360 One Wam Limited Q1 FY27 Earnings Call Summary

Event Participants

Executives

5 Anil Mascarenhas, Anshuman Maheshwary, Karan Bhagat, Sanjay Wadhwa, Yatin Shah

Analysts

7 Abhijeet Sakhare, Aejas Lakhani, Dipanjan Ghosh, Mohit Mangal, Prakhar Sharma, Prayesh Jain, Siddharth

Financials & KPIs

Geographic & Segment Commentary

• Wealth Management - UHNI: Core franchise delivered ARR net flows of ₹13,379 crores vs ₹6,957 crores in Q4 FY26, reflecting sustained momentum amplified by recently onboarded teams. Advisory-led proposition gaining traction as clients migrate from transactional, product-driven engagement to portfolio-level mandates. Addressable market spans 40,000-45,000 households; client families with ₹10+ crores stand at ~4,100, up from ~1,800-2,000 36 months ago.

• HNI: Program scaled to 60+ RMs across 12 locations, managing ₹5,100-5,200 crores AUM for 800+ clients at ~90 bps ARR retention. AUM grew from ~₹600 crores to ₹4,000 crores in FY26 and to ~₹5,100-5,200 crores in Q1; ₹7-8 crores of trail revenue has started accruing. Migration of ~₹17,000-18,000 crores AUM from ₹1-10 crore segment clients to HNI team planned over next 3 months with fewer than 10-12 people. Expected to break even on direct cost by end of FY27.

• Asset Management: AUM crossed the ₹1 lakh crore milestone. Gross flows remained strong at ~₹4,000 crores but net flows were negative due to one institutional mandate reducing allocation from ~$550-600 million to ~$175-180 million. Alternates platform (private equity, private credit, real estate, infrastructure, renewables, multi-asset) and listed strategies driving momentum; ARR contribution rising with improving cost efficiencies. PMS structurally challenged vs AIF/MF/SIF; product launches planned over next 6-9 months to rebalance flows.

• Institutional Business (B&K): Equity franchise covers 550+ mid/small-cap companies, 300+ institutional clients, with 85%+ broking revenue from cash segment. Combined listed equity brokerage at ₹310-320 crores vs ₹250-260 crores at merger. UHNI broking seeing uplift; access to 600+ corporate treasuries opening cross-sell into wealth, treasury advisory, and lending. ECM team at 6 people, full strength by Oct-Dec 2026; revenue currently <₹8 crores per quarter.

• ET Money: Business model reset towards profitability; quarterly loss run-rate down to ₹3-4 crores excluding exit costs (vs ₹7 crores last quarter). On track to break even by Q4 FY27.

• Offshore / UBS Collaboration: Global institutional mandates and UBS distribution reach building steadily. Cross-referral programs across NRI, resident, and global mandates showing early traction; fund launches expected in both directions in the coming quarter. UBS global distribution expected to open offshore capital access for alternates and listed strategies during FY27.

Company-Specific & Strategic Commentary

• 360 ONE Flywheel: Integrated platform across wealth and asset management where each business strengthens the other. HNI acts as feeder into UHNI proposition; B&K research and 600+ corporate treasury relationships cross-sell into wealth, lending, and advisory; AM alternates deepen client relationships across the full stack.

• UHNI Franchise & RM Expansion: Target of 9,000-10,000 client families over three years vs 4,100 today, requiring 350-400 senior RMs (30-40 additions/year). Clients with ₹10-20 crores currently at 15-20% wallet share, representing the largest expansion opportunity. Stable UHNI cost-to-income of ~44-47% long-term, inclusive of the perpetual hiring curve.

• Alternates & Private Credit: Alternates AUM at ₹58-59,000 crores (₹60,000 crores). Private credit focused on 10-11% and 13-15% return buckets with zero-to-negligible accidents over 7-8 years; 18-20% special situations and structured credit buckets remain unexplored. Industry in nascent stage; institutional demand from insurers seeking 250-300 bps pick-up on long-tenure money.

• UBS Collaboration: Target of ~$500-600 million AUM exchanged between organizations as the first measure of collaboration. Fund launches both ways expected in coming quarter; mutually accretive without disproportionately adding to costs; global distribution to open offshore capital access.

