A very good evening to all the participants. Starting with the macros.

Q2 was a quarter of two halves for Indian equities. Benchmark indices stayed under pressure through the quarter, weighed down by persistent FPI selling, global rate concerns, and geopolitical uncertainty.

At the same time, domestic flows and primary markets were remarkably resilient. Monthly SIP flows touched a record of 32,500 crores in September, and close to 70 company raised 90,500 crores through IPOs during the quarter, including the landmark listing of NSE.

We continue to believe that the long-term tailwinds clearly outweigh the near-term concerns. Let me call out four of them.

First, wealth creation in India. The UHNI segment continues to grow at 13 to 15%, and monetization events, such as IPOs, block deals, stake sales, keep releasing liquidity to promoters and families.

Second, the financialization of savings. SIPs, the newly launched SIF category, and democratization of AIFs are steadily expanding the investable pool.

Third, the shift to professional wealth management. Clients increasingly want transparent, fee-based advice, and a growing number of family offices want curated access to opportunities.

Fourth, global connectivity. Resident Indians want to invest globally, global institutions are refocusing on India, and GIFT City is opening new opportunities in asset management and in broking.

We remain mindful of the near-term challenges, including market volatility, competition, evolving regulation, and pressure on costs. Our response is to stay the course, give the right advice to our clients, while running the business in our shareholders' interests.

Now coming to our performance for the quarter. Total AUMs stood at about 9 lakh crores, up 31% year-on-year.

ARR AUM stood at 3,53,000 crores, up 19.7% year-on-year, and ARR net flows of 12,482 crores during the quarter, compared to 10,815 crores in Q1. Clients with more than 10 crores of AUM are over 4,100 and account for 95% of our ex-custody wealth AUM.

Revenue from operations was 896 crores, up 17.5% year-on-year. ARR revenue grew 27.5% YoY to 706 crores.

ARR now contributes 79% of operating revenues, and ARR retention improved to 79 basis points from 74 basis points in Q1, driven by higher carry income for the quarter. Excluding carry income, the ARR retentions remain stable at 67 basis points.

During Q2, carried interest from third-party funds contributed approximately 60 crores. Transaction and brokerage income was 190 crores, down 9.1% year-on-year.

Other income was negative 44 crores this quarter, primarily on account of mark-to-market impact on our treasury investments. As a result, total revenue was 853 crores, up 4.8% year-on-year.

Total costs were 462 crores, up 15.5% year-on-year. Employee costs were 342 crores, up 19.9%, and include a one-time impact of about 9 crores from restructuring of one of our businesses.

Admin and other costs were 120 crores, up 4.6%. Our operating—sorry, cost to operating income ratio improved to 51.5% from 54.3% in Q1.

Operating PBT grew 19.7% year-on-year to 434 crores. Given the lower other income, PBT was 391 crores, and PAT was 302 crores, against 316 crores in Q2 FY26.

Tangible RoE stood at 16.9%. The board approved a second interim dividend of 7.5 per share.

The wealth business saw a strong quarter, backed by strong flows and higher retentions. ARR AUM grew 24.3% YoY to 2,52,627 crores.

360 ONE Plus, our advisory platform, has now crossed 1 lakh crores. The quarter saw net flows of 10,990 crores that were broad-based across engagement models.

New client additions and deeper wallet share with existing clients contributed towards the flow. ARR revenue grew 40.5% year-on-year to 503 crores.

Retention improved to 79 basis points from 71 basis points in Q1. Operating PBT grew 30.2—grew 30.2% year-on-year to 326 crores.

The UHNI franchise remains the firm's anchor with unchanged priorities: grow share of wallet, widen our reach beyond the metros, and be the first call for families after a liquidity event. That last point matters more than ever given record record IPO and monetization activity over the last few years.

More clients are moving to portfolio-level advisory mandates, which make relationships deeper and stickier. The HNI business continues to scale as a natural extension of UHNI.

It now manages over 8,000 crores at healthy retentions for over 1,500 clients and about 60 relationship managers. With productivity improving and a growing feeder pipeline into UHNI, we expect the business to break even on direct costs soon.

With the break—with the business reset behind us, ET Money is now built for profitable growth. Its base of 5.5 lakh plus active users is being taken towards a full-cycle life cycle digital wealth platform.

