360 ONE WAM Ltd Management Discussions

Within the vast landscape of the financial services space, sectors that will play the catalytic role of growth drivers include wealth and asset management, broking, distribution, and lending. These sectors are already experiencing substantial market expansion and are projected to continue their highgrowth trajectory. Opportunities abound within these spaces, driven by the increasing number of UltraHighNetWorth Individuals (UHNIs) and HighNetWorth Individuals (HNIs) in the country, expansion in the size of the affluent population, rising aspirations driven by the consumption economy, and demand for seamless digital engagements.

360 ONE WAM has strategically positioned itself to capitalise on these opportunities through its recent acquisitions of B&K Securities and ET Money, including an exclusive strategic collaboration with UBS. These acquisitions enhance its capabilities across various client segments and market segments even as we remain tethered to our core wealth and asset management business.

A comprehensive overview of the global and Indian market landscape reveals both challenges and opportunities, with global trade tensions and moderate growth forecasts juxtaposed against the resilience and potential of the Indian equity, debt, alternative, and real estate markets. Looking ahead, 360 ONE WAM can leverage its enhanced position to pursue sustained growth and value creation in the dynamic Indian financial ecosystem.

Robust macroeconomic parameters form the foundation for enduring economic growth, one which might get temporarily derailed from its growth trajectory due to external and internal shocks, but is resilient enough to get back on track with minimal damage.

Trends in per capita consumption in India indicate a consistent improvement in living standards. The Monthly Per Capita Consumption Expenditure (MPCE) has witnessed a substantial increase in both rural and urban areas between the fiscal year 201112 and 2023243. Notably, the gap in consumption expenditure between urban and rural populations has been narrowing, suggesting a more inclusive pattern of economic growth and wealth distribution. Overall consumer spending in India reached $2.15 Trn in the year 2023, marking a significant increase of 5.34% from the previous year ⁴.

3 h ttps://www.pib.gov.in/FactsheetDetails.aspx?Id=149091&reg=3&lang=1 4 https://www.macrotrends.net/globalmetrics/countries/IND/india/consumerspending 5 https://webassets.bcg.com/ca/05/581fd7834250b8f39c7eba8ebb8f/raireport2025.pdf

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Inarguably, India has embarked on a confident march towards becoming a developed nation by 2047. Resilient, consistent, and sustainable economic growth will give India the ability to leapfrog its growth curve. A robust financial will be critical to creating systemic capacity and resilience. It is estimated that the financial scale up much more rapidly to achieve this aspiration for GDP to grow to 10x, financial assets need to become 20x¹¹. This will require a vibrant and profitable financial services sector that can attract highquality capital.

Giving wings to the financial services sector, specific subsectors like wealth management, asset management, stock broking and lending will lead from the front.

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The substantial current market size and the robust growth projections for the wealth management industry imply a significant and increasing role of the industry in the overall economy. Further, this expansion not only signifies a larger direct contribution to the GDP but also underscores the increasing sophistication of Indian investors and their growing reliance on professional expertise to manage their financial futures.

While the size of the opportunity is large, it is important to underscore that the playbook for wealth management is also changing. While a few chapters can be borrowed from the past, new chapters need to be written due to the changing contours and needs of those holding wealth. The investment preferences of HNIs in India are evolving. There is a growing inclination towards alternative investments such as private equity and hedge funds, as well as a rising interest in sustainable investment options that align with environmental and social priorities.

HNIs are also becoming more discerning about the fees associated with wealth management services, indicating a need for transparent and valuedriven offerings. A noticeable shift is also occurring from traditional investments in physical assets like gold and real estate towards financial assets such as mutual funds and equities¹⁶. Interestingly, younger HNIs (aged 1835) express a strong preference for owning highend real estate, luxury cars, and even private jets, highlighting the diverse needs and aspirations within this segment¹⁷.