• Digital & Product Innovation: HNI onboarding fully digital with stable client and RM apps; execution platform launch planned. Product shelf broadening across AIF, PMS, MF, and SIF platforms. Co-investment regulations enabling AIF-PMS vehicles for single instruments, converting lumpy TBR into annuity-like ARR.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Net Flows Trajectory & AM Outflows

• Question: Are FY27 net flows on track for 12-15% of opening ARR AUM, and will they be more lopsided toward wealth given PMS outflows over the last 2-3 quarters? (Mohit Mangal)
• Answer: FY27 net flows expected at ₹35,000-40,000 crores, broadly split 70:30/75:25 in favour of wealth. One institutional mandate reduced allocation from $550-600 million to $175-180 million; ex-that, mandates stayed strong. Global allocations to listed equity have been muted over the last 6-9 months. PMS as a structure is challenged versus AIF, MF, or SIF for the same product; the same clients and strategies will find their way into pooled structures. Product launches over next 6-9 months should average out flows between wealth and AM. (Karan Bhagat)

Cost-to-Income Operating Leverage

• Question: Should we expect the remainder of FY27 to deliver operating leverage and the target 150-200 bps cost-to-income decline? (Mohit Mangal)
• Answer: HNI AUM moved from ~₹600 crores to ₹3,900-4,000 crores in FY26 and ₹5,100-5,200 crores in Q1 with a 65-70 person team; break-even to slight profitability expected this year. ET Money loss run-rate is ₹3-4 crores/quarter (₹7 crores last quarter, ₹6-7 crores current quarter), break-even by Q4. Together, HNI and ET Money should reduce cost-to-income by ~100-150 bps; with operating leverage from alternates and wealth, Q4 run-rate should reach 49-49.5% and full-year improvement of 100-150 bps from 51.3%. (Karan Bhagat)

Private Credit Industry Outlook

• Question: How do you see the future of private credit and how is 360 ONE positioned to strengthen its dominant position? (Mohit Mangal)
• Answer: India private credit is in a nascent stage — a vast spectrum from 9-10% instruments to 13-15%, 18-20% special situations, and structured credit with equity linkage. 360 ONE operates in the 10-11% and 13-15% buckets with a stellar track record — accidents negligible to zero over the last 7-8 years. Two regulatory factors have kept the industry healthy: no semi-liquid funds (no gated redemption pressure) and cautious regulation. Insurance companies and domestic institutions are increasingly allocating long-tenure money for the extra 250-300 bps pick-up. Expects private credit to grow as fast as private equity over time. (Karan Bhagat)

Retention Drivers & Carry Outlook

• Question: Retentions are down across the board even excluding carry; what factors are driving this, and how does carry shape up for FY27/FY28? (Prayesh Jain, Dipanjan Ghosh)
• Answer: Retention decline from ~78 to 73-74 bps breaks down as ~2-2.5 bps from carry recognition (largely AM, partially wealth) and ~2 bps from business mix. Advisory has slightly lower retention than distribution; TBR is typically lower in Q1-Q2 than Q3-Q4. No line-item margin compression: advisory at 30-35 bps (25-27 for large mandates), discretionary 40-45 bps, distribution 65-70 bps. Only listed AM will see continued margin pressure. ARR retention to stay in the 70-75 bps range. Carry at ~4 bps is the right structural number — ~₹60,000 crores alternates AUM × 4 bps = ~₹240 crores/year; range of 3-5 bps on AIF alternates. (Karan Bhagat, Sanjay Wadhwa)

UBS Collaboration Economics

• Question: Should UBS-driven incremental flows be a big operating leverage given limited cost? What are the unit economics at $500-600 million of transferred assets? (Prayesh Jain)
• Answer: Fund launches are expected in both directions in the coming quarter — UBS launching 360 ONE funds and vice versa. The $500-600 million AUM exchange target is deliberately conservative and is the first measure of collaboration rather than a profitability target. The collaboration is mutually accretive at whatever retention the market discovers, since both platforms are already built out; it doesn't disproportionately add to costs. Exact retentions and unit economics will be clearer over the next 6 months. (Karan Bhagat)

Yield on Net New Inflows

• Question: What yield do net new inflows typically carry, and is there any subsidization upfront? (Aejas Lakhani)
• Answer: Yield depends on flow type: pure advisory 30-35 bps, discretionary 45-50 bps, pure distribution 60-70 bps. Relationships face competitive pressure at the starting point, which eases as the relationship deepens and clients use more of the platform — overseas, lending, banking. Flexibility on fees exists for large mandates. Building an advisory practice at this retention with scale is tougher than building a product model because charging fees on a service model is harder. (Karan Bhagat)

