Financial wealth accounts for just 25% of total assets in India, versus nearly 70% in the US. India’s wealth-to-GDP ratio stands at 4.5x, compared with 6.5x in the US, and only 15% of Indian wealth is professionally managed, against 75% in the US.
This structural gap underpins long-term growth prospects for wealth managers. 360 ONE expects India’s wealth management AUM to expand to ₹152 trillion by FY29 from ₹95 trillion in FY24. Against this backdrop, the company’s growth trajectory appears to be driven more by industry tailwinds than by cyclical factors.
The company closed Q3FY26 with AUM of ₹7.1 trillion, reinforcing the scale of its platform across wealth and asset management. Wealth management accounted for ₹6.1 trillion of AUM, while asset management (AMC) contributed ₹98,949 crore, led by continued momentum in alternatives.
The expanding AUM base, coupled with a rising share of recurring assets, underpinned the company’s revenue growth and earnings visibility during the quarter. Within wealth management, the franchise continues to be anchored by ultra-high-net-worth (UHNI) individuals. The business serves over 8,500 HNI and UHNI clients.
UHNI clients typically have a financial net worth exceeding ₹50 crore. Recurring assets within WM scaled by 34.5% year-on-year (YoY) to ₹2.2 trillion. The retention yield on these assets stood at 0.79%, reflecting stable pricing and a growing mix of fee-based products.
The HNI growth engine
The HNI vertical, positioned as a growth engine, scaled rapidly during the year. The segment began FY26 with AUM of ₹400-500 crore and expanded to ₹3,000 crore by Q3FY26, driven by net inflows of ₹2,000-2,200 crore.
Operating on a trial-based revenue model, management expects the HNI vertical to break even within three to six months, after which growth investments are expected to accelerate. In AMC, total AUM stood at ₹98,949 crore as of December 2025.
The alternate investment funds (AIFs) platform remained the largest contributor, managing ₹50,934 crore, up 22% YoY. Discretionary portfolio management accounted for ₹34,536 crore, while mutual fund assets stood at ₹13,480 crore. Average ARR AUM in the AMC business rose 13.5% YoY to ₹95,612 crore, with a retention yield of 0.85%, supporting steady revenue growth.
Recurring revenue de-risks growth
Against this AUM backdrop, consolidated operating revenue increased 33% YoY to ₹806 crore in Q3 FY26. Annual recurring revenue (ARR) rose 45% YoY to ₹619 crore and now accounts for 77% of total operating revenue, compared with 70% in Q3FY25. Transactional and brokerage income stood at ₹186 crore, growing 4% YoY.
In the revenue mix, a higher ARR indicates a big share of revenue is predictable and recurring, reducing dependence on volatile transaction-led income. It also reflects strong client retention, pricing power, and improved earnings visibility across market cycles. This is the core strength of 360 ONE.
With a higher AUM share, WM remained the primary revenue driver. WM revenue increased 28.4% YoY to ₹601 crore during the quarter. The UHNI segment contributed ₹524 crore of revenue, while HNI ( ₹3.8 crore), mass affluent ( ₹10 crore), and corporate and institutional clients ( ₹63 crore) accounted for the balance.
Of WM revenue, ARR revenue increased by 43% YoY to ₹415 crore, accounting for 69% of total WM revenue. The AMC segment also delivered strong operating leverage. Segment revenue rose 39% YoY to ₹205 crore, with almost all income coming from recurring sources, highlighting the depth of the AMC business.
Profit after tax (PAT) increased 20% YoY to ₹331 crore in Q3 FY26. The quality of earnings improved further as retention on ARR assets increased to 81 bps in Q3FY26, up from 70 bps in Q3FY25, aided by incremental carry recognition during the quarter.
The UBS partnership
Looking ahead, 360 ONE reiterated its medium-term guidance of 22-24% annual AUM growth, with net flows targeted at 10-12% of closing AUM. The partnership with UBS strengthens this guidance by enabling cross-border client referrals.
The company expected to onboard clients from FY27 onwards. This should support incremental asset aggregation, particularly from UHNI clients, and aid sustained AUM compounding over the medium term.