Changing Contours of the Addressable Market: The narrative of the increasing number of HNIs and UHNIs in India is wellscripted. However, beyond this segment, there is an opportunity in the burgeoning affluent and aspirer segments. It is estimated that by 2030, the aspirer, affluent, and elite households will account for ~50% of the total households in the country¹⁸. These rising affluents are beginning to accumulate wealth. Their needs and outlook are shaped by experiences that are different from the traditional wealthy. Hence, their portfolio approach and the way they like to engage with advisors can be fairly unique.

Appetite for Private Assets will Continue to Grow Unabated:

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19 https://www.ey.com/enin/insights/privateequity/howindiaspevcoutlookfor2025remainspositiveamiduncertainty

The broking industry in India is experiencing a surge in growth, fuelled by increasing investor participation and easier access to capital markets. The India Security Brokerage Market was valued at $3.98 Bn in 2024 and is anticipated to reach $6.21 Bn by 2030, exhibiting a CAGR of 7.76% during the forecast period from 2026 to 2030²⁰. The number of demat accounts in India has seen a remarkable rise, reaching 192.4 Mn in FY25, and adding a record 41.1 Mn in a single year²¹. NSDL reported approximately 40 Mn active client accounts as of March 31st, 2025²². This significant increase in account openings indicates a growing appetite among the population to invest in the stock market. This heightened interest is further reflected in the rise in daily trading turnover on stock exchanges. The National Stock Exchange (NSE) recorded an average daily turnover of H1.12 Trn in its equity cash segment during the fiscal year 2025, witnessing a YoY growth of 38%²³.

The NBFC sector has demonstrated strong credit expansion, indicating its dynamism and growth potential. Specific segments within NBFC lending, such as affordable housing finance and vehicle financing, present particularly promising avenues for future growth. Furthermore, there is a growing recognition of the need for a dedicated refinance window for NBFCs in India. Such a mechanism could significantly boost the growth of NBFC lending, especially in catering to the credit requirements of Micro, Small, and Medium Enterprises (MSMEs) and other priority sectors of the economy. The potential for expansion in these key areas in suggests a bright outlook for the NBFC lending market in India.

ET Money boasts a strong digital presence with over 10 Lakh onboarded users, ET Money Genius serving over 74,000 clients, and a mutual fund AUM of H31,000 Cr invested via ET Money. The acquisition is structured as a combination of a stock swap and a cash deal. This strategic move is expected to expedite monetisation for ET Money across its user base and product portfolio, while providing 360 ONE with a faster and more efficient way to reach the mass affluent market segment.

The current global economic landscape is marked by increasing trade tensions, primarily stemming from tariff policies, particularly those involving the United States and China. These tariffs have the potential to lead to higher consumer prices, dampen overall economic growth, and introduce significant volatility into financial markets.33

Projections for global economic growth in the near term suggest a moderate pace. The International Monetary Fund (IMF) forecasts a global growth rate of 2.8% for 2025 and 3% for 2026.³⁴ The World Bank, while expecting global growth to remain steady at 2.7% in 202526, cautions that this rate may be insufficient to foster sustained economic development, particularly in emerging and developing economies³⁵.

In this complex environment, global investors are navigating a landscape characterised by geopolitical uncertainties and rising trade frictions. The prevailing strategy among investors appears to be a focus on diversification across asset classes and geographies, along with an emphasis on longterm investment horizons. There is also a growing interest in identifying sectors that are likely to be more resilient to the negative impacts of trade and geopolitical tensions. These global dynamics can have a significant influence on capital flows and overall investor sentiment in emerging markets such as India.

The mutual fund industry has also played a crucial role in deepening equity market penetration. SIPs have become a preferred route for investors, with monthly SIP contributions crossing H26,000 Cr in early 202536. The consistent inflow of funds through SIPs has lent stability to the market, providing a buffer against foreign institutional investor (FII) volatility.

The performance of Indian equities in CY24 was characterised by a strong rally in the first half, followed by a correction of nearly 10% from September 2024 highs due to earnings slowdown concerns, cautious FII behaviour, and global monetary headwinds. While the Nifty 50 posted 9% gains during the year, the Nifty Midcap 100 and Smallcap 100 indices significantly outperformed with 24% returns each.

