Anand Rathi Reports Strong FY26 Results, Approves Dividend and Capital Boost

Anand Rathi Share and Stock Brokers announced a consolidated profit after tax of ₹129.27 crore for the fiscal year ended March 31, 2026. This strong performance was driven by consolidated revenue that reached ₹932.16 crore.

The company's Board of Directors met on April 14, 2026, to approve these audited financial results. In addition to the profit announcement, the Board also greenlit a proposed dividend of ₹5 per equity share, subject to shareholder approval at the upcoming Annual General Meeting.

Further corporate actions approved include an increase in the company's authorised share capital from ₹33 crore to ₹35 crore, also requiring shareholder consent. Key leadership appointments were confirmed with the re-appointment of Whole Time Directors Roop Kishor Bhootra and Vishal Jugal Laddha for three-year terms starting November 15, 2026. The firm also re-appointed M/s. R Kabra & Co. LLP as its Statutory Auditors. An Employee Stock Option Plan, known as ESOP 2026, received Board approval.

These results and proposals follow Anand Rathi Share and Stock Brokers' successful Initial Public Offering (IPO) in September 2025, where it raised ₹745 crore at ₹414 per share. The company has a history of robust financial growth, with Compound Annual Growth Rates (CAGR) of 34% for revenue, 64% for EBITDA, and 66% for Profit After Tax between FY23 and FY25. Historically, the company has not had a significant dividend payout history, making the current ₹5 per share proposal notable.

However, the company faces a contingent liability of ₹13 crore related to a client's claim of alleged fraudulent off-market share transfers, which is currently under investigation. Anand Rathi has also dealt with past penalties. These include a ₹2.15 lakh fine from NSE Clearing in November 2025 for operational non-compliance, a ₹4.25 lakh plus GST penalty from MCX for reporting issues, and a ₹10 lakh fine from SEBI in March 2026 for cybersecurity violations.

The company operates in the competitive broking and wealth management sector alongside peers like ICICI Securities and Motilal Oswal Financial Services. Notably, a group entity, Anand Rathi Wealth, recently recommended a ₹7 per share dividend and a bonus issue, signaling dividend activity within the broader Anand Rathi group.

Looking ahead, investors will be watching for shareholder approval of the dividend and capital hike. The outcome of the investigation into the ₹13 crore client fraud claim and any potential financial impact will also be key. Additionally, tracking the implementation of enhanced internal controls and security measures will be important, alongside the company's continued performance and growth drivers.