Anand Rathi IPO: Here is how the traditional broker fares against its closest peers

The IPO market is buzzing with activity, with over 10 companies going public this week. Among the 10 IPOs are companies like Jaro Education, Solarworld Energy Solutions, Seshaasai Technologies, and 7 other SME IPOs, which include BharatRohan Airborne Innovations, Aptus Pharma, True Colours, Matrix Geo Solutions, NSB BPO, and Ecoline Exim. However, amongst all the above-mentioned companies, investors are upbeat about the broking firm Anand Rathi Share & Stock Brokers IPO.

The IPO of Anand Rathi Share & Stock Brokers seeks to raise ₹745 crore by solely offering 1.80 crore new shares. With a price band of ₹393 to ₹414 per share, a lot consists of 36 shares.

Proceeds to the tune of ₹550 crore would be allocated for long-term working capital requirements, and the remainder for general corporate purposes.

Anand Rathi Share and Stock Brokers Ltd offers financial services, including margin trading, broking, and distribution of financial products, under the brand 'Anand Rathi'.

Here is how the company fares against its closest peers.

Demat accounts

Anand Rathi shares and Stock Brokers as of 31st March 2025, held 8.8 lakh demat accounts with 2.2 lakh active demat accounts with a YoY growth of 26%. Meanwhile, Motilal Oswal Financial Services held over 12.8 million demat accounts, and Geojit Financial Services at 1.5 million demat accounts. However, Angel One held the highest number of demat accounts amongst the listed space at 31 million total demat accounts, with over 7.5 million active accounts. However, Anand Rathi held the highest percentage of active demat accounts as compared to total demat accounts.

Revenue

The broking business consists of brokerage as the primary source of income. However, with the introduction of the margin trade facility and other distribution channels, the total sources for broking entities have increased. Anand Rathi’s total revenue for the FY25 stood at ₹845 crore, up by 24% YoY. Meanwhile, among its closest peers, Motilal Financial Services held the highest revenue at ₹8,339 crore for FY25, followed by Angel One at ₹5,238 crore. For Anand Rathi, broking and related services contributed 60% to the total revenue, followed by interest on the margin trading facility at ₹114 crore. Whereas for Motilal Oswal and Angel One broking and related service provided 29.7% and 63% for FY25. For Motilal Oswal, distribution and margin trade facility interest income provided over 12% of the total revenue from operations

Operational efficiency and profitability

In terms of operational efficiency, Anand Rathi Shares & Stock Brokers reported an EBITDA (earnings before interest, taxes and depreciation) of ₹311 crore as compared to ₹230 crore in the previous year. The EBITDA margin expanded by 300 bps to 36.8% from 33.8% in FY24. When compared to peers, Motilal Oswal reported EBITDA of ₹4,545 crore and an EBITDA margin of ₹54.5%. While Angel One reported EBITDA of ₹1,980 crore and EBITDA margin of 37.8%, with a contraction of 120 bps.

In terms of profitability, Anand Rathi’s profit after tax stood at ₹103 crore as compared to ₹77 crore in the previous year. Whereas Motilal Oswal’s net profit stood at ₹2,508 crore, up from ₹2,445 crore in the previous year. Similarly, for Angel One, the net profit jumped from ₹1125 crore to ₹1,170 crore in the previous year.