Anand Rathi Share and Stock Brokers Limited Earnings Summary — Q1 FY2027
Anand Rathi Share and Stock Brokers Reports Steady Core Revenue Amid Exceptional Fraud Compensation Charge
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 3.7% sequentially in Q1 FY2027.
- Revenue of ₹246 Cr is 22.4% higher year-on-year.
- Revenue has compounded at 8.0% annualised over the last 10 quarters.
- Net profit of ₹23 Cr is 2.3% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -12.6% annualised across the period.
- Operating margin stands at 39.5% in Q1 FY2027.
- Operating margin expanded by 237 bps year-on-year.
- Over the last two years operating margin has expanded by 358 bps.
- PBT margin is 12.8%.
- Expense growth of 17.8% remained below revenue growth of 22.4%.
- Operating profit of ₹97 Cr is 30.2% higher year-on-year.
- Operating leverage continues to improve.
- 3 of the last 5 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 60/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2018 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 246 | 256 | 248 | 227 | 201 | 200 | 204 | 231 | 211 | — |
| Expenses | Stable | 149 | 145 | 147 | 135 | 126 | 127 | 127 | 145 | 135 | — |
| Operating Profit | Improving | 97 | 110 | 101 | 93 | 75 | 73 | 77 | 86 | 76 | — |
| Operating Margin | Stable | 39.5% | 43.2% | 40.8% | 40.8% | 37.2% | 36.5% | 37.6% | 37.1% | 36.0% | — |
| Other Income | Volatile | -21 | 0 | 1 | 1 | 1 | 0 | 0 | 0 | 0 | — |
| Interest | Improving | 40 | 50 | 46 | 50 | 38 | 39 | 43 | 35 | 30 | — |
| Depreciation | Stable | 5 | 7 | 6 | 7 | 6 | 8 | 6 | 6 | 6 | — |
| Profit Before Tax | Stable | 31 | 54 | 50 | 38 | 31 | 26 | 29 | 45 | 41 | — |
| Tax | Stable | 8 | 12 | 13 | 10 | 8 | 7 | 7 | 12 | 10 | — |
| Net Profit | Stable | 23 | 42 | 37 | 28 | 23 | 18 | 22 | 33 | 31 | — |
| Net Margin | Stable | 9.5% | 16.3% | 14.9% | 12.3% | 11.3% | 9.2% | 10.5% | 14.3% | 14.5% | — |
Key Takeaways
- Revenue from operations grew 22% YoY to ₹2,461 million, though it saw a slight sequential decline from Q4 FY26.
- The quarter was impacted by a significant exceptional item of ₹209.96 million for client compensation related to fraudulent off-market transfers.
- Despite the exceptional charge, consolidated Net Profit remained positive at ₹233.51 million, showing a marginal 2% growth YoY.
- Board approved a significant capital raise of up to ₹500 crores through the issuance of Non-Convertible Debentures (NCDs).
- Operating margins improved to 21.28% from 15.17% in the same quarter last year, reflecting strong core business efficiency.
- The company is expanding its international footprint by incorporating a new wholly-owned subsidiary in Dubai, UAE.
- Credit ratings were recently upgraded to A1+ (Short-term) by CARE and A+ (Long-term) by ICRA, signaling improved financial stability.
Management Guidance
Management is focusing on international expansion into Dubai to service HNI/NRI clients and remains confident in internal controls despite the isolated fraudulent incident. The company aims to utilize the ₹500 Cr NCD raise to support capital market activities.
Sentiment Shift
Stable
Strong core operational growth was largely offset this quarter by a one-time exceptional expense for fraud compensation, keeping net profit growth flat YoY.
Outlook
The outlook remains positive for the core broking and advisory business, supported by a healthy margin trajectory and institutional credit rating upgrades, though legal recoveries from the fraud incident are pending.
From the Annual Report (Key Quotes)
“The Company believes that there has been no systemic failure of internal controls, nor any non-compliance or negligence on its part in relation to the incident.”
“Nevertheless, as a matter of prudence and pending outcome of the investigation, the Company has recognised the related outflow as an exceptional expense.”
“The proposed entity [in Dubai] is intended to support and expand ARSSBL’s international business, providing investment solutions to NRI, HNI and family office clients.”
Official Quarterly Documents
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This summary is AI-generated from Anand Rathi Share and Stock Brokers Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.
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