Anand Rathi Wealth Ltd

NSE:ANANDRATHI

Q1-2026 Earnings Call

[Operator]

Ladies and gentlemen, good day, and welcome to Anand Rathi Wealth Limited Earnings Conference Call for Quarter 1 of Financial Year 2025-'26. [Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Mr. Feroze Azeez, Joint Chief Executive Officer from Anand Rathi Wealth Limited. Thank you, and over to you, Mr. Feroze.

[Feroze Azeez, executive]

Thank you so much, [Zyko]. Good afternoon, everyone for joining the earnings conference for the quarter ended 30th of June 2025. We today have with us the Group CFO, Mr. Jugal Mantri; the Product and Research Head, Mr. Chethan Shenoy; CFO, Mr. Rajesh Bhutara; and Head Investor Relations, Mr. Vishal Sanghavi.

Let me give you a quick highlight on the company's performance. During Q1 FY '26, our profits grew by 28% year-on-year, and they've reached about INR 93.9 crores. The total AUM grew up by 27%, which takes us to INR 87,797 crores as of 30th of June, and the equity mutual fund share has been moved up to 54% as of June 2025. And we are about 14% away from the INR 1 lakh crore number. This will help us get to the subtle ambition which we have shared in our previous calls of getting to 50-50, 50 trail income, we are inching closer to that with this quarter as well.

And this -- the next important highlight is that we have had a record net normalization of INR 3,825 crores. Like we have also given a subtle expectation, not a commitment or indication that we will try and have our net mobilization agnostic to the market sentiment in a quarter where mutual fund net flows in equity moved down from [indiscernible] about INR 23,000 crores in June, we have, with God's grace achieved the highest ever net normalization of INR 3,825 crores, as I just said.

In our flagship private wealth business for Q1 FY '26, we added around 600 new client families on a net basis, bringing our total number of client families, which we serve at 12,330. The client attrition rate, which is [additional] number continues to be that way. And for quarter 1 FY '26 is 0.11%, underscoring the strength of our client-centric uncomplicated approach, focusing on risk-adjusted returns, not only either side of the table.

The Regret RM attrition was 2% for this quarter. And in spite of that, we've had a client attrition number of 0.11%. And when we are looking at RM attrition, we are also looking at some places where there's cultural misfits. And these are mathematically regret attritions, but there are more considerations when we let go of a few of our colleagues.

Digital Wealth business, which is a B2B2C business registered an AUM growth of 19% year-on-year and reached INR 2,055 crores. The number of clients increased to 23% to 6,284. The OFA business, which is a SaaS platform has 6,627 subscribers with platform assets about INR 1.58 lakh crores at the end of Q1 FY '26.

Now I hand over the call to Mr. Jugal Ji Mantri, who will take us with some more updates. Jugal sir, over to you, sir.

[Jugal Mantri, executive]

Yes. Good afternoon, everyone. Thank you, Feroze bhai. Friends, let me give you the financial highlights on consolidated numbers for the quarter went by. During June quarter of financial year '25-'26, our consolidated total revenue grew by 16% Y-o-Y to INR 284.3 crores, and profit after tax increased by 28% Y-o-Y to INR 93.9 crores. We have achieved 25% of our PAT guidance of INR 375 crores and 24% of our revenue guidance of INR 1,175 crores in Q1 FY '26. Mutual fund distribution revenue registered a strong growth of 27% Y-o-Y to INR 113.1 crores in Q1 FY '26. Profit after tax margin was 33% for Q1 FY '26 as compared to 29.9% for Q1 FY '25. Return on equity for Q1 FY '26 was 44.4% on an annualized basis.

So these were the synopsis of the financial. Now would request [ Mr. Zyko ] to invite our friends for Q&A session.

[Operator]

[Operator Instructions] Our first question comes from the line of Niranjan Kumar from Equirus.

[Niranjan Kumar A V S, analyst]

Sir, first of all, congratulations on a good set of results. So can you please provide data on inflows during the quarter in mutual funds and structured products as well?

[Feroze Azeez, executive]

Sure. Jugal sir, can you throw some light on these breakups of the numbers? You're asking for the top line numbers, right?

