Prudent Corporate Advisory Services Limited

Prudent Corporate Advisory Services demonstrated strong AUM growth in Q1 FY26, with daily average AUM reaching INR 110,194 crores. The opening AUM for Q2 FY26 stood at INR 117,897 crores, representing a solid 7% jump over Q1's average. Quarterly average AUM scaled up sharply, growing 8.3% sequentially and 23.4% year-on-year. Equity AUM specifically rose by almost 22% over the last 12 months, from INR 93,149 crores in June 2024 to INR 113,950 crores in June 2025, with 60% of this increase from net equity sales and 40% from mark-to-market gains. The indirect AUM share also increased by 0.4% QoQ and 1.8% YoY to 90.6%.

As a strategic initiative, Prudent has become a corporate agent for the distribution of insurance products, integrating these offerings into its FundzBazar platform. In Q1 FY26, the standalone entity reported INR 11 crores in insurance income, reflecting positive early momentum. The insurance distribution business saw a 12% YoY revenue increase, with fresh premiums rising 21% YoY. General insurance, a key focus area, grew by over 50% YoY, contributing to an overall General Insurance book of INR 150 crores.

The company's monthly SIP book stood at INR 996 crores in June 2025, with INR 948 crores being realized (money debited from investor accounts). The difference of 4-4.5% is attributed to SIP pause facilities and uncleared checks. While Prudent's SIP market share has remained around 3.5-3.6%, management acknowledged that fintechs are growing faster in new SIP registrations, impacting the overall share of traditional distributors. However, Prudent has maintained its share within the regular plan segment.

Prudent's yield saw a slight sequential dilution, moving from 91.2 basis points in Q4 FY25 to 90.5 basis points in Q1 FY26, partly due to SBI's repricing of its existing book. Management expects employee costs to increase by approximately 20% for the full FY26, driven by a 15-16% annual fixed salary hike and competitive pressures. Despite these cost increases, the company is confident in maintaining its operating profit margin (excluding ESOPs) within the 23-24% range for the full fiscal year. ESOP costs, once implemented, are estimated to be INR 8-8.5 crores annually.

The AUM for AIF and PMS products is currently around INR 1,400-1,500 crores, showing a robust 30-35% YoY growth compared to last year's average of INR 1,180 crores. The company is actively focusing on increasing its offerings in these higher-value segments. Prudent also reported an increase in new distributor recruitment, indicating strong appeal for its platform. Attrition rates among the sales team have normalized in the last 4-5 months after a period of higher turnover, with the sales team growing 35-40% in the last 2-3 years.

The company's treasury book now stands above INR 500 crores, providing a strong financial base. Management indicated an ongoing interest in pursuing inorganic growth opportunities wherever strategically aligned. While no specific deals are currently in the pipeline, discussions with potential partners are ongoing, particularly in the mutual fund distribution or insurance sectors, to further enhance its integrated wealth management offerings.