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.