[Niranjan Kumar A V S, analyst]

I'm asking about the inflows, sir. Net inflows.

[Feroze Azeez, executive]

Net inflows, okay. So the net inflows cumulatively between these 2 were about INR 3,400 crores, INR 3,300 crores. Jugal Sir, if you can give some precise number, it would be helpful.

[Jugal Mantri, executive]

So the net inflow was INR 3,825 crores. On equity mutual fund, it was INR 1,983 crores. Debt mutual fund, it was INR 300 crores. And on structured products, it was INR 1,063 crores and rest was in other item that was [INR 480] crores.

[Operator]

Our next question comes from the line of [Ashaka Shah] from Sameeksha Capital.

[Unknown Analyst]

I had the same question,I'm sorry, as the same question as the previous one.

[Operator]

We move to the next questioner. The next question comes from the line of Muskan Agarwal from Svan Investments.

[Unknown Analyst]

This is Bhavesh here. The question in mind was related to OpEx growth. Historically, OpEx growth has been largely in sync with revenue growth. But this time around, the divergence is quite significant. So besides the human related -- human resources related that you mentioned, is there any change in incentive structure or other cost cutting we might have resorted to which is leading to this divergence between revenue growth and OpEx growth?

[Feroze Azeez, executive]

So let me answer that. Okay, Jugal sir, yes, go ahead Jugal, sir.

[Jugal Mantri, executive]

See, as far as concerned, in case of OpEx, it is more or less in line with what we have been achieving and what we have been incurring over the period of time. The only thing is now we have really started getting the advantage of number of RMs who have been maturing. .

So if you will see that over a period of time, like we have added number of RMs and what happens that when RM start his journey, we have our -- first of all, all the incentive formula since 2007, there has been no change. The only advantage is the new RM when he comes till the time he reached to the threshold of up to, say, about 4x of his RSRM, he doesn't start earning incentive.

So the number of new RMs, which have been added into the system in the last 1.5 year, 2 years, they have started reaching to the threshold and started crossing 2 and 3 [RSR] level. So the advantage is they have started contributing on the revenue side and their fixed cost of salary is coming into the operating costs, but they have not yet reached to the incentive level. That is about the new RMs and that is why you see the employee cost. In percentage terms, it looks marginally lower, but it is in line with what we have been achieving historically.

[Unknown Analyst]

Okay. And related question sir, was on a number of RMs added. So practically for last 3 quarters, the number is flat. What is the thought process here? And if we plan to, again, resume expanding our RM base?

[Feroze Azeez, executive]

So firstly, I think it's last 3 quarters have been flat. We've added about 20-odd RMs in the last 1 year, point one. Point two, how we look at RM addition is, unlike most of the wealth management outfits who believe in lateral hiring, funding their 80% of their RM growth, we have 80% internal movements. So what happens is we have the threshold, which says that these are the number of RMs who can be in the non-mature state. Below INR 40 crores, we try and keep a watch of what is the number? When that number drops is when we promote more people.

So unlike another wealth management [administrate], when I don't add my RMs, it doesn't mean that I have not added some more training for the same RMs would be promoted in a subsequent quarter. So question we have, the next 100 RMs already being changed. So at what point in time do we promote them? It depends on their skill set and also depends on what's my capacity of [indiscernible]. So will you see this number change? The answer is, yes. And what will be the variables which will change it is not how much money can we spend to hire from outside. How many RMs do we have below INR 50 crores that number, if I'm not wrong, dropped from INR 93 crore to INR 54 crore in the quarter, which creates huge capacity for promotions and subsequent RMs who would go in the marketplace. Does it answer?

[Operator]

Our next question comes from the line of Rohan Mandora with Equirus Securities.

[Rohan Mandora, analyst]

Congrats on good set of numbers. Sir, just continuing on the previous participant's question on OpEx. Sir, the extension that was given that in the last 2 years, whatever RMs have been added, they are yet to reach that -- they're just touching the breakeven level and so the operating efficiency is looking better.

