Abans Financial Services Limited — Q1 FY26 earnings call

Call held 8 Aug 2025

Management summary

Abans Financial Services reported a strong Q1 FY26 with revenues of INR 1,895 crores and net profit of INR 32.69 crores, marking a 35% increase. The company's AUM reached a new high of INR 3,500 crores, driven by strategic expansion in fee-based businesses and new asset classes. Management emphasized continued growth in AUM and operational leverage, with a focus on enhancing disclosures and global market connectivity.

Highlights

  • Q1 FY26 Revenues stood at INR 1,895 crores, reflecting strong performance across segments.

  • Net profit for Q1 FY26 was INR 32.69 crores, marking a 35% increase quarter-on-quarter year-on-year.

  • Assets Under Management (AUM) reached INR 3,500 crores for the first time, indicating robust growth in asset management.

  • Fee-based investment services demonstrated strong profitability in FY25 with a top line of INR 165 crores and PBT of INR 102 crores.

  • The company's strategic pivot towards fee-based and multi-product distribution strategies is yielding sustainable and recurring growth.

Key financials

2 periods

Headline

  • Revenue
    ₹1,895 Cr
  • EBITDA
    ₹52.8 Cr
  • Net Profit
    ₹32.69 Cr
    YoY +35% QoQ +35%
  • AUM
    ₹3,500 Cr
  • AUM through Distributors
    ₹1,300 Cr

FY25

  • Fee-based Investment Services Revenue
    ₹165 Cr
  • Fee-based Investment Services PBT
    ₹102 Cr

What they filed

Q1 FY27: revenue up 96.0%, net profit up 100.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue641 1,280 1,063 1,894 6,832 +966%6,495 +407%8,708 +719%3,713 +96%
EBITDA46 52 48 51 48 +4%44 −15%16 −67%100 +96%
Net profit27 27 30 33 42 +56%34 +26%-4 −113%66 +100%
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.

Capital allocation

high confidence
  • M&A Multiple broking subsidiaries into Abans Broking Services Private Limited Merger · Announced

    To improve compliance efficiency, create a high net worth broking company, facilitate larger institutional broking capabilities, reduce compliance burden, improve efficiency (costs/compliance), and acquire business as an institutional broker nationally.

    So, yes, we have announced that we have multiple companies which have different broking licenses nationally. And over a period of time, we have realized and added all the licenses in one entity which is Abans Broking Services Private Limited. And we wish to bring all the broking businesses under one umbrella, both in terms of improving compliance efficiency, also having a high net worth broking Company, which can then facilitate larger institutional broking capabilities in the future because that will meet more or less every large fund house requirement in terms of having a broking partner like that. So, it is a strategic move, both to reduce compliance burden; two, to improve efficiency, both in terms of costs and in terms of compliance; and three is to be able to acquire business as an institutional broker nationally.
  • Liquidity Liquidity disclosed Management stated the company is a 'low gearing Company' and has the 'ability to make acquisitions' for fee income.
    So, according to me, you can see in the balance sheet that we are, firstly, a very like low gearing Company. Two is we have ability to make acquisitions, to acquire more fee income.

Guidance & targets

AUM

  • AUM Growth AUM · every 12 to 18 months · Medium confidence double
    And I think we can confidently say that our AUMs will double hopefully, every 12 to 18 months and our fee income, because all the infrastructure fixed costs are in built now, our fee income will further expand in the coming years.

    — Nirbhay Vassa

  • New AIF Fund in GIFT City AUM AUM · coming year · High confidence $100 million
    we already started a new AIF fund in GIFT, which should have an AUM of approximately $100 million in the coming year.

    — Dhrumil Shah

Profitability

  • Fee Income Expansion Profitability · coming years · Low confidence further expand
    And I think we can confidently say that our AUMs will double hopefully, every 12 to 18 months and our fee income, because all the infrastructure fixed costs are in built now, our fee income will further expand in the coming years.

    — Nirbhay Vassa

What to watch in Q2 FY26

AUM Growth

Next 12-18 months (check progress next quarter)
Current INR 3,500 crores
Target Progress towards doubling AUM

Why it matters

AUM growth is a key driver for fee income and overall business expansion.

our AUMs will double hopefully, every 12 to 18 months

Q&A highlights

8 direct
Key factors for client retention and winning long-term advisory and asset management deals. Direct
I believe that the strongest differentiators for us as Abans are trust, access to global markets and ability to customize financial products.

Highlights the core competitive advantages and client-centric approach in their asset management business.

Asked by Smit Mehta

Improvement in operating leverage and margin expansion with scaling fee-based income. Direct
With scaling AUMs, obviously, because now that all our infrastructure of asset management is ready, the margin in such businesses keeps expanding as you keep getting AUM.

Explains the mechanism for future margin improvement as AUM grows, leveraging existing infrastructure.

Asked by Akriti Acharya

Strategy for scaling AUM further (deeper regional penetration or new asset classes). Direct
expanding both horizontally and vertically. So, horizontally, we are increasing our distribution footprint across more cities, more countries, more partners... Vertically, we are introducing new asset classes, including our global equities, private credit funds and structured solutions.

