360 ONE

The quarter saw a broad-based recovery in equity indices, demonstrating resilience despite geopolitical uncertainties. Management noted strong flows into the domestic asset and wealth management ecosystem, reinforcing conviction in the industry's structured growth story. India's wealth market remains deeply underpenetrated, presenting a significant growth opportunity for premium-end franchises like 360 ONE.

360 ONE reported a 20% year-on-year increase in total revenue to Rs 870 crores, driven by strong growth across wealth and asset verticals. Profit After Tax (PAT) grew by 14.8% to Rs 330 crores, with Tangible ROE at 19.4%. The company also demonstrated improved operational efficiency, with the Cost-to-Income Ratio decreasing to 51.3% in Q1 FY27 from 53.5% in Q4 FY26, and management expects further gradual improvement towards 49-49.5% by Q4 FY27.

Total ARR AUM increased by 19% to Rs 3,42,000 crores, with wealth AUM growing 24.2% to Rs 2,42,000 crores and asset management AUM up 8.2% to Rs 1,00,000 crores. Overall AUM reached Rs 7.8 lakh crores, a 17% increase. ARR net flows for the quarter were Rs 10,815 crores, significantly higher than Rs 8,985 crores in the previous quarter, primarily driven by the wealth business which contributed Rs 13,379 crores in flows.

The UHNI franchise remains a core anchor, focusing on deepening wallet share and extending beyond top cities. The HNI proposition is scaling well, with AUM growing from Rs 600 crores to Rs 5,100-5,200 crores, managed by over 60 relationship managers for 800+ clients at an ARR retention yield of around 90 basis points. Management expects the HNI business to break even on direct costs by the end of FY27. ET Money, after strategic transformation in FY26, is also targeted to reach break-even by Q4 FY27, with current quarterly losses at Rs 6-7 crores.

Asset management AUM crossed Rs 1 lakh crore, showing strong momentum in alternates (private equity, private credit, real estate, infrastructure, renewables, and multi-asset strategies). While gross flows were strong at approximately Rs 4,000 crores, net flows were negative due to a large institutional mandate outflow. The institutional equity franchise continues to perform strongly, covering 550+ companies and serving 300+ clients, with over 85% of broking revenue from the cash segment. Synergies from the B&K acquisition are materializing, with listed equity brokerage increasing from Rs 250-260 crores to Rs 310-320 crores.

The offshore opportunity is steadily building, supported by global institutional mandates and the distribution reach through the UBS collaboration. The company has made significant progress in onboarding funds and referring clients, with an anticipated AUM exchange of $500-600 million over time^⏳. This collaboration is expected to open offshore capital access for alternates and listed strategies, reinforcing the 360 ONE Flywheel model where businesses strengthen each other.

Management views the private credit industry in India as being at a very interesting and nascent stage, with significant growth potential. The company operates in the 10-11% and 13-15% return buckets, having maintained a stellar track record with negligible accidents over 7-8 years. They anticipate the private credit industry to grow as fast as the private equity industry over time^⏳, driven by institutional demand and a regulatory environment that has prevented semi-liquid funds, thus avoiding redemption pressures.