Management guides for revenue growth of 16–18% and PAT growth of 22–24%, supported by operating leverage as newer businesses scale. The company aims to double PAT to around ₹2,000 crore by FY28, from ₹1,015 crore in FY25, while reducing its cost-to-income ratio to 45–46% from 48.3%.
The company also aims to reduce its cost-to-income ratio from 48.3% to 45-46%, setting the stage for improved profitability as AUM continues to scale. While 360 ONE reported a strong quarter, its closest competitor, Nuvama, experienced somewhat subdued growth.
Nuvama’s subdued quarter
In contrast, Nuvama reported subdued growth in Q3FY26. Client assets grew by just 2% YoY to ₹4.6 trillion, driven by net new money inflows and mark-to-market gains. In the AUM mix, its core wealth management assets expanded by 6% to ₹3.3 trillion, indicating subdued momentum across its varied product suites.
AMC assets increased by 12% YoY to ₹12,605 crore, while assets under clearing and custody decreased to ₹1.2 trillion due to a large client exit in the previous quarter. Moving forward, particularly in wealth management, the company operates in two segments: Nuvama Wealth, which targets HNI clients, and Nuvama Private, which services UHNI clients.
Nuvama Wealth’s assets increased by 9% to ₹1.1 trillion, primarily driven by a 30% increase in managed products and investment solutions (MPIS) assets to ₹37,241 crore. Also, Nuvama Private assets by only 4% to ₹2.2 trillion. Nuvama’s comparatively slower AUM growth, in contrast to 360 ONE, suggests it is still scaling up and has lower cross-selling intensity.
The company’s consolidated revenue grew 4% YoY to ₹755 crore, aided by the wealth management division, while PAT stayed flat at ₹254 crore. In the revenue mix, wealth management revenue rose 18% YoY to ₹430 crore, accounting for 57% of the group’s revenue, underscoring the segment’s growing share. However, this was partially offset by a 21% decline in capital markets revenue to ₹138 crore, due to lower F&O volumes.
Why Dubai and Singapore matter
The AMC business is still at a nascent stage and contributed only ₹15 crore to revenue. That said, the AMC division is expected to bring an additional ₹7,000-9,000 crore in net new money in FY27, driven by the launch of private credit funds and new SIF schemes. Beyond that, it has outlined aggressive targets, aiming for net new money inflows of ₹25,000-26,000 crore in FY27.
This includes a target of 25-30% of assets for Nuvama Wealth and 20-25% ( ₹10,000-12,000 crore) for Nuvama Private. Management views offshore allocation as a major trend for the next 5-7 years. Its Dubai office has already achieved breakeven, and the Singapore office is expected to follow suit within the next two quarters.
The firm plans to continue its strategy of adding approximately 10% to its relationship manager (RM) strength annually over the next two to three years. The overall ARR contribution, currently 55% for the total wealth business, is expected to remain a cornerstone of Nuvama’s earnings stability. Also, the capital market segment’s revenue is expected to grow from Q4FY26, driven by the lower base effect from last year.
The valuation gap
On the valuation front, 360 ONE trades at a price-to-earnings multiple of 39 times, almost double that of Nuvama (23 times).
This valuation gap reflects 360 ONE’s superior AUM growth, higher recurring revenue share, stronger operating leverage, and clearer medium-term earnings compounding visibility. Whereas Nuvama is still in a transition phase with slower asset scaling and uneven monetisation.
This valuation gap has consistently persisted, largely because 360 ONE is seen as the best-in-class wealth management and alternatives asset management franchise, as per Jefferies.
In contrast, Nuvama’s ARR contribution to its revenue mix remains lower, and its meaningful exposure to investment banking, clearing, and capital markets makes earnings more sensitive to market activity.
This vulnerability becomes evident in FY26, where the absence of a single large client impacted its growth. As the contribution of ARR to Nuvama revenue-mix increases, the valuation gap may gradually narrow.
For more such analysis, read Profit Pulse
Madhvendra has over seven years of experience in equity markets and writes detailed research articles on listed Indian companies, sectoral trends, and macroeconomic developments.
The writer does not hold the stocks discussed in this article.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
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