Anand Rathi Wealth adjusted profit up 22%, reported down 11%

Anand Rathi Wealth Limited (ANANDRATHI) reported Q2 FY27 adjusted consolidated profit of ₹121.9 crore, up 22% from a year ago. Reported profit fell 10.6% to ₹89.26 crore. Results came on October 9, 2026. Revenue from operations rose 15.7% to ₹343.99 crore. AUM was ₹1,08,377 crore, up 18.4%. Net inflows were a record ₹4,186 crore, up 39%. Reported pre-tax profit was ₹116.93 crore against ₹134.02 crore a year ago. The company says reported profit includes fair-value gains, ESOP expenses and related tax effects. Management keeps its long-term growth outlook at 20 to 25%. The business numbers are strong. The profit gap is the story. Adjusted profit is about ₹32.6 crore above reported profit. A year ago both measures were about ₹99.8 crore, so this gap is new. ESOP expense is a real cost. Employees are paid in shares, and that dilutes owners. I look at both numbers. Adjusted profit shows what the business earns. Reported profit shows what is left for shareholders. Reported pre-tax profit fell 12.8% while revenue grew 15.7%. Costs grew faster than income. I could not find which line drove it. Reported profit is also lumpy. Q1 was ₹163.01 crore, helped by higher other income. Half-year reported profit is up 30%. If the gap stays near ₹30 crore in Q3, I will treat reported profit as the cleaner measure. If it shrinks, the 22% adjusted growth is closer to the truth. My stance: positive on the business, neutral on the profit. I want reported profit to catch up with adjusted profit. I am watching the investor presentation for the full bridge between the two, and Q3 FY27 results, likely mid-January 2027. I do not hold Anand Rathi Wealth Limited at the time of writing.