360 ONE

360 ONE WAM reported a robust Q3 FY26, with total ARR AUM increasing 28% year-on-year to Rs 3,17,906 crores. This growth was underpinned by strong net flows of Rs 14,758 crores in Q3 FY26 and Rs 46,890 crores for the nine months. ARR revenue saw a significant 45.4% YoY increase, reaching Rs 619 crores, and contributed 77% to the total revenue of Rs 826 crores. The company achieved its highest ever quarterly PAT of Rs 331 crores, marking a 20.3% YoY increase, and improved its tangible ROE to 21% from 20.4% in the previous quarter.

The total ARR AUM is segmented into Wealth ARR AUM at Rs 218,957 crores and Asset Management ARR AUM at Rs 98,949 crores. Asset management mobilizations were strong, raising over Rs 2,000 crores in real asset strategy, Rs 2,500 crores in private credit, and Rs 2,000 crores in mid and small cap listed strategy. Net flows in wealth management were driven by a combination of increased wallet share from existing clients and new client additions, with a split of approximately 50:50 or 60:40.

The comprehensive Global Collaboration Framework for Wealth with UBS was signed in November, showing early traction with cross-border client referrals, with actual numbers expected from April/May onwards. ET Money is being transformed from a transaction-led app to a comprehensive wealth platform for the affluent segment, targeting breakeven by the end of the next financial year. B&K Securities has been rebranded to 360 ONE Capital, integrating corporate and institutional equities to enhance the sustainability and predictability of TBR revenues.

The Alternates business continues to be a key growth driver, having built Rs 50,000 crores in AUM over 7-8 years, with 95% of funds performing in the top 90 percentile. Recent SEBI initiatives, including co-investment vehicles and reduced large value fund thresholds (from Rs 75 crores to Rs 25 crores), provide additional flexibility. The company's carry assumption on Alt AUM is 20-25 basis points, translating to an expected quarterly carry of Rs 25-40 crores.

The company's cost-to-income ratio stood at 48.3% in Q3 FY26. Management aims to reduce this to 45-46% next year, anticipating breakeven for the HNI business by mid-next year and for ET Money by the end of the next financial year. These improvements, combined with productivity gains in the core business, are expected to contribute 100-150 basis points to cost-to-income ratio improvement. The long-term guidance includes 22-24% AUM growth, 16-18% revenue growth, and 22-24% profit growth, targeting a PAT of Rs 1,800-2,100 crores in three years from April 2025.

The UHNI segment currently has approximately 191 relationship managers, with a target to grow this to 300-350 RMs over the next 3-4 years by adding 40-50 talented bankers annually. The HNI segment (Reserve side) has seen its AUM grow from less than Rs 400-500 crores to over Rs 3,000 crores, supported by 58 relationship managers. The company plans to expand its geographical footprint beyond the current 15 cities to another 10 cities, including international locations like Dubai and Singapore.

While non-discretionary PMS flows are strong, the conversion to discretionary PMS is an area for improvement. Management acknowledges that discretionary PMS is the toughest franchise to build, requiring maximum client trust and offering full freedom on multi-asset class management. The company aims to improve its discretionary PMS numbers over the next 12-24 months, leveraging its diversified platform and strong performance.