Anand Rathi Share And Stock Brokers Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Anand Rathi Share And Stock Brokers Ltd filed with BSE on 20 Apr 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 Shares and Stock Brokers reported Q4 FY26 consolidated revenue of about Rs 2,557 million, EBITDA of Rs 1,103 million, and PAT of Rs 416 million, alongside full-year FY26 revenue of Rs 9,322 million, EBITDA of Rs 3,796 million, and PAT of Rs 1,293 million. Management described a decline in the MTF book during the quarter due to RBI policy changes affecting bank funding and cautious client positioning amid weak markets, even as distribution income grew 44.1% for the year. The company also detailed its broking-to-non-broking revenue mix, client base growth, and improvement in its debt-equity ratio following its September 2025 IPO.
Numbers mentioned
Consolidated revenue from operations: ₹ 2,557 million (Q4 FY26)
p. 4
“For the quarter ended March 31st, 2026, our consolidated revenue from operations stood at about ₹ 2,557 million and EBITDA at about ₹ 1,103 million, and PAT at about ₹ 416 million.”
Pradeep Gupta, page 4 of the filed PDF · View the filing
Full year consolidated revenue: ₹ 9,322 million (FY26)
p. 4
“For the full year for financial year '26, our consolidated revenue from operation stood at about ₹ 9,322 million, EBITDA at ₹ 3,796 million, and PAT at about ₹ 1,293 million.”
Pradeep Gupta, page 4 of the filed PDF · View the filing
EBITDA margin: 43% (Q4 FY26)
p. 5
“Our EBITDA margin for quarter 4 '26 stood at 43%, while PAT margin stood at about 16%.”
Pradeep Gupta, page 5 of the filed PDF · View the filing
Full year EBITDA margin: 41% (FY26)
p. 5
“For the full year '26, EBITDA margin was 41% and PAT margin was about 14%.”
Pradeep Gupta, page 5 of the filed PDF · View the filing
Assets under custody: ₹ 944,155 million (as of March 31, 2026)
p. 4
“As of March 31st, 2026, our total assets under custody stood at approximately ₹ 944,155 million, representing a growth of about 16% year-on-year.”
Pradeep Gupta, page 4 of the filed PDF · View the filing
MTF book: ₹ 11,019 million (as of March 31, 2026)
p. 4
“Our Margin Trading Facility book stood at around ₹ 11,019 million, up by about 61% year-on-year, while our asset under management stood at approximately ₹ 77,876 million, reflecting a growth of about 21% year-on-year basis.”
Pradeep Gupta, page 4 of the filed PDF · View the filing
Distribution income: ₹ 1,129 million (FY26)
p. 5
“Our distribution income for the full year for financial year '26 amounted to ₹ 1,129 million, reflecting a strong year-on-year growth of about 44.1% for the full year.”
Pradeep Gupta, page 5 of the filed PDF · View the filing
Broking revenue: ₹ 4,755 million (FY26)
p. 6
“For the full year '26, broking revenue stood at ₹ 4,755 million, representing a slight dip of 6.8% compared to the previous year.”
Roop Bhootra, page 6 of the filed PDF · View the filing
MTF interest income: ₹ 432 million (Q4 FY26)
p. 7
“Despite all this, our interest income from MTF book stood at ₹ 432 million during quarter 4, ‘26 and ₹ 1,515 million during full year '26, which translates into a healthy 50.2% Y-o-Y growth for quarter 4 and 32.6% Y-o-Y growth for the full year.”
Roop Bhootra, page 7 of the filed PDF · View the filing
Debt equity ratio: 0.62 (as of March 31, 2026)
p. 7
“Turning to our balance sheet, our debt equity ratio stood at 0.62 as of March 31st, 26, compared to 1.8 as of March 31st, 25.”
Roop Bhootra, page 7 of the filed PDF · View the filing
Employee base: 2,214 (as of March 31, 2026)
p. 7
“As of March 31st, 26 our employee base stood at 2,214, representing a net addition of 132 employees year-on-year.”
Roop Bhootra, page 7 of the filed PDF · View the filing
Dividend: INR5 per share (FY26)
p. 5
“I am pleased to inform that we propose a dividend of INR5 per share, subject to approval from shareholders.”
Pradeep Gupta, page 5 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 — ₹ 15,000 million · FY26
stated firmly by Roop Bhootra
p. 7
“As shared in earlier calls, we have guided towards achieving an MTF book size of ₹ 15,000 million by financial year '26.”
Roop Bhootra, page 7 of the filed PDF · View the filing
Revenue mix between broking and non-broking — 50-50
stated as an aspiration by Pradeep Gupta
p. 5
“we are fully focused on maintaining a balanced revenue mix with a targeted revenue split of 50-50 between non-broking and broking segments and growing both the segments at a steady growth rate.”
