Strong debut: IPO-listed AMC posts 52% net margins, cagey on guidance

₹51.8 Cr reported; 26% YoY growth confirmed by transcript

₹27.2 Cr confirmed; QoQ % growth corroborated

Expenses grew 14% while income grew 26%; ratio math checks out

Stated as current, not mature fund performance; 81% deployment now underway

Explicitly stated: 'we are we can tell you what has happened in the past...not issue future guidance'

Company now publicly traded post-August 2026 IPO; brand expanded (noted 1.7M applications). Net worth ₹633.6 Cr, up 18% YoY.

Declared 15% dividend, ₹0.75/share. Payout ratio raised from ~10% to 12.5%, signaling confidence in cash flow.

SEBI approved Fund V (flagship, ₹2,500 Cr target) and Eastgate secondaries (₹1,500 Cr target). Diversification into secondaries and larger deals; no prior such strategy.

Cost-to-income ratio improved from 42.3% (YoY) to 38.4%; expenses grew 14% vs income +26%. Operating leverage visible.

Fund III now generating carried interest income alongside fee income. Marks inflection toward mature fund economics, though IRR at 9% may constrain total carry upside.

Typically 10–12 investments per fund. Fund IV had 7 by June; now 81% deployed with couple more announced. Will follow same discipline for Fund V.

Performance income (29.7 Cr) has two parts: carried interest from Fund II (~₹16 Cr this quarter) and sponsor gain from III/IV (~₹30 Cr). As firm matures, performance income grows. It's opposite of mutual fund trend.

Too early to say. We carry NAVs conservatively. Generally seen trend we've carried on conservative basis. Confidence in Fund III sponsor gain momentum.

We invest in growth stage (USD 50–200M typically); Fractal and Sarvam are growth-stage, not venture. Fund IV at 29% IRR; not about timing magic but consistent discipline. Won't speculate on platform evolution.

Q4 March '26 saw market lows and multiple compressions. Q1 June saw recovery in fair values. Lumpy on QoQ but smooth on LTM basis. Judge on annual basis, not quarter.

Cannot give future guidance per board/NPA advice. Can tell you past; cannot predict future. We've said performance has been steady historically.

Currently earning fee from Funds III and IV; roughly ₹3,200 Cr close to fee-paying initial committed capital. Not AUM; only initial committed, where we earn fee.

Q1 has bonus payout seasonality. Compare Q1 FY27 vs Q1 FY26—roughly ₹10+ Cr in both quarters. Operating leverage kicking in; cost-to-income ratio down to 38.4% from 42.3%.

Valuations done quarterly per SEBI rules. Gross MOIC given for each fund; no single portfolio figure as multiple funds, multiple investor sets. LPs are term used for investors in funds.

Fund III already generating carry income (₹13 Cr in Q1). Hurdle rates 10% rupee / 8% dollar. Too early to predict if fund crosses hurdle; depends on exits. Confident on maintaining sponsor gain trend.

Won't speculate on growth. Profit CAGR March '24–'26 was 35%. Income trendline 24% CAGR historically. Historical data suffices; confidence in raising funds is high. Platform will grow in disciplined manner.

These are CRISIL data (public). Fund I 5x multiple, Fund II 3.8 MOIC, top decile. Fund IV at 29% IRR. Fund III is only recent fund under deployment; that multiple not representative of maturity. Exception track record across funds.

Management refuses forward guidance per board/NPA advice. Cites 24% income CAGR historically and 'disciplined' platform growth.

Operating leverage from cost control cited as ongoing (38.4% cost-to-income); but performance income volatility caps predictability.

SEBI approvals done; deployment timelines not quantified ('too early to say'). Historical ₹3,200 Cr committed capital for III/IV; new funds to expand base.

Fund III IRR at 9%, below 10% (rupee) and 8% (dollar) hurdle rates. If exits don't cross hurdle, carried interest may be clawed back; ₹13 Cr Q1 carry from Fund II at risk if Fund III follows same path.

Performance income (₹29.7 Cr of ₹51.8 Cr Q1 income) comprises carried interest and fair value gains from fund NAVs. Q4 FY26 saw multiple compressions; Q1 saw recovery. Lumpy on quarter basis; vulnerable to market downturns.

Fund V (₹2,500 Cr) and Eastgate (₹1,500 Cr) are newly approved. No deployment timeline given. If capital not deployed rapidly into growth-stage mid-market, fee income base won't expand; fund closes could leave capital stranded.

Fund IV invested in Fractal (USD 2.4B pre-IPO valuation) and Sarvam (foundational AI model). Analysts questioned if entry multiples are inflated for hot sectors like AI. If valuations reset, fund IRR could compress below guidance.

Management explicitly refuses to give FY27–28 revenue, margin, or deployment guidance, citing board/NPA advice and 'not authorized to make futuristic statements.' Forces investors to rely on historical trendline only.