Anand Rathi Wealth Ltd (ANANDRATHI) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day and welcome to the Q2 and H1 FY27 earnings conference call of Anand Rathi Wealth Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. I now hand the conference over to Mr. Feroze Azeez, Joint CEO of Anand Rathi Wealth Limited. Thank you and over to you, Mr. Feroze.
Feroze Azeez (Anand Rathi Wealth Ltd): Thank you so much. Good afternoon and thank you everyone for joining the earnings conference call for the quarter and half year ended 30th September 2026. Today on this call, we have with us the CFO, Mr Rajesh Sir Bhutra, our Head of Relationship Investor Relationships, Mr. Vishal Sanghavi. Jugal Sir Mantri is in Europe holidaying, so we don't have him on the call today. And this is the first quarter call I'm doing without him, so I miss him in this call. Yeah. So, I am very pleased to share that we have delivered another quarter of consistent and fortunately market-agnostic performance, despite the challenging environment. This is our 20th quarter result since we got listed in December 2021, and in every quarter since listing, with God's grace, the PAT growth YoY has been greater than 20%. Excluding the impact of non-business-related items, fair value gains and ESOP expenses and related tax effects, after the tax after tax for the first half year of FY27 the PAT grew by sorry, after tax PAT grew by about 23% year-on-year to 238 crores, while revenue increased 17% year-on-year to 693 crores. Similar for the Q2 FY27, we reported a consolidated profit, net profit of 122 crores, registering a year-on-year growth of 22%. Total revenue during this period rose by about 16% to 357 crores. In the first half year of FY27, the company has delivered 49% of the full-year revenue guidance, which stands at 1,415 crores. So, 49% penetration on the guidance of revenue and 52% penetration on the PAT guidance, 48% more to go off the 460 guided. Continuing our policy of rewarding shareholders, the board of directors have declared an interim dividend of Rs. 4 per share and after a bonus so, Rs. 4 per share off the new 16 odd crore shares which are outstanding. In the first 6 months, we have achieved 52% of the PAT guidance of 460. Yeah, I think that's already mentioned. We
Feroze Azeez (Anand Rathi Wealth Ltd): Three important milestones in this quarter, which have gone by. The highest net flow ever in the history of Anand Rathi Wealth of the last 20 years, happened in this quarter, which went by, and we collected new fresh moneys of 4,186 crores, which is up 39% from the last year's number, corresponding number, of FY26, quarter ending September. So, 4,186 crores of net mobilization, or new moneys, with our client's gratefulness and when the clients realize that this portfolio during bad times can hold up, bad times clients have shared more moneys with us. Second, we recorded our highest ever quarterly equity mutual fund net flow. Again, in the last 20 years we've not been able to achieve that, and with your support and client's support, we have achieved 2,867 crores, up 39%. It's easy to say buy equities low and sell high. And clients pragmatically have bought more equity, which shows up in IRRs over long periods of time. Courage translates into IRR, but not in the short term, in few years. So, I'm very happy to note that our clients, unlike the mutual fund industry has not delivered the best net mobilizations in the first half year, SIPs of course have been robust, lumpsum lumpsums have been low in that half year and the last quarter, we have had a 39% increase in equity mutual fund purchase. Third, we require, we recorded our highest ever monthly client acquisition in the month of September, which will not be apparent in the result because I'm speaking about September. With god's grace and clients, when they see their portfolios doing relatively better, of course, sadly not the best times, they start referring their friends, who are pareshan with what has happened in their portfolios, with aggressive strategies. In our flagship business of private wealth, during the last 12 months we have added 1,500 new client families on the net basis, bringing our total client families to 14,309. Client attrition rate in terms of AUM lost remained low, 0.17% for quarter 2 FY27, and 0.26 for half year FY27. Of course, these are second decimal numbers, but yeah, we would ideally want every client family who trusts us with their hard-earned life savings to be satisfied. Regret RM attrition continued to remain low. Two RMs whom we considered regret mathematically, of which one I might want to not call, mathematically I can't call that person a non-regret. I would say one regret attrition we have had in H1 FY27. Digital wealth business, which is B2B2C business, registered an AUM growth of 14% year-on-year, and reached 2,531 crores, and the number of clients increased 15% to 7,581. OFA business, Omni Financial Advisors business, which is a SaaS platform, has close to about 6,898 subscribers with a platform assets of about 1.66 crores, at the end of September 2026. Has to be remembered, these are just platform assets, which we report. Also last quarter, we started operations in London, UK, and we have received requisite regulatory approvals to commence operations in GIFT City, India. That's where I stop and hand over the mic back to the moderator.
Moderator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. [silence] First question is from the line of Prayesh Jain from Motilal Oswal Financial Services Limited. Please go ahead.
Prayesh Jain (Motilal Oswal Financial Services Limited): Yeah, hi. Good afternoon, everyone. So, just a few questions. Firstly, a broader one. If you have to think about your say, top 100 customers, roughly, in your estimate, what would be the wallet share that Anand Rathi Wealth would have for them?
Feroze Azeez (Anand Rathi Wealth Ltd): Firstly,
Feroze Azeez (Anand Rathi Wealth Ltd): my top 100 clients, I don't have to think of them because I think of them 24/7. On a lighter note. Okay. So coming back because that's where we have the Platinum segment. Okay, more than percent and a half of our clients fall into Platinum segment. What kind of volume share? It's very dispersed. See, basically, we have this principle of home grow the colleagues, home grow the clients. So, we don't flock on the doors of people who have just had a business sale of 200 crores. So, I would say that our Platinum clients, I can say confidently that 50%-60% of the wallet would be with us and the same client, if I see the trend, which is what I think is important, would be upward trend for 95% of the families. So, top 100, I would say 60%-70% and there'll be several with 100% with us. Does that answer, Priyesh?
Prayesh Jain (Motilal Oswal Financial Services Limited): And that's a part of, when you say the numera the denominator is the mutual fund net worth or you're saying of the total net worth?
Feroze Azeez (Anand Rathi Wealth Ltd): See, wealth has only one definition. Unfortunately, market, defines, however, I'm speaking about wealth. Wealth includes all the assets, physical also, which they don't live in.
Prayesh Jain (Motilal Oswal Financial Services Limited): Okay. Got that.
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