ANANDRATHI

Anand Rathi Wealth continues to impress, reporting Q2 revenue growth of 23.1% and a notable 30.9% rise in net profit, underscoring strong earnings momentum within wealth management. Looking ahead, management's FY26 guidance, projecting roughly 19.9% revenue and 24.58% profit growth, suggests continued healthy expansion, albeit at a slightly moderated pace compared to recent quarters. Digging deeper, the fundamental drivers are compelling. Client attrition remains remarkably low at just 0.18% of AUM in H1 FY26, a testament to exceptional client stickiness. Meanwhile, AUM has expanded by a solid 22%, fueled by a remarkable 101% year-on-year surge in equity mutual fund net inflows. This surge in equity flows is doubly advantageous: it not only promises enhanced fee income for Anand Rathi Wealth but also signals robust domestic equity participation, a crucial counter to potential foreign selling in the broader market. In my view, this paints a compelling picture for investors. Anand Rathi Wealth is demonstrating robust execution, enviable client loyalty, and is strategically positioned within a burgeoning market. The overall outlook appears distinctly favorable.