360 ONE Emerges as Frontrunner in India's Booming Wealth Management Sector
The Indian wealth management landscape is witnessing a significant transformation, with 360 ONE positioning itself as a clear leader in this competitive race. The company has outlined ambitious projections, anticipating that India's wealth management assets under management (AUM) will expand substantially to ₹152 trillion by FY29, up from ₹95 trillion in FY24. This growth is underpinned by structural opportunities within the Indian market, where financial wealth currently accounts for just 25% of total assets, compared to nearly 70% in the United States.
Structural Advantages and Market Potential
India's wealth-to-GDP ratio stands at 4.5x, significantly lower than the 6.5x observed in the US. Furthermore, only 15% of Indian wealth is professionally managed, a stark contrast to the 75% figure in the US. This substantial gap highlights the long-term growth prospects available to wealth management firms operating in India. Against this promising backdrop, 360 ONE's growth trajectory appears to be driven more by these powerful industry tailwinds than by cyclical market factors.
Robust Financial Performance in Q3FY26
The company closed the third quarter of fiscal year 2026 with a total AUM of ₹7.1 trillion, reinforcing the impressive scale of its integrated platform across both wealth and asset management services. Within this total, the wealth management segment accounted for ₹6.1 trillion of AUM, while the asset management company (AMC) contributed ₹98,949 crore, led by continued strong momentum in alternative investments.
This expanding AUM base, coupled with a rising share of recurring assets, has effectively underpinned the company's revenue growth and enhanced its earnings visibility. Within the wealth management division, the franchise continues to be strongly anchored by ultra-high-net-worth individuals (UHNIs). The business serves over 8,500 HNI and UHNI clients, with UHNI clients typically defined as those having a financial net worth exceeding ₹50 crore.
Recurring assets within wealth management scaled impressively by 34.5% year-on-year to reach ₹2.2 trillion. The retention yield on these assets stood at a stable 0.79%, reflecting consistent pricing and a growing mix of fee-based products.
The High-Net-Worth Growth Engine
The HNI vertical has been positioned as a primary growth engine for the company, scaling rapidly throughout the fiscal year. This segment began FY26 with an AUM between ₹400-500 crore and expanded remarkably to ₹3,000 crore by Q3FY26, driven by substantial net inflows ranging from ₹2,000 to ₹2,200 crore. Operating on a trail-based revenue model, management expects the HNI vertical to achieve breakeven within three to six months, after which growth investments are anticipated to accelerate further.
Asset Management Division Shows Strength
In the AMC segment, total AUM stood at ₹98,949 crore as of December 2025. The alternate investment funds platform remained the largest contributor, managing ₹50,934 crore, which represents a 22% increase year-on-year. Discretionary portfolio management accounted for ₹34,536 crore, while mutual fund assets stood at ₹13,480 crore. The average ARR AUM in the AMC business rose by 13.5% YoY to ₹95,612 crore, with a retention yield of 0.85%, supporting steady revenue growth for the division.
Recurring Revenue De-risks Business Model
Against this robust AUM backdrop, 360 ONE's consolidated operating revenue increased by a substantial 33% year-on-year to ₹806 crore in Q3 FY26. Annual recurring revenue saw an even more impressive rise of 45% YoY to ₹619 crore and now accounts for 77% of total operating revenue, a significant increase from 70% in Q3FY25. Transactional and brokerage income stood at ₹186 crore, growing at a modest 4% YoY.
This shift toward a higher ARR in the revenue mix indicates that a larger share of revenue is predictable and recurring, thereby reducing the company's dependence on volatile transaction-led income. It also reflects strong client retention, pricing power, and improved earnings visibility across various market cycles, representing a core strength of 360 ONE's business model.
With a higher AUM share, the wealth management segment remained the primary revenue driver. WM revenue increased by 28.4% year-on-year to ₹601 crore during the quarter. The UHNI segment contributed ₹524 crore of this revenue, while HNI (₹3.8 crore), mass affluent (₹10 crore), and corporate and institutional clients (₹63 crore) accounted for the balance. Within 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, with segment revenue rising by 39% year-on-year to ₹205 crore. Almost all of this income came from recurring sources, highlighting the depth and stability of the AMC business. Profit after tax increased by 20% YoY to ₹331 crore in Q3 FY26. The quality of earnings improved further as retention on ARR assets increased to 81 basis points in Q3FY26, up from 70 basis points in Q3FY25, aided by incremental carry recognition during the quarter.
Strategic Partnership and Future Outlook
Looking ahead, 360 ONE has reiterated its medium-term guidance of 22-24% annual AUM growth, with net flows targeted at 10-12% of closing AUM. The strategic partnership with UBS strengthens this guidance by enabling cross-border client referrals. The company expects to begin onboarding clients from this partnership starting in FY27, which should support incremental asset aggregation, particularly from UHNI clients, and aid sustained AUM compounding over the medium term.
Management has provided guidance 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 its PAT to around ₹2,000 crore by FY28, up from ₹1,015 crore in FY25, while simultaneously reducing its cost-to-income ratio from 48.3% to 45–46%, setting the stage for improved profitability as AUM continues to scale.
Competitive Landscape: Nuvama's Subdued Performance
While 360 ONE reported a strong quarter, its closest competitor, Nuvama, experienced somewhat subdued growth in Q3FY26. Nuvama's client assets grew by just 2% year-on-year 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. Nuvama's consolidated revenue grew by 4% YoY to ₹755 crore, aided by the wealth management division, while PAT remained 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.
Valuation Gap Reflects Performance Differences
On the valuation front, 360 ONE trades at a price-to-earnings multiple of 39 times, nearly double that of Nuvama, which trades at 23 times. This significant valuation gap reflects 360 ONE's superior AUM growth, higher recurring revenue share, stronger operating leverage, and clearer medium-term earnings compounding visibility. In contrast, Nuvama appears to be still in a transition phase with slower asset scaling and uneven monetization.
This valuation gap has persisted consistently, largely because 360 ONE is viewed as the best-in-class wealth management and alternatives asset management franchise. Nuvama's ARR contribution to its revenue mix remains lower, and its meaningful exposure to investment banking, clearing, and capital markets makes its earnings more sensitive to market activity. As the contribution of ARR to Nuvama's revenue-mix increases over time, this valuation gap may gradually narrow.
The wealth management sector in India stands at an inflection point, with structural tailwinds creating substantial growth opportunities. 360 ONE's focused strategy, strong execution, and increasing recurring revenue base position it favorably to capitalize on these trends and maintain its leadership position in India's evolving financial landscape.
