360 ONE Q2 FY27 Results (NSE: 360ONE)
Signal: Margin expansion
The read
The quarter shows a sharp mix shift toward Asset Management: its segment result rose 169.6% YoY to ₹184.59 Cr while Wealth Management result fell 40.2% to ₹206.00 Cr; consolidated operating profit before tax still grew 19.7% to ₹434 Cr, but higher finance costs of ₹361.34 Cr and a lower PBT limited PAT to ₹300.11 Cr, down 4.9%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,261.45 Cr | +13.9% | -0.9% |
| EBIT | ₹434 Cr | +19.7% | |
| Net profit | ₹300.11 Cr | -4.9% | |
| EPS | ₹7.37 | -5.5% | |
| EBIT margin | 34.4% |
P&L walk
Total income rose to ₹1,261.45 Cr, +13.9% YoY but -0.9% QoQ; operating profit before tax increased to ₹434 Cr, +19.7% YoY, yet reported PBT fell to ₹390.59 Cr and PAT declined 4.9% to ₹300.11 Cr as the earnings bridge below operating profit weakened.
Segments
Asset Management was the growth driver: revenue rose to ₹318.20 Cr from ₹168.08 Cr YoY and segment result to ₹184.59 Cr from ₹68.48 Cr, while Wealth Management revenue increased only 0.5% to ₹943.25 Cr and its result fell 40.2% to ₹206.00 Cr from ₹344.41 Cr.
Key positives
- ARR revenue rose 27.5% YoY to ₹706 Cr and ARR AUM reached ₹3,53,382 Cr, supporting recurring-fee momentum.
- Asset Management segment result increased 169.6% YoY to ₹184.59 Cr on revenue growth from ₹168.08 Cr to ₹318.20 Cr.
- Operating profit before tax grew 19.7% YoY to ₹434 Cr, ahead of total income growth of 13.9%, with the reported operating margin at 34.4% versus 29.9% implied by the year-ago operating result.
Key concerns
- Wealth Management segment result fell 40.2% YoY to ₹206.00 Cr despite revenue of ₹943.25 Cr, making the group increasingly dependent on Asset Management momentum.
- Finance costs increased 42.3% YoY to ₹361.34 Cr, faster than total income growth of 13.9%, and PBT declined 5.5% YoY to ₹390.59 Cr.
- Combined ARR retention was 79 bps, above the prior context target range of 70-75 bps, requiring monitoring for sustainability and comparability.
Research and educational content only. Not investment advice.