Before considering an investment in any IPO, it is crucial to evaluate the company’s position within its industry and benchmark it against its peers. Peer comparison not only helps in understanding relative strengths and weaknesses but also provides a clearer perspective on growth potential, efficiency, and long-term sustainability.
Anand Rathi Share peer comparison analysis has been designed to address exactly these questions. While larger players like Motilal Oswal, IIFL, Geojit, and Angel One dominate the space with scale and visibility, Anand Rathi has steadily built a reputation through efficiency, client retention, and research-led strategies. This analysis delves into how ARSSBL stacks up against its listed competitors, highlighting both its unique advantages and areas where opportunities exist — with a particular focus on FY2025 performance and the latest valuation trends.
Business Overview
Founded with a vision to provide robust equity, broking, and financial advisory services, Anand Rathi Share and Stock Brokers has grown into a mid-sized but highly respected name in the industry. The company’s client base stood at 8,86,644 in FY2025, with 2,21,510 active clients, marking a 26% year-on-year growth — a rate that outpaces many larger peers. Notably, nearly a quarter (24.98%) of total clients remain active, underscoring client engagement and stickiness.
Another standout feature is the company’s strong research backbone, with a team of 59 professionals producing over 1,000 fundamental research reports and 2,300+ technical calls in FY2025 alone. Few peers can match this intensity of research activity relative to scale, giving Anand Rathi an edge in credibility and client servicing.
On the financial front, Anand Rathi reported INR 845.7 crore in revenue from operations in FY2025, a 24% YoY growth, supported by a healthy EBITDA margin of 36.8%. While absolute PAT of INR 103.61 crore may appear modest compared to bigger rivals, the company’s return on equity of 23.1% demonstrates that profitability and efficiency remain strong.
Financial Performance – FY2025 Comparison
| Metric | Anand Rathi | Motilal Oswal | IIFL Capital | Geojit | Angel One |
|---|---|---|---|---|---|
| Revenue | 845.7 | 8,339.1 | 2,405.0 | 747.7 | 5,238.4 |
| PAT | 103.6 | 2,508.2 | 712.9 | 172.5 | 1,172.1 |
| EBITDA Margin (%) | 36.8 | 54.5 | 41.5 | 38.0 | 37.8 |
| PAT Margin (%) | 12.2 | 29.8 | 27.8 | 23.0 | 22.3 |
| ROE (%) | 23.1 | 25.2 | 33.2 | 16.0 | 27.1 |
| ROCE (%) | 21.3 | 18.4 | 29.5 | 19.4 | 21.9 |
| Active Clients (Mn) | 0.22 | 1.02 | 0.44 | 0.25 | 7.58 |
| ARPC | 29,347 | 24,469 | NA | 11,989 | 4,360 |
| MTF Book | 685.5 | 4,081.4 | 930.9 | NA | 3,698.8 |
Key Takeaway:
- Scale vs Growth: Anand Rathi is smaller in absolute size, with revenue ~10% of Angel One and ~1/10th of Motilal Oswal. However, its 24% revenue growth in FY25 reflects strong momentum, comparable to larger players.
- Profitability: EBITDA margins (36.8%) are competitive with peers like Angel One and Geojit, though below Motilal Oswal’s industry-leading 54.5%. PAT margin (12.2%) is lower, but improving — importantly, the company still maintains a healthy double-digit profitability.
- Efficiency Metrics: ROE (23.1%) and ROCE (21.3%) place Anand Rathi comfortably in the mid-tier, ahead of Geojit and not far behind Angel One.
- Client Stickiness: Despite a smaller client base (0.22 Mn active), ARPC at INR 29,347 is among the highest in the peer set, showing strong monetization per client.
- MTF Book: At INR 685.5 crore, Anand Rathi’s MTF exposure is modest versus peers like Angel One and Motilal, but its growth rate (11%) shows prudent, measured expansion.