Clients will choose upfront between distribution and subscription-based advisory, and AI-assisted advice will extend into affluent segments. The distribution segment of the business clocked ARR AUM of over 700 crores over the last nine months.

The expected synergies from 360 ONE Capital are now visible. Large IB mandates drove meaningful revenue accretion alongside an active block deal calendar.

With strong ECM pipeline and expansion in research coverage, the franchise is gaining scale and building a more durable revenue base. Our collaboration with UBS continues to progress across bidirectional client referrals, cross-platform product access, and exchange of best practices.

In the asset management segment, ARR AUM stood at a little over 100,000 crores, up 9.4% year-on-year. Net flows improved to 1,492 crores after the large SMA redemptions in Q1.

ARR revenue was 203 crores with retentions of 79 basis points, and operating PBT was 108 crores. In alternates, AIF AUM grew 27.9% year-on-year to 58,139 crores.

We are amongst the leader in private equity and credit space in India. During the quarter, we launched and mobilized funds across categories, including multi-stage AIF fund, defense and space fund, rise credit fund.

The pipeline remains strong for the coming quarters. In public markets, fund performance was strengthened, and our SIF strategy has gained traction with Dynasif AUM crossing 1,000 crores.

We won our first European institutional mandate and received a top-up from an existing global mandate. Looking ahead, our priorities remain clear: in wealth, focus on adding new clients, raising RM productivity, and scaling referrals across 360 ONE ecosystem; in asset management, we will keep sharpening our alternates offering, expand our institutional reach, diversify domestic distribution, and build out the SIF platform; and in 360 ONE Capital, the priority is converting the ECM pipeline, strengthening the team, and expanding research coverage.

All of this will be delivered with continued cost discipline with technology as a key lever. Compass, our proprietary and governed AI layer, is live across wealth, asset management, and enterprise functions.

It gives the RM a single integrated interface for research and product knowledge, market intelligence, prospecting, and pitch preparation, a 360-degree view of each client's family, holdings, and portfolio, and service and business-at-risk alerts with next-best actions. Compass runs entirely within 360 ONE environment with strict access controls.

Client data never leaves it, never goes outside, and no data is used to train external models. The aim is simple: more time with clients and a platform that scales efficiently.

We do not judge Compass on usage, but on definite outcomes, which is efficiency, commercial impact, quality, and control. With that, I would like to invite the participants for Q&A.

Thank you, Sanjay. We now move to the Q&A.

To answer your queries, we have a panel comprising Mr. Karan Bhagat, Mr.

Yatin Shah, Mr. Anshuman Maheshwary, and Mr.

Sanjay Wadhwa. In case you wish to ask a question, please tap on the raise hand icon.

First in line, we have Prayesh Jain. Prayesh, kindly unmute and ask your question.

Thanks, Anil. Hi, and congrats on a good set of numbers.

Just two or three questions here. Firstly, a financial question on what's this mark-to-market or fair value change that has come and I see that on your prime, it's a much larger impact.

How does it kind of relatively get lesser impact on the overall consol P&L? That's point number one.

Point number two, you mentioned that the UBS integration is carrying on well, but how do you see flows coming through on this business? Should we see second half flows coming through, or how should we think about that?

Thirdly, from a cost-to-income standpoint, are we on that path to kind of reach that 48% by end of fourth quarter? Are we on that path?

Those would be my questions. Thanks.

Sanjay, why don't you take the financials question and then I can take the remaining two?

Sure, Karan. Yeah.

On cost to income, I think we had guided for a 1 1.5% kind of a overall improvement year-on-year. I think we are well on course to achieve that.

You would have seen that the overall cost to operating income, which is actually a better measure to kind of look at as against the cost to income which we used to disclose earlier, that has improved significantly during the quarter, and I think we are well on course to achieve that 100 to 150 basis points of improvement over the last year. In terms of the mark-to-market change, I think it's purely a result of the overall markets.

Previous quarter, we had a positive in terms of the overall market movements in the secondaries market. This quarter has actually been negative.

It is purely a reflection of that movement in the secondaries market.

Before Karan, you kind of get into the UBS question, Sanjay, just clarification. Is it related to NSE getting listed and that impacting the fair value change?