And if I look at employee expense as a proportion of total revenues, that was around 45% for most part of last year. And suddenly, in this quarter, that's come down significantly. So is there a differential in the incentive that is paid out on the mutual fund versus MLDs? Because revenue growth in mutual fund has been almost 27% year-on-year and 10%, sequentially. And on MLD, it's 36% Q-on-Q growth. So is there a factor of that leading to a lower growth in employees expense this quarter vis-a-vis the revenue...

[Feroze Azeez, executive]

No, no, no. Rohan, it's not so complex. We don't pay incentive. We pay bonuses only once a year, okay. Last time, it was 17.1% for the first quarter -- 17.1% for the full year. This time, it is 16.9%. Quarter-to-quarter comparisons may not be right because it depends on who brought the revenue. For example, if this revenue is distributed amongst 382 RMs, evenly, my cost is lower. If the RM who has already reached a slab of 32.5%, which is my maximum slab, if he or she does the maximum revenue, my shares could be larger than a linear [indiscernible]. So it is not just about the revenue. It's also about [Foreign Language].

So if there's an RM who crosses a certain slab, and that's the person who brought 80% hypothetically of the quarter's revenue, then they also look larger. But it's not a quarterly number. If you look at it early, you will see hardly any difference and other point which you asked, is there a payout differential between upfront hand pay, the answer is, no. Every rupee of revenue is treated equal for the last few years.

[Rohan Mandora, analyst]

Sure, sure, sir. So does that mean that most of the -- that the share of incremental business, incremental revenue from RMs having lower AUM was higher this quarter. That's where the benefit...

[Feroze Azeez, executive]

So yes. So what happens is we provision as per the slabs on their targets also. So it is also a function of, one, what they have done so far? What is the target they have given? And then you have a provision on a certain slab. So the answer is, yes, last time around, if there are big ticket revenues from large top 50 RMs would cost me more.

[Rohan Mandora, analyst]

Sure. Got it. And sir...

[Jugal Mantri, executive]

Just to add to what Feroze bhai has said, Rohan, what happens that if you just do the breakup of what the employee expenses, which we have incurred. In the Q1 FY '25, my fixed cost on account of personnel was INR 60 crores, okay? This year, that has gone up to INR 70 crores, but the incentive provision, which was INR 48 crores in Q1 FY '25, that has come down to INR 44 crores. So there is an increasing trend in -- on the fixed expenses side. But as he has rightly explained that, who is bringing the revenue and what percentage of amount he is earning as incentive, that depends on person to person and on his vintage as well as on existing book. So that is why there is a differential on incentive provision.

[Rohan Mandora, analyst]

Sure. Sir, second was on the Regret RMs, the 2 RMs who left this quarter and one I think was a regret RM last quarter. So what was the reason for them leaving? Because typically, you've had a very good incentive structure, and you had a very low regret RM. So any specific reasons that you could point out for people leaving?

[Feroze Azeez, executive]

Yes. Of course, 1 or 2 of them were cultural mistakes. So we had to [weed out] 1 or 2 of them and 1 or 2 were voluntary exits. And the reason could be whatever different for different people. But largely, I do not want to touch too much on a public forum, but yes, it could be a cultural misfit which triggers that, and it's for 1 location, all 3.

[Rohan Mandora, analyst]

Got it. Sir, thirdly...

[Jugal Mantri, executive]

But it hardly matters now, Rohan. Out of 380 plus RMs, if 1 or 2 RM is leaving, that is inevitable.

[Rohan Mandora, analyst]

Right. That I agree, sir. But just that Anand Rathi was having another good incentive structure. So what ...

[Jugal Mantri, executive]

That still remains. If 99.9% people are still continuing, that shows that.

[Feroze Azeez, executive]

So Rohan, and we also realized some degree of inefficiencies will have to be weeded out.

[Rohan Mandora, analyst]

Sure. Sure.

