360 ONE Q1: consolidated PAT +16% to ₹331 Cr, but NPM slips to 26% as costs outpace revenue

360 ONE WAM reported consolidated PAT of ₹330.5 Cr for Q1 FY27, up 16.1% YoY (14.5% QoQ), on total income of ₹1,273.1 Cr (+29.9% YoY) and revenue from operations of ₹1,226.1 Cr (+26.9% YoY); basic EPS was ₹8.13. The print was broadly in line with street — consensus pointed to PAT ~₹330 Cr and EPS ~₹8.0 — and delivered no upside surprise, with the stock slipping ~1.6% post-results. (Management's own Results Update headlines a netted 'Total Revenue' of ₹870 Cr, +20%, and revenue from operations ₹822 Cr, +24.2%, on a presentation that differs from the statutory statement.)

The nuance sits below the topline: profit grew slower than revenue, so net profit margin compressed to ~26.0% from 29.1% a year ago (though it recovered from 24.7% in Q4). PBT rose only 13.3% YoY against total income up ~30%, as total expenses jumped ~40% YoY. The two squeeze points are finance costs of ₹354.0 Cr (+55% YoY), reflecting the growing NBFC/lending book, and employee costs of ₹326.0 Cr (+32% YoY). On management's own cost-to-income measure the ratio improved sequentially to 51.3% from 53.5%, keeping the Q4 FY27 target of ~49-49.5% in play, but on a clean YoY basis margins are still contracting.

The stock went into the print at ₹1,114.75, down 2.7% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; revenue is at a 6-quarter high.

The franchise metrics remain strong and confirm the bullish concall tone: overall AUM stood at ₹7,76,755 Cr, ARR AUM rose 19% YoY to ₹3,42,035 Cr — ahead of the 12-15% growth management had guided — and ARR net flows were a robust ₹10,815 Cr for the quarter. Wealth Management ARR AUM grew 24.2% YoY (Asset Management +8.2%), tangible net worth was ₹6,882 Cr and tangible RoE 19.4%. Alongside the results the Board declared an interim dividend of ₹6/share (₹243.78 Cr) and approved a 2026 ESAR scheme (up to 11.2 lakh rights). A contingent income-tax demand of ₹336.1 Cr arising from a search operation was disclosed but not provided for.