360 ONE Q1 FY27 Results (NSE: 360ONE)
Signal: Margin expansion
The read
Q1FY27: consolidated PAT ₹330.53 Cr (+16.1% YoY) on revenue ₹1,226 Cr (+26.9% YoY); Asset Management segment drove profit growth while Wealth Management PBT declined; AUM crossed ₹7.77 lakh Cr with ARR net flows of ₹10,815 Cr; margins stable at ~67%. Key concerns: Wealth PBT dip, income tax contingent liability of ₹336 Cr (auditor emphasis), and standalone earnings quality flagged. Overall, a mixed quarter with strong AUM momentum but tax overhang.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,226.09 Cr | 26.9% | 9.9% |
| EBIT | ₹777.5 Cr | 29.1% | |
| Net profit | ₹330.53 Cr | 16.1% | |
| EPS | ₹8.13 | 13.5% | |
| EBIT margin | 66.8% |
P&L walk
Revenue grew 26.9% YoY to ₹1,226 Cr, driven by strong fee income and fair value gains; EBITDA margin expanded 120 bps to 66.8% as total income growth (29.9%) outpaced employee cost and other expenses, partly offset by higher finance costs; PAT at ₹330.53 Cr (+16.1% YoY) reflects tax normalisation; EPS growth of 13.5% lagged PAT due to ESOP dilution.
Segments
Asset Management segment drove PBT growth (+54.6% YoY to ₹185.12 Cr) and now contributes 44% of segment PBT (vs 32% a year ago); Wealth Management PBT slipped 6.1% YoY to ₹237.95 Cr despite revenue growth of 25.4%, indicating margin compression possibly from higher costs or investment.
Key positives
- AUM reached ₹7.77 lakh Cr, up 19% YoY in ARR AUM
- ARR net flows of ₹10,815 Cr in the quarter, indicating strong organic growth
- Asset Management segment profit surged 54.6% YoY to ₹185 Cr
- Combined ARR retention stable at 74 bps
- Tangible ROE of 19.4%
Key concerns
- Wealth Management PBT declined 6.1% YoY despite 25.4% revenue growth, suggesting margin pressure
- Income tax demand of ₹336.14 Cr (contingent liability) with auditor emphasis of matter
- Standalone PAT inflated by other income (146% of PBT), raising earnings quality questions
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