Speaking to ET Now, Rawal said the company’s AUM has risen by nearly ₹20,000 crore this year, with around 50% coming from market appreciation and the remaining from new money. “Going forward as well, we expect a healthy balance between market-led growth and net inflows, while continuing to focus on acquiring new money,” he said.
Margin discipline intact despite reinvestment phase
Rawal reiterated that a 30% profit margin remains a structural floor for the wealth manager, supported by operating leverage and cost efficiencies. With turnover growing 21% year-on-year, he noted that incremental efficiencies across cost lines are helping sustain margins even as the company continues to invest in its franchise. “There is no single cost line to cut. Efficiency across the board helps improve margins without hurting long-term strength,” he said.
Mutual fund revenues track markets, not client caution
Addressing the divergence between 21% growth in mutual fund distribution revenue and just 4% growth in equity mutual fund net inflows, Rawal said the trend does not reflect increased client risk aversion. Instead, revenues remain linked to market movements and portfolio values. He added that product allocation continues to be guided strictly by client objectives, targeting 14–15% returns at lower volatility, rather than tactical shifts in product mix.
AUM guidance retained amid market uncertainty
Although the company has already reached around ₹99,000 crore in AUM by the third quarter, Rawal said Anand Rathi Wealth will retain its full-year guidance of ₹1 lakh crore for now, citing uncertain market conditions. Monthly net inflows remain strong at over ₹1,000 crore, but fresh guidance for FY27 will be shared after the current financial year concludes.
ROE seen as structurally strong
The firm’s return on equity (ROE) stands at a robust 47%, which Rawal described as largely structural. He highlighted the company’s cash-generative business model and consistent dividend payout policy of around 30%. “With disciplined capital retention and steady profit growth, we expect to maintain healthy ROE levels over the medium to long term,” he said.
Anand Rathi Wealth’s performance underscores the resilience of India’s high-end wealth management segment, even amid market volatility, as disciplined asset allocation and steady client inflows continue to support growth.