Anand Rathi Wealth posts 33% rise in FY25 profit, expands AUM to Rs 77,103cr

Anand Rathi Wealth Limited, a leading player in India‘s private wealth management sector, reported strong consolidated financial results for the year ending March 2025. The company registered a 33% year-on-year increase in net profit, reaching ₹301 crore, while total revenue grew by 30% to ₹981 crore. These results highlight the firm’s resilience and operational strength amid volatile market conditions and reinforce its growing influence in the Indian wealth management industry.

The company’s Assets Under Management (AUM) stood at ₹77,103 crore as of March 2025, reflecting a 30% annual increase, significantly outperforming the broader Nifty 50 index, which rose by just 5% during the same period. These gains were powered by ₹12,617 crore in net inflows, a 76% rise year-on-year. Equity mutual funds remained a major contributor, accounting for ₹7,706 crore in net inflows—up 67% from the previous year—and pushing their share in total AUM to 53%.

In the final quarter (Q4 FY25), Anand Rathi Wealth’s revenue grew 22% year-on-year to ₹241.4 crore. Net profit rose 30% to ₹73.7 crore, with earnings per share (EPS) climbing to ₹8.9, up from ₹6.8 in Q4 FY24. The company’s Return on Equity (ROE) reached 44.6% for the full year, underlining efficient capital utilization.

How is Anand Rathi Wealth growing its client base while maintaining long-term engagement?

The company’s growth strategy continues to hinge on its “uncomplicated” approach to private wealth, with a core emphasis on client-first solutions. Anand Rathi Wealth added 1,821 new client families during FY25, bringing the total number of active families to 11,732—an 18% year-on-year increase. Despite industry-wide pressures, the firm retained an exceptionally low client attrition rate of just 0.52% in terms of AUM lost.

Its Relationship Manager (RM) network also expanded meaningfully during the year. With the addition of 48 new RMs, the total now stands at 380. According to the company, “regret attrition” among RMs remained below 1% for the second year in a row, reflecting sustained investment in talent and a stable work culture that promotes long-term engagement and client trust.

With a strong domestic presence across 17 cities and international representation in Dubai, the company also announced plans to set up an office in London, signalling ambitions to serve global clients and high-net-worth non-resident Indians (NRIs).

What’s behind the surge in Anand Rathi Wealth’s mutual fund revenue and inflows?

The firm’s performance in FY25 was supported by an impressive 52% increase in mutual fund distribution revenue, reaching ₹406 crore. This segment has emerged as a key revenue driver, reflecting heightened interest in managed equity products among India’s affluent investor class. The shift in AUM composition—where equity mutual funds now represent 53% of the total—suggests growing investor appetite for long-term, market-linked instruments over traditional debt-heavy portfolios.

Anand Rathi Wealth reported its highest-ever quarterly net inflows of ₹3,472 crore in Q4 FY25. For the full year, total net inflows rose 76% year-on-year, further strengthening its fee-generating foundation. The firm credited its market-agnostic strategies for consistently delivering results even in uncertain conditions, with analysts pointing to its advisory strength and product neutrality as contributing factors.

How are Anand Rathi Wealth’s digital and technology platforms evolving?

While the core business continues to drive the majority of revenue, the company’s subsidiaries have demonstrated consistent growth. Digital Wealth, which offers a tech-enabled interface for younger and digitally native clients, grew its revenue by 19% to ₹29.2 crore. The unit’s AUM reached ₹1,812 crore, up 17% year-on-year.

Omni Financial Advisors (OFA), which provides a platform for Mutual Fund Distributors (MFDs) and Independent Financial Advisors (IFAs), saw revenue grow 14% to ₹7.7 crore. Its subscriber base increased to 6,447, up from 5,994 the previous year, indicating rising demand for digital back-end support tools among independent advisors.

These complementary businesses allow Anand Rathi Wealth to build a diversified, scalable ecosystem that caters to both high-touch and tech-first clientele, while creating recurring revenue streams that reduce dependency on short-term market cycles.

What does recent stock performance say about market sentiment toward Anand Rathi Wealth?

Despite its operational strength, Anand Rathi Wealth Limited‘s stock has seen mixed investor sentiment in recent weeks. As of April 9, 2025, the stock closed at ₹1,768.75 on the National Stock Exchange, reflecting a 1.47% decline from the previous trading session. Over the past month, the stock has corrected by approximately 5.3%, and it has declined around 9.4% over the last three months.

That said, the longer-term story remains compelling. Since its listing in December 2021, Anand Rathi Wealth has delivered a staggering three-year return of over 470%, significantly outperforming the Nifty 50’s return of about 26% during the same period. This strong historical performance continues to attract long-term investors, even as near-term price movements suggest profit-taking or concerns around valuations.

Should investors buy, hold, or sell Anand Rathi Wealth stock now?

Analyst sentiment towards Anand Rathi Wealth Limited remains cautiously optimistic. According to Refinitiv data, the stock has received mixed recommendations—while one analyst suggests a ‘Buy,’ another recommends a ‘Hold’. The stock’s Price-to-Earnings (P/E) ratio currently stands at 51.89, placing it at a significant premium to many peers in the financial services sector. This elevated valuation reflects the market’s expectations of continued high growth, but it also implies limited room for error.

For investors already holding the stock, maintaining a ‘Hold’ position appears reasonable given the company’s consistent earnings growth, high ROE, and expanding client base. However, new investors may consider waiting for a more attractive entry point, particularly if broader market volatility continues or if earnings growth moderates.

The company’s strong fundamentals—paired with a proven ability to execute its growth strategy—make it a compelling long-term play. But in the short term, valuation concerns and market sentiment may continue to exert pressure.

How is Anand Rathi Wealth positioning itself for sustained leadership?

The promotion of Feroze Azeez to Joint CEO from Deputy CEO during FY25 signals a clear succession plan and recognition of leadership that has helped steer the company through complex economic cycles. Under this leadership, the company also completed a ₹165 crore share buyback and issued a 1:1 bonus share, along with a final dividend of ₹7 per equity share, underscoring its commitment to shareholder returns.

Anand Rathi Wealth’s rare distinction—among just six firms in the top 1,000 by market cap—to have posted over 20% year-on-year growth every quarter since its IPO speaks volumes about its consistency. As India’s financial ecosystem matures and investors seek transparent, high-performing alternatives to traditional wealth preservation avenues, Anand Rathi Wealth stands to benefit from both structural trends and its own execution capabilities.

Looking ahead, the challenge will lie in sustaining this momentum amid increasing competition from global wealth platforms, digital-first advisory firms, and evolving client expectations. However, if current strategies are maintained and international expansion is executed effectively, Anand Rathi Wealth could cement its status as not just a domestic leader, but a global wealth advisory force.