Brokerages remained upbeat on financial services company 360 One WAM Ltd. after its June quarter of financial year 2027 (Q1FY27) earnings, with Jefferies, Citi and Bernstein reiterating their positive ratings and raising or maintaining target prices, on the back of healthy wealth inflows, resilient earnings growth and improving operating leverage.
Analysts said the company's wealth management franchise continued to deliver solid inflows during the quarter, offsetting some weakness in the asset management business. They also highlighted sustained fee growth, moderating costs and India's accelerating wealth creation as key drivers supporting the company's long-term outlook.
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While Jefferies said management's clarification on leadership continuity should help ease investor concerns, Citi believes 360 One is well placed to benefit from the gradual formalisation of India's managed wealth industry.
Here's What Brokerages Said After The Results:
Jefferies
- Maintained Buy and increased the target price to Rs 1,340 from Rs 1,300.
- Said healthy inflows in the wealth management business were partly offset by withdrawals in the asset management business.
- Expects earnings growth to remain healthy, with investments in the HNI and mass-market platforms expected to contribute meaningfully from FY28.
- Said the CEO's clarification on continuity should ease investor concerns.
- Raised earnings estimates and expects 17% EPS CAGR over FY26-FY29.
Citi
- Maintained Buy and raised the target price to Rs 1,600 from Rs 1,525.
- Highlighted solid non-institutional inflows into both the wealth and asset management businesses.
- Expects the momentum in flows to sustain.
- Said the company is in a "sweet spot" to benefit from the gradual formalisation of managed wealth in India.
Bernstein
- Maintained Outperform with a target price of Rs 1,330.
- Said flows and fee growth continued despite pressure on yields.
- Noted that operating costs have started to moderate.
- Added that inflows during the quarter were led by the advisory wealth business.
360 One Q1 Fine Print
360 One reported a 14.8% year-on-year (YoY) increase in consolidated profit after tax (PAT) to Rs 330 crore for the June quarter, while total revenue rose 20% to Rs 870 crore, driven by strong growth in recurring revenue assets under management (ARR AUM).
Revenue from operations increased 24.2% YoY to Rs 822 crore, while Annual Recurring Revenue (ARR) revenue grew 20.3% to Rs 614 crore. The company reported combined ARR retention of 74 basis points (bps), comprising 71 bps for the wealth management business and 83 basis points for asset management.
Total assets under management (AUM) stood at Rs 7.77 lakh crore, including ARR AUM of Rs 3.42 lakh crore and transactional and brokerage AUM of Rs 4.35 lakh crore.
Within wealth management, ARR AUM increased 24.2% YoY to Rs 2.42 lakh crore, supported by net inflows across segments. The 360 One Plus proposition grew 39.4%, while the distribution business expanded 11.9%. Asset management ARR AUM rose 8.2% to Rs 1 lakh crore, driven by growth across private equity, credit and real assets.
The company said India's accelerating wealth creation, aided by liquidity events, private equity exits, new-economy listings and increasing financialisation of savings, continues to strengthen its long-term growth opportunity.
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