This outperformance was largely driven by sectors such as real estate, capital goods, automobiles, infrastructure, and PSUs, which benefited from strong earnings growth and favourable policy tailwinds.

FII flows were volatile in FY25, with a net outflow of approximately H1.27 Trn, influenced by geopolitical tensions, Fed rate uncertainties, and a stronger dollar. In contrast, Domestic Institutional Investors (DIIs) recorded record inflows of over H6.06 Trn³⁷, driven by strong SIP participation and retail enthusiasm. This divergence has been instrumental in sustaining market valuations.

Valuations, however, remain a key watchpoint. The Nifty 50 currently trades at a forward P/E of around 20x, slightly above its longterm average. Mid and smallcap stocks, in particular, are trading at premiums of 56% and 17%, respectively over largecaps, raising some caution among market participants. Nonetheless, with a lean political calendar in CY25 and a policy pivot by the RBI, the outlook for equities remains constructive. Going forward, the equity markets are expected to benefit from improving rural consumption, a potential revival in government capital expenditure postelection consolidation, and a supportive monetary policy environment.

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The government bond segment, or GSecs, forms the backbone of the debt market, providing a benchmark for pricing risk across the economy. Yields on benchmark 10year GSecs hovered between 7.0% and 7.3% during most of FY24, influenced by inflation expectations, global monetary tightening, and fiscal policy developments. With CPI inflation moderating toward 5%, and a bountiful monsoon expected to ease food prices, the RBI is anticipated to initiate a mild ratecutting cycle by midFY26, thereby improving bond attractiveness.

Corporate debt has seen a steady uptick, particularly in the AAArated space. However, participation remains concentrated among toprated issuers, with limited depth in the lower investment grade and highyield segments. Regulatory reforms by SEBI such as rationalising disclosure norms, improving default reporting, and mandating enhanced risk assessment have sought to improve market transparency and investor protection.

One notable trend is the shift toward private placements, which now account for over 95% of corporate bond issuances, reflecting the preference for speedier execution and reduced regulatory burden. At the same time, new instruments such as green bonds, masala bonds, and infrastructure investment trusts (InvITs) have gained traction, diversifying the landscape and attracting global ESGfocused investors.

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The introduction of the RBI Retail Direct Scheme has also marked a turning point by enabling retail investors to directly participate in government securities. While initial uptake was slow, rising awareness and integration with digital platforms like NSE goBID and BSE Direct are expected to boost adoption.

On the flip side, challenges persist in terms of secondary market liquidity, especially in corporate bonds. The turnover ratio for corporate debt remains below 0.2x, compared to 0.7x for government bonds. Efforts are underway to introduce marketmaking norms, promote electronic trading platforms, and encourage insurance companies to participate in lowerrated bonds.

The alternatives industry in India has been growing on a strong clip with both product side innovation and burgeoning demand giving a fillip to industry growth. Across the UHNI, HNI, and family office segments, allocations to alternative investments are increasing.

It is estimated that on average, family offices in India plan to increase their allocations to alternatives by 5% over the next 3 years from the current ~10%. Within the broader allocation of family office alternative portfolios, a significant share is garnered by private equity, venture capital, and longonly funds. Going forward, these allocations are broadly expected to increase across alternative offerings.

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The overall outlook for the Indian real estate market in 2025 is steady, supported by a growing appetite for homeownership, increasing levels of disposable income, and ongoing improvements in infrastructure across the country. Notably, the luxury housing segment is growth, reflecting the trend of experiencing premiumisation in consumer preferences.

The ARR Revenues for the full year grew by 28.2% YoY at H1,701 Cr, led by growth in assets across business segments

and healthy retentions on ARR AUM. Our ARR Revenues, as a percentage of total revenues from operations, stood at 70%.

The year also witnessed higher transactional/brokerage income, mainly driven by opportunities in the capital markets. Our large UHNI client base enabled us to capitalise on such opportunities, creating value for the clients and the firm. Consequently, the total Revenue from Operations was up 32.5% YoY, at H2,446 Cr, for FY25.

