Anand Rathi Share and Stock Brokers Ltd (NSE: ARSSBL) Q4 2026 Earnings Call dated Apr. 15, 2026
Corporate Participants:
Pradeep Gupta — Co-Founder and Vice Chairman
Roop Kishor Bhootra — Associate Director
Analysts:
Diwakar Pingle — Analyst
Sucrit Patil — Analyst
Swarnabha Mukherjee — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Anand Rathi Share and Stock Brokers Limited Q4 FY ’26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Diwakar Pingle from EY. Thank you, and over to you Mr. Diwakar.
Diwakar Pingle — Analyst
Thank you so much. Good morning, everyone and welcome to the Q4 and FY ’26 earnings call of Anand Rathi Shares and Stock Brokers Limited. The company has published its results and has uploaded the investor presentational exchanges yesterday and you can also find it on the company’s website.
Before we start a disclaimer. Some of the statements made in today’s earnings call may be forward-looking in nature, such forward-looking statements are subject to risks and uncertainties which can cause actual results to differ from those anticipated. These statements are based on management beliefs and assumptions made by information currently available to the management. Audiences are hereby cautioned not to place undue reliance on these forward-looking statements while making adjustment decisions.
On that note, let me introduce you to the management participating in today’s conference call. We have with us Mr. Pradeep Gupta, Chairman and Managing Director; Mr. Roop Kishor Bhootra, Whole-Time Director; Mr. Tarak Shah, the Chief Financial Officer and other members of the team.
Without further ado, I’d like to hand over the call to Mr. Gupta for his opening remarks. And thank you and over to you Pradeep.
Pradeep Gupta — Co-Founder and Vice Chairman
Thank you, Diwakar. Good morning to all and thank you for joining Anand Rathi Share and Stock Brokers Limited earning call for the last quarter and full year ended 31st March 2026. I am joined on this call by Mr. Roop Kishor Bhootra, Whole-Time Director; Tarak Shah, Chief Financial Officer and few other members of our team. We will begin with an overview of company’s financial and operating performance after which we will open the floor for questions.
As we all know, FY ’26 was a challenging year for global economies and financial markets. The world was dealing with multiple headwinds at the same time ongoing geopolitical tensions, shifting global trade dynamics including tariff related uncertainties and fast paced technological shifts that disputed established business models. As the year progressed, these pressures intensified with fresh bouts of adverse news including the recent West-Asia conflict, further weakening risk appetite. Global investors turned risk off in their outlook leading to sustained FI outflow and heightened volatility across markets.
Unsurprisingly, this combination of factor weighs heavily on investor sentiment resulting in Indian capital market entering a phase of consolidation after several years of strong performances. While short-term disruption and periods of moderations are inevitable, the long-term structural derives of Indian market remains firmly intact. The steady rise in Demat account from INR15.14 crore in March ’24 to INR22.2 crore by February ’26 clearly reflects sustained retail participation and depot market penetration.
Similarly, asset under management in mutual fund industry rose from INR65.74 lakh crore as on March ’25 to approximately INR82.02 lakh crore by February ’26 representing INR24.8 year-on-year basis increase. This growth underscores the continued financialization of household savings and a rising preference for market linked investment avenues. In parallel, SEBI has been proactive in introducing a series of regulatory measures aimed at strengthening risk management framework, driving excessive leverage, enhancing investor protection and improving the ease of doing business in capital market transactions.
While some of these reforms may have necessitated short-term adjustments and led to some near-term discomfort for a few participants, they are critical in laying the foundation for a more transparent, resilient and sustainable capital market ecosystem over a long period. Overall, we believe that the industry is moving in a constructive direction. Although near-term conditions have clearly remained uneven over time, the market is likely to favor firms that combine strong compliance standards, digital delivery and diversified revenue streams.
Coming to our company financial year ’26 has undoubtedly been a memorable year marked by several significant achievements. We complete our IPO in September ’25, raising INR745 crore from investors. These funds were used to significantly strengthen our business, notably for our working capital requirements. We received a corporate agency license to distribute insurance products in the same financial year.
Since then, we have commenced distribution of both life and health insurance products to our clients, green lighting a few sources of fee based income for the company during the year, and last but not the least, we continue to remain focused on enhancing client servicing and satisfaction by adopting new initiatives aimed at delivering superior customer experiences and long-term value creation for all our stakeholders.
