360 ONE WAM Q1 FY27 Earnings Call: Reaffirms 12-15% Net Flow Guidance, Cost-to-Income Improves to 48.4% (360ONE)

360 ONE WAM Ltd held its Q1 FY27 earnings call on July 16, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record PAT, 30% ARR AUM Growth

• Highest ever quarterly PAT of Rs.287 crores — up 18% YoY in Q1 FY 2026-2027, driven by strong ARR revenue growth and improving cost efficiency.
• Total ARR AUM reached Rs.2,87,317 crores — up 30% YoY, supported by net flows of Rs.20,950 crores (including Rs.18,266 crores from the BNK acquisition).
• ARR revenue rose 35.9% YoY to Rs.511 crores — representing 77% of total revenue of Rs.725 crores in Q1 FY 2026-2027.
• Client base grew to 4,200 — clients with AUM >Rs.10 crore now account for 95% of wealth AUM ex-custody, including ~700 corporate clients from BNK.
• Total costs rose 32.7% YoY to Rs.351 crores — reflecting a full quarter of ET Money and one month of BNK consolidation.

Organic Flows Tempered by Team Attrition

• Annual net flow guidance reaffirmed at 12-15% — management targets 12-15% of opening ARR AUM (~Rs.1,65,000-1,70,000 crores) as net flows for FY 2026-2027.
• Q1 FY 2026-2027 net flows of ~Rs.6,000 crores — comprising ~Rs.1,700 crores wealth management, ~Rs.1,000 crores asset management, tempered by ~Rs.3,500-4,000 crores outflows from two departing teams.
• Wealth management net flow target of Rs.20,000-25,000 crores — for FY 2026-2027, requiring Rs.5,000-5,500 crores per quarter; adjusted higher by Rs.7,000-8,000 crores to offset team departures.
• Asset management net flow target of Rs.9,000-12,000 crores — for FY 2026-2027, from an opening base of Rs.75,000-80,000 crores, entirely organic with no institutional mandates from BNK.
• Total ARR AUM addition target of Rs.60,000-65,000 crores — for FY 2026-2027: organic Rs.30,000-35,000 crores, B&K Rs.18,000 crores, and a sub-Rs.10,000 crore component from the UBS acquisition.
• HNI segment net flows of ~Rs.1,100 crores — in Q1 FY 2026-2027, split roughly evenly between organic ~Rs.500 crores and ~Rs.500 crores from B&K Ultra HNI net flows were negligible.

Cost-to-Income Improves; Yield Compression Ahead

• Cost-to-income ratio improved to 48.4% — in Q1 FY 2026-2027, down from 50.7% in Q4 FY 2025-2026; management expects gradual improvement over coming quarters.
• Tangible ROE of 19.6% — in Q1 FY 2026-2027, expected to improve as capital deployed in FY 2025-2026 (lending and alternate businesses) reflects in earnings.
• Wealth management ARR yield expected to compress 2-3 bps — due to mix shift (advisory/discretionary growing faster than distribution); headline yields maintained at distribution 75-85 bps, advisory 30-35 bps, discretionary 40-45 bps.
• Asset management listed equity yield to compress 3-4 bps — from current 60-62 bps blended; overall AM yield compression of 2-3 bps from mix; alternative side yield maintained at 85-95 bps (including carry).
• Net interest margin on lending book guided to ~4.8-5% — down from earlier ~5.3%, reflecting cheaper borrowing costs and recent capital raising.
• Carry accounting remains conservative — income recognised only when a fund is 18 months from maturity, then spread over six quarters; Q1 FY 2026-2027 variance due to a $5 million (Rs.40 crore) institutional performance fee booked in Q4 FY 2025-2026.

BNK, UBS & ET Money Drive Platform Expansion

• BNK Securities acquisition consummated on May 27, 2025 — promoter Sahil Murarka has joined 360 ONE leadership and board; BNK contributed ~35 days in Q1 FY 2026-2027, with full consolidation from Q2 FY 2026-2027.
• BNK monthly revenue run rate improved to ~Rs.21 crores — in Q1 FY 2026-2027, up from ~Rs.16-17 crores in FY 2025-2026, implying annualized BNK revenue of ~Rs.250-260 crores for FY 2026-2027, a 15-20% YoY increase.
• UBS strategic collaboration received all regulatory approvals — transaction completion expected in ~1 month, with consolidation likely from Q3 FY 2026-2027; five pillars of collaboration outlined including cross-feeding products, AMC distribution on UBS platform, and client referrals for LRS and NRI portfolios.
• No specific AUM targets set for UBS collaboration — management considers it too early to define numbers, focusing first on closing the transaction and getting products approved on each other's platforms; potential for 1-5% of India AUM moving to Gift City.
• ET Money quarterly loss reduced to ~Rs.6-7 crores — annualized ~Rs.25 crores, down from ~Rs.55-60 crores pre-acquisition; management confident in monetization strategy citing technology scale, exclusive focus on advisory, and rich content/SIPs.

Wealth Scales; Lending Book Cycles Through Repayment

• HNI business scaled to over 30 RMs, 250 clients, Rs.1,500 crores AUM — tracking at over 90 bps of retention as of Q1 FY 2026-2027; scaling up expected over next few quarters.
• Lending book declined by ~Rs.1,000 crores in Q1 FY 2026-2027 — due to repayment of two short-term loans originated in Q3/Q4 FY 2025-2026; management noted an uptick in loan book activity in the current quarter and expects normalization in Q2 FY 2026-2027.
• Equity brokerage platform generates ~Rs.217-Rs.280 crores run-rate — for FY 2026-2027 (BNK + UHNI), expected to grow 20-25% annually over the next three to four years.
• Transaction-based revenue (TBR) target of ~Rs.1,000 crores by FY 2028-2029 — driven by equity brokerage and other asset classes (fixed income, bonds, unlisted equities, real estate, insurance); steady-state quarterly TBR run-rate target of ~Rs.250 crores.
• Asset management flows were completely organic in Q1 FY 2026-2027 — no institutional mandates from BNK contributed; management targeting Rs.8,000-Rs.10,000 crores in FY 2026-2027 via 4-5 new fund closures (private equity, listed, real assets, pre-IPO) and drawdowns from already-raised funds.
• ~90-95% retention of senior sales force reported — first significant attrition in a year; net AUM addition from new hires expected to offset losses over the next 2-3 quarters.

Attrition Stabilizing; Pipeline Supports Growth

• Majority of net AUM outflows expected to stabilize by end of Q2/Q3 FY 2026-2027 — management indicated the Rs.2,000-Rs.4,000 crore outflows from departing teams are largely complete.
• Departing teams expected to result in 5-6% AUM loss — management considers this a healthy benchmark after such exit events; several large teams already recruited, with 3-4 more expected to join over the next 3-6 months.
• Team juniorization trend expected to reverse by Q4 FY 2026-2027 — attributed to departure of 8-10 bankers over the past 12-18 months; management expects reversal within 6-8 months as new recruitments conclude.
• Institutional mandate pipeline holds 5 active mandates — management expects at least one to convert in FY 2026-2027, though this is not built into the net flow target.
• Asset management targeting Rs.8,000-Rs.10,000 crores in FY 2026-2027 — via 4-5 new fund closures and drawdowns from already-raised funds; recent closures include a healthcare fund of Rs.1,000 crores and a pre-IPO fund of Rs.4,500-Rs.5,000 crores.
• One-time global offshore team cost of Rs.14-15 crores in Q4 FY 2025-2026 — will not recur in Q1 FY 2026-2027; team lateral hiring costs not expected to materially disturb the cost-to-income ratio.