Anand Rathi Share and Stock Brokers Q2 profit jumps 50%

hi Share and Stock Brokers Limited is in focus on October 14, the first session after it reported a 50.3% year-on-year rise in Q2 FY27 net profit to ₹41.9 crore. The stock closed at ₹543.70 on the NSE on October 13, before the results. Revenue from operations grew 20.3% to ₹273.2 crore. The margin trading facility (MTF) book jumped 38.2% to ₹1,499.3 crore, and interest income from MTF rose 36.3% to ₹49.6 crore. Assets under management grew 29.2%. EBITDA stood at ₹99.9 crore, with a margin of about 37%. The growth is coming more from steady, recurring income. The MTF book and asset management are growing faster than core broking, which makes earnings less dependent on daily trading volumes. Of Q2 revenue, ₹155.1 crore came from broking and ₹82.4 crore from non-broking businesses. The profit growth is stronger than the operating performance. EBITDA rose only 7.8%, and the EBITDA margin fell to 36.5% from 40.8% a year ago, so operating profit grew far slower than net profit. F&O and others make up 48% of broking revenue, which keeps the company exposed to any further tightening of derivatives rules. A larger MTF book also means more credit risk if markets turn volatile. Investors should watch EBITDA margins, growth in the MTF book and its asset quality, F&O volume trends, and the growth of non-broking income. The key question is whether operating profit can catch up with net profit growth as the business scales. Disclosure: I do not hold any position in Anand Rathi Share and Stock Brokers Limited. This post is for informational purposes only and is not investment advice.