[Feroze Azeez, executive]

In the future as well. So that's a strategy which we try and learn. So we're not always fixing it. We were -- one of you analyst only had asked me saying that, how come 0 attrition? Are you saying everybody is as efficient commercially? So there is no involuntary attrition where you're asking people to leave. So that was -- so we've been testing several hypothesis. Now point is that you had some attrition, some instigated internally or some not. But we are also trying to see if there are some inefficiencies. Will we look at it a little differently? The answer is yes, going forward. I will tell you how we discuss internally between Rakesh sir and I.

[Rohan Mandora, analyst]

Got it sir. Sir, third was on the net MF AUM. It has increased by 9% Q-on-Q and it was declining for the past few quarters. So is there any portfolio allocation strategy change is leading to that?

[Feroze Azeez, executive]

I will tell you precisely the reason. There are a couple of clients who had -- the large clients who were doing STPs.

[Rohan Mandora, analyst]

Okay.

[Feroze Azeez, executive]

Those are not permanent liquid money. So you're saying,if your questions if I heard right, was that debt allocation has become larger. Is that what the question was? .

[Rohan Mandora, analyst]

Yes, yes, yes.

[Feroze Azeez, executive]

Some large clients have started first, whoever come in money after March are choosing to do it as a staggered equity. So it is -- it's momentary debt.

[Rohan Mandora, analyst]

Got it. Got it. And then lastly, yes, sorry...

[Feroze Azeez, executive]

Don't hold me to the second decimal, largely I'm saying, 80% of that is staggered entry into equity, due to some degree of uncertainty in the market, percentage [Foreign Language].

[Rohan Mandora, analyst]

Got it. And lastly, on the issuances of MLDs, last couple of years, if you look at the trend, 1Q has been pretty high, and then it has been sort of flattish to marginal decline. But if we look at it on a year-on-year basis, so Q-on-Q, it looks very good. But on a year-on-year basis, the revenues on MLD has grown by 8%. So is there some constraints because of which the growth is falling here? Or like how should one look at the growth on the MLD for the full year and going ahead for the next 1, 2 years?

[Feroze Azeez, executive]

Rohan, again, like I've repeated in the past, every revenue item which you read out to me back again, is a resultant outcome of client allocations. We think [Foreign Language] what are the problems, what are the highest chance of achieving those objectives. Now let's assume, if the market remains flat for 1 year. The structured product still, because of its modest need of NIFTY growth will deliver a little positive return. So sometimes what happens is if equity markets don't do too well, like they did, only 4%, 5% NIFTY over the last 1 year, in the last financial year, monies which mature from structured products would buy equity mutual funds. Equities do very well.

Let's assume I have a client. I also manage clients, right? So one client is there, [Foreign Language] if there's a structured product maturity, if equity mutual funds have not delivered 14 for the last year and structures have delivered 15% for the last year, when the maturity happens, I'm not going to reinvest full thing into structured product. I will again divide the portfolio into 65%, 35%, which was the agreed allocation. So if markets do badly, you will have some money moving to mutual funds. So buy low, sell high is just in books otherwise. [Foreign Language]. Otherwise, most [HNIs] does the opposite. Like, you will see when the market is down, people are not putting in lump sum money.

So to remove that recently bias is why Feroze is governed by a formula, agreed on 65, 35. Then he has to do just that. And if that's what he follows religiously, it will mean that he will buy more equity when the markets are down, when the markets are up, he will be buying more structured products.

[Rohan Mandora, analyst]

Got it. And then lastly, one data keeping question. What is the breakup of structured product issuances between primary and secondary in 1Q?

[Feroze Azeez, executive]

Jugal sir, will give you the answer, Jugal?

[Jugal Mantri, executive]

1,700 for primary and 700 for secondary. 750 to be precise, okay?

[Operator]

[Operator Instructions] Our next question comes from the line of Jaiprakash from Korman Capital.

[Jaiprakash Kumhar, analyst]

[Technical Difficulty]sir, my question was on the [Technical Difficulty]

[Feroze Azeez, executive]

I didn't get your question at all, sorry.

[Operator]

Sir, may we request you to use your handset, please, Mr. Jaiprakash.

[Jaiprakash Kumhar, analyst]

Am I audible?

[Operator]

No, sir. We are unable to hear you clearly, sir.

