

Highlights
| Issue Size –: 1,79,95,169 shares | Issue Open/Close – 23 Sept / 25 Sept, 2025 |
| Price Band (Rs.) 393 – 414 | Issue Size (Rs.) – 7,450 mn |
| Face Value (Rs) 5 | Lot Size (shares) 36 |
Anand Rathi Share & Stock Brokers Limited (ARBL), incorporated on 1991, is established full-service brokerage house in India which provides broking services, margin trading facility and distribution of financial products under the brand ‘Anand Rathi’ to a diverse set of clients across retail, high net worth individuals, ultra-high net worth individuals and institutions.
ARBL is a part of the Anand Rathi group which carries out a diverse range of financial services business through its group companies. ARBL’s investment offerings span across a wide array of asset classes like equity, derivatives, commodities, and currency markets.
As of FY25, they offer broking and other financial services through (i) network of 90 branches spread across 54 cities in India; (ii) network of 1,125 Authorised Persons (i.e., agents appointed by ARBL after approval from the relevant stock exchange) spread across 290 cities in India; and (iii) online and digital platforms.
Out of the total proceeds of Rs. 7,450 mn, ~Rs. 5, 550 mn would be utilized towards funding long-term working capital requirement of the company and Rs. 1,900 mn would go towards general corporate purpose.
Key Highlights
- Broking industry in India is estimated to be valued at ~ Rs 520 bn as of FY25 and expected to grow at a CAGR of 16-18 pct over the next 2-3 years. In Q1FY26, NSE active clients witnessed rise in active clients supported by influx of retail investors with active clients reaching 47.9 mn. The number of NSE registered active clients increased at a CAGR of 32.8 pct between FY20-Q1FY26.
- They have, over the years, enhanced client engagement and experience through digitisation of processes and augmentation of technological platforms. They provide clients digital and online platforms through proprietary website and mobile applications i.e., Trade Mobi, AR Invest, MF Client, and Trade Xpress which enables a seamless trading and investment experience for clients.
- In FY25 they have highest ARPC of Rs. 29,347 among peers driven by (i) their client vintage; (ii) average age profile of clients; and (iii) personalised client management approach combined with a wide array of investment solutions offered to clients.
- ARBL sales comprises of broking and related services (Broking Segment) and nonbroking services (i.e. margin trading facility and distribution of investment products) (Non-Broking Segment). They have been focused on diversifying offerings by increasing income from distribution of financial products such as mutual funds as part of the Non-Broking Segment.
- ARBL’s key growth strategies includes (i) Focus on improving average revenue per client by increasing client wallet share through cross selling varied investment solutions. (ii) Increasing geographical footprint as well as augmenting client base. (iii) Investing in technology to drive business excellence (iv) Attracting and retaining relationship managers to ensure continued growth.
- The sales/EBITDA/ profit of the company have grown 34.5 pct CAGR/64.5 pct CAGR/65.7 pct CAGR over FY23-25. In FY sales of the company stood at Rs. 8,457 mn which grew 24 pct YoY, EBITDA came at Rs. 3,113 mn, increased 35 pct YoY while margins expanded 300 bps YoY to 36.8 pct. During the year the STL reported profit of Rs. 1036 mn, up 34 pct YoY.
Key Risk
- The company is subject to extensive statutory and regulatory requirements and supervision. Any failure to comply with applicable law can impact business.
- ARBL’s Corporate Promoter has pledged 29.51 pct of ARBL total Equity Share Capital. If the pledge is invoked its shareholding and control over the company could be reduced to that extent.
- Any downturn or disruption in the securities markets can affect ARBL’s business.
Financial Performance
| Particulars | FY23 | FY24 | FY25 |
| Sales (Rs. mn) | 4,678 | 6,818 | 8,457 |
| EBITDA (Rs. mn) | 1,151 | 2,306 | 3,113 |
| EBITDA Margins (%) | 24.6% | 33.8% | 36.8% |
| Profit (Rs. mn) | 377 | 773 | 1,036 |
| Profit Margins (%) | 8.1% | 11.3% | 12.2% |
| ROE (%) | 15.3% | 23.5% | 23.1% |
| ROCE (%) | 16.7% | 21.5% | 21.3% |
Source: – RHP,
Peer Comparison based on FY25 Financials
| Particulars | ARSSBL | GFSL | IIFL CAPS | MOSFL | Angel One |
| Sales (Rs. mn) | 8,457 | 7,477 | 24,050 | 83,391 | 52,384 |
| EBITDA (Rs. mn) | 3,113 | 2,844 | 9,971 | 45,453 | 19,809 |
| EBITDA Margins (%) | 37% | 38% | 41% | 55% | 38% |
| Profit (Rs. mn) | 1,036 | 1,725 | 7,129 | 25,082 | 11,721 |
| Profit Margins (%) | 12% | 23% | 28% | 30% | 22% |
| ROE (%) | 23% | 16% | 33% | 25% | 27% |
| ROCE (%) | 21% | 19% | 29% | 18% | 22% |
| ROA (%) | 3% | 9% | 9% | 8% | 8% |
| Debt to Equity (x) | 1.8 | 0.1 | 0.4 | 1.3 | 0.6 |
Valuation
Anand Rathi Share & Stock Brokers Limited (ARBL) is a part of the Anand Rathi group, carrying out a diverse range of financial services business under its umbrella. The strength of the Anand Rathi group brand heritage is one of the key aspects of ARBL’s competitiveness and has contributed to the recognition and growth of their business. At the upper end of the price band of Rs. 414, the issue is priced at a PE of 25.1x its FY25 earnings on post issue equity capital. The issue appears to be fully priced.
Disclaimer: The views shared in blogs are based on personal opinions and do not endorse the company’s views. Investment is a subject matter of solicitation and one should consult a Financial Advisor before making any investment using the app. Making an investment using the app is the investor’s sole decision, and the company or its communication cannot be held responsible for it.