As of March 31, 2026, our total assets under custody stood at approximately INR944,155 million, representing a growth of about 16% year-on-year. Our margin trading facility books to debt at around INR11,019 million by about 61% year-on-year while our asset under management stood at approximately INR77,876 million, reflecting a growth of about 21% year-on-year basis. For the quarter ended March 31, 2026, our consolidated revenue from operations stood at about INR2,557 million EBITDA and EBITDA at about INR1,103 million and patented about INR416 million for the full year.
For financial year ’26, our consolidated revenue from operation stood at about INR9,322 million, EBITDA at INR3,796 million and packed at about INR12.93 million. Our EBITDA margin for quarter INR426 crores stood at 43% while PAT margin stood at about 16%. For the full year ’26, EBITDA margin was 41% and PAT margin was about 14%. I’m pleased to inform that we propose a dividend of rupees five per share subject to approval from shareholders. Our diversified revenue model continues to be key strength of the company. While broking and related services remain a primary revenue driver, the contribution from non broking business such as margin trading, facility and distribution income has increased steadily.
This reflects our strategic focus on building a more balanced and resilient business model, one that is not solely reliant on market linked broking revenues but is increasingly supported by stable annuity linked income streams. Our strategic direction remains clear and unchanged. As guided earlier, we are fully focused on maintaining our balanced revenue mix with a targeted revenue split of 50-50 between non broking and broking segments and growing both the segments at a steady growth rate. This approach is central to improving the overall quality, sustainability and predictability of our earning over long-term.
During financial year ’26 we made steady progress across multiple strategic priorities. First, we continue to scale our distribution business in a structured and steady manner. We have expanded our offering across a wide range of financial products including mutual funds, pms, aif, structure products, bond and more recently insurance. Our distribution income for the full year for financial year ’26 is amounted to INR1,129 million reflecting a strong year-on-year growth of about 44.1% for the full year. This growth reflects improved cross selling across our client base and for our focused approach to grow our distribution business.
Our objective is to address the broader financial needs of our clients. Our approach has consistently been relationship led rather than product led with a focus on understanding clients evolving financial goal and serving them in a more holistic and long-term manner. Second, we continue to strengthen our margin trading facility franchise supported by improved capital position.
Following our IPO and disciplined approach to risk management. We were able to scale the NPA book while maintaining student controls. Importantly, we closed the year with zero NPA in the portfolio reflecting our continuous underwriting standards and strong focus on asset quality. As of March ’26, our MTA book stood at about INR11,019 million representing robust year-on-year growth of approximately 61%. Third, we remain focused on investing in our tech delivery platform, processes and people. As highlighted earlier, our operating model is physical in nature combining relationship led service and robust digital capabilities. This allow us to effectively serve both assisted and self directed clients.
In parallel, we continue to strengthen our technology platforms, process automation and internal tools to improve customer engagement and enhance overall team productivity. If we take a step back and view the company in a broader context, our underlying philosophy has remained consistent. We are focused on building long-term customer relationships, increasing share of wallet through relevant cross selling opportunities and creating a stable growth oriented business with a more balanced mix of broking and non broking revenues.
We are also looking at expanding our geopolitical network by strengthening our branch network and business partner ecosystem. This will help in strengthening our presence in emerging Tier 2 and Tier 3 markets where growth is more evident in present Baharat Our objective remains unchanged to grow both our broking and non broking business in a disciplined manner, improve the quality of predictability of revenues, deepen customer engagement across product and continue building a company capable of delivering consistent and long-term values.
With that I will now hand over the call to Mr. Roop Bhootra, our Whole-Time Director who will take you through the financial and business performance in greater detail. Thank you and over to you Mr. Roop Bhootra.
Roop Kishor Bhootra — Associate Director
Thank you, Pradeep ji, and good morning, everyone. I will now take you to our financial and business performance for the quarter and the full financial year ended March 31st ’26. During quarter four ’26 our consolidated revenue from operations excluded at INR2,557 million. EBITDA for the quarter was INR1,103 million while profit after tax stood at INR416 million. This represents year-on-year growth of 28.1% in revenue, 51.4% in EBITDA and 125.7% in PAT. EBITDA margin for the quarter was a healthy 43.2% while PAT margin stood at 16.2% for the full year ’26.
