Anand Rathi Share And Stock Brokers Ltd

Filing Status

• XBRL for standalone and consolidated results filed Oct 18, 2025 on BSE.
• NSE portal errors prevented XBRL submission for quarter ended 30-06-2025.
• NSE resolved the issue; Integrated filing for Q1 2025 filed July 27, 2026; no revision.

Resolutions overview

• Resolution 1 (Ordinary): approve material RPT modification with ARFSL for FY2026-27.
• Resolution 2 (Ordinary): approve material RPT modification with ARGFL for FY2026-27.

Key RPT terms

• ARFSL: aggregate Rs 2,03,750 lakhs; max outstanding Rs 50,000.
• ARGFL: aggregate Rs 1,53,750 lakhs; max outstanding Rs 30,000.
• Interest rate: 10% p.a. for both ARFSL and ARGFL.
• Tenure: 12 months.
• Purpose: working capital liquidity; arm's length in ordinary course.

Voting timeline & process

• Cut-off date for voting: 31 July 2026.
• E-voting window: 6 Aug 2026 09:00 to 4 Sep 2026 17:00 IST.
• Results to be posted on company and stock exchange websites.
• Resolutions deemed passed on last date of e-voting if approved.
• Impact: related-party exposure and liquidity may change.

Counterparty & governance context

• Counterparties: ARFSL (Holding Company) and ARGFL (Group Company).
• RPT approvals by Audit Committee and Board.

Resolutions overview

• Purpose: approve modifications to material related party transactions with ARFSL and ARGFL for FY2026-27.
• Resolution 1 (Ordinary): approve modified RPT with ARFSL for FY2026-27.
• Resolution 2 (Ordinary): approve modified RPT with ARGFL for FY2026-27.
• E-voting window: 06 Aug 2026 09:00 IST to 04 Sep 2026 17:00 IST.
• Outcome: Not yet decided; results pending.

Financial Performance

• Total revenue from operations ₹2,461 million, up 22.37% YoY.
• EBITDA ₹973 million, margin 39.54%.
• PAT before exceptional ₹391 million, up 71.2% YoY.
• PAT after exceptional ₹233.51 million, up 2.35% YoY.
• Exceptional expense ₹209.96 million for securities restoration; EOW investigation; insurance claim filed.
• Assets under custody ₹1.13 lakh crores, up 21.44% YoY.
• MTF book ₹13,318 million, up 55% YoY.
• Distribution AUM ₹94,791 million, up 25.82% YoY.
• Credit rating upgrade: short-term A1+, long-term A+.
• Debt-equity ratio 0.81 as of 30 June.

Operating Update

• Revenue mix: broking 52%, non-broking 29%, other income 19%.
• Broking income ₹1,280 million; 51% from equity cash.
• Non-broking: MTF ₹428 million; distribution ₹275 million.
• MTF book QoQ growth ~22%; March book ~₹1,100 crores; year-end ₹1,330 crores.
• MTF yield around 14%.

Corporate and Execution

• Dubai subsidiary planned to address UAE NRIs; licenses to be obtained.
• Gift City subsidiary already active and participating in related activities.
• Employee count 2,263; growth vs Q1 FY26.
• Client tenure data: figure corrected to 43.44% of clients >3 years.

Q&A Highlights

• Capital markets outlook: management optimistic of growth over the next 3 years.
• Strategy: shift to non-broking (distribution and MTF) to reduce earnings volatility.
• MTF target: ₹1,750–₹1,800 crores by year-end.
• MTF risk controls: cash-based, diversified scrip selection, limited exposure; no delinquencies.
• CAC: not disclosed; growth driven by RM referrals and B2B/B2C channels.
• Debt leverage: plan to increase debt-equity; current 0.81x; industry peers ~1.5–2x.

Outlook and Guidance

• FY27 revenue growth guidance: 20–25%.
• Minimum revenue growth around 15–20% until 50-50 broking/non-broking mix is achieved; PAT 30–35%.
• MTF book target: ₹1,750–₹1,800 crores by year-end.
• Distribution AUM growth target: ~40%.
• Maintain 50-50 mix of broking and non-broking income as core strategy.

Balance Sheet and Capital Structure

• Borrowings used to support working capital and margin trading facility; rating upgrades aid access.
• Debt-equity ratio at 0.81; plan to increase borrowings within comfortable band.
• LRS considerations and potential international product exploration discussed for NRIs.

Judgment update

• Awarding entity: NCDEX Arbitral Tribunal.
• Arbitral award for castor seed trades on NCDEX, Sep–Oct 2019.
• Value: ₹4,93,54,947.40 plus interest.
• Domestic matter; proceedings in Mumbai, India.
• Judgment dated 16 July 2026; award quashed.
• No monetary liability or financial impact on Anand Rathi.
• Remedies, including possible fresh arbitration, under consideration.