The Indian stock market is witnessing an extraordinary rally in brokerage stocks, with newly-listed players delivering spectacular returns to investors. Following Groww's massive debut that nearly doubled investor money, Anand Rathi Share and Stock Brokers has emerged as another standout performer, showcasing the Street's bullish outlook on capital market participants.
Spectacular Market Debut
Anand Rathi Share and Stock Brokers made its secondary market entry on September 30, listing at ₹432 per share. This represented a modest 4.3% premium over its issue price of ₹414. While the initial response was cautious, the stock quickly gained momentum in subsequent trading sessions.
The ongoing rally has now propelled the stock to ₹746, marking an impressive 79% surge above its IPO price. This performance echoes the pattern set by Groww, which recently saw its market capitalization cross the ₹1 lakh crore mark shortly after listing before experiencing some profit-taking.
Overwhelming Investor Response
The ₹745-crore Anand Rathi IPO, which opened for subscription between September 23 and 25, witnessed overwhelming investor appetite. The fresh issue of 1.80 crore shares received bids for 27.65 crore shares against an offer of 1.26 crore shares, resulting in a subscription rate of nearly 22 times.
The price band for the IPO was set at ₹393–₹414 per share, making the strong post-listing performance particularly noteworthy for investors who participated in the public offering.
Strong Quarterly Performance
The company's September quarter (Q2FY26) results provided fundamental support to the stock's rally. Anand Rathi reported a 13% quarter-on-quarter increase in operational revenue, reaching ₹227.20 crore.
This growth was primarily driven by a 30% surge in MTF interest income and an impressive 50% jump in distribution income. The company's EBITDA showed even stronger growth, expanding by 24% QoQ to ₹92.65 crore.
Profit After Tax (PAT) increased by 22% to ₹27.90 crore, reflecting a healthy PAT margin of 12%. The brokerage segment demonstrated robust expansion, with total active clients growing to 149,849 during the quarter.
Market Outlook and Expansion
The simultaneous strong performance of multiple brokerage stocks indicates sustained market optimism about increasing retail participation in Indian equities. Experts remain bullish about the expanding investor base but express caution about valuations amid intensifying competition in the brokerage space.
Anand Rathi Share and Stock Brokers operates as a full-service brokerage firm offering comprehensive services including broking, margin trading, and financial product distribution. As of September 30, 2025, the company maintains an extensive network comprising 92 branches and 1,250 authorized agents across 51 cities, serving clients from Tier 1 to Tier 3 cities through both physical and digital platforms.
The impressive debut of both Groww and Anand Rathi underscores the growing confidence in capital market intermediaries, reflecting the broader narrative of India's financialization story and the increasing mainstream adoption of equity investing.