Consolidated revenue from operation stood at INR9,322 million reflecting year-on-year growth of 10.2%. EBITDA stood at INR3,796 million and PAT at INR1,293 million translating into growth of 21.9% and 24.8% respectively. EBITDA and PAT margin for the full year were 40.7% and 13.8% respectively. Turning to the segmental revenue mix, the contribution from the broking segment comprising broking and related services and the non booking segment comprising interest income from MTF, distribution income and other income was 47% and 53% respectively for quarter four ’26.
For the full year ’26 the mix stood at 51% for broking and 49% for non broking. Within the broking segment, revenue from broking and related services stood at INR1,201 million in quarter four ’26 reflecting year-on-year growth of 14.5%. For the full year ’26, broking revenue stood at INR4,755 million representing a slight dip of 6.8% compared to the previous year. Within broking, we continue to maintain a healthy balance between equity, cash, equity derivatives and other segments. This reflects our philosophy of encouraging an investment focused approach among our clients rather than speculative trading.
For the full year ’26 the revenue mix across Equity, Care, F&O and other Segments stood at 51%, 41% and 8% respectively. For quarter four ’26 the corresponding mix was 49%, 41% and 10%. I will now briefly touch upon our non working business segments. We continue to actively distribute a wide range of financial products including mutual funds, EMF, AIF, insurance, bonds, structure products and fixed deposits. As of March 31 ’26 asset under management stood at INR77,876 million representing healthy growth of 21% year-on-year distribution income for quarter four ’26 stood at INR353 million while for the full year ’26 it amounted to INR1,129 million.
Reflecting a strong year-on-year growth of 34.3% for the quarter and 44.1% for the full year. This growth reflects both on expanding product market and improved cross selling across our client base. Our MTF book continued to scale in a disciplined manner and stood at INR11,019 million end of March 31 ’26 registering strong year-on-year growth of 61%. As shared in earlier calls we have guided towards achieving on MTF book size of INR15,000 million by financial year ’26. Participants may recall that we had reached the mtf book of INR12,317 million as of December ’25.
However, we saw a downfall in MTF book by 10.53% in quarter ended March ’26. The main reason behind this RH follows changes in RBI policy for capital market intermediaries that change in policy reduce the avenues available from the banks to meet the working capital requirement of the company. As a result, we had to control our growth in MTF book. If we look at the market conditions this quarter ended March ’26, markets were bearish, the Nifty has fallen by almost 15% and resultant investor sentiment have become adverse.
As a result, investors became cautious and we also become conscious about creating new positions and continuing existing positions which impacted our MPF book. Despite all this, our interest income from mtf book stood at INR432 million during quarter four ’26 and INR15 million during full year ’26, which translates into a healthy 50.2% Y-o-Y growth for quarter four and 32.6% Y-o-Y growth for the full year. I am pleased to report again that we continue to to maintain 0nph on our MTF book as of March 31 ’26, once again reflecting our judicious underwriting practices.
The book also remains granular with approximately 61% of the outstanding exposure coming from clients with individual balances below INR1 crore. Client loyalty and long-term relationship building continue to be a key strength of our operating model. As of March 31 ’26, approximately 42% of our active clients have been associated with us for over five years. In addition, 83% of our active clients are over 30 years of age, a demographic we consider particularly attractive as it typically correspondence to higher investable surplus, more mature investor behavior and demand for a broader range of financial products.
Our people remain a critical enabler of our relationship led, research backed and technology enabled business model. As of March 31 ’26, our employee base stood at 2,214 representing a net addition of 132 employees. year-on-year. We view talent as a strategic asset. Continue to invest in building high quality teams to support our long-term growth objective.
Turning to our balance sheet, our debt to equity ratio stood at 0.62 as of March 31 ’26 compared to 1.8 as of March 31 ’25. This reflects a meaningful improvement in our capital structure and provide us with enhanced financial flexibility to support growth particularly in scalable business such as the MTF while maintaining prudent leverage levels.
With that update, we can now open the floor for questions. Thanks.
