Can Recurring Revenue Power Its Rs 2,100-Crore Profit Ambition?
The demand for wealth management services in India has expanded steadily over the past few years, driven by rising household incomes, financialisation of savings, and a growing preference for professional asset allocation. In FY24, assets under management in the wealth management segment were estimated at around Rs 95 lakh crore.
This pool is projected to scale meaningfully over the medium term, with 360 One estimating it will reach an AUM of about Rs 152 lakh crore by FY29, implying a healthy growth trajectory over the next five years. A large part of this opportunity lies in the quantum of wealth that remains unmanaged.
The Rs 35-Lakh-Crore ‘Do-It-Yourself’ Problem
Of the financial wealth held by affluent households in FY24, nearly Rs 34-35 lakh crore, close to 40% of the total, remains self or informally-managed. This segment represents a structurally under-penetrated opportunity for organised wealth managers as product complexity rises and return expectations become more outcome-oriented.
From a demand standpoint, the addressable market remains sizable. As of March 2024, India had roughly 320 million households. Of these, an estimated 12-16 million households reported annual incomes exceeding $25,000 (Rs 22.5 lakh), forming the core target base for wealth management services.
This backdrop has accelerated client acquisition across leading platforms. For instance, 360 One noted that over the last four years, it has more than doubled its client base, which previously took over a decade to build. 360 One WAM is one of India’s leading wealth and alternative asset management firms.
Wealth First: Rs 6.12-Lakh-Crore Engine
As of December 31, 2025, the company manages a total AUM of Rs 7.1 lakh crore, comprising WM (Rs 6.1 lakh crore) and Asset Management (Rs 98,949 crore). Of the total AUM, the average Annual Recurring Revenue (ARR) was Rs 3.1 lakh crore. The WM vertical serves over 8,500 high-net-worth individuals (HNIs) and ultra-HNIs (UHNI).
Asset Under Management
In the WM, it serves UHNI clients with a financial net worth exceeding Rs 50 crore. This aligns with the growing UHNI population, which is projected to grow at a 13-14% CAGR over the next five years, the company states. Alongside this, 360 ONE is actively scaling its proposition for the HNI segment (Rs 5-50 crore), whose population is also expected to grow at a 13-14% CAGR.
WM is also the largest revenue driver. In Q3 FY26, segment revenue rose by 28.4% year-on-year to Rs 601 crore. The core UHNI segment contributed the bulk of revenue during the quarter, totalling Rs 524 crore, while HNI (Rs 3.8 crore), Mass Affluent (Rs 10 crore), and Corporates and Institutional (Rs 63 crore) accounted for the rest.
The HNI vertical is expected to become a growth vertical in the future. This segment started FY26 with AUM of Rs 400-500 crore and, by Q3FY26, had grown to Rs 3,000 crore, generating net new inflows of Rs 2,000-2,200 crore. The business operates on a fully trial-based revenue model with a retention rate of 100–110 bps. Management expects this segment to break even within the next 3–6 months
The Annuity Moat: 69% ARR Visibility
360 One is transitioning ET Money from a transaction-led investment app into a comprehensive wealth platform, combining technology with human advice and targeting the mass affluent segment. WM also includes 360 ONE+ (Rs 83,700 crore), Distribution Assets (Rs 1.2 lakh crore), and Lending Book (Rs 10,628 crore).
The revenue mix within WM is diversified, with a clear tilt towards annuity-like income. ARR AUM rose by 34.5% to Rs 2.2 lakh crore, with a 0.79% retention rate. In the revenue mix, of the Rs 601 crore in revenue, Rs 415 crore (69%) was ARR (up 43% YoY), providing revenue visibility even in volatile markets. The balance (Rs 186 crore) came from transaction and brokerage income.
Asset Management Scales Up, Led by Alternates
In asset management, 360 ONE Asset is a market leader in alternatives and manages assets worth Rs 98,949 crore. The Alternates segment manages assets worth Rs 50,934 crore (up 22%), across Private Equity/Credit and Real Assets. Discretionary portfolio management accounted for Rs 34,536 crore of assets, compared with Rs 13,480 crore in mutual funds.
