120% Interim Dividend Announcement From Anand Rathi

One of the fastest-growing arm of Anand Rathi Group, Anand Rathi Wealth (ARW) has been a consistent dividend payer. On Wednesday, Oct 15, the ARW board announced an interim dividend of ₹6/equity share, which is 120% of the face value of ₹5 each.

Going with its reputation of being a consistent dividend payer, the company has announced nine dividends since its listing in Dec 2021. Furthermore, its total dividend amount over the last 12 months was ₹14 per share. Its prevailing share price is ~₹3128 and the dividend yield is 0.45%. After we account for stock splits or bonus issues, this adjusts to ~0.34%.

This is a remarkable shareholder reward consistency and the frequency of nine dividends in less than three years proves to be a stand-out consistency in the Indian market, contributing to the stock’s multibagger performance. It has a strong quarter in the books on the background of the recent dividend announcement. But there is a question in the investor’s mind: is the current high payout consistency sustainable?

What Could Be Behind The Payout Consistency?

Investors need to understand the core business of ARW, which is not related to conventional stock broking. They have a powerful and predictable business model, firing on all cylinders that have resulted in their dividend consistency. The company’s strong operational performance too adds to the dividends being announced alongside their Q2, FY26 results.

ARW’s revenue streams do not depend on transaction-based, volatile brokerage charges. The company derives its revenue from the HNI and UHNI wealth management space.

Investors can attribute their formidable strength to their recent Q2 results.

• Strong AUM Growth - Every business’s lifeblood is their AUM (Asset Under Management). As per Q2 results, ARW’s AUM zoomed by 22% YoY and hit ~₹91,568 crore on Sept 30, 2025.

• Strong Profits - ARW’s PAT (Profit After Tax) surged 31% to ₹99.90 crores, with net inflows in equity-based mutual funds surging 101% YoY. The management has recorded growth consistency and lower client attrition rate, despite a decline in the market.

• Strong Revenues - The total revenue witnessed an impressive surge of 23%, amounting to ₹307.20 crore on the back of strong financials and an increase in net inflows.

All the strength in AUM, profits and revenues can be linked to ARW’s client-centric and uncomplicated business approach. Their revenue focus is a consistent, high-margin and annuity-based business model embedded with excellent cash flows, making them successful in maintaining a high dividend payout policy. However, with such strong performance, how has the stock itself rewarded investors beyond just dividends?

How Does The Dividend History Look In The Multibagger’s Journey?

ARW made its public debut in Dec 2021. The journey till now looks spectacular for those who invested in the IPO (Initial Public Offering). The company share has delivered >990% returns so far. Its dividend history - the core of its investment thesis - attests that its high dividend payout consistency is a deliberate strategy, signalling management’s commitment and confidence in sharing gains with their shareholders. This has appealed to long-term investors seeking regular income and capital appreciation, together.

The management has set Oct 17, 2025 as the dividend record date. Investors holding shares till this date would be eligible for the dividend. To the eligible shareholders, the dividend would be paid on or before Nov 10.

ARW’s dividend frequency has made it one of the top dividend-focussed stocks for investor portfolios. This strategy has optimally differentiated ARW in a market where many high-growth companies reinvest all their profits and pay little to no dividends. But is there a catch, and are there risks to this story?

What Should Investors Watch For?

ARW’s track record is a hallmark in dividend payout history. However, investors need to firmly assess the road ahead. Along with the company’s Q2 results, there was also a new of subsidiary divestment approval and COO (Chief Operating Officer) Niranjan Babu Ramayanam resignation announcements. To derive sustainable value from an investment, investors need to scan, rather than skim business events. Furthermore, there is a primary risk involved in the wealth management business being directly correlated with the stock market performance. A significant and prolonged bear market might possibly lead to an AUM erosion. This, in turn, can impact the company's fee income and its ability to maintain such a high dividend payout.

The company is also planning to expand to Tier 2 and Tier 3 cities to cater to the new, rapidly created wealth segment. It has a model of first capturing and then managing long-term wealth. With the latest dividend announcement being a strong reward for shareholders, it would be interesting to witness ARW’s share market trajectory.

Source:

NSE
CNBC TV 18
ScanX trade
ScanX trade
Zee Biz
The Economic Times