In FY25, our Total Revenues were up 35.0% YoY at H2,652 Cr, also supported by higher other income. Separately, our Total Costs were up 27.3% YoY, at H1,218 Cr, as we continued to invest in our new initiatives.

Our employee costs rose by 28.6% YoY to H912 Cr. We expect the employee coststoIncome ratio to gradually settle down over in the near future as the new business initiatives and incoming teams begin to turn productive. Our overall CosttoIncome ratio stood at 45.9% in FY25 as against 48.7% in the financial year ended March 31st, 2024 (FY24).

Segmentwise, our wealth management division witnessed a rise in Revenue from Operations to H 1,845 Cr, from H1,362 Cr in FY24, with the ARR revenue rising to H1,101 Cr from H844 Cr in FY24. Further, the transaction based revenue (TBR) for this segment stood at H744 Cr in FY25, from H519 Cr in FY24 mainly driven by macroopportunities and increased activity in the capital markets.

Other income saw an increase to H177 Cr in FY25 from H107 Cr in FY24, while the cost increased from H 719 Cr to H 950 Cr mainly due to investments in new initiatives. Accordingly, our Profit Before Tax stood at H1,073 Cr, for FY25, as against H750 Cr in FY24, for the wealth management business.

The growth in our wealth management client base has been very healthy for FY25. During the year, 360 ONE Wealth successfully onboarded 440+ clients (with more than H10 Cr ARR AUM). As on March 31, 2025, clients, having total AUM of H10 Cr+, stood at 3,324 and accounted for 95% of Wealth AUM (excl. custody). Overall, the segment manages assets for 7,500+ relevant clients.

Moving to the Asset management vertical, our Revenue from Operations rose to H600 Cr in FY25, as against H 483 Cr in FY24, and other income rose to H 29 Cr, from H13 Cr. Our cost increased to H268 Cr in FY25, from H 238 Cr in FY24. Accordingly, the Profit Before Tax, for the Asset Management segment, stood at H361 Cr in FY25 visavis H251 Cr in FY24.

Similar to our wealth management business, our asset management segment also witnessed healthy growth in number of client folios which rose from 189k in FY24 to 229k in FY25.

We have also sustained our pole position as the employer of choice for our business areas, as is evidenced explicitly by the addition of 100+ senior private bankers and deeply experienced investment professionals over the last 24 months. Our employee retention figures continue to be industryleading, with regrettable attrition at only 5.3% for FY25. We will continue to selectively add talent in specific business growth areas as well as maintain our strategic focus on Technology and Data as we go ahead into FY25 and beyond.

To capitalise on the identified opportunities and navigate the evolving market landscape, 360 ONE WAM should focus on the following strategic imperatives:

We believe that the following factors have significantly affected our results of operations and financial condition during period under review, and may continue to do so in the future.

Our results of operations are materially affected by our AUM. Accordingly, our growth and success depend on the appropriateness of the investment options provided and the performance of our client portfolios and funds. Good investment performance increases the attractiveness of our products among clients resulting in higher inflows and a consequent increase in our revenues. Hence, events that impact investment performance (relating to stocks, bonds, commodities or real estaterelated investments) may adversely affect our business.

To mitigate these risks, we have a product team that shortlists products offered to clients on our platform. We also have a Product Approval Committee for complex/ structured products. That apart, a detailed Risk Appetite assessment of the client is conducted, based on which appropriate products can be sold to the client.

While we have a Risk Management function and a Risk Management Committee at the 360 ONE WAM Limited level that monitors risks at a group level for 360 ONE WAM and its subsidiaries, for assets managed by us internally within the group (whether in the form of Mutual Funds, Portfolio Management Services or Alternative Investment Funds), we have a focused Risk Management team and Investment and Valuation Committees that ensure that investments are undertaken as per approved mandates and within permissible risk parameters, monitored regularly and valued fairly. We also have dedicated risk management teams looking at Broking and NBFCrelated risks.

Our Company is in the business of providing wealth management services, and with a majority of our operations in India, our results of operations are highly dependent on the overall economic conditions of the domestic market, including the GDP growth rate, inflation rate, change in demographic profile, wealth levels, the economic cycle, prevalent interest rate regime, securities markets performance, and the increased usage of technologybased channels.

