360 ONE — Q1 FY26 earnings call

Call held 17 Jul 2025

Management summary

360 ONE reported a robust Q1 FY26, driven by strong AUM growth and revenue expansion, significantly boosted by the B&K Securities acquisition. The company achieved its highest-ever quarterly PAT and improved its cost-to-income ratio, while strategically integrating new businesses and actively managing talent attrition to support future growth.

Highlights

  • Total ARR AUM increased to Rs 2,87,317 Crs, up 30% YoY.

  • Strong net flows of Rs 20,950 Crs, including Rs 18,266 Crs from B&K acquisition.

  • ARR Revenue grew by 35.9% YoY to Rs 511 Crs.

  • Total Revenue stood at Rs 725 Crs for Q1 FY26.

  • Highest ever quarterly PAT at Rs 287 Crs, an increase of 18% YoY.

  • Cost-to-Income ratio improved to 48.4% from 50.7% in Q4 FY25.

  • Tangible RoE at 19.6%.

  • Client base grew to 4,200+ clients with AUM of 10 Crs+.

Key financials

  1. Total ARR AUM ₹2.87L Cr +30%YoY
  2. ARR Revenue ₹511 Cr +35.9%YoY
  3. Total Revenue ₹725 Cr
  4. Total Costs ₹351 Cr +32.7%YoY
  5. PAT ₹287 Cr +18%YoY
  6. Cost-to-Income Ratio 48.4%
  7. Tangible RoE 19.6%

What they filed

Q1 FY27: revenue up 34.6%, net profit up 16.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue865 780 821 911 1,098 +27%1,181 +51%1,115 +36%1,226 +35%
EBITDA541 444 461 566 697 +29%725 +63%663 +44%773 +37%
Net profit245 276 250 285 315 +29%327 +18%289 +16%331 +16%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Corporate and Institutional bucket (B&K contribution)
    ₹24 Cr Revenue

Capital allocation

high confidence
  • M&A B&K Securities Acquisition · Integrated · Consideration ₹[object Object] (undisclosed) · AUM ₹18,266 Cr

    Strengthen broking & transactional platform within Wealth Management franchise, onboard approx. 700 corporate clients.

    Contributed Rs 18,266 Crs to ARR net flows; reflected for 35 days in Q1 FY26, contributing ~Rs 24 Crs to corporate and institutional bucket.

    Firstly, on B&K, we are happy to announce that the deal has been successfully consummated and, all requisite approvals were received on May 27, 2025. Post merger integration of people and processes has already begun... The flows also include ARR net flows of Rs 18,266 Crs as a result of the acquisition of B&K Securities... It includes approx. 700 corporate clients that have been onboarded as a part of the B&K transaction.
  • M&A UBS India Wealth Management Business Collaboration · Pending regulatory · Consideration ₹[object Object] (undisclosed) · AUM ₹26,000 Cr

    To create a platform for global collaboration, enhance investment expertise, research, and cross-border client service.

    Total AUM of UBS is Rs 26,000 Crs; ARR AUM is sub Rs 10,000 Crs. Financials expected to reflect from Q3 FY26.

    Thirdly, on our strategic collaboration with UBS, we are happy to share that we have received all required regulatory approvals to complete the transaction... The entire AUM of UBS is Rs 26,000 Crs, not the ARR AUM... Effectively UBS not maybe this quarter, but the next quarter.
  • M&A ET Money Acquisition · Integrated · Consideration ₹[object Object] (undisclosed)

    To go deep into the mass affluent segment and drive growth and higher monetization.

    Full quarter financials included in Q1 FY26. Burn rate reduced from Rs 55-60 Crs/year to ~Rs 25 Crs/year.

    Coming to the business and financial numbers - in Q1 the consolidated financials for the quarter include full quarter financials of ET Money... We've been able to get the burn down from about Rs 55-60 Crs a year to around about Rs 25 Crs.

Guidance & targets

Net Flows

  • Wealth Management Net Flows (FY26) Net Flows · FY26 · High confidence Rs 20,000-25,000 Crs
    So, as I said earlier, Rs 1,65,000-1,70,000 Crs into 12-15% would be Rs 20-25,000 Crs on the wealth management side.

    — Mr. Karan Bhagat

  • Asset Management Net Flows (FY26) Net Flows · FY26 · High confidence Rs 9,000-12,000 Crs
    We opened the year at about Rs 75-80,000 Crs on the asset management side. So, take another 12-15% of that, which is effectively Rs 9-12,000 Crs.

    — Mr. Karan Bhagat

  • Total ARR AUM Net Flows (FY26) Net Flows · FY26 · High confidence Rs 27,000-35,000 Crs
    So, you add the two and you effectively end up at around about Rs 27-28,000 Crs to 34-35,000 Crs. That's the sum total of the ARR AUM that we aim to target.

