360 ONE — Q1 FY27 earnings call

Call held 21 Jul 2026

Management summary

360 ONE delivered a strong Q1 FY27, marked by significant growth in ARR AUM, particularly in wealth management, and improved operational efficiency. While asset management experienced a temporary setback due to an institutional outflow, the company remains confident in its structural growth drivers, including the scaling HNI business, ET Money's path to profitability, and synergies from institutional and UBS collaborations.

Highlights

  • Total ARR AUM increased by 19% to Rs 3,42,000 crores, reflecting strong underlying business momentum.

  • Wealth AUM grew robustly by 24.2% to Rs 2,42,000 crores, driven by strong net flows of Rs 13,379 crores.

  • The Cost-to-Income Ratio improved to 51.3% from 53.5% in Q4 FY26, with management anticipating further gradual improvement.

  • Profit After Tax (PAT) increased by 14.8% to Rs 330 crores, demonstrating healthy profitability.

  • The HNI business is scaling well, with AUM growing to Rs 5,100-5,200 crores and expected to break even on direct costs by year-end.

Concerns

  • Asset management net flows were negative due to one large institutional mandate outflow, despite strong gross flows of approximately Rs 4,000 crores.

  • The PMS (Portfolio Management Services) structure is currently challenged, leading clients to migrate to AIF/MF/SIF platforms for equity products.

Key financials

  1. Total ARR AUM ₹3.42L Cr +19%YoY
  2. Wealth AUM ₹2.42L Cr +24.2%YoY
  3. Asset Management AUM ₹1.00L Cr +8.2%YoY
  4. Overall AUM ₹7.80L Cr +17%YoY
  5. ARR Net Flows ₹10,815 Cr +20.4%QoQ
  6. Wealth Business Flows ₹13,379 Cr +92.3%QoQ
  7. ARR Revenues ₹614 Cr +20.3%YoY
  8. ARR Retention 74 bps
  9. TBR ₹208 Cr +37.3%YoY
  10. Total Revenue ₹870 Cr +20%YoY
  11. Total Cost ₹446 Cr
  12. Cost-to-Income Ratio 51.3% -4.1%QoQ
  13. Profit After Tax ₹330 Cr +14.8%YoY
  14. Tangible ROE 19.4%

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

  • Wealth Management
    ₹2.42L Cr AUM71 bps ARR Retention₹13,379 Cr Net Flows
  • Asset Management
    ₹1.00L Cr AUM83 bps ARR Retention₹4,000 Cr Gross Flows
  • HNI Business
    ₹5,100 Cr AUM60 Relationship Managers800 Clients
  • Institutional Business
    550 Companies Under Coverage300 Institutional Clients85% Broking Revenue from Cash Segment

Guidance & targets

Profitability

  • Cost-to-Income Ratio Profitability · Q4 FY27 · Medium confidence 49-49.5%

    From 51% today

    So, ET money together with the HNI piece should definitely help us retract the cost to income by around about a give or take 100-150 odd basis points. And a little bit of operating leverage, both on the alternates' side of the business as well as on the wealth management side of the business should hopefully take us on Q4 basis from 51% to about 49 - 49.5% and potentially for the full year, approximately 100 - 150 basis points from where we are today.

    — Karan Bhagat

  • HNI Business Break-even Profitability · By end of this year (FY27) · High confidence Break-even on direct cost
    As business momentum continues and productivity builds through the year, we expect the business to break even on direct cost by end of this year.

    — Sanjay Wadhwa

  • ET Money Break-even Profitability · By Q4 FY27 · High confidence Break-even
    but post that by the end of quarter four, we'll be close to break even on the ET money side.

    — Karan Bhagat

  • Overall ARR AUM Retention Profitability · Ongoing · High confidence 70-75 bps

    From 78 bps today

    but otherwise it'll broadly continue more accurately between 70 - 75 basis points on the ARR AUM.

    — Karan Bhagat

  • Pure HNI AUM Retention Profitability · Ongoing · High confidence 85-90 bps
    But on the pure HNI side, I think it will be closer to 85-90 basis points.

    — Karan Bhagat

Headcount

  • Senior Relationship Managers Headcount · Over next 3 years · Medium confidence 350-400 RMs
    On the RM count, we currently obviously wanted to add about, as you rightly said, move towards a 350 - 400 RM target number.

    — Karan Bhagat

Revenue

  • Transactional Brokerage Revenue (TBR) Growth Revenue · Over next 2-3 years · Medium confidence 10-15% increase
    I think we've worked hard to try and kind of get it to a consistent Rs 125-150 crores number, with the hope and ability to potentially increase it by a modest 10-15% as you go along over the next two to three years.

    — Karan Bhagat

  • ECM Contribution to TBR Revenue · Over 2-3 years · Medium confidence 15-20%
    But over a period of 2 - 3 years, if the transaction brokerage revenue number was to be somewhere between the Rs 750 - 1,000 crores, I would expect 15 odd percent, 15% to 20% to come out of the ECM side.

    — Karan Bhagat

Market Growth

  • Private Credit Industry Growth Rate Market Growth · Over a period of time · Medium confidence As fast as private equity industry
    And I think it's over a period of time, I think I would not be surprised if it continues to grow as fast as the private equity industry itself.

    — Karan Bhagat

Business Development

  • AUM exchanged between 360 ONE and UBS Business Development · Over a period of time · Medium confidence $500-600 million
    I think we've got a certain AUM number, a fairly conservative number, but in the region of $500 - 600 million, hopefully to get kind of exchanged between both the organizations over a period of time.