The Indian economy has grown rapidly over the past decade and is expected to continue to grow at a healthy rate, which, together with the increasing financialisation of savings, could in turn, drive the underlying demand for investment products and services.

We face significant competition from other established Indian and multinational companies. Some of these firms have greater resources and/or a more widely recognised brand than us, which may give them an advantage.

To address this, we also launched an exclusive app for HNIs which will be a largely technologydriven distribution platform, with a certain amount of human touch provided by a dedicated Relationship Manager.

There is also a fundamental change happening in the distribution of financial products, with the industry gradually transitioning from a commissionbased model to a feebased model. This affects the revenues of asset allocators like our Company. The 360 ONE Open product platform together with our Advisory platform seek to address this change as they will attract clients who prefer the feebased model.

We believe our wide product offerings, our relationships with clients, industry and product knowledge, and brand image will allow us to face such competition. We have a dedicated technology team, which has both domain and technology experts, and we are leveraging technology to deliver insights and interact with clients through different platforms.

We operate in sectors that are regulated in India, and our activities are subject to supervision and regulation by multiple statutory and regulatory authorities including SEBI, RBI, IRDAI, the various stock/currency/commodity exchanges and depositories.

In recent years, existing rules and regulations have been modified, new rules and regulations have been enacted and reforms have been implemented. The intention has been to provide tighter control and more transparency in the various regulations and policies. Such changes in government and regulatory policies may demand changes to our business operations, products and pricing, and technological processes, resulting in additional costs and management time.

While it may be possible that certain regulatory changes would be positive for some of our business operations, the possibility of these changes adversely affect our financial condition and results of operations also exists.

We have a dedicated Compliance team to interpret regulations, submit regulatory returns and interface with regulators. We also have AntiMoney Laundering (AML) Policies and AML Committees for our various businesses to deliberate on client onboarding.

We are part of a highly competitive industry, and accordingly, our ability to manage our expenses directly affects our business and results of operations. These expenses may be impacted by macroeconomic conditions, including increases in inflation, changes in laws and regulations, increased competition, personnel expenses and other factors.

Personnelrelated expenses form a significant proportion of our total expenses, since we endeavour to attract and retain talented and experienced employees.

In addition, we also strive to ensure effective utilisation of our human resources and may need to adjust to the dynamic business environment as we increase our scope of operations, and expand into new business products.

As we grow our business, we will require additional human resources including relationship managers, investment professionals, dealers and operational, management and technology staff. Changes affecting our expenses may impact our financial condition and results of operations.

Any complex set of operations opens up the possibility of fraud and errors. To mitigate these risks, we have written procedures, makerchecker controls and approval of all exception requests by Control functions like Risk Management and Compliance. The efficacy of these is checked by Internal Audit.

Our business operations heavily rely on Information Technology (IT) systems, which play a vital role in enhancing our productivity. However, these systems also present significant risks, including potential system failures, information security breaches, and vulnerability to cyber attacks.

Our Technology team has deployed multiple defences to mitigate the risk of cyberattacks and prevent unauthorised access to, and leakage of, sensitive information. We have network security in the form of a firewall, and Intrusion Prevention Systems. There is a strict perimeter device security policy, where we have blocked access to personal email, social networking and data sharing websites, USB and local drives and encourages users to save working files on a Companyadministered OneDrive. While emails are accessible on mobile phones, no files/attachments can be saved on these devices. A Chief Information Security Officer (CISO) is responsible for information security.

Additionally, we have a comprehensive Business Continuity and Disaster Recovery plan that includes storing data on a cloud server. This has been thoroughly tested to ensure its effectiveness. During the COVID19 induced nationwide lockdown in 2020 and in 2021 during the second wave, we tested our ability to support operations in a Work from Home (WFH) environment and we managed to execute this in a stable manner, with users logging in through a virtual private network (VPN) to access their officebased applications, thereby ensuring that no information security controls were compromised.

