Detailed Narrative
Financial Performance Overview
360 ONE delivered a strong FY26, with total ARR AUM growing 26% YoY to 311,940 crores and ARR revenue increasing 34.5% YoY to 2,289 crores, now comprising 75% of total revenue from operations. PAT for FY26 grew 20.7% to 1,225 crores, achieving a Tangible ROE of 19.3%. Q4 saw robust transactional and broking revenues, up 53.7% YoY to 230 crores, partly due to the full quarter consolidation of 360 ONE Capital.
Strategic Initiatives and New Businesses
The integration of 360 ONE Capital (formerly B&K Securities) is complete, contributing to broking revenue and expected to nearly double equity-related income over the next 3-4 years. The HNI segment's reserve program now manages approximately 4,000 crores AUM with around 60 relationship managers, aiming for significant financial improvement. ET Money is undergoing strategic transformation and is expected to reach breakeven in the near term, while Investment Banking is anticipated to make meaningful contributions in 12-18 months.
Asset Management and Discretionary PMS
Asset Management ARR AUM reached 95,000 crores, with FY26 organic net flows of 35,199 crores, representing a 36% increase. However, the discretionary PMS segment experienced softer growth and Q4 saw a net negative flow of 212 crores for distribution assets, primarily attributed to Corporate Treasuries. Management is pivoting its strategy for this segment, with a new launch planned for the first week of June, expecting numbers to improve.
Cost Management and Operational Efficiency
The FY26 cost-to-income ratio stood at 49.9%, with the core UHNI Wealth and Asset Management businesses maintaining a stable 44-45%. While newer businesses are in an investment phase, management aims to reduce the overall cost-to-income ratio to 46-48% over the next 2-3 years. This improvement is expected through operational leverage, efficiency in core businesses, and scaling up of new ventures.
Regulatory Environment and Market Outlook
The regulatory environment is supportive, with SEBI's active changes fostering transparency and institutionalization in the market, which aligns with the company's compliance-first approach. Management remains confident in India's strong macroeconomic fundamentals and sees attractive entry points across multiple asset classes. The company aims to double its market share over the next 3 to 5 years, leveraging its brand, talent, and platform.
Capital Allocation and Shareholder Returns
The Board approved an interim dividend of Rs. 6 per share, demonstrating a disciplined capital allocation philosophy. This approach balances returning surplus capital to shareholders with retaining sufficient capacity to fund growth in Lending, Alternate, and strategic initiatives. The company emphasizes its strong balance sheet and commitment to long-term capital formation.
Tax-Related Matters
The company received an aggregate demand of Rs. 336 crores from tax authorities. Management believes it has adequate factual and legal grounds to substantiate its position and will pursue appeals against the order. The company does not expect any material impact on its financials or operations due to these orders.