    — Karan Bhagat

Costs

  • SARs Cost Recognition Costs · Over 3-4 years, starting next quarter · High confidence Rs 60 crores annually
    No, that will only start at the point of next quarter, right, once it's approved and allotted. So that is approximately 12 lakh SARs. So, 12 lakhs would be approximately 130-140 odd crores into around 40-60 odd crores. So, it will be around about Rs 60 odd crores spread over 3 years.

    — Karan Bhagat

What to watch in Q2 FY27

HNI Business Profitability

By end of FY27
Current Operating at a loss on direct cost
Target Break-even on direct cost

Why it matters

Indicates the success of a key growth initiative and its contribution to overall profitability.

As business momentum continues and productivity builds through the year, we expect the business to break even on direct cost by end of this year.

Risks & concerns

  • Geopolitical Uncertainty

    medium

    Equity indices navigated a period of geopolitical uncertainty with characteristic resilience, indicating the company's ability to withstand such pressures.

    Management acknowledged

  • Structural Challenges for PMS

    medium

    PMS as a structure is currently challenged, with AIF, MF, and SIF platforms offering better alternatives for equity products, leading to client migration.

    Management acknowledged

  • Margin Pressure in Listed Asset Management

    low

    The pure listed side of the asset management business is expected to continuously see some margin pressure, though it constitutes a smaller portion (8-9%) of overall revenue.

    Management acknowledged

Q&A highlights

8 direct
Net flows and asset management performance Direct
But I think, you know, honestly, when I look at our net flows of about, give or take 40,000 odd crores, which is 12 - 15% of the number we've kind of started out with, we started out with like Rs 2,40,000 odd crores of ARR AUM. So, Rs 30 - 40,000, 35 - 40,000 crores of net flows. I think I would like to still believe our net flows will be broadly broken up as 70:30 or 75:25, broadly in the split being in the favour of the wealth business.

Clarifies the company's net flow targets relative to AUM and the expected split between wealth and asset management, acknowledging a temporary AMC outflow.

Asked by Mohit Mangal

Cost-to-income ratio improvement and drivers Direct
So, ET money together with the HNI piece should definitely help us retract the cost to income by around about a give or take 100-150 odd basis points. And a little bit of operating leverage, both on the alternates' side of the business as well as on the wealth management side of the business should hopefully take us on Q4 basis from 51% to about 49 - 49.5% and potentially for the full year, approximately 100 - 150 basis points from where we are today.

Provides specific targets and drivers for cost efficiency improvement, linking it to HNI and ET Money profitability and operating leverage.

Asked by Mohit Mangal

Impact and progress of UBS collaboration Direct
I think we've got a certain AUM number, a fairly conservative number, but in the region of $500 - 600 million, hopefully to get kind of exchanged between both the organizations over a period of time. And that's really what we're going to use as a measure of collaboration.

Quantifies the initial AUM exchange target for the UBS partnership and clarifies the strategic focus on collaboration rather than immediate P&L impact.

Asked by Prayesh Jain

Longevity and commitment of the CEO, Karan Bhagat Direct
I think, obviously, my longevity or my desire to continue as CEO of the firm has nothing and nothing at all to do with me being an equity shareholder. Both of those things are not linked in any way, manner and form.

Addresses a market rumor directly, reaffirming the CEO's long-term commitment to the company, which is crucial for investor confidence.

Asked by Prakhar Sharma

Nature of costs (variable vs. permanent) and impact on cost-to-income Direct
It's a constant debate which I have with the team. I can give you 3 kinds of answers, but I will give you one. Honestly, I think the industry, both on the wealth management side and asset management side is quite competitive. And I think what kind of really makes it kind of take its own time and moves it to the 24 - 30 months cycle as opposed to a 12 - 18 months' cycle is the GBs and JBs.

Provides insight into the competitive landscape and the longer cycle for relationship managers to build their book, which influences the company's cost structure.

Asked by Abhijeet Sakhare

HNI business growth trajectory and revenue recognition Direct
I think good early shoots in terms of both the stability of the platform as well as the stability of the team. I think just looking at the team itself out of the 60 relationship managers, we've been able to grow distribution assets from a measly number of Rs 500 - 600 crores all the way to Rs 4,000 crores last year. And the Rs 4,000 crores have now grown to down about Rs 5,100 - 5,200 crores.

Details the rapid growth of the HNI segment's AUM and explains the 12-month lag in revenue recognition, providing context for future profitability.

Asked by Siddharth

Synergies from the B&K acquisition, particularly in equity brokerage Direct
I think both the platforms put together at the point of coming together, we're doing around about Rs 250 - 260 crores of listed equity brokerage. I think today that number is already close to give or take 310 - 320.

Quantifies the immediate positive impact of the B&K acquisition on equity brokerage revenue, demonstrating successful integration and value creation.

Asked by Siddharth

Exceptional costs in Q1 FY27 Direct
The last point on exceptional cost, I think that Rs 12-13 crores is exceptional cost is just related to ESOPs relative to the acquisition. So that's the reason it's kind of put out there. So that's really in some senses, not necessarily, you know, kind of on a constant basis, but it's related to the B&K acquisition.

Clarifies the nature and one-time aspect of the exceptional costs, reassuring investors that it's not a recurring operational expense.

Asked by Dipanjan Ghosh

3 min read 7 chapters

Detailed narrative

Macroeconomic Backdrop and Industry Outlook

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.

Overall Financial Performance and Efficiency

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.

AUM Growth and Net Flows

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.

Wealth Management Expansion (UHNI, HNI, ET Money)

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 and Institutional Business

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.

UBS Collaboration and Offshore Opportunity

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.

Private Credit Industry Outlook

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.

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