This article first appeared on GuruFocus .
-
Total ARR AUM:INR317,906 crore, up 28% year on year.
-
Wealth ARR AUM:INR218,957 crore.
-
Asset Management ARR AUM:INR98,949 crore.
-
Net Flows Q3 FY26:INR14,758 crore.
-
Net Flows 9 months FY26:INR46,890 crore.
-
ARR Revenue Growth:45.4% year on year to INR619 crore.
-
ARR Revenue as Percentage of Total Revenue:77%.
-
Transaction and Broking Revenues:Increased by 4.2% to INR186 crore.
-
Total Revenue Increase:21.8% to INR826 crore.
-
Total Costs:INR399 crore, flat compared to the previous quarter.
-
Cost-to-Income Ratio:48.3%.
-
Quarterly PAT:INR331 crore, an increase of 20.3% year on year.
-
Tangible ROE:21%, up from 20.4% in the previous quarter.
-
Net Flows in Wealth Management:Approximately INR40,000 crore.
-
Net Flows in Asset Management:Over INR4,400 crore for the quarter.
-
Warning! GuruFocus has detected 5 Warning Sign with BOM:542772.
-
Is BOM:542772 fairly valued? Test your thesis with our free DCF calculator.
Release Date: January 15, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Total ARR AUM increased by 28% year-on-year to INR317,906 crore, indicating strong growth in assets under management.
-
ARR revenue grew by 45.4% year-on-year to INR619 crore, driven by strong asset growth and improved retentions.
-
The company recorded its highest ever quarterly PAT at INR331 crore, an increase of 20.3% year-on-year.
-
Strong net flows of INR14,758 crore in Q3 FY26 and INR46,890 crore for nine months FY26, showcasing robust inflows.
-
Successful integration and rebranding of B&K to 360 ONE Capital, enhancing sustainability and predictability of TBR revenues.
Negative Points
-
Transaction and broking revenues rose only by 4.2%, indicating slower growth in this segment compared to others.
-
Total costs remained flat compared to the previous quarter, with a cost-to-income ratio of 48.3%, suggesting limited cost optimization.
-
Attrition-related outflows were noted earlier in the fiscal year, impacting net flows.
-
The discretionary PMS segment is growing slowly, indicating challenges in building this franchise.
-
ET Money is still in transition and may take an additional three to six months to discover its monetization model.
Q & A Highlights
Q: Has the growth in net flows come from existing clients or new clients, and what are the expectations for FY27? A: The growth in net flows is a combination of both increased wallet share from existing clients and new clients. For FY27, the company aims for AUM growth of 22% to 24%, with net flows targeted at 10% to 12% of closing AUM, reflecting a natural upward revision in guidance due to the solid base established in FY26. - Karan Bhagat, CEO
Q: Can you explain the strong growth in TBR revenue, even excluding B&K? A: TBR revenue growth is attributed to brokerage and syndication across multiple asset classes, including equities, unlisted equities, fixed income, and real estate. The quality and sustainability of TBR revenue have improved, although the number itself hasn't grown dramatically. Future growth will be inflation-linked, with potential contributions from investment banking and ECM mandates. - Karan Bhagat, CEO
Q: Will operating leverage improve the cost-to-income ratio over the next 18 to 24 months? A: Yes, the company aims to improve operating leverage, targeting a cost-to-income ratio of 45% to 46% for the next year. This will be achieved through cost optimization, productivity gains, and the maturation of new businesses like ET Money and the HNI segment. - Karan Bhagat, CEO
Q: What is the outlook for retention rates in wealth and asset management businesses? A: Retention rates are expected to remain stable, with asset management retention at approximately 73 to 75 basis points, excluding carry. Wealth management retention is also expected to remain consistent. Incremental carry revenue contributed 6 basis points this quarter, with normalized retentions expected to return to previous levels. - Karan Bhagat, CEO
Q: How does the company plan to manage talent acquisition and retention, especially in new business areas like equities and investment banking? A: The company focuses on maintaining a strong culture, providing the right products and platforms, and aligning interests among stakeholders. For new talent, especially in banking, the approach is selective, focusing on building teams around top business heads with a compensation philosophy aligned with wealth business practices. - Karan Bhagat, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