[Operator Instructions] Our next question comes from the line of Sunil Shah of SRE PMS.

[Sunil Shah, analyst]

Thanks for the entire team for a wonderful achievement. First of all, let me thank Vishal and Kalpesh for the sessions that we had for all of us to make us understand the structured products. So thanks so much. Feroze for organizing and Vishal for conducting along with Kalpesh, the entire session.

So my question is about this entire thing happening in the markets about the Jane Street episode and Sebi really trying to clamp down on the F&O volumes. So given that the structured products for us which we act on, does this in any way impact us for the volumes that could get shrink going forward? That's my first question.

[Feroze Azeez, executive]

Yes. Okay, you want to answer this? Perfect. Sunil sir, thank you for the feedback last time around. Very grateful for that feedback, because we always wanted to explain structured product as threat there. Of course, Kalpesh has done only 3 sections. If the group of analysts want another 100 sessions, we are more than happy because if that produces more issuers, it's a great marketplace. So thank you for that suggestion. And I think that was the best suggestion we got last quarter in the result.

Now coming to, of course, the Jane Street and the regulation in terms of option volumes. I think for the next INR 1.5 lakh crores to INR 2 lakh crores of our next AUM, we don't see any challenge with the current market. Of course, on one index what Jane Street hypothetically at least in the note did was made cash market losses to make -- will put option positions or call option positions on expiry day and trigger stop losses to the rest [of the day]. So any large position on specific index could be something which somebody can do exactly what Jane Street did.

So will we look at more diversification in terms of NIFTY, Sensex? The answer is, yes. Yes. So will it impact our next INR 1 lakh crore, INR 1.5 lakh, INR 2 lakh crores of AUM? The answer is, no, Sunil. I don't want to give all the plans. There are about 4-step plan, Plan A, Plan B, Plan C and Plan D. I will probably -- we can do another session where I'll elaborate.

[Sunil Shah, analyst]

Okay. So...

[Feroze Azeez, executive]

So one thing which is -- Sunil, sir, can I add one more thing? The one thing which I am amazed as a professional is the kind of intellect SEBI has used to move our options market from notional contract volumes to delta volumes. It is one of the most right thing to do because the INR 1 option had the same notional value and at the money option almost have the same notional value, which was creating those INR 500 crores of short limits I've spoken about in the previous earnings calls, were getting breached with just 2 lakh options, put options, 2 lakh premium. So now they've moved from notional volumes to delta volumes, point one. Point two, I think also creating several pieces of what you call that, impediments for any [indiscernible] have been done beautifully. And I think that's one change. There are very few markets who operate limits with delta against notional.

[Sunil Shah, analyst]

Okay. Fine. So that helps us to understand -- at least on the fear part that we need not worry at least for another INR 1.5 lakh crores of the AUM that we reach. Yes.

Sir, one more point which I had, more of a question type of thing would we, currently, if I understand the net inflow for us has been close to INR 3,825 crores and our RM base is INR 382 crores. That exactly comes to about INR 10 crores of incremental AUM per RM per quarter kind of a number?

[Feroze Azeez, executive]

Correct.

[Sunil Shah, analyst]

Sir, so for going forward, can we get that per capita because as a country, we might be the fourth in terms of GDP. What really matters is the per capita.

Similarly, for us, the incremental contribution per RM per quarter would be perhaps one of the numbers to really keep a watch on given that market could grow 10% plus/minus and the AUM could change accordingly. But the real strength is in terms of the per capita contribution per RM per quarter. So some such metrics if it can be shared. And one more point can be, if we can further get into the details of equity and structured product breakup as well. So because that's going to be the base where we'll get higher percentage of income. So if we can get one such number, if it's possible for you to share going forward, I think that will be more useful for all of us, if at all it's possible.

