Anand Rathi Share and Stock Brokers reported a 71% year-on-year increase in profit before an exceptional item for the June quarter, driven by growth in broking, margin funding and distribution income. Profit before the exceptional item rose to Rs 39.1 crore in the first quarter of FY27 from Rs 22.8 crore a year earlier. After the exceptional item, net profit stood at Rs 23.4 crore, up about 2% from Rs 22.8 crore in the same period last year. Revenue from operations increased 22% to Rs 246.1 crore from Rs 201.1 crore. Earnings before interest, tax, depreciation and amortisation grew 30% to Rs 97.3 crore, while the EBITDA margin expanded to 39.5% from 37.2%. Interest income from the company’s margin trading facility rose 52% to Rs 42.8 crore during the quarter. Its MTF book expanded 55% year-on-year to Rs 1,331.8 crore, reflecting higher demand from investors seeking leveraged exposure to equities. The company’s assets under management increased 26% to Rs 9,479.1 crore, supporting growth in recurring income. Distribution income rose 31% to Rs 27.5 crore, while broking-related revenue increased 15% to Rs 128 crore. Other operating income grew 16.5% to Rs 47.9 crore. The faster growth in non-broking revenue helped reduce the company’s dependence on transaction-based income, which can fluctuate with trading volumes and market sentiment. Chairman and MD Pradeep Gupta said non-broking revenue grew 43% during the quarter, strengthening the company’s balanced revenue profile. Despite the strong year-on-year growth, performance weakened from the March quarter. Revenue fell 3.7% sequentially, while EBITDA declined 11.8%. The EBITDA margin narrowed by 362 basis points from 43.2% in the previous quarter. Profit before the exceptional item fell 6% quarter-on-quarter. Distribution income declined nearly 22%, while other operating income fell 16%. Broking revenue, however, rose 6.5% sequentially, while interest income from margin funding remained largely stable.
