Organic growth solid, PAT inflated by mark-to-market gains

Reported PAT ₹163 Cr (73.6% YoY); ₹96 Cr MTM gain on ARGFL holding (59% of reported)

Delivered ₹322 Cr revenue (17.5% YoY), ₹163 Cr PAT; adjusted basis ₹116 Cr (24% YoY) implies ₹340 Cr FY27 revenue guidance

Confirmed; Digital wealth 23% growth to ₹2,526 Cr; 1,600+ net new client families in 12 months

Third-party RM exodus: 3 RMs took ₹758 Cr AUM; retained 80% (₹658.5 Cr), ~90% without MTM adjustment

Organic capacity exists (33 clients/RM, 490 RMs in pipeline, 4 growth cylinders identified); but Q1 growth 21% is mark-to-market dependent

From 211 (2+ years ago at 40-45) to 230 now; targeting 400-500 in 4 years (was 2-3 years in prior guidance); slower pace but larger absolute target

From 0.18% (FY19-20) to 2.47% (FY26, claimed 2.3% actual); ₹1,900 Cr equity MF inflows Q1 FY27 show distribution power

490 RMs trained; next 100 are '60% ripe' for promotion; expansion capacity is real but still 1-2 years away from revenue contribution

Maintained 20-25% guidance with explicit 4-cylinder framework (embedded returns 15-16%, capacity utilization, new RMs, client penetration); no change in trajectory but clarity improved

230 now (from 40-45 when launched 2.5 years ago); will reach 400-500 sooner than later; 10-15% upgrade per quarter expected due to internal growth and gold/platinum segmentation strategy

Portfolio beta 0.6-0.65 (lower than Nifty); mutual funds + structured products + debt (₹4,500 Cr) = low-risk profile; gold already 28% of Indian household savings (₹400 Lakh Cr); no need to add

₹96 Cr MTM on ARGFL; revalued by external investment banker every 6 months (mandatory); ₹14 Cr normal interest income; primary MLD issuances ₹1,875 Cr + third-party ₹312 Cr = ₹2,187 Cr; secondary ₹968 Cr

80% retention typical; specific case: ₹758 Cr AUM, ₹73 Cr net outflow after attrition, ~₹658 Cr retained (86%); retention measured as net flows only, not MTM

Structured products are market-risk reduction (lower beta); ARGFL concentration is intentional (group company, known credit); 2 other issuers went belly-up; MF + structured = low risk

AMC license approved by Board; will apply. No investment banking — wealth management is intergenerational, not capital management. LRS: opportunity too vast; prefer focus over opportunity; currently not pursuing

Some 1-2 bps transmission; but as ₹2.47% market share distributor (up from 0.18% in FY19-20), we have bargaining power; only long positions via MF (no stocks, no PMS); base yield 1.09% post-GST robust

Positive impact; removes frothy volumes and wealth transfer to HFT; market volatility will reduce; Nifty spread windows vs underlying arb will compress; our low-beta portfolio benefits from reduced volatility

4% target in Category II (equity-oriented schemes = ₹30 Lakh Cr currently); currently 1.5-1.75%; requires 22-23% AUM growth; if Category II grows to ₹1.5 Lakh Cr in 10 years + 4% = ₹6 Lakh Cr AUM target; 8-10 year timeline; still holding this

Wealth management is backward integration (first build distribution, then add products); not forward integration simultaneously; have 18-20 years of distribution now; we've learned hard way (showed case studies); UK subsidiary and GIFT City license support AMC strategy; no near-term scale expectations

Project on 10-12% MTM (conservative vs historical 15-16% embedded in client portfolios) + ₹1,100-1,200 Cr net sales/month; implies ₹1.06 Lakh Cr base × 1% = ₹1,060 Cr/month target; 26% growth = 10x in 10 years; 90-95% confidence on 20-25% for 3-4 years

Definitely can explore; UK subsidiary opens door; global structured products at 50% of HNI portfolios in Singapore; S&P 500 volatility 6% vs Nifty 13%, interest rates higher = good pricing environment; Kalpesh (head of structured products, 14 yrs) to explore pricing on other indices; not full-fledged study yet

Q1 achieved ₹339.6 Cr implied (24% of full-year); reported ₹430 Cr, adjusted ₹336 Cr; management says 'confident of achieving'

Q1 adjusted margin 34.4%; reported 37.9% inflated by MTM; operating leverage positive if AUM growth sustains

AMC launch will require tech, compliance, team hiring; no estimate provided on capex or timeline

₹96 Cr MTM gain (59% of reported PAT) is non-recurring; ARGFL investment subject to 6-monthly revaluation by external banker; earnings highly sensitive to private company valuations

Structured products focused on ARGFL (group company) issuances; if credit quality deteriorates, large portion of ₹658+ Cr client assets exposed; management mitigates by capping ARGFL proportion but details withheld

When 3 RMs departed to competitor, only 80% of ₹758 Cr AUM retained (~₹90% without MTM); implies 10-20% AUM leakage on RM turnover; as company scales RMs, compounded attrition risk

Adjusted revenue ₹336 Cr on ₹1.06 Lakh Cr AUM = 31.7 bps yield; if FY27 target ₹1,415 Cr on ~₹1.3 Lakh Cr avg AUM (post-growth), yield remains flat; no pricing power evident

Board approved applying for AMC license; not yet granted; unclear timeline, fund launch strategy, and required capex; competitor entry into mutual fund manufacturing after distribution-only model change is new territory