Large part of that would be because of—

Yes, that's right. That's right.

It's largely NSE, round about fair value change on account of NSE is close to round about 110 120 crores, which is largely invested through our funds. That's the broad impact of the fair value change.

Got that. Karan, over to the UBS question.

Yeah. I'll take the UBS and the your your second last questions.

I think broadly, I think from a UBS perspective, you're right. I think onboarding is got initiated.

In some senses, I think we've internally looked upon looked at a target of round about exchanging 600 600-odd million dollars of flows for the current financial year. We've not really kind of tried to get into whether the flows moves from us to us to us to UBS or UBS to us.

The idea is essentially to ensure that agreements get into place. I think out of the 600 $650 million of flows, we're fairly confident we'll get there by March-end.

I think a little bit of flows have started from UBS end to to 360 ONE also. I think our funds have got funds have just got empanelled.

I think we've got round about 15 15-odd million dollars of flows from UBS as a as a start. We've also additionally got a couple of client referrals who have given us given us similar or slightly more more, maybe 20, 25, 30 million.

On our side, we've got three or four of our clients and potentially not potentially, and another 250 $240 million of funds which have kind of moved to the UBS system. In in all total, I think round about 300 325 millions kind of happened over the last three months.

I think all things being equal, we would expect it to grow around to the 600 to 700-odd million number over the course of this over the course of this year. On the cost-to-in cost-to-income, just to supplement what Sanjay said, I think pretty much in line.

I think still we've got some productivity gains to achieve, specially specially on the employee cost side. I think we'll continue our journey and keep it keep it going over the next 12 to 18 months.

It doesn't necessarily mean our stand-alone employee cost numbers will reduce, but we'll continue to try and make the firm as productive as possible. As we as we build out our teams across all our businesses, we continue to, hope that we'll make it more and more efficient, and try and move that 48 towards the towards the 46, 47 number.

Karan, just last one. Ashish Agarwal joining, how do you—what's the kind of role and how kind of things change for the company overall?

Yeah. I think Ashish obviously joins in a senior leadership role, and along with me will be kind of spearheading the business.

I would look at it in multiple parts, honestly. I don't see a change on day one.

Honestly, our business is spread across three different lines of business: capital markets, wealth, and asset. Ashish has got deep financial services experience over the last 20, 25 years, right from research all the way to corporate finance to finally kind of working on the sell side.

His recent role running Jefferies' India office. I think, to be honest, over the first six to eight months is really about getting into the business, kind of integrating, spending time where his key strengths are, and at the same point of time diving deep into the other parts of the business, including asset and wealth.

I think honestly, I think it's a process. Pretty much all of us are here over the next three to four years.

We'll build it out together. It's a great addition to our leadership team.

I think we've got 10, 15 leaders with us for the last 10 to 15 years, and I think potentially Ashish and the two other people who are joining with him add to that leadership strength. From there on, we'll take it forward.

We're not really spending time trying to define a single monolithic line of business or a line of activity for each of us.

Thank you so much. All the best.

Thank you.

Thank you. Next in line, we have Himank Sangai.

Himank, kindly unmute and ask your question.

Am I audible?

Yeah.

Thanks for the opportunity. I have three questions.

Firstly, on the flows part, we have seen strong flows in the wealth vertical, but relatively weak flows in asset management. Can you please explain this divergence?

On the AMC side, how much of the weakness reflects the large institutional redemption versus the softer underlying demand? Second, on the carry income, has there been any reversal of previously accrued carry linked to NSE exposure during the quarter?

Thirdly, again on the new leadership, with the recent additions to the leadership team, how should we think about the incremental cost impact and the revenue opportunities they bring? That's it.

That's my three questions. Yeah.

On the on the flows, I think you're right. I think, honestly, I think the wealth flows have been super strong.

I think I'll maybe potentially Yatin can add on to it slightly later, but I think from a from a from a winning the mandate perspective, I think, I've spoken about this a couple of quarters back. I think from a brand perspective for the ultra-high-net-worth individual, we're finding 360 ONE in a very sweet sweet position.

Secondly, obviously, we've continued to expand the platform in a in a very in a very comprehensive way, and, without a without a tongue-in-cheek in a 360 manner where we are able to essentially ensure that the client is able to client is able to pretty much get all his needs serviced. That's that's honestly reflecting in the flows.

