ARSSBL Q1 FY27 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹246 Cr
verified against source
Revenue YoY
22.37%
reported change
EBITDA
₹97.3 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Anand Rathi reported resilient Q1 FY27 results with revenue from operations growing 22.37% YoY to ₹246.1 crore, driven by balanced contributions from both broking (52%) and non-broking segments (29%). EBITDA expanded 30.19% to ₹97.3 crore with a healthy 39.54% margin, while PAT before exceptional items surged 71.22% to ₹39.1 crore. However, PAT after exceptional items of ₹23.35 crore (up only 2.35%) reflects a ₹20.99 crore one-time fraud-related expense for restoring securities of two depository clients. MTF book grew 55% YoY to ₹1,330 crore with guidance to reach ₹1,750-1,800 crore by FY27 end, while distribution AUM expanded to ₹9,500 crore with 40% growth targeted. Management maintained medium-term guidance of 15-20% revenue growth and 30-35% PAT growth as the 50/50 broking/non-broking diversification progresses. Key risks include regulatory tightening in equity derivatives, potential credit quality deterioration in the expanding MTF book, and near-term market volatility from geopolitical pressures and foreign outflows.
Colored figures show movement against the previous available record.
Guidance to track
- Management targets growing the Margin Trading Funding book from current ₹1,330 crore level by end of fiscal year 2027, implying approximately 30-35% growth.
- Distribution business targeting 40% growth driven by higher wallet share of existing clients and disciplined risk management, with focus on mutual fund and insurance products.
- Medium-term revenue growth guidance maintained at 15-25%, with minimum 15-20% until the company achieves the 50/50 broking/non-broking revenue mix.
- Bottom-line growth targeted at 30-35% as operating leverage improves and the company scales its higher-margin non-broking businesses.
Risks flagged
- As the MTF book grows towards ₹1,800 crore, any sharp market correction could trigger margin calls and potentialDefaults on funded positions. Management claims strong risk controls but this remains a concentration risk.
- The ₹20.99 crore fraud loss from off-market transfers of dormant client securities raises questions about internal control effectiveness. While external consultants have been engaged, the incident remains under investigation.
- SEBI and RBI measures including upfront option premium collection, tighter expiry day margins, and higher contract sizes could suppress derivative trading volumes, directly impacting broking revenue.
- Q-o-Q distribution income declined as insurance business (concentrated in Q4) softened in Q1. This seasonality creates lumpy quarterly revenues and unpredictability.
Key quotes
- Our typical endeavor is going to be that we are going constantly going to grow between 15 to 25% is a range which we have set for ourselves and obviously we will keep on doing it
- We have been working in this space since 2017 and there is not a single pesa or pipe is being lost or we have seen any kind of a delinquencies in our this MTF book
- Whatever borrowing is happening, whatever debt equity is happening, in fact that is yielding results by way of interest income in MTF as well as broking income and that's where you are trying to multiply and you are trying to gain over there
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