Anand Rathi Wealth Flags Margin Pressure Amid Strong Q2 Upbeat — CEO Feroze Azeez Explains Why

Anand Rathi Wealth Ltd said its margins could shrink even after a strong September quarter as the company plans to reinvest in its business to sustain 20% growth over the next decade.

"The margin as a percentage of revenue could shrink. That’s because we would like to reinvest in the business to ensure the sustenance of 20% in the next ten years,” Feroze Azeez, joint CEO of Anand Rathi Wealth, told NDTV Profit.

Anand Rathi Wealth reported its September quarter earnings for the fiscal year ending March 2026 on Monday.

The company's consolidated net profit rose 6% sequentially to Rs 99.4 crore, while revenue increased 8.5% to Rs 297 crore.

Operating income climbed 6.6% quarter-on-quarter to Rs 137.13 crore while the Ebitda margin slipped 78 basis points to 46.17%. The company declared an interim dividend of Rs 6 per share.

The company emphasized that product-level take rates (1–1.5%) are expected to hold, but reported margins may moderate as it invests in people, technology, and new growth levers to maintain a 20% growth vector over the next 10 years.

“Because we have built a simple business, the margin at a product level won’t shrink. We like to deliver 14-15% returns to our clients, and we like to make 1-1.5% for ourselves. And we can see this sustaining for the next ten years," Azeez added.

Anand Rathi is one of India’s leading non-bank wealth management firms, focused on providing wealth solutions to HNIs and UHNIs. Its core business includes Private Wealth Management advisory, in which the company is confident about maintaining a 25% growth rate.

It also offers products like mutual funds, PMS, insurance and debt products.

Anand Rathi shares have surged as much as 10% in trade on Tuesday, reaching an intraday high of Rs 3,321.