[Feroze Azeez, executive]

Sure, Sunil. It's a very, very valid suggestion. One thing which is a little different than the rest of the wealth management assets is because they do lateral hires largely and internal promotion is a smaller proportion. What ends up happening is there are very similar kinds of private bankers. We have a mid banker who is 26 and he's become private banker after 4 years of training after his MBA. And I have somebody who has got almost 25 years of experience out of which 18 are in Anand Rathi. So I'm just telling you there's a lot of differential between my youngest RM and the most matures RM. I can divide it, but -- I think dividing them would also be a little more sensible. I think -- we'll work on this [sensitive] numbers for sure.

We'll divide it into secured RMs, 5-year plus RMs, and stuff like that.

[Sunil Shah, analyst]

Because it's suddenly some people...

[Feroze Azeez, executive]

So we started with -- it's a good suggestion.

[Sunil Shah, analyst]

And again...

[Feroze Azeez, executive]

5-year plus, 3 year plus...

[Sunil Shah, analyst]

Sorry, for interveining. Please continue, sir.

[Feroze Azeez, executive]

We stratify our RMs into 3 categories, sir, less than 3, 3 to 5 and 5 plus. So Sunil sir is looking forward, what is the per capita per RM net mobilization. In these 3 status, we can probably give them beautiful -- strategy for us and information for you...

[Sunil Shah, analyst]

Yes. Yes. And sir, it's competitive sensitive. So I just leave it for you to take that call. That's just my suggestion.

[Feroze Azeez, executive]

Okay. Superb. I think the piece of information we are reasonably transparent and I think we should be okay. We will just look at it internally and publish it to you and in the next call or before that.

[Operator]

The next question comes from the line of Saiyam Sondhi with Desvelado Advisory.

[Saiyam Sondhi, analyst]

Congratulations for your quality stats for FY '26. Sir, my question is what is the latest update on the GIFT City subsidiary and International expansion of U.K. and Bahrain office?

[Feroze Azeez, executive]

Sorry, can you go again?

[Saiyam Sondhi, analyst]

Sir, the question is what is the latest update on the GIFT City subsidiary and international expansion of U.K. and Bahrain office?

[Feroze Azeez, executive]

U.K. and marine office? So one is an update -- but I'll tell you what we look at international business that you look at Dubai currently, which we have for almost 10 years. We just finished 10 years of business in Bahrain. And we think the interest of NRIs in India will grow dramatically. And I think the kind of flexibility GIFT City also has to offer. The tax efficiency it has to offer. I think one of them in the couple of calls back [Technical Difficulty] international office...

[Operator]

Sir, sorry to interrupt you. Mr. Saiyam, sir, your audio is breaking. Maybe request you to use your handset in case you're using any Bluetooth device?

[Saiyam Sondhi, analyst]

Sir, actually I'm not able to hear the voice of Feroze sir.

[Operator]

Yes, sir, can you hear me now, sir?

[Saiyam Sondhi, analyst]

Yes, yes. Is it clear now?

[Operator]

Yes, sir. Please go ahead with your question.

[Saiyam Sondhi, analyst]

Should I repeat my question or the question is clear?

[Feroze Azeez, executive]

On Bahrain and the U.K. office right?

[Saiyam Sondhi, analyst]

Yes, yes.

[Feroze Azeez, executive]

So they are in the very nascent stage of getting licenses currently. Point two, I think as soon as you start a business, it's not going to be a huge contributor. But what is our vision for international NRIs or investing agencies. We can see a large opportunity, given the interest levels of NRIs, which [is visible] in India, we want to make sure that we have our offices in place and the strategy in place.

Point three, SEBI has been creating several platforms, which make it very easy sort of pooled investments, okay, especially from international [standpoint] in the GIFT City and the AIFs and other businesses, which can channelize money into India are developing beautifully. So we have just got licenses or we are in the process of getting licenses. But I think the long-term vision is, we believe that there will be a lot of money from NRIs flowing into India for the next decade, and we want to capitalize on that. And not just with one office.

But once we finish 10 years in a specific business then that is when we try to build our business brick by brick. We just finished 10 years in Dubai. After having seen an office and profitability and the pros and cons in the international products, now we were confident to have other locations. That's why you see Bahrain and U.K. We are a wealth manager, which tries to build it, brick-by-brick. And so we are reasonably bullish on international money coming to India and getting the pie of it. Does this answer, sir?