Questions and Answers:
Operator
Thank you very much. [Operator Instructions] We have the first question from the line of Sucrit Patil from Eyesight Fintrade Private Limited.
Please go ahead.
Sucrit Patil
Good morning to the team. I have two questions. My first question to Mr. Gupta is how do you plan to guide the company’s broking and wealth management over the next few quarters especially in terms of bringing in new clients, expanding advisory module and using digital platforms to improve the investors experience. That’s my first question. I’ll ask my second question after. Thank you.
Pradeep Gupta
Okay. Thank you for that question. To be really frank with you, if you really see we do have in our group a wealth management company separately than this company over here. This company is by and large focusing towards broking and distribution of products. But having said that, as a philosophy we are addressing all the investment need of a specific customer from all respects. Whatever investment needs of a customer by way of providing them various different investment products suitable to that particular investor.
And what we are trying to do, we have created a basket of products suitable to specific customer segment. As we are catering to almost all category of customers, we have created a basket and providing them along with the broking platform which is being provided to those who are interested in probably broking directly by themselves on investment side or probably trading on investment based trading, not future and options largely.
So that’s our focus in this particular company in terms of answering your question on technology side we are strengthening that platform day in day out trying to provide that platform in such a way that all the deliveries which are going to be there as a relationship manager on the marketplace is going to be available on our platform digital platform.
Right now broking is already there which we are constantly improvising. And if you really look at our broking customer base number, almost 60% of the customers are already working on our digital platform in terms of distribution. Mutual fund is also available and we will keep on adding our other distribution product product for the distribution side on digital platform.
So as I said initially our focus is based on digital where complete delivery on digital platforms are going to be available so that execution ease is available for the customer. At the same time our relationship managers are going to speak to customer, have a touch base and understand, have a clear understanding about the customer is also going to be there.
Sucrit Patil
Thank you. My Second question to Mr. Tarak Shah is as you oversee the company’s financial health, how is Anand Rathi preparing to manage risk in broking and Advisory business such as market volatility or any compliance, compliance change, compliance changes and any credit risk while keeping the profitability stable and growth on track. Just want to understand your plan of action. Thank you.
Pradeep Gupta
Yes. I think Roop ji can take it probably. Roop?
Roop Kishor Bhootra
Yes, sir. So thanks for asking this particular question. So there are two approach which we have always followed in our particular. I can say this particular company as well as overall group. So first of all we try to always see that how we can go into say I can say business where customer interest should be protected at the first level. That is the first object. And second, we are conservative in terms of our approach towards the risk management side. A simple example I can share with you like MTF product which is a leverage product from the regulator side. And in that particular product the regulator has defined a basket of almost I can say 2,000 plus stocks in terms of the MTF allowability.
At our end we have restricted this particular basket with our internal committee towards this selection of the stock to less than 1,000 stocks in total. And many of the stocks where we have increased the margins as compared to whatever extended charging in form of the MTF book we we are conservative and we have increased the margin level from oversight. So we are keep on doing our internal risk management in such a tight way that whatever regulatory is allowing even we are controlling further towards that particular thing.
And because of all those things like we have highlighted in terms of our NPA so far in MPA book, we are running this particular business since last eight years. ATF plus and NPI is zero. And what the I can say the other major part related to the compliance and all those things we ensure that all the rules and regulations, whatever exchange these are prescribed, those should be followed. And even in those rules or regulations also wherever the possibility is there to further I can say strengthen we are keep on working towards that particular aspect in overall basis.
We are also part of the QSB broker at the exchange level. And at our end I can say exchange vigilance, exchange surveillance is also always there comparatively more tighter than the normal I can say as the category of the broker. So commanding all these things. We are always conservative towards these all aspects. Last important aspect which is related to in terms of the net equity ratio because you have asked the financial health related thing. So you might have observed in the numbers which we have shared or debt equity ratio.
Also we have reduced significantly and currently it’s just at a 0.6 kind of level. And our endeavor is there that we want to restrict ourselves up to max 1.5 kind of debt equity ratio. I hope I have clarified your question.
Sucrit Patil
Thank you and best of luck.
Operator
Thank you. [Operator Instructions]
Diwakar Pingle
While the question queue assembles is locked here, I’m just going to kind of check in with one question more on the segmentation between two businesses. My question to Mr. Gupta is does the guidance of let’s say we Talked about the 50-50 between broking and non-broking segments, how do you see that kind of shaping up given the general condition of the market and things like that? How do you look at that kind of progressing over the next couple of years?
