Anand Rathi Wealth is on the verge of achieving its ₹1 lakh crore assets under management milestone, with CEO Rakesh Rawal attributing the growth to an even mix of market performance and fresh client inflows. Speaking to ET Now, Rawal highlighted the company's strong momentum in both market-driven appreciation and new client acquisitions.

AUM Growth Driven by Balanced Factors

The wealth management firm has demonstrated impressive growth trajectory this year, with AUM rising by nearly ₹20,000 crore. Rawal explained that approximately 50.00% of this growth stems from market appreciation, while the remaining portion comes from new money inflows.

"Going forward as well, we expect a healthy balance between market-led growth and net inflows, while continuing to focus on acquiring new money," Rawal stated during the interview.

Margin Discipline Maintained Despite Reinvestment

Rawal emphasized that a 30.00% profit margin remains a structural floor for the wealth manager, supported by operating leverage and cost efficiencies. With turnover growing 21.00% year-on-year, the company has achieved incremental efficiencies across multiple cost lines, helping sustain margins even during continued franchise investment.

"There is no single cost line to cut. Efficiency across the board helps improve margins without hurting long-term strength," he explained. This approach demonstrates the company's commitment to maintaining profitability while investing in future growth capabilities.

Revenue Performance and Client Strategy

Addressing the divergence between revenue growth and inflow patterns, Rawal clarified that mutual fund distribution revenue growth of 21.00% compared to just 4.00% growth in equity mutual fund net inflows does not reflect increased client risk aversion. Instead, revenues remain closely linked to market movements and overall portfolio values.

The company continues to guide product allocation strictly by client objectives, targeting 14.00% to 15.00% returns at lower volatility levels, rather than making tactical shifts in product mix based on market conditions.

Financial Performance and Future Outlook

Despite reaching approximately ₹99,000 crore in AUM by the third quarter, Rawal indicated the company will retain its full-year guidance of ₹1 lakh crore, citing uncertain market conditions. Monthly net inflows remain robust at over ₹1,000 crore, providing a solid foundation for continued growth.

The firm's return on equity stands at 47.00%, which Rawal described as largely structural, supported by the company's cash-generative business model and consistent dividend payout policy of around 30.00%. "With disciplined capital retention and steady profit growth, we expect to maintain healthy ROE levels over the medium to long term," he noted.

Anand Rathi Wealth's performance underscores the resilience of India's high-end wealth management segment, demonstrating how disciplined asset allocation and steady client inflows continue to support growth even amid market volatility.

Anand Rathi Wealth Limited has maintained its conservative stance on financial guidance, choosing to stick with its original FY26 revenue forecast of ₹1,175 crores and profit after tax (PAT) estimate of ₹375 crores despite strong performance through the first three quarters of the fiscal year.

Strong Q3 Performance Against Annual Targets

The company has demonstrated robust financial performance, achieving substantial progress toward its annual targets by Q3 FY26. The financial metrics show strong momentum across key performance indicators.

Conservative Management Approach

Despite the strong performance metrics, Anand Rathi Wealth's management has deliberately chosen not to revise its guidance upward. The company has adopted a philosophy of "undercommit and over deliver," prioritizing conservative forecasting over aggressive target setting.

This strategic approach reflects the management's preference for maintaining realistic expectations while delivering consistent results. The decision demonstrates a cautious outlook toward market conditions and business sustainability.

Market Stability Concerns Drive Guidance Strategy

The company's decision to avoid increasing its Assets Under Management (AUM) guidance stems from concerns about potential market instability. Management has cited possible market volatility as a key factor in maintaining current forecasts rather than pursuing more aggressive targets.

This conservative stance positions the company to potentially exceed expectations while avoiding the risks associated with overly optimistic projections in uncertain market environments.

Strategic Positioning for FY26

With three quarters of strong performance already recorded, Anand Rathi Wealth appears well-positioned to meet or potentially exceed its stated targets for FY26. The company's approach of maintaining conservative guidance while delivering solid results reflects a mature management strategy focused on sustainable growth rather than short-term target revisions.