360 ONE Q1 FY27 Results (NSE: 360ONE)
Signal: Growth decelerated
The read
The operating trajectory is still positive, with consolidated revenue up 26.8% YoY to ₹1,226.09 crore and ARR AUM up 19.0% to ₹3,42,035 crore, but earnings conversion is less powerful as PAT grew 15.1% and finance costs rose 55.0% to ₹353.99 crore; Asset Management growth is currently offsetting softer Wealth Management segment profitability.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,226.09 Cr | +26.8% | +9.9% |
| EBIT | ₹777.5 Cr | N/A | |
| Net profit | ₹330.53 Cr | +15.1% | |
| EPS | ₹8.13 | +13.5% | |
| EBIT margin | 66.8% |
P&L walk
Consolidated revenue rose to ₹1,226.09 crore, up 26.8% YoY and 9.9% QoQ, while EBITDA margin was 66.8%; finance costs increased 55.0% YoY to ₹353.99 crore and PAT grew 15.1% YoY to ₹330.53 crore, so bottom-line growth trailed the operating-line expansion.
Segments
Asset Management was the faster-growing earnings engine: revenue rose 46.7% YoY to ₹305.34 crore and segment result rose 54.5% to ₹185.12 crore, versus Wealth Management revenue growth of 25.4% to ₹967.34 crore and segment-result decline of 6.1% to ₹237.95 crore.
Key positives
- ARR AUM increased 19.0% YoY to ₹3,42,035 crore and ARR net flows were ₹10,815 crore in Q1FY27, supporting recurring-fee visibility.
- Asset Management revenue grew 46.7% YoY to ₹305.34 crore and segment result grew 54.5% to ₹185.12 crore, materially outpacing consolidated revenue growth of 26.8%.
- Combined ARR retention was 74 bps, within the company context's 70-75 bps range, with Wealth Management at 71 bps and Asset Management at 83 bps.
- Consolidated PAT rose 15.1% YoY to ₹330.53 crore and basic EPS rose 13.5% to ₹8.13, broadly tracking profit growth.
Key concerns
- Wealth Management segment result declined 6.1% YoY to ₹237.95 crore despite revenue growth of 25.4% to ₹967.34 crore, indicating weaker earnings conversion in the largest business.
- Finance costs increased 55.0% YoY to ₹353.99 crore, materially faster than revenue growth of 26.8%, limiting PAT conversion.
- Standalone PAT of ₹83.49 crore was supported by ₹121.39 crore of other income, equal to 146% of standalone PBT; standalone earnings are therefore not representative of recurring operations.
- An employee stock-option exercise issued 5,46,579 equity shares during the quarter, creating a potential future dilution consideration despite the current pat-to-EPS check being clean.
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