Anand Rathi Wealth: Motilal Oswal Maintains 'Neutral' Rating, Sets Rs 3,100 Target

• Anand Rathi Wealth (ARWM) reported Q3 FY26 operating revenue of INR 2.9 billion, a 22% YoY increase but a 3% QoQ decrease, missing estimates by 5%.
• Revenue growth was driven by a 25% and 20% YoY increase in financial product distribution and mutual fund revenue, respectively.
• EBITDA rose 23% YoY to INR 1.3 billion but fell 4% QoQ, missing estimates by 7%, with an EBITDA margin of 45.4%.
• PAT increased 30% YoY to INR 1 billion, flat QoQ, aligning with expectations due to higher other income, with a PAT margin of 34.6%.
• Motilal Oswal cut FY26-FY28 estimates by 2% due to weak quarterly performance, reiterating a 'Neutral' rating with a target of INR 3,100 based on 42x FY28 EPS.

Why It Matters: Motilal Oswal maintains a 'Neutral' rating on Anand Rathi Wealth with a Rs 3,100 target despite mixed Q3 results.