    — Mr. Karan Bhagat

  • Wealth Management Net Flows (Quarterly Run Rate) Net Flows · Quarterly · High confidence Rs 5,000-5,500 Crs
    On the wealth management side, therefore, we need around Rs 5-5,500 Crs net flows on a quarterly run rate basis.

    — Mr. Karan Bhagat

Asset Management

  • New Funds Target Asset Management · Annual · High confidence Rs 8,000-10,000 Crs
    We'll be potentially to reach our target of Rs 8,000 to 10,000 Crs. We need 4 or 5 new funds.

    — Mr. Karan Bhagat

Profitability

  • ET Money Annual Burn Rate Profitability · Annual · High confidence Rs 25 Crs

    Previously Rs 55-60 Crs → Rs 25 Crs

    we've been able to get the burn down from about Rs 55-60 Crs a year to around about Rs 25 Crs.

    — Mr. Karan Bhagat

Yields

  • Overall Yield Compression Yields · Next 2-3 years · Medium confidence 2-3 basis points
    Yield will go down by 2-3 basis points.

    — Mr. Karan Bhagat

  • Asset Management Listed Yield Compression Yields · Ongoing · Medium confidence 3-4 basis points
    On the asset management side, the only place where I see a little bit of reduction in the headline yield is on the asset management side on the listed piece... the yields might come down by 3 to 4 basis points.

    — Mr. Karan Bhagat

  • Lending Book Retention Yields · Ongoing · High confidence 4.7-5%

    Previously 5.3% → 4.7-5%

    We will be 4.7/4.8 to 5-ish... may not be 5.3, but definitely around that 4.8 to 5% ballpark.

    — Mr. Karan Bhagat

Growth

  • B&K Growth Growth · Next 3-4 years · High confidence 20-25%
    We hope to build and grow that by at least 20-25% every year for the next 3-4 years.

    — Mr. Karan Bhagat

Revenue Mix

  • Transaction Brokerage Income as % of Total Income Revenue Mix · Ongoing · High confidence 20%
    we are also very conscious of the fact that we would like to maintain our transaction brokerage income at around about 20% of our total income.

    — Mr. Karan Bhagat

AUM

  • UBS ARR AUM AUM · Ongoing · High confidence Sub Rs 10,000 Crs
    UBS will be a sub Rs 10,000 Crs number purely in terms of ARR AUM.

    — Mr. Karan Bhagat

  • Total ARR AUM (B&K + UBS + Organic) AUM · Ongoing · High confidence Rs 60,000-65,000 Crs
    All three put together will be between the Rs 60,000 to 65,000 Crs.

    — Mr. Karan Bhagat

What to watch in Q2 FY26

Full financial reflection of B&K acquisition

Next quarter (Q2 FY26)
Current Reflected for 35 days in Q1 FY26 (~Rs 24 Crs in corporate/institutional bucket).
Target Fully reflected for the entire quarter.

Why it matters

Will show the full impact of the acquisition on revenue and profitability.

So, B&K is reflected for one month, 35 days. So that will start getting reflected from the second quarter fully.

Risks & concerns

  • Talent Attrition and AUM Outflows

    medium

    Departure of two teams led to Rs 3,500-4,000 Crs net outflows in Q1 FY26 and a potential 4-6% AUM loss, but new hiring is expected to offset this.

    Management acknowledged

  • Yield Compression

    medium

    Overall yields expected to compress by 2-3 basis points due to a shift towards advisory/discretionary over distribution, and listed asset management yields potentially dropping 3-4 bps.

    Management acknowledged

Q&A highlights

7 direct
Net Flows and FY26 Guidance Direct
We continue to be focused on our strategy of getting 12-15% of our net opening AUM as net flows for the year. We started out the year at around about Rs 1,65,000-1,70,000 Crs of opening ARR AUM. So around about 12-15% of that is what we would focus on getting as net flows.

Clarifies the company's organic net flow target for the year and how it's calculated, providing a key performance indicator for investors.

Asked by Mr. Lalit Deo

ET Money Profitability Timeline Direct
We've also decided and charted out a very clear growth map and strategy which we are fairly confident about... we've been able to get the burn down from about Rs 55-60 Crs a year to around about Rs 25 Crs.

Addresses concerns about ET Money's losses and provides a clear path and progress update on reducing the burn rate, indicating a move towards profitability.

Asked by Mr. Lalit Deo

Yield Compression Outlook Direct
Yield will go down by 2-3 basis points. But I'm quite confident, like I've said earlier about the headline yields being maintained in different line items. But the mix of business will grow slightly differently.

Provides specific guidance on expected yield compression and explains the underlying reason (change in business mix), which is crucial for revenue modeling.

Asked by Mr. Lalit Deo

Impact of Attrition on AUM Direct
It was a little bit tempered with the Rs 1,700 Crs of flows because we had a little bit of net outflows coming from the departure of two of our teams... around about 5% to 6% of the AUM to be lost.

Acknowledges the impact of recent team departures on AUM flows and quantifies the potential loss, providing transparency on a key operational challenge.

