360ONE

Positioned as a Steady Compounder Amid Wealth Industry Expansion

reported its highest-ever quarterly profit of ₹331 crore in Q3FY26, up 20% YoY, supported by strong asset inflows and recurring revenue growth. Assets under advisory, management, and distribution rose to ₹711,398 crore, a 23% YoY increase, despite market volatility. With inorganic expansion through UBS India and B&K Securities integration, the firm is building scale across wealth, asset management, and distribution, positioning itself for sustained growth. 1. Asset Growth and Inflows - Net ARR inflows surged to ₹14,758 crore in Q3FY26, vs ₹6,643 crore YoY. - 9M FY26 inflows at ₹46,890 crore, already exceeding FY25’s ₹25,974 crore. - ARR assets grew 28% YoY to ₹317,906 crore, contributing 77% of revenue, reducing earnings volatility. 2. Wealth Management Expansion - Core UHNI segment remains dominant, but mid-market HNI (₹10–50 crore wealth) gaining traction. - AUM in mid-market segment rose from ₹85 crore (Dec 2025) to ₹450 crore (start FY26), expected to reach ₹3,000 crore by FY26-end. - Fee-based advisory platform 360 ONE PLUS crossed ₹83,676 crore AUM. 3. Asset Management Business - Total AUM stood at ₹98,949 crore. - Focused on alternatives—private equity, structured credit, real estate. - Mutual funds remain a small proportion of overall AUM. 4. Earnings Visibility and Growth Drivers - Business structure supports 20–25% annual AUM growth (12–15% net flows + 8–10% MTM gains). - Expected to translate into 16–18% revenue growth and 20–25% profit growth. - Transactional and broking revenues to rise via B&K Securities, UBS collaboration adds optional upside. 5. Valuation and Strategic Outlook - Stock trades at 26x FY28 earnings, supported by ~20% ROE. - ROE temporarily compressed due to equity dilution and inorganic expansion. - Long-term trajectory strengthened by UBS integration, ET Money expansion, and global foray. - Management expects C/I ratio to taper as strategic investments mature.