Pradeep Gupta
Thank you, Diwakar. Actually if you really look at we have already, I mean in today’s — in this year’s performance we can see 51% is coming from broking, 49% from distribution. But we are not happy with this kind of a scenario because we have seen a good amount of traction in distribution side which has grown by almost 44% in distribution side. But if we really look at broking and other broking side it is not really grown in that particular patient. So what we are trying to see over a period of time we are going to be happy and I am sure we will be able to achieve that 50-50% kind of a scenario and we will maintain that.
By looking at that both the segment which is broking and non broking should able to grow at a specific steady growth. So what we are seeing is broking should also grow constantly continuously year-on-year basis in a revenue term and non broking should also grow constantly continuously year-on-year basis. Right now for first few years I personally believe that our non-broking should be able to grow somewhere around 40% to 44%, 45% growth which we have shown right now this year also and broking side since it is a market denominated factor but still we will be able to grow somewhere around 15% or so in a broking revenue. That’s what we are trying to achieve and we will be able to achieve and we are trying to work towards it based on that particular growth factor. I personally feel that overall revenue number, what we are trying and aiming to achieve is somewhere around 15% to 20% growth year-on-year basis.
Diwakar Pingle
Thank you, that helps. Maybe I will just check in with one more before the other part of the comments come in. How should we think about the MTF going forward? Are the spreads Sustainable expect some competitive pressures to come in because there seems to be a bit of competition, a lot of brokers coming into this particular segment. So what’s Anand Rathi’s take on this particular part of the business?
Pradeep Gupta
I think this is a part and parcel of looking at pressure coming by competition delivering at a lower ease kind of, or generating lower yield or delivering at a low interest to various different customers. As of now at Anurati we are not facing much of a pressure on that count because there is already a good pent up demand available with us and we will keep on addressing the two things as Mr. Roop Bhootra in our address has already elaborated that the whole funding requirement requires the whole MTF book, expanding MTF book requires capital.
And right now we were present, I mean in last quarter because of various RBI guidelines though it is being postponed to another quarter but the requirement of margin was greater and we were preserving cash for addressing those kind of requirements which were earlier being met by various different bank financing and BFC financing. Over a period of time we will be again achieved to get those funding and financing from various different routes and again the extra or spare funding available for the company will start expanding our MTA book.
That’s how we are trying to probably address that issue. In terms of yields, I think there might be a possibility but as of now we are trying to maintain those yields which we have been able to generate so far and we believe we will be able to achieve that yield because very minuscule percentage of customers are utilizing the MTA book as of now with us and we do have requirement and demand in the marketplace which can be addressed by us.
Diwakar Pingle
That’s helpful. Swapnali, maybe you can take the participants in the Q&A please.
Operator
Thank you. [Operator Instructions] We will take the next question from the line of Swarna Mukherjee from B&K Securities. Please go ahead.
Swarnabha Mukherjee
Hi sir. Thank you for the opportunity and congrats on a good set of numbers. A couple of questions from my side. So first of all in the broking revenue you highlighted that you focus towards a 50 kind of a growth. So in your growth strategy I just wanted to understand that. Do you expect this to play out as a function of market beta that as we move towards a more normalized situation from where we are in the geopolitical scenario or I mean how, how would you be thinking in terms of say active clients etc., and what are you doing to maybe build upon that part of the business that active clients visa vis the number of trades that they are putting in on the value that they’re putting in.
So that is my first question. Second is in your broking business if you could highlight how much of the mix is from the derivative side and how much is on the cash. Right. And if there is a future segment to that, if any impact you are seeing because of the STT increase. And thirdly sir, in terms of the RBI regulation change related to the prop book of brokers. So just wanted to understand if we have any exposure like that and if so what is the proportion and what are our thoughts on that. This will be my question sir. Thank you.
Pradeep Gupta
Thank you for your question Swarna. Typically I’ll start addressing point by point on your questions you asked about the booking revenue. Technically if you really look at it, our focus is how to probably stabilize the broking business. I mean if you really see across the board we do have cash market broking business and derivative market broking business. And if you really look at derivative market broking business again there is a split of future and options market in equity side commodity side market which is a commodity volumes and third is currency market.