Asked by Mr. Lalit Deo

B&K Financial Contribution and Growth Direct
B&K is not flattish; it's actually done slightly better. Over the last year in question, it was around about Rs 16-17 Crs a month... For the current quarter, it is ~Rs 21 Crs for the month... a 15 to 20% higher number than last year.

Provides specific financial performance details for the newly acquired B&K, including its monthly run rate and growth expectations, which is vital for understanding its contribution.

Asked by Mr. Dipanjan Ghosh

UBS Collaboration AUM Accretion Partial
Dipanjan, to be honest, we've not gone into defining exact specific numbers. We're clear on the five points of collaboration... It's too early to define a quantum, but I'll re-emphasize the four or five collaboration points.

Management is reluctant to quantify the AUM accretion from the UBS tie-up, suggesting uncertainty or early stages of integration, which could be a point of investor concern or future upside.

Asked by Mr. Dipanjan Ghosh

Lending Book Fluctuation Direct
Nothing out of the ordinary of the lending book. It moved up sharply the last quarter also. In Q3 and Q4, there were two short-term loans, which got repaid... And our current quarter has seen a good uptick back in the loan book.

Explains the reason behind the fluctuation in the lending book, reassuring analysts that it's not a systemic issue but rather due to short-term loan repayments and subsequent recovery.

Asked by Mr. Siddharth Negandhi

Total ARR AUM from Acquisitions (B&K + UBS) Direct
The entire AUM of UBS is Rs 26,000 Crs, not the ARR AUM... The Rs 18,000 Crs of B&K is fine. And we'll definitely aim to hit our Rs 30,000-35,000 Crs number. All three put together will be between the Rs 60,000 to 65,000 Crs.

Clarifies the AUM contribution from UBS (distinguishing total AUM from ARR AUM) and provides a consolidated target for AUM from recent acquisitions and organic growth, offering a clearer picture of future scale.

Asked by Mr. Siddharth Negandhi

2 min read 6 chapters

Detailed narrative

Q1 FY26 Performance Overview

360 ONE reported a strong Q1 FY26, with total ARR AUM reaching Rs 2,87,317 Crs, marking a 30% YoY increase. This growth was supported by significant net flows of Rs 20,950 Crs, including Rs 18,266 Crs from the B&K Securities acquisition. The company achieved its highest-ever quarterly PAT of Rs 287 Crs, an 18% YoY increase, alongside a healthy 35.9% YoY growth in ARR Revenue to Rs 511 Crs. Total Revenue for the quarter stood at Rs 725 Crs.

Strategic Initiatives & Acquisitions

The quarter saw the successful consummation of the B&K Securities acquisition on May 27, 2025, which contributed Rs 18,266 Crs to ARR net flows and added approximately 700 corporate clients. The strategic collaboration with UBS also received all necessary regulatory approvals, with financials expected to reflect from Q3 FY26. ET Money, now part of 360 ONE WAM, continued its progress in reducing its annual burn rate from Rs 55-60 Crs to approximately Rs 25 Crs, with full quarter financials included in Q1 FY26.

AUM Growth and Client Base

The company's client base expanded significantly to over 4,200 clients, each with AUM exceeding Rs 10 Crs, collectively accounting for 95% of Wealth AUM (excluding custody). Management aims for annual net flows of 12-15% of opening ARR AUM, targeting Rs 20-25,000 Crs for wealth management and Rs 9-12,000 Crs for asset management, totaling Rs 27-35,000 Crs for FY26. The total ARR AUM from B&K, UBS, and organic growth is projected to be between Rs 60,000 to 65,000 Crs.

Revenue and Profitability Drivers

ARR Revenue contributed 77% of total operational revenues in Q1 FY26. Total Costs increased by 32.7% YoY to Rs 351 Crs, but the Cost-to-Income ratio improved to 48.4% from 50.7% in the previous quarter, despite including full-quarter costs of ET Money and 35 days of B&K. Tangible RoE was reported at 19.6%, with expectations for further improvement as capital deployed in lending and alternate businesses reflects in earnings.

Yield Outlook and Business Mix

Management anticipates an overall yield compression of 2-3 basis points over the next 2-3 years, primarily due to a changing business mix with a higher proportion of advisory and discretionary services compared to distribution. While distribution yields are expected to remain in the 75-85 bps range, listed asset management yields might see a 3-4 bps reduction, whereas alternate asset yields are projected to stay strong at 85-95 bps. Lending book retention is expected to be in the 4.7-5% ballpark.

Talent and Attrition Management

The company acknowledged net outflows of Rs 3,500-4,000 Crs in Q1 FY26 due to the departure of two teams, potentially leading to a 4-6% AUM loss. However, management expressed confidence in offsetting this through ongoing recruitment efforts, with several large teams already joining and more expected in the coming months. They aim to add significantly more AUM than lost through attrition, expecting stabilization within the next 2-3 quarters.

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