360 ONE WAM FY26: Recurring revenue scales, AUM crosses INR 6.7 lakh crore

360 ONE WAM closed FY26 with strong growth in profits and a clearer tilt toward recurring revenues. Consolidated profit after tax for FY26 rose to INR 1,225 crore, up 20.7% year-on-year, while total revenue increased to INR 3,144 crore, up 18.6%. For Q4 FY26, PAT was INR 292 crore, up 16.8%, and total revenue was INR 780 crore, up 18.5%.

The headline story remains the same: more of the company’s earnings are coming from annual recurring revenue. ARR revenue for FY26 was INR 2,289 crore, up 34.5% year-on-year. Management stated that ARR now forms 75% of total revenue from operations.

AUM growth continued despite a volatile market backdrop. Total AUM stood at INR 6,74,492 crore as of March 2026, with ARR AUM at INR 3,11,940 crore and transactional or brokerage AUM at INR 3,62,552 crore.

AUM and revenue mix: higher share of steady income

360 ONE reported ARR AUM growth of 26.4% year-on-year, supported by net flows and improved retention. Combined ARR retention improved to 78 bps in FY26 versus 73 bps in FY25. Within that, wealth management retention was 76 bps and asset management retention was 83 bps.

FY26 ARR net flows were INR 55,875 crore. Management also disclosed that excluding inorganic flows, net flows were INR 35,199 crore.

The company’s return on tangible equity was reported at 19.3% for FY26, with tangible net worth at INR 6,722 crore.

Segment performance: Wealth remains the anchor, Asset grows on alternates

Wealth management remains the larger contributor to operating revenue. In FY26, wealth management revenue from operations was INR 2,284 crore, while asset management revenue from operations was INR 781 crore.

Within wealth management, ARR AUM rose to INR 2,16,734 crore, up 33.4% year-on-year. The company highlighted growth across the 360 ONE Plus proposition, distribution, and lending. The lending book stood at INR 12,028 crore as of March 2026.

Asset management ARR AUM increased to INR 95,206 crore, up 12.8% year-on-year. The investor presentation attributes growth to net flows across private equity, credit and hybrid, and real assets. The firm continues to position itself as a large alternates platform with capabilities across private equity, private credit, real assets, and public markets.

A key change in FY26 is the broader platform footprint after acquisitions and integrations. B&K Securities has been rebranded to 360 ONE Capital, adding institutional equities and a larger research footprint. ET Money adds a mass-affluent digital wealth channel, which management said is being repositioned toward breakeven.

Costs, consolidation impact, and what management is trying to fix

Costs rose faster than revenues in FY26, with total costs at INR 1,568 crore, up 28.7% year-on-year. Management repeatedly noted that FY26 costs are not directly comparable with FY25 due to consolidation of B&K Securities and ET Money during the year.

FY26 cost to income stood at 49.9% versus 45.9% in FY25. However, management said core businesses (UHNI wealth and asset management) were stable in the 44 to 45% range, with the higher reported ratio reflecting the investment phase of newer businesses.

Karan Bhagat also indicated in the concall that the company believes cost to income can move down from about 49 to 50% toward 46 to 48% over the next two to three years, driven by scale-up of new initiatives and continued operating leverage.

On transactional and brokerage revenue, Q4 showed a sharp step-up. Management attributed part of the improvement to the full-quarter consolidation of 360 ONE Capital. Karan Bhagat said the prior quarterly TBR reference range of about INR 125 to 130 crore now looks closer to INR 175 to 180 crore, while reiterating that this line is inherently less controllable.

Corporate announcement context: tax demand, dividend, and leadership change

The company disclosed an income tax order with an aggregate demand of INR 336.14 crore (including surcharge) on the company and one subsidiary. Management stated it believes it has discharged all tax liabilities as applicable, has legal grounds to substantiate its position, does not expect a material impact on operations or financials, and will appeal the order. The audit report includes an emphasis of matter related to the income tax search conducted in March 2025 and the related uncertainties.

The Board approved a first interim dividend of INR 6 per share for FY27 (record date April 27, 2026). The investor presentation also shows FY26 total dividend per share of INR 12.

Separately, the company announced the appointment of Anshuman Maheshwary as CEO of the alternates asset management business, with P&L responsibility for the alternates platform.

Takeaways

FY26 reflects a clear pattern: ARR AUM and ARR revenue are scaling faster than overall AUM, improving the predictability of earnings. The year also includes platform expansion through ET Money and B&K, but that expansion has temporarily pushed up reported cost ratios.

The next phase will be judged on execution. Management has laid out priorities such as scaling the HNI reserve program, moving ET Money toward breakeven, building the investment banking platform at 360 ONE Capital over 12 to 18 months, and improving cost to income as newer businesses mature. The disclosure around the tax demand is also a key item to track as the appeals process progresses.