[Operator]

[Operator Instructions] Our next question comes from the line of Muskan Agarwal from Svan Investments.

[Muskan Agarwal, analyst]

So the guidance that you guys have released regarding the revenue, PAT, and AUM. So when we see like you guys are pretty much there when it comes to AUM, but there is a lag in the revenue and PAT numbers. So there are 2 questions. First, if you can help me understand the difference. And if you guys are like expecting to revise the AUM guidance?

[Feroze Azeez, executive]

Muskan, we have met our revenue numbers for a year, unlike 25%, like you rightly pointed out, we have met 24.17%. And the PAT number is almost 25%. That's point one. Point two, do I see any change in the guidance? The answer is a big no, because we'll be able to achieve those numbers is how we have always undercommitted overdelivered. And you will also be very happy to note Muskan, that out of the NSE Small Cap 250 companies, which we are a part of, our primary analysis says that there is only one company which has given a PAT guidance and also met it for 3 successive years, which is Anand Rathi Wealth Limited.

Quite a few don't give a PAT guidance. Very few give a PAT guidance. Out of those who gave a PAT guidance for 3 years and met it, it's only one company. And with that, I'm just giving you a little [Foreign Language] and some hope that we will meet our guidance this time as well, with the Grace of God, of course.

[Muskan Agarwal, analyst]

So means any explanation regarding why -- like there's a gap like considerable gap between the AUM and the patent revenue figures because it's just 24% and 25%, but AUM targets like you have achieved 8%.

[Feroze Azeez, executive]

See AUM is like a photograph. And revenue is like a movie. AUM depends on where markets ended on 30th June. Revenue is an outcome of every day's action and every day's revenue. 30th June, if the market fell 3% hypothetically, would my -- there won't my AUM be INR 88,000 crores, approximately? The answer is, no. It would have been INR 86,000 crores. So when you look at AUM as an average, then there'll be sanctity with the revenue. So what has happened is you've added INR 3,800 crores. And in the first quarter, NIFTY has given about 7%, 8% return. And our model portfolio of mutual funds have out beaten that by 2.47% as of day before yesterday.

So AUM, that's why we are not revising the INR 1 lakh number because 31st March [Foreign Language].

[Muskan Agarwal, analyst]

We don't know. Yes.

[Feroze Azeez, executive]

So what happens is there is something which is an internal controlled variable, which is how much I can bring from clients' wallet to my assets. That is what we focus on. Then when we pay to the lord, because then market movement and intern clients return will -- and it's not 1 day, 30th June is the AUM number, right? So if I give you the average numbers, then you would understand. Does it answer, madam?

[Jugal Mantri, executive]

Yes, Feroze Bhai, I would like to add. Muskan, if you look at it, like last year, we were at a number of INR 79,000 crores, okay? I'm just rounding off for the purpose of understanding. And we have given a guidance to have the AUM of INR 1 lakh crore by end of the financial year '25, '26, correct? So what I need to add is INR 21,000 crores in 12 months' time. Now in 3 months' time from INR 79,000 crores, we have reached at about INR 88,000 crores. So how much we have crossed, we have achieved almost INR 8,800 crores which is 40% of the AUM addition target in 3 months only. So in fact, this is the only area we have, by and large, with a very wide margin, we have beaten the target number, which we have given. So I don't know why this question has come that we should revisit this number.

[Feroze Azeez, executive]

No. No.

[Muskan Agarwal, analyst]

No, I meant like upward revision?

[Jugal Mantri, executive]

Okay, okay. No, we are happy to be committed at the level which has been given.

[Operator]

[Operator Instructions] Our next question comes from the line of Kamlesh Gupta, who is an investor.

[Unknown Attendee]

Congratulations to the team. The numbers are excellent. I have 2 questions. Various time has management has reiterated that the guidance of revenue will be 25% to 30% back. But last 2 quarters, it has come down to near about 25%. And the second question is, please, throw light on the same. And the second question is from the last buyback, stock has given negative or negligible rate up. Could you considering anything -- any corporate action...