Inflation affects interest rates, and hence, higher inflationary expectations lead to rise in borrowing costs and slowdown in credit offtake, which may affect our profitability. Adverse changes in credit offtake and savings caused by inflation also impacts the overall economy and business environment, as also sectors that depend on leveraged purchases like real estate and automobiles, and hence may affect us.

The Boardlevel Risk Management Committee (RMC) of 360 ONE WAM Limited is responsible for laying down the overall framework for identification, monitoring and reporting of internal and external risks faced by 360 ONE WAM Ltd. and its subsidiaries. It meets on a quarterly basis and monitors risks through certain groupwide key risk parameters. This enables the RMC to monitor that risks are being managed at an acceptable level and prompts the Management to take action whenever things start going out of line.

We have a central Risk Management department that reports to the Chief Operating Officer and the Board Audit Committee of 360 ONE WAM Limited. There are also separate Risk Management heads for 360 ONE Prime

(NBFC) and 360 ONE Asset Management to focus on the risks pertaining specifically to those businesses. Risk Management relies on the framework defined in the Board approved Risk Management Policy, internal controls built into Standard Operating Procedures, and the Product and Investment Policies relating to the various businesses: e.g. the Broking Risk Management Policy, the Mutual Fund (MF) Risk Management Policy, 360 ONE Prime Policies pertaining to Loan Against Shares, Loan Against Property and Unsecured Lending and Investment Manuals and Policies that exist for our NBFC and Asset Management Company. We also have Valuation and Provisioning Policies for our MF and Alternative Investment Fund (AIF) portfolios. There is representation from the Risk Management team on Investment, Valuation and Risk Management Committees (RMCs) of the various businesses.

The internal processes have been designed to ensure adequate checks and balances and regulatory compliance at every stage. Authority matrices have been defined going down from the Board of Directors, to provide authority to approve various transactions. All trading limits have been put on the respective trading systems in Stock and Commodities broking, and asset management businesses.

That apart, Risk Management conducts internal reviews (using external Chartered Accountants, where required) of various aspects of the business, which include documentation in relation to the lending business; compliance with various regulations in AIF and checking of certain regulatory returns.

Our Company has ensured our internal audit and control systems are adequate and commensurate with the nature of business, regulatory prescriptions and the size of our operations.

The Internal Audit of our Company and subsidiaries is conducted by BBSR & Associates, an affiliate firm of KPMG, as per the scope suggested by Audit Committee(s) of the Company and its subsidiaries and approved by the respective Boards. In the case of 360 ONE Prime Limited, from FY23, this is being conducted by the Head Internal Audit, as per RBI guidelines, and he is being assisted in this by BBSR & Associates.

The scope of internal audit covers all aspects of business including regular frontend and backend operations, HR, Finance, customer service, IT and checking for both regulatory and internal compliances. The internal audit team conducts riskbased audits across various processes. They also assess the state of internal financial controls and provide their opinion.

We have also strengthened our whistleblower mechanism (backed by a policy that promises that no action will be taken against the whistleblower), and provided multiple channels (email/website/phone) managed by an external service provider (for complete independence). Employees (and other stakeholders) can record complaints and grievances, anonymously, if they choose to remain so, and all whistleblowing complaints are tracked and investigated by a Vigilance Committee, with representation from Human Resources, Risk Management, Compliance and Business.

Another key aspect of governance is managing and resolving conflicts of interest, if they arise. We have a Conflict of Interest Policy under which a Conflict Resolution Advisory Board (CRAB), comprising senior executives, has been formed. Guidance has been provided in the policy on the types of transactions that are covered (e.g. transactions between an employee and a group entity, or an employee and a client, or between a group entity and a firm in which the employee or his close relatives are interested) above certain thresholds. A summary of cases brought before the CRAB, beyond certain thresholds, is also submitted to the Risk Management Committee of the Board.

Our Company has adequate internal controls with reference to financial statements and operations and the same are operating effectively. These are encapsulated in the Risks & Controls Matrix (RCM) which is reviewed and updated annually. The design and effectiveness of the key controls were tested by Internal Auditors and no material weaknesses were observed. Further, Statutory Auditors have verified the systems and processes and confirmed that the Internal Financial Controls system over financial reporting are adequate and operating effectively.