Pradeep Gupta, page 5 of the filed PDF · View the filing
Non-broking revenue growth — 40% to 45% · next few years
stated as an aspiration by Pradeep Gupta
p. 10
“Right now, for first few years, I personally believe that our non-broking should be able to grow somewhere around 40% to 45% growth, which we have shown right now this year also.”
Pradeep Gupta, page 10 of the filed PDF · View the filing
Broking revenue growth — around 15%
stated as an aspiration by Pradeep Gupta
p. 10
“And in broking side, since it is a market-denominated factor, but still we will be able to grow somewhere around 15% or so in a broking revenue.”
Pradeep Gupta, page 10 of the filed PDF · View the filing
Overall revenue growth — 15% to 20%
stated as an aspiration by Pradeep Gupta
p. 10
“Based on that particular growth factor, I personally feel that overall revenue number what we are trying and aiming to achieve is somewhere around 15% to 20% growth year-on-year basis.”
Pradeep Gupta, page 10 of the filed PDF · View the filing
Debt equity ratio ceiling — max 1.5
stated as an aspiration by Roop Bhootra
p. 9
“And our endeavour is there that we want to restrict ourselves up to max 1.5 kind of debt equity ratio.”
Roop Bhootra, page 9 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 company follows a conservative risk approach, restricting the MTF stock basket below what regulators allow and maintaining zero NPA, while working to bring the debt equity ratio down further.
Answered by Roop Bhootra
Asked by Sucrit D Patil: How is Anand Rathi managing risks in broking and advisory business such as market volatility, compliance changes, and credit risk?
p. 9
“At our end, we have restricted this particular basket with our internal committee towards the selection of the stocks to less than 1,000 stocks in total.”
Roop Bhootra, page 9 of the filed PDF · View the filing
Gupta said non-broking has grown faster than broking so far and reiterated confidence in reaching the balanced mix while both segments grow steadily.
Answered by Pradeep Gupta
Asked by Diwakar Pingle: How does management see the 50-50 broking/non-broking revenue split progressing over the next couple of years?
p. 9
“we are not happy with this kind of a scenario because we have seen a good amount of traction in distribution side, which has grown by almost 44% in distribution side.”
Pradeep Gupta, page 9 of the filed PDF · View the filing
Gupta said Anand Rathi is not currently facing much yield pressure due to pent-up demand, and that cash was being preserved due to RBI guidelines rather than funding constraints from competition.
Answered by Pradeep Gupta
Asked by Diwakar Pingle: Are MTF yields sustainable given rising competition from other brokers entering the segment?
p. 10
“As of now, at Anand Rathi, we are not facing much of a pressure on that count because there is already a good pent-up demand available with us and we will keep on addressing.”
Pradeep Gupta, page 10 of the filed PDF · View the filing
Gupta said the cash-derivatives split is 50-50 and confirmed the company has no proprietary trading book.
Answered by Pradeep Gupta
Asked by Swarnabh Mukherjee: What is the cash versus derivatives split in broking revenue, and is there any prop book exposure to the RBI regulation change?
p. 12
“Now coming back to your RBI book on a prop side, just to clarify you, in this company, we do not deal with proprietary book.”
Pradeep Gupta, page 12 of the filed PDF · View the filing
Bhootra said the AUM increase came more from the existing client base, with total client count up 12.7% while active clients were roughly flat to slightly down.
Answered by Roop Bhootra
Asked by Swarnabh Mukherjee: How much of the AUC increase came from active client growth versus organic growth in existing client books?
p. 13
“Active client base surely last year the activities level was little bit down, so it was almost flattish or 2%-3% down.”
Roop Bhootra, page 13 of the filed PDF · View the filing
Risks flagged
Change in RBI policy for capital market intermediaries reduced bank funding avenues, constraining MTF book growth
p. 7
“The change in policy reduced the avenues available from the banks to meet the working capital requirement of the company.”
Roop Bhootra, page 7 of the filed PDF · View the filing
Bearish market conditions and falling Nifty led to cautious investor sentiment impacting the MTF book
p. 7
“If we look at the market conditions, this quarter ended March '26, markets were bearish.”
Roop Bhootra, page 7 of the filed PDF · View the filing
Global geopolitical tensions, trade uncertainties and FII outflows weighed on investor sentiment
p. 3
“Global investors turned risk-off in their outlook, leading to sustained FII outflow and heightened volatility across markets.”
Pradeep Gupta, page 3 of the filed PDF · View the filing
Possible competitive pressure on MTF yields from other brokers entering the segment
p. 10
“In terms of yields, I think there might be a possibility, but as of now, we are trying to maintain those yields which we have been able to generate so far.”
Pradeep Gupta, page 10 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.