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Anand Rathi Wealth Ltd

| Annual Report for the Financial Year 2024–25

NEUTRAL SENTIMENT

Report Source

12th Jan 26

Summary : Anand Rathi Wealth Limited reported strong Q3 and 9-month financial results, appointed new independent directors, re-appointed its CEO, and granted ESOPs, while also noting the sale of a subsidiary and investment in a new UK entity.

Annual Report Analysis & Insights

Financial Disclosures

  1. Consolidated Total Expenses: Q3 FY26 at Rs. 17,040.31 lakhs, 9M FY26 at Rs. 50,132.45 lakhs (includes Employee Benefit Expenses, Finance Costs, Depreciation, Other Expenses).
  2. Standalone Total Expenses: Q3 FY26 at Rs. 16,085.79 lakhs, 9M FY26 at Rs. 47,464.80 lakhs (includes Employee Benefit Expenses, Finance Costs, Depreciation, Other Expenses).
  3. Consolidated Revenue from Operations: Q3 FY26 at Rs. 28,962.39 lakhs, 9M FY26 at Rs. 86,100.68 lakhs.
  4. Standalone Revenue from Operations: Q3 FY26 at Rs. 27,942.54 lakhs, 9M FY26 at Rs. 83,023.89 lakhs.
  5. Consolidated Paid up Equity Share Capital: Rs. 4,151.03 lakhs (Face value Rs. 5 each).
  6. Consolidated Other Equity (as of March 31, 2025): Rs. 63,246.48 lakhs.
  7. Standalone Paid up Equity Share Capital: Rs. 4,151.03 lakhs (Face value Rs. 5 each).
  8. Standalone Other Equity (as of March 31, 2025): Rs. 66,149.08 lakhs.
  9. Both standalone and consolidated unaudited financial results are presented for the quarter and nine months ended December 31, 2025.

Corporate Overview

  1. Primarily India.
  2. New subsidiary incorporated in the United Kingdom.
  3. New Labour Codes implementation and potential impact on gratuity liability (assessed as non-material).
  4. Sale and distribution of financial products.
  5. Private wealth management services.
  6. Single business segment: sale and distribution of financial products within India.
  7. Investment of Rs. 585 lakh in Anand Rathi Wealth UK Limited, a wholly-owned subsidiary, with operations yet to commence.

Risk Factors

  1. Company operates in single business segment.
  2. New labor codes impact gratuity liability.
  3. UK subsidiary operations not yet commenced.
  4. Reliance on other auditors for subsidiaries.

Key Drivers

  1. Strong Q3 and 9-month financial results.
  2. Appointment of three new Independent Directors.
  3. Re-appointment of CEO for three years.
  4. Employee Stock Options granted to employees.

Auditor’s Report

  1. Unmodified conclusion on both standalone and consolidated financial results.
  2. Review of financial results of three subsidiaries by other auditors.
  3. Financial results of one subsidiary (Anand Rathi Wealth UK Limited) not reviewed by their auditors, deemed not material.

Board Commentary

  1. Appointment of Mr. Adesh Kumar Gupta as Additional Non-Executive Independent Director.
  2. Appointment of Mr. Debasish Panda as Additional Non-Executive Independent Director.
  3. Appointment of Ms. Deena Asit Mehta as Additional Non-Executive Independent Director.
  4. Re-appointment of Mr. Rakesh Rawal as Whole-time Director and CEO for a 3-year term (April 2026 - March 2029).
  5. New Labour Codes (Wages 2019, Social Security 2020, Industrial Relations 2020, Occupational Safety, Health and Working conditions 2020) effective from November 21, 2025.
  6. Grant of 12,45,309 Employee Stock Options (ESOPs) under ARWL - ESOP 2025 Plan.
  7. Issuance of fully-paid bonus equity shares in a 1:1 ratio (approved Jan 2025, allotted March 2025).
  8. Investment of Rs. 585 lakh in Anand Rathi Wealth UK Limited.

Corporate Governance

  1. Appointment of three new Non-Executive Independent Directors (Mr. Adesh Kumar Gupta, Mr. Debasish Panda, Ms. Deena Asit Mehta).
  2. Nomination and Remuneration Committee involved in director appointments and re-appointments.

Management Discussion & Analysis

Risk Control Measures

  1. Management assessed no material incremental impact from new Labour Codes on gratuity liability.

Critical Risks

  1. Reliance on a single business segment for revenue.
  2. Potential impact of new Labour Codes on gratuity liability.
  3. Uncertainty regarding commencement of operations for UK subsidiary.
Anand Rathi Wealth Ltd (ANANDRATHI) Annual Report Analysis & Insights | Dhanarthi