The table below provides a breakup of our Assets Under Management for the periods indicated:

Earlier known as 360 ONE Plus

The table below is a Reclassified Consolidated Statement of Profit and Loss for the periods indicated:

The Wealth Management business witnessed sustained growth driven by an increase in ARRgenerating assets and strong client retention. Asset Management performance was supported by healthy inflows across AIFs, PMS, and Mutual Funds. The focus on building a resilient, diversified portfolio helped both segments deliver steady revenue and profitability in FY25.

T otal AUM including custody assets are H 5,81,498 Cr as on March 31st, 2025.

The wealth management business has client assets of H 3,51,321 Cr, including custody assets. while the Asset Management business has H 84,395 Cr of assets under management as on March 31st, 2025 of which H 41,613 Cr are AIF Assets, H 31,296 Cr are PMS (Portfolio Management Services) and SMA (Separately Managed Accounts) Assets and H 11,486 Cr are Mutual Fund assets.

Continuing focus on increasing Recurring Revenues has resulted in an increase in ARR generating assets by 23.2% YoY to H 2,46,828 Cr and an increase in Recurring revenues by 28.2% YoY to H 1,701 Cr.

360ONE Wealth Open has been well received by clients with Assets Under Management increasing by 38.9% YoY to H 62,212 Cr and Revenues increasing 47.8% YoY to H 168 Cr.

Total Net flowsduringtheyearwere H 25,974 Cr. Net Flows in Wealth Management were H 22,334 Cr and H 3,640 Cr in Asset Management.

Total Consolidated Revenue for the year was up 35% YoY at H 2,652 Cr, as compared to H 1,965 Cr for FY24, while Revenue from Operations, was up 32.5% YoY at H 2,446 Cr.

Overall ARR Retention stood at 73 bps. ARR Retention on Wealth Management Assets was 73 bps and ARR Retention on Asset Management Assets was 74 bps.

Overall Costs for the year were up 27.3% to H 1,218 Cr. Employee Costs were up 28.6% YoY at H 912 Cr, of which, Fixed Employee costs were at H 587 Cr and Variable Employee costs were at H 325 cr.

Admin and Other expenses increased 23.5% YoY to H 306 Cr. Operating PBT (OPBT) was up 38.1% YoY to H 1,228 Cr, supported by strong growth in ARR and TBR revenues with steady retentions. Profit before tax (PBT) after exceptional items for the year was up 30.6% YoY to H 1,317 Cr.

Profit After Tax (PAT) for FY25 was up 26.6% at H 1,015 Cr from H 802 Cr in FY24, supported by strong growth in ARR and TBR revenues with steady retentions. Average Net Worth in FY25 stood at H 5,257 Cr in FY25 vs H 3,286 Cr in FY24.

Return on Equity (RoE) for the year was at 20.7% and RoE ExGoodwill & Intangibles was 24.3%. Net profit margin in FY25 has stood at 38.3% vs 40.8% in FY24.

Interest coverage ratio moved from 2.58 in FY24 to 2.53 in FY25, due to increase in finance cost during the year The Company prepares the financial statements as per Division III of Schedule III of Companies Act, 2013 which does not require the assets and liabilities to be bifurcated into Current / Noncurrent assets and liabilities. Hence, Current ratio is not applicable.

1. C onsolidated Average Net Worth stoodat H 5,257 Cr in FY25 vs H 3,286 Cr in FY24. Average Net Worth ExGoodwill and Intangibles stood at H 4,424 Cr in FY25 vs H 2,662 Cr in FY24.

2. ROE ExGoodwill & Intangibles decreased to 24.3% in FY25 from 30.1% in FY24 primarily due to dilution in equity through QIP.

3. Debt/Equity ratio decreased from 2.73 on March 31, 2024, to 1.57 on March 31, 2025; due to an increase in net worth of Group more than H 3,600 Cr.