Details the dual-pronged approach to AUM growth, covering both reach and product diversification.

Asked by Kevin

Market missing intrinsic value and steps to bring value to shareholders. Direct
over the next 12 to 18 months, we are focused on enhancing disclosures and our team has worked very hard on delivering a very, very robust and informative annual report, which gives you access to how we as management, try to run this business...

Addresses investor perception and outlines management's plan to improve transparency and communication to bridge the valuation gap.

Asked by Raj

Strategic vision for FY26 and new products. Direct
FY26 is a year of acceleration for us. Our core values this time, I'm going to have 3 pillars: advisory depth, product innovation and geographic scale. We're entering the merchant banking space to complement our advisory and capital-raising capabilities.

Provides a clear roadmap for the current fiscal year, highlighting key strategic areas and new business initiatives.

Asked by Nikita

Sustainability of fee-based income growth. Direct
this growth will be sustainable and recurring in nature, backed by long-term mandates and scalable without proportionate increases in cost. Fee income now forms the most resilient core of our revenue model...

Reassures about the quality and durability of the fee-based revenue stream, which is a strategic focus.

Asked by Kaval Shah

AFSL's positioning in alternative investment and mid-market segment. Direct
We have already positioned ourselves by building the infrastructure in GIFT, onshore AIFs, GIFT AIFs as well as funds abroad, which can act as a feeder to the AIFs. So, the infrastructure is ready and we have displayed our execution capabilities...

Explains the foundational work done to capitalize on the alternative investment opportunity, particularly in the mid-market.

Asked by Viraj Shah

Benefits and synergies of subsidiary merger. Direct
it is a strategic move, both to reduce compliance burden; two, to improve efficiency, both in terms of costs and in terms of compliance; and three is to be able to acquire business as an institutional broker nationally.

Clarifies the strategic rationale behind the consolidation of broking entities, aiming for operational and compliance benefits.

Asked by Raj

3 min read 7 chapters

Detailed narrative

Q1 FY26 Financial Performance Overview

Abans Financial Services reported Q1 FY26 revenues of INR 1,895 crores and an EBITDA of INR 52.8 crores. The net profit for the quarter stood at INR 32.69 crores, reflecting a 35% increase quarter-on-quarter year-on-year. This performance was attributed to the steady execution of a strategy focused on diversifying revenue streams and scaling fee-based businesses, marking another quarter of profitable growth.

Strategic Growth Pillars for FY26

Management outlined FY26 as a year of acceleration, centered on three pillars: advisory depth, product innovation, and geographic scale. The company is expanding its merchant banking capabilities and introducing new products like structured credit and global investment. Regulated platforms in the UK, Mauritius, and GIFT City are expected to play a key role in tapping international capital, contributing to AFSL becoming more visible and vertically integrated in financial sources.

Asset Management Business Expansion and AUM Growth

The company achieved a significant milestone by reaching INR 3,500 crores in overall Assets Under Management (AUM) for the first time. AUM through distributors also grew to INR 1,300 crores from INR 1,000 crores. The strategy for scaling AUM involves both horizontal expansion (increasing distribution footprint across more cities and countries) and vertical expansion (introducing new asset classes like global equities, private credit funds, and structured solutions), aiming to offer a full tax solution across risk profiles.

Fee-Based Income and Operating Leverage

Fee-based investment services generated a top line of INR 165 crores and a profit before tax of INR 102 crores in FY25. Management noted that as AUM scales and existing infrastructure is leveraged, margins in these businesses are expanding, with early signs of operating leverage already visible in the current quarter and last year's results. Investments in digital tools and AI are expected to further reduce costs per transaction and improve adviser productivity, ensuring incremental revenue flows at higher margins.

Global Presence and Infrastructure Development

Abans Global Limited, the UK subsidiary, has successfully established a fully operational back office center in GIFT City, enhancing cost efficiencies and operational scalability. The company is actively working on launching various asset management vehicles, both onshore in GIFT City and internationally, to improve global capital access. This infrastructure is crucial for advancing the company's ability to access global capital and strengthen global market connectivity.

Subsidiary Merger for Operational Efficiency

The company announced the merger of multiple broking subsidiaries into a single entity, Abans Broking Services Private Limited. This strategic move aims to improve compliance efficiency, create a high net worth broking company capable of facilitating larger institutional broking, and reduce overall compliance burden and costs. The consolidation is expected to enhance the company's ability to acquire business as an institutional broker nationally, improving efficiency in terms of both costs and compliance.

Outlook on AUM and Fee Income Growth

Management expressed confidence that AUMs are expected to double every 12 to 18 months, with fee income further expanding as fixed infrastructure costs are already built. A new AIF fund launched in GIFT City is projected to achieve an AUM of approximately $100 million in the coming year, contributing to the overall growth trajectory. The company also highlighted its low gearing and ability to make acquisitions to further boost fee income.

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