[Feroze Azeez, executive]

Yes. So one is, see when we say we have always given you 20% to 25% PAT guidance long term 10 years, 15 years. Our professional guru, Mr. Rakesh Rawal, who is also the CEO of the company, has always said, 20% to 25% PAT growth for years to come. That might also imply 20% to 25% revenue. That's not on a quarter basis. That's on a year-on-year basis. That's our aspiration. Because we are in the business of managing one's money, if there are some maturities, we will not do anything sooner or later and its client monies which we manage. So when we give you a revenue guidance of INR 1,175 crores, that's the number you have to look at from INR 980 crores to INR 1,175 crores. That the...

[Jugal Mantri, executive]

And that is about 20%.

[Feroze Azeez, executive]

Growth. [Foreign Language] of course 1 or 2 quarters, we don't look at it.

[Unknown Attendee]

Okay. Okay. And the second one?

[Feroze Azeez, executive]

Yes, the second one, sir, stock has delivered whatever it has to deliver. I don't think, in my opinion, corporate action -- of course, I don't remember what was the price during buyback because I think stock price...

[Unknown Attendee]

INR 4,450, I think.

[Feroze Azeez, executive]

INR 4,450, no, sir. [Foreign Language] irrespective for buyback, you can just check. No, that was not the INR 4,450, was that the price at the buyback?

[Unknown Attendee]

Yes, before [corona], sir.

[Feroze Azeez, executive]

Yes.

[Unknown Attendee]

It was before '15.

[Feroze Azeez, executive]

So sir, our corporate actions of buyback, I think we've not considered any buyback so far. And if there is any consideration we will come back to you and price is not a huge motivation for a buyback. Of course, earlier, there used to be immense amount of tax efficiency when we used to do buybacks. I think the tax laws have changed on that as well because the shareholder doesn't get it tax-free now anymore.

[Unknown Attendee]

I think, sir, for the open market buyback, it is still there, sir.

[Feroze Azeez, executive]

Okay, sir. Thank you. We'll check, because it's -- pardon my ignorance. Open market buyback if it's there. But we will come back to you. But as of now, in my mind, there's nothing on the cards, which we have discussed internally if I have to tell you as transparently as it could get.

[Jugal Mantri, executive]

But for shareholders, it does not make any difference, Feroze Bhai, whether the tender sales in buyback or whether we sell in the open market. So there is no tax advantage to the shareholders. Is there any tax advantage Kamlesh to shareholder?

[Unknown Attendee]

Yes, sir.

[Jugal Mantri, executive]

Share in buy back.

[Unknown Attendee]

For shareholder it is not there. It is not there.

[Jugal Mantri, executive]

That is what I am asking.

[Unknown Attendee]

But for company, it is beneficial. Still it's earlier rules apply, sir, I think, for the open market.

[Feroze Azeez, executive]

[Foreign Language] and in the meantime, we are trying to do our best for a shareholder in terms of dividend, in spite of the bonus shares, doubling the number of shares we try to keep the bonus rupee share, rupee value of the bonus equal. So that's the final dividend doubles. So we're doing that. And we are always trying to look at people who don't see us on a quarter, 6 months, 1 year, and that's how we like to have our shareholders. [Foreign Language]. That's how we look at it. Of course, [Foreign Language]. I will also examine because I'm not a CA, but I've tried to read all the relevant ones, but this is enlightening for me. I'll definitely do some homework, I assure you.

[Operator]

[Operator Instructions] As there are no further questions, I would now like to hand the conference over to Mr. Feroze for closing comments.

[Feroze Azeez, executive]

Thank you, [Zyko], and thank you, everyone, to join this call. It's a privilege to have our prospective and existing shareholders on this call. And it's -- but if I have to go out of the script, I'm so happy and enlightened each time you guys ask questions because it pushes us to think a little more and push us is in a brighter direction. So we, as professionals always assure you our best ability given to you as shareholders. So I think thank you for those wonderful questions, which sets us thinking, sometimes improves us, enlightens us. Grateful. Have a wonderful weekend.

[Operator]

Thank you. On behalf of Anand Rathi Wealth Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.