Anand Rathi Share Q3 Net Profit Surges 72% YoY with Strong Revenue Growth
Anand Rathi Share & Stock Brokers delivered exceptional Q3 performance with net profit surging 72% year-on-year to ₹37 crore and total revenue growing 22% to ₹249 crore. The company's strategic focus on non-broking businesses showed strong results with MTF book expanding 46% to ₹1,232 crore and assets under management growing 32% to ₹8,369 crore, demonstrating successful diversification efforts.
*this image is generated using AI for illustrative purposes only.
Anand Rathi Share & Stock Brokers Limited has delivered exceptional financial performance in the third quarter, with consolidated net profit reaching ₹37.00 crore, marking a significant 32.6% increase from the previous quarter and an impressive 72% growth year-on-year from ₹21.50 crore. The company's total revenue of ₹249.00 crore demonstrated strong growth momentum, rising 22% compared to ₹204.60 crore in the same period last year.
Strong Financial Performance Metrics
The company's quarterly results showcase robust growth across key financial parameters:
| Metric: | Q3 Current | Previous Quarter | Previous Year | YoY Growth | QoQ Growth |
|---|---|---|---|---|---|
| Net Profit: | ₹37.00 Cr | ₹27.90 Cr | ₹21.50 Cr | 72.0% | 32.6% |
| Total Revenue: | ₹249.00 Cr | ₹227.20 Cr | ₹204.60 Cr | 22.0% | 9.6% |
| EBITDA: | ₹101.15 Cr | ₹76.91 Cr | - | - | 31.5% |
| EBITDA Margin: | 40.8% | 37.6% | - | - | 320 bps |
The exceptional profit growth reflects the company's operational efficiency and effective cost management strategies. The EBITDA margin expansion of 320 basis points to 40.8% demonstrates improved profitability metrics and operational leverage.
Non-Broking Businesses Drive Expansion
Anand Rathi's diversification strategy continued to show positive results during the quarter, with non-broking businesses registering strong growth:
| Business Segment: | Current Value | YoY Growth | Performance |
|---|---|---|---|
| MTF Book: | ₹1,232.00 Cr | 46.0% | Strong expansion |
| Assets under Management: | ₹8,369.00 Cr | 32.0% | Consistent growth |
| Assets under Custody: | ₹10,57,727 Mn | 47.7% | Robust performance |
The Margin Trading Facility segment showed particularly strong performance with the MTF book growing 46% year-on-year. The non-broking segment's contribution increased from 24% to 28% of total revenue, indicating successful diversification efforts.
Strategic Focus on Diversified Earnings
Pradeep Gupta, Chairman and Managing Director, emphasized the company's strategic direction: "We will continue to focus on de-risking and stabilizing our earnings through increased exposure in the non-broking segments." He highlighted the company's relationship-based approach, stating: "In the era of discount and algorithm broking, we remain customer-oriented, and our approach will always be relationship-based, which is why over 54% of our clients have been with us since longer than 3 years."
Operational Highlights and Market Position
Anand Rathi maintains a robust pan-India presence with 97 branches across 54 cities and a network of 1,243 Authorized Persons spread across 342 cities. The company's client base demonstrates strong characteristics:
| Client Metrics: | Details | Significance |
|---|---|---|
| Total Clients: | 9,92,531 | 14.6% YoY growth |
| Active Clients: | 1,58,601 | 14.6% YoY growth |
| Tier 2/3 Cities: | 71% of active clients | Strong rural reach |
| Client Tenure: | 54% over 3 years | High loyalty |
| Client Age: | 84% over 30 years | Mature investor base |
The company's debt-equity ratio improved significantly to 0.59, compared to 2.36 in the previous year, indicating a stronger financial position and reduced leverage. This operational efficiency, combined with strategic focus on relationship-based customer service, positions Anand Rathi well for sustained growth in the competitive broking industry.
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