I think that's that's And on the mid-level client, which is effectively let's say 25 to 100 crores for us also, I think we're seeing a lot of traction. I think one of the data points we're proud about which is leading to the net flows is the number of new families.

I think we've steadily grown that number from 1,800, 1,900 5 years back to round about 4,200 families today. I think that's the number which is really kind of spurring the net flows.

Once the client comes in, the platform is being exhausted will allow us to kind of creep in more and build our wallet share with the client. Those are the two two factors which are kind of supplementing on the net flow side.

On the asset management side, actually the flows have been a little have been quite good actually, to be honest. The gross flows have been exciting.

I think could have been could have been slightly better on the net flow side. I think we had a we had a we had a we had a institutional redemption from one of the mandates, which a part of it was in in in Q1 and, a quarter of it in a quarter of it in Q2.

I think, that's that's a little bit I think it's behind us, to be honest. I think towards the second half of the quarter, we saw we saw we saw us winning two institutional mandates.

We're seeing a little bit of interest come back in India from a from a from a pure flows perspective. We're quite positive.

On an asset class basis, I think outside of listed equity, we we're able to compare kind of convert a couple of decent accounts both on domestic as well as overseas institutions for our private credit and real assets business. Overall, I think, asset management well in track.

I think flows will kind of come back and overall should be in a position to meet our to meet our targets for next year for for the current year. I think in terms of cost, in terms of new hires, I think early days.

I think obviously, we will we we've right now kind of looked at three people. In that sense, it doesn't necessarily structure structurally change it.

I think our desire to add people on on the sales side in in wealth, if if there are gaps on the investment side in alternates, on the listed side, as well as on the capital markets side, we'll continue to be very, very hungry for talent. The good news is, we're not recruiting at talent at the at the junior or mid-level.

We're really kind of we're really searching talent right at the right at the top quartile, and we'll be able to attract. I think honestly, as long as the platform is there, which today it's there, the flywheel is there, there'll always be a time gap between talent coming in and breakeven happening.

For a firm like ours, I think today we feel comfortable that it's the shortest on the on the wealth management side, slightly longer on the asset management side, and, maybe on the capital markets side it'll be slightly longer. Overall, all three things put together, I think we we should be able to kind of keep it within the 100, 200 basis points cost-to-income ratios as we as we build it out.

Obviously, if you do a big build somewhere, maximum our cost-to-income ratios might go up by 100, 150, 200 basis points, but it's not going to be dramatically different.

On the carry, I can take the question, Karan?

Yeah. Sorry, carry, yeah, I'll answer.

Yeah. Carry is largely I think it's a function of two things.

One, obviously there's a little bit of a carry reversal on account of the carry which had already got recognized, but on the flip side with NSE listing, a couple of our funds have come into carry. The first one is more than offset by the second one.

If I could just put in one more question. Why are the yields low on the mutual fund asset management side?

I can see a decline in the yields part. Can you just explain it?

I can take that, Karan. In Q1, there was a one-time kind of a admin fee accrual that had happened.

It was purely on account of that. If you see if you go back, I think it's fairly stable.

Okay. Thanks.

Thanks a lot.

Next in line, we have Aditya Das. Aditya, kindly unmute and ask your question.

Aditya?

Hi. Am I audible?

Yes.

Yeah. Thanks for the opportunity.

I have a couple of questions. Number one, looking at the competitive scenario in the industry.

Over the past let's say, 2, 3, 4 years, a lot of private equity, venture capital-backed, so-called digital players have entered the wealth space in the UHNI segment, HNI, affluent segment, they've entered, right? Just wanted to understand the implications for the rising competitive intensity on your business, on the economics of this business, right?

Do you expect material impact, let's say, over the medium to long term, any sort of impact that you see on margins of our wealth or the AMC business? That's my first question.

Second, just wanted to get the split on new to existing clients, on the net flows this quarter and probably H1. How do you see this split going forward, right?

Do you expect the new client addition to kind of power through the net flows, or how do you see this mix going ahead? That's my second question.

Third was just a follow-up on a previous participant's question on the mutual fund business. I think the business has been quite subdued for the last few quarters.

