Anand Rathi Share & Stock Brokers Limited has allotted ₹4.50 crore of Secured, Unlisted and Redeemable Non-Convertible Debentures (NCDs) through a private placement on July 29, 2026. The issuance aims to raise capital for corporate purposes, offering investors a fixed return of 9% per annum secured against the company’s assets.

The allotment was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The company notified the Bombay Stock Exchange (Scrip Code: 544530) and the National Stock Exchange of India Ltd. (Symbol: ARSSBL) of the completion of the allotment process as per the Offer Document dated July 27, 2026.

Issue Details

The company originally proposed to issue up to 505 NCDs aggregating to ₹5.05 crore. However, the final allotment consisted of 450 debentures, each with a face value of ₹1,00,000, totaling ₹4.50 crore. The securities are unlisted and redeemable at maturity.

Security and Default Provisions

The NCDs are secured by a first-ranking charge by way of hypothecation over all present and future unencumbered assets, book debts, and receivables of the company. This security arrangement is governed by a deed of hypothecation dated June 02, 2026, entered into between Anand Rathi Share & Stock Brokers Limited and the Debenture Trustee.

In the event of a default in payment of interest or principal, the company is liable to pay an additional interest of 2% per annum over the base interest rate. This penalty interest accrues from the date of default until the payment is made in full, as specified in the Debenture Trust Deed. Full redemption of the principal amount will occur on the maturity date of July 30, 2029.

Anand Rathi Share and Stock Brokers Limited reported a profit after tax (PAT) of ₹233.51 million for the quarter ended June 30, 2026, a marginal increase of 2.3% from ₹228.10 million in the same period last year. On a consolidated basis, net profit stood at ₹234 million compared to ₹228 million in the year-ago period. The results were impacted by an exceptional expense of ₹209.96 million recognized as compensation for losses incurred by two clients due to fraudulent off-market transfers of shares from their demat accounts. Excluding this exceptional item, PAT grew 71.2% to ₹390.62 million. The company has reported the incident to the Economic Offences Wing and relevant exchanges, stating it has filed insurance claims to recover eligible losses.

Total revenue from operations expanded 22.4% year-on-year to ₹2,461.03 million on a standalone basis, driven by a 15% increase in broking-related services and a 52% surge in interest on Margin Trading Facility (MTF). On a consolidated basis, revenue stood at ₹2,466 million compared to ₹2,017 million in the year-ago period. EBITDA rose 30.2% to ₹973.00 million, with the margin improving to 39.5%. The board approved the unaudited financial results for the quarter ended June 30, 2026. The statutory auditors, R Kabra & Co. LLP, issued an unmodified conclusion on the limited review of the financial results.

Financial Performance

The following table summarizes the key standalone financial metrics for the quarter:

The consolidated financial metrics for the quarter are as follows:

The net worth of the company was reported at ₹13,463.35 million as of June 30, 2026. The board approved material related party transactions with Anand Rathi Financial Services Limited and Anand Rathi Global Finance Limited for the financial year 2026-27, subject to shareholder approval via postal ballot.

Operational Metrics

The company's Assets Under Management (AUM) rose 25.8% year-on-year to ₹94,791 million, enhancing recurring revenue potential. The MTF book grew 54.6% to ₹13,318.46 million, driven by strong demand for leveraged investment solutions. The board also authorized the raising of capital through the issuance of Non-Convertible Debentures (NCDs) for an amount not exceeding ₹500 crore and approved the incorporation of a wholly owned subsidiary in Dubai, UAE, subject to regulatory approvals.

Management Commentary

In an earnings call held on July 15, 2026, management stated that the exceptional expense of ₹209.96 million was recognized towards the restoration of securities for two clients who suffered losses due to fraudulent off-market transfers. The company has engaged an external consultant to strengthen internal controls and processes. The Economic Offences Wing has traced the money trail and attached certain assets and bank accounts of the beneficiaries. Management expects the MTF book to reach ₹1,750 crore to ₹1,800 crore by the end of the financial year, while distribution AUM is targeted to scale by 40%. The company aims to maintain a 50-50 mix between broking and non-broking income over the medium term.