Anand Rathi Q3 earnings: Net profit rises 33%, revenue at Rs 248 crore

Anand Rathi Shares and Stock Brokers reported a 33% rise in third-quarter net profit on Thursday.  Profit rose to Rs 370 crore compared to Rs 279 crore in the previous quarter. Revenue from operations climbed 9% sequentially to Rs 248 crore, while EBITDA rose to Rs 101.2 crore, up 8.2% from Rs 93.5 crore last quarter.

Margins, although stable, experienced a slight decline of 40 basis points, settling at 40.81% from 41.19% in September. The company's performance was also supported by lower finance costs. The stock closed at Rs 632.7 on Wednesday, reflecting a 0.2% decrease for the day. During trading, the scrip touched an intraday high of Rs 635 and a low of Rs 628.

Anand Rathi's shares have fallen by 20% from their post-listing high of Rs 794 but remain twice the IPO price of Rs 414 per share.

The number of active clients increased by 6%, reaching 1.58 lakh at the end of December from 1.49 lakh in September. Assets Under Custody (AUC) grew to ₹1.05 lakh crore compared to ₹1.01 lakh crore previously, illustrating ongoing growth in client engagement. The company's Margin Trading Facility (MTF) book expanded to Rs 1,231 crore from Rs 1,084 crore last quarter and now contributes 18% to overall topline. Brokerage income advanced to Rs 97.2 crore from Rs 88.5 crore, with the broking business registering 96,851 active clients against 92,326 in the last quarter.

Pradeep Gupta, Chairman and Managing Director of Anand Rathi Shares and Stock Brokers, stated, "We will continue our focus on de-risking and stabilizing our earnings through increased exposure in the non-broking segments underlining the firm’s strategic focus."

Among industry peers, Anand Rathi Shares and Stock Brokers continues to demonstrate resilience, supported by growth in both broking and non-broking segments. The expansion of the MTF book and a rising client base are likely to help maintain its competitive position. Approval processes and other regulatory requirements have not been detailed in this announcement. The growth in earnings and client assets signals a positive outlook for the company as it emphasises diversification and client engagement.