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Anand Rathi Wea.
Our verdict on Anand Rathi Wea. isn’t the consensus take — see where we landed, and the one risk the bull case glosses over.
See the verdict — free →Does management do what it says?
The company surpassed its revenue guidance of Rs. 1,175 Crores by achieving an actual revenue of Rs. 1,198 Crores for FY26. (1 exceeded across 1 tracked commitment)
“Revenue | Guidance given for FY26 (Rs. Crs.) | 1175”
The ARWL strategy has delivered a CAGR of 16.01% since inception (April 2014), outperforming the target range with a lower-than-targeted beta of 0.55. (1 exceeded across 1 tracked commitment)
“ARWL Strategy | 16.01% | Beta to Nifty 50 | 0.55”
See the full cited Management analysis of Anand Rathi Wea.
How durable is the business?
Revenue from Mutual Fund distribution grew significantly by 27.1% YoY, reaching Rs. 113.1 Crores, driven by a 22.4% increase in MF AUM. (4 expanding across 1 engine)
“MF – Equity & Debt Q4 FY26 127.9 Y/Y % 24.2%”
Mutual Fund distribution revenue grew significantly YoY, with equity mutual funds capturing the majority of net inflows as clients shifted from temporary debt holdings into staggered equity entries. (2 expanding)
“Mutual Fund distribution revenue registered strong growth of 27% Y-o-Y to Rs. 113.1 crores in Q1 FY’26.”
See the full cited Business Model analysis of Anand Rathi Wea.
Where does growth come from?
SIP inflows are accelerating significantly, growing 59% year-over-year to reach ₹70 Crores per month by March 2025. (5 accelerating across 5 signals)
“Monthly SIP Inflows (Rs. Crs.) Mar-25: 70, Mar-26: 92. Growth: 32%”
AUM growth is accelerating, with the company reporting a 29.9% YoY increase to reach ₹77,103 Crores by March 2025, and setting an ambitious target of ₹1,00,000 Crores for FY26. (5 accelerating across 5 signals)
“Asset under management (AUM) ... Actuals for FY26 (Rs. Crs.) 93,037 ... Guidance for FY27 (Rs. Crs.) 1,20,000”
See the full cited Future Growth analysis of Anand Rathi Wea.
What could break the thesis?
The risk remains high but is showing signs of easing as the company maintains a consistent 14-15% return strategy with a low beta (0.6) relative to the Nifty, and Equity MF as a percentage of AUM has remained stable at 54% despite massive AUM growth. (1 easing, 4 stable, 1 high-severity)
“Product wise AUM mix... Equity MF 51%”
The risk is intensifying due to the sudden loss of the Product Head and an increase in RM attrition to 6 per quarter (up from 2-3 previously), leading to a loss of INR 99 crores in assets to competition. (2 intensifying, 3 easing)
“Regret RM Attrition*... These 7 RMs had an average tenure of 7.5 years with ARWL. So far, we have retained 75% of their AUM.”
See the full cited Risk analysis of Anand Rathi Wea.
Read the full thesis on Anand Rathi Wea.
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