Anand Rathi Wealth vs Tata Capital Q4 FY26

Anand Rathi Wealth delivered a strong Q4 FY26 with revenue of ₹302 crore (+25% YoY) and PAT of ₹92 crore (+25% YoY), marking the 18th consecutive quarter of >20% PAT growth. Full-year revenue reached ₹1,198 crore (+22% YoY) and PAT ₹386 crore (+28% YoY), beating the guided ₹375 crore. AUM crossed ₹1 lakh crore post-quarter end, a key milestone. Management guided FY27 revenue of ₹1,415 crore, PAT of ₹460 crore, and AUM of ₹1.2 lakh crore, implying ~19% PAT growth—conservative versus historical 20-25% range. Net inflows grew only 7% YoY to ₹13,457 crore, reflecting market headwinds, but client attrition remained low at 0.54% AUM lost. Key risk: sustained market weakness could pressure net inflows and AUM growth, impacting revenue visibility.

Guidance read

FY27 Revenue Guidance of ₹1,415 Cr: Management guided FY27 revenue at ₹1,415 crore, implying ~18% growth over FY26's ₹1,198 crore. FY27 PAT Guidance of ₹460 Cr: PAT guidance for FY27 is ₹460 crore, representing ~19% growth over FY26's ₹386 crore, excluding ESOP and fair value items. FY27 AUM Guidance of ₹1.2 Lakh Cr: AUM target for FY27 is ₹1.2 lakh crore, up from ~₹1 lakh crore achieved post-Q4. Bonus Issue 1:1 and Final Dividend ₹7/Share: Board approved 1:1 bonus share issuance and final dividend of ₹7 per share, subject to shareholder approval.

Risk read

Key risks include ESOP Cost Volatility — A ₹39.3 crore ESOP charge was booked in Q4, concentrated among KMPs. Future charges could impact reported PAT if market price rises further.; Net Inflow Slowdown — Net inflows grew only 7% in FY26, and management acknowledged this is not a strong number. Sustained market weakness could further pressure inflows.; Regulatory Impact on Trail Commissions — New SEBI total expense ratio (TER) structure may compress distributor payouts. Management downplayed impact as 2-4 bps, but it remains a headwind.; Concentration in Mutual Fund Revenue — Mutual fund distribution revenue constitutes ~41% of total revenue. Any regulatory or competitive pressure on trail commissions could affect margins..

Promise ledger

Scorecard data is being built as historical quarters are processed.

Tata Capital delivered a strong Q4 FY26, with PAT (ex-motor finance) surging 51% YoY to ₹1,459 crore, driven by lower credit costs (0.8%) and improved asset quality (net NPA 0.5%). AUM grew 28% YoY (ex-motor) to ₹2.52 lakh crore, led by housing finance (29% YoY) and retail momentum. Disbursements crossed ₹50,000 crore for the first time. Management guided for FY27 AUM growth of 23-25% and expects cost of funds to decline further. The motor finance business turned profitable (₹43 crore PAT) and is expected to resume growth in H1 FY27. Key risks include geopolitical tensions (West Asia conflict) impacting MSME and CV segments, though management noted no material stress yet. The company remains on track to achieve its FY28 ROA target of 2.5-2.7%.

Guidance read

FY27 AUM growth of 23-25%: Management expects overall AUM growth in the range of 23-25% for FY27, supported by retail and housing momentum. FY28 ROA target of 2.5-2.7%: Reiterated target of achieving ROA between 2.5% and 2.7% by FY28, driven by margin expansion and cost efficiencies. Motor finance business to resume growth in H1 FY27: Disbursements grew 32% sequentially in Q4; management expects AUM growth to resume from H1 FY27. Cost of funds expected lower in FY27 vs FY26: Management expects overall cost of funds in FY27 to be lower than FY26 due to repricing of liabilities.

Risk read

Key risks include Geopolitical tensions (West Asia conflict) — Ongoing conflict could impact inflation, energy prices, and global financial conditions, potentially affecting MSME and CV segments.; El Nino impact on rural demand — Evolving El Nino conditions remain a watch point for potential impact on food inflation and rural demand, which could affect asset quality.; Tightening liquidity and rising incremental borrowing costs — March saw hardening of rates due to liquidity tightness; while short-term costs eased in April, long-term costs remain elevated.; Potential stress in MSME sub-segments — Management has tightened norms in certain MSME sub-segments (e.g., travel-related) due to secondary impacts from geopolitical developments..

Promise ledger

Scorecard data is being built as historical quarters are processed.