Now we always — our endeavor is always to take and address the needs of investments rather than heavy trading and over leveraged trading. Because in derivative largely if you really go and see options and F&O markets are largely leveraged positions and that should be given or that should be utilized, that platform should be used by those kind of investors who understand that space well. And that’s where we say if you understand really well you must become active in that particular segment.
Having said that, from our expertise I think we always try to create product, we always try to create strategies to look at investments, needs. Why I’m saying that if you really look at our share revenue mix, which is your second question also between cash and derivative it is split into 50-50. So we are largely denominated looking at cash market segment broking business. And then if you really look at derivative businesses we again started focusing and trying to see how we can create a hedge position or we can create a position where probably your losses are limited and you are not over leveraging yourself for the customer.
And those kind of positions we are allowing to take a customer. So having said that, we are focusing on commodity businesses where probably arbitrage kind of opportunity can be utilized and used by the customers and guiding them if they are convinced they are executing those kind of trades on those platform. Similar situations are there in future and option segment also. As a result, most of the time even if our derivative books are there, I think they are going with a specific pace and growing under a specific pace and do not really hampering because of various different regulations which are coming in act because with us, most of our customers, I am not saying all of our customers but a large portion of our customers are using these activities and they are already calculating their cost.
And based on that if markets are providing the opportunity, they are executing trades and we feel that is happening. So that’s how we are trying to manage our revenue mix. That’s how we are trying to make our broking revenue more stable so that the market eventually do not really hamper. We create a scenario pessimistic, optimistic and reasonable. And based on that we are trying to constantly work towards it. Obviously we have not reached to a level where we can create a balance but we are constantly working towards it to reach to a balance broking revenue which can be less impacted from the market volatility.
Now coming back to your RBI book on a prop side just to clarify you in our this company we do not deal with proprietary book. We do not have a single pie or a property activity in this book. So that rules and regulations are not at all impacting us in this company. I hope I have addressed all the questions.
Swarnabha Mukherjee
Yes sir. Very clear. Thank you for the details.
Roop Kishor Bhootra
Just to add to that sir in terms of the AUM side which I have highlighted in my communication also that AUM side even in last financial year which was really tough from the I can say market perspective where market was down on I can say the full year basis if I will talk then it’s down by almost 4%. Then also we were able to enhance our total AUM amount to broking side that asset under custody we were able to increase by 16% and because of I can say that particular increase we are having a particular I can say confidence level where we will able to grow going forward in this particular current market scenario also.
Swarnabha Mukherjee
Right sir. So I mean just to clarify, I mean I think this is I think a great data that you have highlighted. Wanted to understand that this like EUC that you have increased because how much can we attribute to maybe say active client increase and how much can we attribute to say organically the individual books have grown?
Roop Kishor Bhootra
These AUMs which we are talking about that AUM or AUC that increases there from the I can say more from our existing client base at the same time we are continuously adding new client base also total I can say total number of client side. If I will say then we have increased last financial year all profit plan to base by 12% in total number active client base. Surely last year the activity level was little bit down so it was almost I can say slightly so 3% down. But the positive part is in terms of one side the total number of client has also been announced in second side the AUM from even existing client is also increasing on constant basis.
Swarnabha Mukherjee
Understood. Very clear. Thank you. Thank you so much. Thank you and all the best for everything.
Roop Kishor Bhootra
Thanks. Thanks Mr. Mukherjee.
Operator
Thank you. [Operator Instructions] Thank you very much. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference back to the management for closing comments. Over to you sir.
Pradeep Gupta
Thank you, investors. Thanks a lot for participating in this earning call. As I said, our endeavor is always going to look at investors’ viewpoint, investors’ interest along with our customer interest. Because we do follow a policy of customer-centric and we are customer-centric and our policy is to look after the customers’ interest first, our investors’ invest first and simultaneously grow the company over a period of time. So we’ll keep on doing that. We’ll be happy to answer any kind of a question which is coming in anyone’s mind separately also Mr. Roop Bhootra and Mr. Tarak Shah can probably address if required separately. Thanks for your participation.
Operator
[Operator Closing Remarks]