Anand Rathi Wealth Limited is a leading Indian wealth management firm founded in 2002. It specializes in serving high-net-worth individuals with services like investment planning, tax advisory, and estate planning. With over ₹77,000 crore in assets under management and a presence in 17 Indian cities plus Dubai, it is known for its client-centric and transparent approach.
In this article we are going to discuss the summary of the management commentary that was delivered on Q4FY25 performance.
Key Financial Highlights:
| (INR Crs.) | Q4FY24 | Q4FY25 | Growth y/y % | FY24 | FY25 | Growth y/y % |
|---|---|---|---|---|---|---|
| Revenue from Operations | 184.3 | 222.0 | 20.4 | 724.3 | 939.1 | 29.7 |
| Total Revenue | 197.2 | 241.4 | 22.4 | 752.0 | 980.7 | 30.4 |
| Employee Benefit Expenses | 84.0 | 101.1 | 20.3 | 322.2 | 419.9 | 30.3 |
| Other Expenses | 34.2 | 40.8 | 19.5 | 124.1 | 156.0 | 25.6 |
| Total Cost | 118.2 | 141.9 | 20.1 | 446.4 | 575.8 | 29.0 |
| PBT | 79.0 | 99.5 | 25.9 | 305.6 | 404.8 | 32.5 |
| PAT | 56.9 | 73.7 | 29.7 | 225.8 | 300.8 | 33.2 |
| PAT Margin (%) | 28.8 | 30.5 | – | 30.0 | 30.7 | – |
| EPS (Rs.) | 6.8 | 8.9 | 30.2 | 27.0 | 36.2 | 33.7 |
| AUM (Rs. Crs.) | 59,351 | 77,103 | 29.9 | 59,351 | 77,103 | 29.9 |
Dividend & Buyback
- The company declared a final dividend of ₹7/share (post-bonus, effectively ₹14/share, same as FY24).
- The company Completed a ₹165 crore buyback and issued bonus shares in 1:1 ratio.
Business Performance & Strategy
The company expected to grow our PAT by 20–25% consistently for years to come. The company has been fulfilled this guidance for the last 14 quarters.
- A small study the company has conducted revealed that out of the top thousand companies by market cap, only six have been able to deliver greater than 20% growth every quarter for the same 14 quarters the company has been listed. Anand Rathi Wealth is fortunately one of them.
During the short period of 14 quarters, including the worst and best quarters of Nifty performance, the company’s PAT growth was consistently around 30-33%.
Client & RM Metrics
- In the private wealth business, the company added 821 new client families on a net basis, bringing total to 11,732 clients.
- Client attrition rate was 0.52% (lowest in industry).
- RM attrition below 1% (only 2 RMs left in FY25).
digital wealth business
- Registered an AUM growth of 17% to ₹1,812 crores
- The number of clients increasing by 25% to 6,871.
The OPA (Omni Financial Advisor) business
- Had 6,447 subscribers with platform assets of ₹1.43 lakh crores at the end of FY25.
FY26 Guidance & Outlook
- Revenue guidance of the company is ₹1,175 crores (20% growth).
- PAT guidance of the company is ₹375 crores (24% growth).
- Focus areas:
- Technology investments to improve scalability.
- Global expansion (UK, Bahrain, potential GIFT City subsidiary for NRIs).
- Operating efficiencies (1-2% margin improvement expected).
Question and Answer Session Highlights
In Q4, other income increased materially. What were the reasons? Also, to achieve the PAT guidance of ₹375 crores, EBITDA margins must rise to 44-45%. Where do you see operating leverage coming from?
The increase in other income is due to higher interest on fixed deposits and a change in fair value of long-term unlisted investments. Regarding operating leverage, while we reinvest in the business, efficiencies in technology, operations, and HR could add 1-2% to margins. However, long-term consistency requires reinvestment, so we don’t rely solely on short-term leverage.
Our structured product AUM grew by 50%, but revenue only grew by 15-17%. Is there yield moderation? Also, what are your thoughts on SEBI’s new specialized investment fund (SIF) product?
No yield moderation. Structured product yield remains ~1.18% per annum on average market value. On SIF, we don’t see it taking off due to low leverage limits (0.25x) and high minimum ticket size (₹10 lakh). We prefer products with proven track records.
Could you explain structured products in detail? Also, how many of our 11,700 client families are NRIs? Could we explore setting up a GIFT City subsidiary for tax efficiency?
Structured products use Black-Scholes pricing models to synthesize options. We’ll organize a detailed session for analysts. On NRIs, they constitute 10-12% of clients but hold larger AUM. A GIFT City subsidiary is a great suggestion, and we’ll prioritize it for tax efficiency and broader market penetration.
How do you build market return assumptions into your guidance?
We use a conservative 8% market return assumption for AUM growth, combined with bottom-up RM targets.
What are the maturities for structured products in FY26?
Maturities are expected to be ₹4,000-5,000 crores across internal and external issuers.