New Delhi, July 14 -- Anand Rathi Wealth Ltd's (ARWL) Ebitda margin dropped to 34% in the June quarter (Q1FY27), from 47% a year ago. The fall was largely due to a one-time ESOP charge that pushed employee costs up 53% year-on-year. However, reported profit after tax surged 74% year-on-year to Rs.163 crore, aided by mark-to-market gains on the company's investment in its subsidiary.

Client stickiness remained strong. Q1FY27 client attrition was only 0.09% of AUM, lower than 0.11% a year ago. Importantly, 61% of client families have been associated with ARWL for over three years, and these contribute 82% of total AUM.

A big concern after relationship managers (RMs) exited in FY26 was whether client assets would follow those advisors, but...