360 ONE WAM: Navigating Growth with Strategic Acumen in Q2 FY26

360 ONE WAM Limited, a leading player in India's wealth and alternate asset management sector, has reported a robust performance for the quarter ended September 30, 2025 (Q2 FY26). The company showcased significant growth across key financial metrics, underpinned by strategic initiatives and a resilient business model. Total revenues for the quarter surged to 813 crore, marking a substantial 31.5% year-on-year increase. This impressive top-line growth translated into a record-breaking Profit After Tax (PAT) of 316 crore, up 27.7% from the previous year, highlighting the company's strong operational efficiency and profitability.

The core of 360 ONE WAM's success lies in its diversified revenue streams. Annual Recurring Revenue (ARR) continued its upward trajectory, reaching 554 crore, a 39.4% year-on-year increase. This segment alone contributed a significant 68.14% to the total revenue from operations, emphasizing the stability and predictability of the company's earnings. Transactional and Brokerage Income also saw healthy growth, contributing 209 crore, while Other Income stood at 51 crore. The Assets Under Management (AUM) for the company reached an impressive 6,71,625 crore, reflecting an 18.0% year-on-year growth. Notably, the ARR AUM crossed the 2,95,324 crore mark, growing 21.7% year-on-year, driven by strong net flows of 32,132 crore in the first half of FY26.

Strategic Imperatives and Growth Drivers

Management's commentary highlighted several strategic initiatives that are expected to fuel future growth. The strategic collaboration with UBS AG is a cornerstone, with the transfer of UBS India's wealth management business completed. This integration is anticipated to unlock significant synergies in both wealth and asset management, establishing a robust global framework for international collaboration. The company expects to provide a more detailed business plan for this in the next 5-6 months, with initial reference flows expected to commence by mid-to-end November.

Another key driver is the capital market expansion through the B&K acquisition. This integration is now complete, with its financials fully reflecting in Q2 FY26. B&K continues to maintain its strong position in Institutional Equities, and synergies are already emerging by integrating its treasury and equities offerings with 360 ONE WAM's existing client base. This move is expected to enhance the sustainability and quality of Transactional and Brokerage Revenue.

Operational Efficiency and Future Outlook

Despite increased investments in strategic initiatives like B&K Securities, ET Money, and technology, the company maintained a healthy Cost to Income ratio of 49.2%. Management noted that excluding these investments, the opex ratio for core businesses (UHNI Wealth and AMC) improved from 45.4% to 44%. They anticipate a gradual improvement in the consolidated cost to income ratio over coming quarters as new initiatives scale up and synergies materialize. The tangible Return on Equity (RoE) stood at an impressive 20.6% in Q2 FY26, with expectations for further improvement as capital deployed in Lending and Alternate businesses begins to reflect in overall earnings.

The company's focus on client centricity and product innovation remains a key differentiator. The ramp-up of the HNI business is progressing well, with over 50 Relationship Managers and 380+ clients onboarded in H1 FY26. While this segment currently shows an increased loss due to recruitment costs, management expects it to reach break-even in Q3-Q4 of the next financial year, serving as a strong feeder for the core UHNI proposition. The Asset Management business also maintains a strong product pipeline, with greater visibility around new fund launches in the EIF and SIF segments.

Concluding Thoughts

360 ONE WAM Limited's Q2 FY26 results demonstrate a company in a strong growth phase, strategically expanding its capabilities and client base. The record PAT, robust AUM growth, and successful integration of key acquisitions underscore management's disciplined execution. With a clear focus on unlocking synergies from recent collaborations and continued investment in technology and talent, 360 ONE WAM is well-positioned for sustained value creation in the dynamic Indian wealth and asset management sector. The company's commitment to client centricity and product innovation remains the cornerstone of its differentiation, fostering investor trust and confidence in its long-term vision.