Valuation & Market Metrics – Latest (19 September 2025)
| Metric | Anand Rathi | Motilal Oswal | IIFL Capital | Geojit | Angel One |
|---|---|---|---|---|---|
| Market Cap (INR Cr) | 2,596 | 56,721 | 8,911 | 2,159 | 20,551 |
| P/E | 25.1 | 20.4 | 12.6 | 14.3 | 20.7 |
| P/B | 3.7 | 5.1 | 3.6 | 1.9 | 3.6 |
| P/S | 3.1 | 6.5 | 3.7 | 3.0 | 4.1 |
| D/E | 1.7 | 3.3 | 0.37 | 0.13 | 0.61 |
| ROE (%) | 23.1 | 25.2 | 31.6 | 16.8 | 27.1 |
| EPS | 16.52 | 46.4 | 22.8 | 5.4 | 110 |
Key Takeaway:
- Valuation Premium: Anand Rathi’s P/E ratio (25.1) is at a premium to peers, suggesting that investors price in future growth potential despite its smaller size.
- Balance Sheet: D/E ratio of 1.71 is higher than most peers, but the company maintains a healthy current ratio of 1.71, indicating adequate liquidity coverage.
- Efficiency vs Value: With ROE at 23.1%, Anand Rathi stands ahead of Geojit, and near Angel One, reinforcing investor confidence.
- P/B and P/S multiples: In line with mid-tier players (IIFL, Angel), reflecting fair market positioning.
Strengths in Relative Context
When benchmarked against larger peers, Anand Rathi Share and Stock Brokers demonstrates several relative advantages:
- High Client Engagement: With nearly 25% of its clients active, ARSSBL’s engagement ratio is ahead of Motilal Oswal (7.9%) and closer to Angel One (24.4%), reflecting sticky client relationships.
- Superior Monetization: Its Average Revenue per Client (INR 29,347) is the highest among peers, underscoring stronger per-client productivity.
- Research Edge: With 1,000+ research reports and 2,300+ technical calls in FY2025, Anand Rathi maintains a robust research-driven model, a relative strength for client advisory compared to peers.
- Balanced Revenue Mix: Unlike some peers heavily reliant on broking, Anand Rathi’s revenue is well diversified across broking, MTF, distribution, and other services, reducing cyclicality.
Challenges and Mitigating Positives
- Smaller Scale: At INR 845.7 crore revenue, ARSSBL is modest compared to Motilal Oswal or Angel One. However, its 24% YoY growth signals strong scalability potential.
- Lower PAT Margins: At 12.2%, profitability trails Angel One (22.3%) and IIFL (27.8%). Yet, with rising revenue and improving EBITDA margins (36.8%), operating leverage is working in its favor.
- Leverage Positioning: A D/E ratio of 1.71 is higher than peers, but counterbalanced by a solid current ratio of 1.71, suggesting balance sheet resilience and prudent capital management.
Future Outlook
The broking and wealth management industry is at an inflection point, driven by:
- Rising retail participation,
- Growth in asset distribution businesses, and
- Increasing adoption of margin trading facilities.
Within this backdrop, Anand Rathi stands well-positioned. Its client growth trajectory, research-led model, and diversified revenue mix provide a solid foundation for scaling. While peers like Angel One and Motilal Oswal may outpace it in sheer size, ARSSBL combines consistency with high per-client productivity — a factor that often wins investor trust in the long term.
Conclusion
Anand Rathi Share and Stock Brokers may not yet match the scale of Motilal Oswal or Angel One, but it is carving out a competitive niche through efficiency, client engagement, and research depth. Its valuation premium (P/E 25.1) reflects investor recognition of this growth story.
In the peer landscape, the company positions itself as a stable, fundamentally sound, and steadily growing contender. With strong client stickiness, high ARPC, and robust research backing, Anand Rathi emerges as a mid-tier broker with large-cap ambitions — one that investors and industry watchers should not overlook.
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