Anand Rathi's June profit hit by ₹21 cr DP fraud charge
Revenue rose 22% and EBITDA 30%, but a ₹210 mn compensation for a DP fraud cut net profit to ₹234 mn. The company is also raising ₹500 cr via NCDs.
— 5 earlier stories on Anand Rathi Share & Stock Brokers Ltd. →What's new
- Revenue up 22% YoY to ₹2,461 mn; EBITDA up 30% to ₹973 mn.
- Profit before exceptional jumped 71% to ₹391 mn; DP fraud charge of ₹210 mn cut net to ₹234 mn.
- MTF book surged 55% to ₹13,318 mn; AUM rose 26% to ₹94,791 mn.
Why this matters
The underlying business is growing strongly with MTF and AUM expansion, but the DP fraud compensation is a reminder of operational risks. With a ₹500 cr NCD raise in the pipeline, the company is betting on more debt to fund growth. The operating numbers are solid, but the fraud charge is a dent, not a derailment.
What we're watching
- Whether the ₹500 cr NCD raise goes through and its pricing.
- Any further disclosures about the DP fraud incident.
- MTF growth trajectory and debt levels given the NCD plan.
The full read
Strong growth. Revenue rose 22% to ₹2,461 mn and EBITDA climbed 30% to ₹973 mn. The MTF book surged 55% to ₹13,318 mn and AUM hit ₹94,791 mn, up 26%. Core profit before exceptional jumped 71% to ₹391 mn. But a ₹210 mn compensation charge for a DP fraud pulled net profit down to ₹234 mn. The company is also looking to raise ₹500 cr via NCDs, its biggest debt move yet at 14% of market cap. The operating numbers are solid. The fraud charge is a dent, not a derailment.
Questions answered
- What was the DP fraud compensation charge and why was it taken now?
- Anand Rathi took a ₹210 mn charge in the June 2026 quarter as compensation related to a depository participant fraud. The filing does not elaborate further, but the charge is treated as an exceptional item.
- How did the core business perform excluding the fraud charge?
- Profit before exceptional items rose 71% to ₹391 mn, driven by 22% revenue growth and 30% EBITDA growth. The MTF book expanded 55% and AUM grew 26%.
- What is the significance of the ₹500 cr NCD raise?
- The planned NCD private placement of ₹500 cr is 14% of Anand Rathi's market cap, its biggest debt move yet. It signals a bet on using debt to fund MTF growth.
- How do these results compare to the previous quarter?
- The previous quarter (Mar 2026) had sales of ₹256 cr and net profit of ₹42 cr. The June quarter revenue of ₹246 cr is slightly lower, but the one-time charge distorts the bottom-line comparison.
Anand Rathi Share & Stock Brokers Ltd.
Latest quarter · Jun 2026
Leverage & growth
Story so far
All notes on ARSSBL →- 14 Jul 2026 · 6:37 PM IST Anand Rathi's June profit hit by ₹21 cr DP fraud charge
- 1d ago Anand Rathi Q1 profit before charge surges 71% on revenue up 22%
- 1d ago Anand Rathi board makes NCD raise, fraud charge official
- 1d ago Anand Rathi board confirms known plans for fraud charge, debt raise
- 1d ago Anand Rathi Q1 PAT ₹235 mn after ₹209.96 mn fraud charge