Flow Quality & UHNI Client Base Expansion

• Question: How much of incremental wealth flows come from newly onboarded teams, and will new client/new wallet contribution be structurally higher? (Dipanjan Ghosh)
• Answer: The colour of flows is strongest at the base level — clients with ₹10+ crores have grown from ~1,800-2,000 36 months ago to ~4,000+ today. The defining opportunity is taking this to 8,000-10,000 families; most ₹10-20 crore clients are at only 15-20% wallet share. Clients typically start with 4-5 advisors and consolidate to 2-2.5; 360 ONE's goal is to be part of the final two. Flows will come from both new families and deeper wallet share, especially around liquidity events. (Karan Bhagat)

TBR Sustainability & Exceptional Costs

• Question: Core transactional revenue is at ₹140-150 crores despite a weak quarter. Are there large transactions in the pipeline, and is there a ₹12-13 crores exceptional cost in the quarter? (Dipanjan Ghosh)
• Answer: Lumpy transactions are deliberately becoming rarer — co-investment regulations allow AIF-PMS vehicles to raise long-term money for single instruments, converting what was TBR into ARR with carry potential over 5-10 years. Equity brokerage is now ₹23-25 crores/month (~₹75 crores/quarter) with no lumpy risk — it can move ±5-10% with markets but won't go to zero. TBR target is a consistent ₹125-150 crores/quarter growing 15-20% organically, with equity brokerage rising from ~8-10% to 12-15% of revenues over time. The ₹12-13 crores exceptional cost is ESOPs related to the B&K acquisition. (Karan Bhagat)

HNI Scale-up & ECM Build-out

• Question: What is the HNI trajectory, how is the ECM team building, and can you quantify B&K synergies? (Siddharth)
• Answer: HNI distribution AUM grew from ~₹500-600 crores to ₹4,000 crores last year and ₹5,100-5,200 crores now; ₹7-8 crores of trail revenue has started accruing with the 12-month revenue recognition lag. ~₹17,000-18,000 crores of AUM from ₹1-10 crore clients (₹10-15 crores quarterly revenue) will migrate to the HNI team over the next 3 months with fewer than 10-12 people. ECM team has 6 people with full strength by Oct-Dec 2026 and active pitching from January 2027; revenue was <₹8 crores but should be 15-20% of ₹750-1,000 crores TBR in 2-3 years. B&K synergy: combined listed equity brokerage at ~₹310-320 crores vs ₹250-260 crores at merger, growing at a healthy 15-20% clip. (Karan Bhagat)

Advisory vs Distribution Mix for New UHNI Clients

• Question: As top-of-pyramid clients are captured, will incremental flows be more distribution-led or advisory-led? (Abhijeet Sakhare)
• Answer: More advisory-led — roughly 60-40 on the UHNI side. 70-80% of clients starting with ₹250+ crores are on advisory; ₹100-250 crores is 50-50; ₹10-50 crores skews distribution. However, advisory clients use the platform ~3x more — trusts, Gift City investments, lending, equity brokerage — so overall retention between advisory and distribution clients is not dramatically different despite the lower headline advisory fee. (Karan Bhagat)

Key Takeaway

360 ONE WAM delivered a strong Q1 FY27, with overall AUM up 17% to ₹7.8 lakh crores and ARR AUM up 19% to ₹3.42 lakh crores, led by wealth ARR net flows of ₹13,379 crores. PAT grew 14.8% to ₹330 crores at 19.4% tangible ROE, while cost-to-income improved to 51.3% from 53.5% in Q4 FY26. Management guided FY27 to ₹35,000-40,000 crores of ARR net flows at a 70:30/75:25 wealth:AM split, cost-to-income of ~49-49.5% by Q4 with HNI and ET Money reaching break-even, and ARR retention of 70-75 bps. Strategic levers include the UBS collaboration targeting $500-600 million of exchanged AUM, doubling the UHNI family base from 4,100 to 9,000-10,000 over three years, and the ₹60,000 crore alternates platform generating 3-5 bps carry. Key watch points: institutional mandate outflows, listed AM retention pressure, and RM hiring costs.