It focuses on proprietary investment products across private and public markets. Average ARR AUM rose by 13.5% to Rs 95,612 crore, with 0.85% retention. With a large share of AUM on an ARR basis, segment revenue increased 39% year-on-year to Rs 205 crore in Q3FY26. Of this, ARR accounted for Rs 159 crore, or 77.6% of segment revenue.
Earnings Quality Improves with Higher ARR
On a consolidated basis, revenue rose 33% YoY to Rs 806 crore. ARR rose 45% to Rs 619 crore and now accounts for 77% of total operating revenue, with the balance Rs 186 crore coming from Transactional/Brokerage Revenue (up 4%).
(Annuity-Led Earnings Visibility)
The rising share of recurring revenue creates an earnings moat by reducing dependence on market-linked transactions and ensuring steadier, more predictable cash flows across cycles. Also, retention on ARR assets improved to 81 basis points (bps), up from 70 bps in Q3FY25, aided by around 6 bps of incremental carry revenue recognised during the quarter.
Retention shows how much revenue the company earns every year from the same pool of client assets. A higher retention rate indicates better pricing power, stickier client relationships, and a rich mix of fee-generating products. That said, profit after tax (PAT) surged 20% to Rs 331 crore in Q3FY26.
The 22-24% AUM Growth Target
360 ONE has outlined a growth strategy for FY26-FY28, with management remaining confident about its core businesses while expecting new initiatives to add to scale and profitability. The company targets annual AUM growth of 22-24% and aims to generate net flows equivalent to 10-12% of closing AUM each year.
The UBS Alliance: Going Global to Capture Local Wealth
To this end, the firm is increasing engagement with global institutions. In November 2025, 360 ONE finalised a strategic collaboration with UBS AG to enable cross-border referrals and synergies in asset management. Revenue traction and client onboarding are expected from April to May 2026, subject to regulatory approvals and product integration.
Management continues to see strong demand for AIFs, with a healthy pipeline across Private Equity, Private Credit, Real Assets, and infrastructure. The company plans to expand its team of Relationship Managers (RMs) from the current 191 to 300-350 over the next 3-4 years, hiring approximately 40-50 talented bankers annually.
360 ONE Capital: Entry Into Institutional Broking and Investment Banking
The company recently acquired and rebranded B&K Securities as 360 ONE Capital. This entity integrates corporate and institutional equities, providing the firm with deep access to over 600 corporate treasuries and strengthening its capital markets capabilities.
It expects a 25-30% increase in high-net-worth equity brokerage over the next 12 months. The investment banking practice will be built out over a 12-18 month gestation period.
Profit Roadmap: Scaling Toward a Rs 2,100 Crore PAT
With this AUM trajectory, revenue is expected to grow 16–18% annually, while the firm aspires to deliver PAT growth of 22-24%. Management indicated that, given a PAT of about Rs 1,015 crore in FY25, it would be disappointed if PAT doesn’t reach Rs 1,800-2,100 crore by FY28
Dividend payouts are expected to remain consistent at 45-70% of profits, excluding capital requirements for alternates and the NBFC. The firm’s ROE has recently declined from 21% (Q3FY25) to 14% after share issuance to UBS. The aim is also to enhance the ROE as profitability improves.
Operating Leverage to Play Out
A key focus for the upcoming fiscal year is cost optimization and improved operating leverage. 360 ONE aims to reduce its Cost-to-Income ratio (CIR) from the current 48.3% to 45-46% in the next year. To this end, the HNI (“Reserve”) business is expected to break even within the next 3-6 months.
Management expects to accelerate expansion once the unit economics break even in the coming months. ET Money also aims to reach break-even by the end of FY27. Together, these segments currently account for about 4% of CIR. Productivity gains and the maturation of recent hires in the core business are expected to contribute 100-150 bps of improvement.
Thus, a fall in the CIR ratio, along with AUM expansion, could aid operating leverage to play out meaningfully. At Rs 1,112 per share, the company is trading at 38 times the price-to-earnings multiple, at a slight premium to the 5-year median of 33 times. With Rs 2,100 crore PAT in FY28, it is currently trading at a P/E multiple of 21.5 times.
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