Client trust and long-term focus driving record inflows
Speaking to ET Now, Rathi attributed the company’s robust performance to customer-centricity and investor discipline, noting that his clients continue to invest consistently regardless of short-term market trends.
“We do not lose our customers. Even when markets turn volatile, our investors continue putting money to work because we believe in long-term investing,” he said.
“In fact, lower markets present a great opportunity. Our inflows this year are almost double compared to last year.”He added that investor education and a relationship-driven approach have been central to maintaining client confidence through market cycles.
FY26 revenue and profit targets on track
Rathi reaffirmed his company’s FY26 guidance, saying the firm is already halfway to meeting its annual goals.
“We had guided for a ₹1,175 crore revenue target and a ₹375 crore profit goal for FY26. As of now, we have already achieved around 50–52% of those numbers in just six months,” he said.
“We are very confident that both targets will be achieved comfortably.”The strong first-half performance, he said, has been driven by rising assets under management (AUM), a growing client base, and a focus on steady advisory income.
Margins stable and likely to improve further
Despite a slight sequential dip in margins, Rathi dismissed concerns about sustainability, citing consistent performance since listing.
“Our margins have stayed between 40% and 45% for the past four years,” he said.
“Quarter-to-quarter variations are natural, but as our base expands, fixed costs get absorbed and margins are likely to improve further, not decline.”
Client base expanding 16% YoY; sustainable growth ahead
The company’s active client base rose 16% year-on-year, and Rathi expects the pace to continue in the medium term.
“We expect client growth of 15–20% annually,” he said.
“Existing relationship managers are adding new clients, and we are expanding our RM network as well. Currently, each RM manages around 30–32 clients, which can easily go up to 50 — so there’s huge capacity left for expansion.”
Rathi credited strong portfolio performance and client referrals for the rising number of new investors joining the platform.
Sector outlook: Infra, consumption, and BFSI to lead
Rathi remains selectively bullish on India’s infrastructure, consumption, and financial services sectors.
“Infrastructure is set to do very well,” he said.
“With GST rationalisation, FMCG and other consumer goods should see demand improvement. The banking and NBFC sectors will also perform well if inflation remains under control and interest rates stabilise.”
He advised investors to look beyond sector trends and focus on company-specific fundamentals.
“Don’t just invest in sectors — pick the right companies within them,” he cautioned.
Gold too volatile; equities remain better long-term bet
On commodities, particularly gold, Rathi warned investors against chasing short-term rallies.
“Gold is too volatile at the moment. Historically, its returns are only slightly above inflation over the long term,” he said.
“It can deliver sharp spikes followed by years of underperformance.”
He suggested that equities and mutual funds remain the best options for retail investors seeking 12–15% annual returns with moderate risk.
“For average investors, equity markets and professionally managed mutual funds are the right long-term choice,” he said.
Balanced growth and strong fundamentals ahead
With consistent client growth, solid AUM expansion, and operational leverage improving, Rathi expects continued strength in the coming quarters.
“Our business model is built on client trust and long-term thinking. As inflows grow and costs get optimized, profitability will continue to improve,” he said.
Analysts say the company’s diversified model, steady margins, and disciplined execution make it well-positioned to capture India’s expanding wealth management opportunity.
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