1:1 Bonus Share + 140% Dividend: Nifty Smallcap firm declares double delight for shareholders along with Q4 results

Nifty Smallcap firm on Thursday reported a consolidated profit after tax (PAT) of Rs 386 crore for the financial year ended March 31, 2026, registering a 28 per cent year-on-year increase.

Total revenue for FY26 rose 22 per cent to Rs 1,198 crore from Rs 980.2 crore in the previous financial year.

For the quarter ended March 2026 (Q4 FY26), the company posted a consolidated PAT of Rs 92 crore, up 25 per cent from Rs 73.6 crore in the corresponding quarter last year.

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Total revenue during the quarter increased 25 per cent to Rs 301.6 crore from Rs 241.3 crore a year ago. The company under discussion is Anand Rathi Wealth.

Adjusted and reported numbers

The company said the financial results for Q4 FY26 and FY26 exclude fair value gains on investments of Rs 54.6 crore, ESOP expenses of Rs 39.3 crore, and related tax effects of Rs 3.8 crore to enable comparison with prior period numbers.

On a reported basis, including these items, total revenue for FY26 stood at Rs 1,253.1 crore, up 28 per cent year-on-year. Profit before tax rose 32 per cent to Rs 535.8 crore, while PAT increased 32 per cent to Rs 397.2 crore. Earnings per share (EPS) rose to Rs 47.8 from Rs 36.1 in FY25.

For Q4 FY26, reported total revenue stood at Rs 356.2 crore, up 48 per cent year-on-year. Profit before tax rose 41 per cent to Rs 140.3 crore, and PAT increased 40 per cent to Rs 103.4 crore.

AUM and inflows

Assets under management (AUM) increased 21 per cent year-on-year to Rs 93,037 crore as of March 31, 2026, compared with Rs 77,103 crore a year earlier. Net inflows during FY26 stood at Rs 13,457 crore, up 7 per cent year-on-year.

Profit before tax for FY26 rose 29 per cent to Rs 520.6 crore from Rs 404.4 crore in FY25.

Bonus issue

The board has approved a bonus issue of equity shares in the ratio of 1:1, subject to shareholders’ approval and other regulatory clearances. The company had earlier announced a bonus issue in the same ratio in March 2025.

Dividend announcement

The board has also recommended a final dividend of Rs 7 per equity share for FY26. Including an interim dividend of Rs 6 per share, the total dividend for the year stands at Rs 13 per equity share, subject to shareholder approval.

Operational metrics and management commentary

Return on equity (ROE) for FY26 stood at 46.7 per cent. During the year, the number of active client families increased by 14 per cent year-on-year to 13,395. The number of relationship managers rose to 401 from 380 in the previous year.

The digital wealth segment reported AUM of Rs 2,218 crore, up 22 per cent year-on-year. The subscriber base of the Omni Financial Advisor platform increased to 6,906 from 6,447 in FY25.

The company added 1,663 client families on a net basis during FY26. Client attrition, measured by AUM lost, stood at 0.54 per cent.

Sharing insights on performance, Chief Executive Officer Rakesh Rawal and Joint CEO Feroze Azeez said, “We continued to deliver another quarter of consistent performance, driven by our approach and focus on clients’ financial well-being. The mean of year-on-year growth of our last 16 quarters' profit has been 32.2 per cent, with a median of 33.2 per cent and a standard deviation of 4.5 per cent.”

They added, “Excluding the impact of fair value gains, ESOP expenses and related tax effects for FY26, our total revenue grew by 22 per cent to Rs 1,198 crore, while profit after tax increased by 28 per cent to Rs 386 crore. We also exceeded our stated revenue and profit guidance of Rs 1,175 crore and Rs 375 crore, respectively.”

On capital allocation, the management said, “As part of our policy to reward shareholders, the board has approved the issuance of one bonus equity share for every one equity share held and has declared a final dividend of Rs 7 per equity share, both subject to shareholders’ approval.”

They further said, “Our assets under management increased by 21 per cent year-on-year to Rs 93,037 crore, supported by steady net inflows and client engagement. We recorded net inflows of Rs 13,457 crore during FY26, up 7 per cent year-on-year.”

The company operates across 18 cities in India and has a representative office in Dubai. It has also received regulatory approval for its UK entity.