CARE Ratings Upgrades Credit Ratings for Anand Rathi Share And Stock Brokers Ltd
Anand Rathi Share And Stock Brokers Ltd saw its credit ratings upgraded by CARE Ratings Limited concerning its long-term and short-term bank facilities and debt instruments. The rating action was reported following a letter dated April 08, 2026.The rating upgrade details for the company's instruments are summarized below:
| Instrument Description | Size of Issue | Rating Assigned | Rating Action |
|---|---|---|---|
| Long-term / Short-term bank facilities | INR 1400 crore | CARE A; Stable / CARE A1+ | Upgraded from CARE A-; Stable / CARE A1 |
| Market linked debentures | INR 50 crore | CARE PP-MLD A; Stable | Upgraded from CARE PP MLD A-; Stable |
| Commercial paper | INR 200 crore | CARE A1+ | Upgraded from CARE A1 |
These ratings reflect the company's financial standing based on the analysis conducted by CARE Ratings Limited.
Financial Performance Highlights
Anand Rathi Share And Stock Brokers Limited reported specific financial figures for several periods.The company's total income increased by 23.73% in FY25, reaching ₹845 crore, with Profit After Tax (PAT) at ₹104 crore, resulting in a PAT margin of 12.29%. Return on Total Assets (ROTA) and Return on Net Worth (RONW) stood at 3.51% and 23.57% respectively in FY25. For 9MFY26, total income rose by 5.18% year-on-year to ₹679 crore, and PAT was ₹90 crore, equating to a PAT margin of 13.23%.
The firm's revenue profile shows a diversification trend. While brokerage accounted for approximately 80% of total income in FY17, its share decreased to about 52.39% in FY25 and 44.68% in 9MFY26. Interest income, particularly from the Margin Trading Facility (MTF), emerged as a key growth area. The MTF book grew from ₹305 crore as on March 31, 2022, to ₹686 crore as on March 31, 2025, and scaled up further to ₹1,232 crore as on December 31, 2025.
The company's asset under distribution (AUD) grew from ₹2,772 crore as on March 31, 2022, to ₹6,460 crore as on March 31, 2025, and stood at ₹8,369 crore as on December 31, 2025. This growth propelled the share of non-broking income from 34.58% in FY22 to 49.35% in FY25 and 52.76% in 9MFY26.
Balance Sheet Strengthening
The company's capital position was significantly bolstered by an equity infusion. Anand Rathi Share And Stock Brokers Limited's tangible net worth increased to approximately ₹1,335 crore as of December 31, 2025, up from ₹495 crore as of March 31, 2025. This rise is primarily attributed to an equity infusion of ₹745 crore through a primary issuance part of its IPO in September 2025. Consequently, the overall gearing moderated from 2.59x in FY25 to 0.90x in 9MFY26, while fund-based gearing decreased from 1.83x as of March 31, 2025, to 0.59x in 9MFY26.Market Position and Liquidity
In terms of market presence, ARSSBL held a market share of 0.25% across cash and derivatives segments in FY25, with a higher presence in the cash segment at 0.88%. The active client base on the NSE saw a minor decrease from 148,861 as of January 31, 2025, to 146,569 as of February 28, 2026. Despite this, the company's ranking based on NSE active clients improved from the 27th position as of January 31, 2025, to the 23rd position as of February 28, 2026.Regarding liquidity, the company reported an overall liquidity of ₹3,197 crore as of December 31, 2025, comprising cash and cash equivalents (including encumbered balances) and unutilized bank lines of about ₹431 crore. Against this, scheduled debt repayments over the next six months remained modest at approximately ₹184 crore.
Rating Drivers and Outlook
CARE Ratings Limited stated that the rating upgrade reflects the impact of the substantial equity infusion, which is expected to enhance financial flexibility and support growth in the margin trading facility (MTF) and distribution segments over the medium term. Further strength in the ratings is derived from the management team's experience, the company's established role in the broking industry, and its strategic importance within the Anand Rathi Group.The analysis notes that inherent strengths are tempered by the modest scale of broking operations relative to larger peers, alongside risks associated with the capital market-linked business and competitive intensity. CARE Ratings maintained an outlook of Stable for the company, expecting continued demonstration of a stable business profile with anticipated need-based timely support from the parent company.
ARSSBL Stock Price Movement
Shares of Anand Rathi Share and Stock Brokers Limited are edging higher to ₹556.45 as of 3:04 PM today, having gained 4.37% in live trading. The stock action sees robust participation, with trading volume accumulating to 1.47 million shares.Source:
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