01 — At a Glance
The Sharpest Pencil in the Broking Box (With Slightly Bent Eraser)
- 52-Week High / Low₹795 / ₹431
- Q3 FY26 Revenue₹248 Cr
- Q3 FY26 PAT₹37.9 Cr
- TTM EPS₹20.07
- Annualised EPS (Q1–Q3 Avg × 4)₹21.47
- Book Value / Share₹208
- Price to Book2.21x
- Active Clients (Mar FY25)2.21 Lakh
- MTF Book Size (Dec’25)₹123 Cr
- AUM Distribution (Dec’25)₹837 Cr
Flash Summary: Anand Rathi just delivered Q3 FY26 PAT of ₹37.9 crore — up 72% YoY. Revenue is ₹248 crore (+21.9% YoY). TTM EPS is ₹20.07. Stock trades at 26.6x P/E and 2.21x P/BV. The IPO was clean in September 2025. Then March 2026 rolled around like an unwanted audit notice, and suddenly there’s a ₹13 crore off-market share transfer scandal, SEBI penalties, and EY getting hired to poke around the books. Nothing says “growth stock” like a forensic audit before your first annual results as a public company. Nothing.
02 — Introduction
The Broker Who Learned About Compliance From a LinkedIn Post
Anand Rathi is a family-owned, full-service brokerage house that has been around since 1991 — quietly doing the work of helping Indians gamble their savings in the equity markets with marginally better systems than a WhatsApp group. Until September 2025, when they went public and discovered that “public” means people now read your disclosures.
The business model is simple: take commissions from retail, HNI, and institutional traders. Earn interest on margin trading. Distribute mutual funds and collect trail fees. Layer in some insurance broking and wealth management subsidiaries for good measure. Result: reasonably diversified revenue streams that would be boring if the growth wasn’t so spicy.
Q3 FY26 was a confidence-builder. Revenue from operations hit ₹248 crore, up 21.9% YoY. PAT hit ₹37.9 crore, up 72% YoY. EBITDA margin expanded to 41%. On paper, this looked like a stock worth getting excited about. Peers were giving this ₹2,888 crore valuation. Institutional investors were scribbling notes. Then, on February 6, 2026, someone discovered that ₹13 crore of shares had moved in an off-market transaction. On March 16, 2026, an FIR was registered. On March 6, EY was hired for forensic audit. By mid-March, SEBI had imposed a ₹1 crore penalty for cyber-security lapses from 2023-2024. Welcome to public markets, Anand Rathi. Here’s your regulatory spanking.
⚠️ CRISIL Note (Mar 2026): CRISIL A/Stable (Long-term bank loan facility of ₹175 crore) and CRISIL A1 across short-term facilities. Rating remains unchanged despite the fraud disclosure. CRISIL essentially said: “We’ve rated the debt, not the management’s personal conduct.” Fair point, but retail equity investors might feel differently.
03 — Business Model: Khatabook for Stock Markets
How Brokers Make Money While You Lose Sleep (And Rupees)
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