filing
Risks flagged
Fraudulent off-market transfer of client securities in depository business leading to exceptional expense
p. 5
“we have recognized an exceptional expense of about ₹209.96 million towards the restoration of securities of two of our clients in depository segment businesses who suffered losses due to fraudulent off-market transfer from their demat account”
Pradeep Gupta, page 5 of the filed PDF · View the filing
Foreign institutional outflows during the quarter
p. 3
“Foreign outflow continued through the quarter totaling roughly about ₹1.43 lakh crores across April-June quarter compared with the ₹1.31 lakh crores during Jan-March 26 quarter”
Pradeep Gupta, page 3 of the filed PDF · View the filing
Monsoon rainfall deficit affecting sentiment
p. 3
“India's monsoon began with a sharp 40% rainfall deficit in June due to El Niño”
Pradeep Gupta, page 3 of the filed PDF · View the filing
Regulatory changes increasing working capital requirements for capital market intermediaries
p. 4
“the RBI's revised capital market exposure framework, now effective from July 1st, 2026, introduces a more principle-based approach to bank lending to capital market intermediaries, resulting in increase in the working capital significantly”
Pradeep Gupta, page 4 of the filed PDF · View the filing
Moderation in derivative segment trading activity due to regulatory curbs
p. 4
“moderation is seen in the trading activity in the derivative segment, indicating the incremental participation is increasingly being driven by long-term investing rather than purely trading-led activities”
Pradeep Gupta, page 4 of the filed PDF · View the filing
MTF book susceptibility to risk from leverage
p. 8
“this book is susceptible to risk, but it all depends how you are trying and managing your risk”
Pradeep Gupta, page 8 of the filed PDF · View the filing
LRS limitation constraining international investment offerings for domestic customers
p. 13
“all these investments are subject to your LRS limitation where probably you have to take permission and under that LRS scheme you can probably go and invest only to a certain amount of dollar which is $250,000 per account per year”
Pradeep Gupta, page 13 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.