How do you see this business coming back over the remainder of this year, probably next year? What are your broader aspirations for this business?

These are my three questions. Thanks.

Great. I'll take the first one and I'll request Yatin and Anshuman to take the next two.

What was the first question?

Competition.

Private equity building a lot of new businesses, how the economics of the business— Yeah. No,

I think on the first question, I think obviously, it's a sector which has got huge amount of tailwinds on the business side. Rightfully, it's a such a sector which is attractive for new competition to kind of get in.

I honestly don't see that changing. It's been fairly similar, to be honest, since 2013, '14.

I think over the last 14, 15 years, we've seen private equity put in, private equity together with banks have been fairly active in the space. I think overall, I don't see a reason why that should change dramatically.

From a platform perspective, I think I can break it up into three parts. The way I'm saying it is it's obviously a something which competition will add, but at the same point of time it's also an opportunity for us, because the real moat in the business is about getting the people and the product and the platform, all three, in a single room together and kind of really taking it to the client.

I think that takes a little bit of time to happen. I think, to be honest, if I look back over the last 10, 12 years and even as we go forward, I think that's something which we have kind of very uniquely positioned.

All three have to come into place. Good thing is, I think if there are competitors out there who get all these three things together, I think there's a good reason and good chance to succeed.

The even better thing is the size of the market is very large. I think there'll be an opportunity for newer players and along with the newer players for us to grow.

In terms of margins, I'm not quite sure if there's a kind of dramatic impact on margins. I think it's always a constant war for talent.

I think margins are quite well set up in the industry. Honestly, I think, over the last 6, 7 years, from 2020, '21 to '28, '26 now '27, we've been in a state of hyper-competition, both on talent and on AUM.

I think the big reduction in or big kind of reset in margins happened in 2021, '22. I think it stayed there and I don't really see that changing dramatically.

I think we are very, very competitive from a margin perspective locally, domestically, from a global perspective. Don't really see any new business getting differentiated on margin.

If at all new players, as well as existing players like us will get differentiated, it'll get differentiated on a sum product of people, product, and the platform coming together. I think from our side, we have to ensure these three things are right at the top.

I think if these three things happen, we'll maintain our moat, we'll maintain our edge, and therefore we'll maintain our pricing power. On the net flows question, I'll let Yatin answer it.

I think particularly, this quarter was good for new clients' net flow. I think there was a lineup of a lot of IPOs, as almost 60 IPOs we saw coming in this quarter, pushed in IPO season.

I think largely, we look at 1/3, 2/3 split: 1/3 from new clients and 2/3 from existing clients. If you look at our client segmentation, almost 1/3 of our clients are 0 to 3 years vintage.

There's a lot of runway for those relationships to mature. Particularly, if you look at our 5-year plus client vintages, almost 60, 65% of revenue of AUM comes from our vintage clients, and there'll be a solid retention in terms of how these clients have stayed with us for a very long periods of time.

Largely when we see 5, 7, 8 years of vintage happening, it's like a hockey stick growth which comes in our existing clients consolidating their portfolios from other advisors or largely contributing new net flows to us with the way the relationship is shaping up. If you see last quarter, the attrition less than 0.5% attrition of clients, and even so, last less than 0.25% attrition on the AUM side.

It just talks about the platform and how clients' stickiness on 360 ONE. I don't know if you, Sanjay, want to your mutual fund questions, yeah.

Hi. Yeah.

Just on the mutual fund side—

Anshuman, we can't hear you. Anshuman, we are unable to hear you.

No worries.

Yeah. On the mutual fund side, obviously, I think we've traditionally been a little bit conservative in investing into that business.

I think we built the public markets business more with the mindset of building out a fairly strong institutional practice with segregated managed accounts. We've conservatively invested in our sales teams across the board.

I think for us, now obviously the introduction of SIFs together with our sustained performance over the last 4, 5 years gives us much more confidence to maybe potentially kind of build out sales teams on the mutual fund side. Having said that, we'll kind of always run a relatively differentiated strategy on the mutual fund side, as opposed to running a large-scale retail strategy.

On the mutual fund side, I think for us, I think it will be measured growth going forward also. Coupled with that, obviously, I think the right retention numbers will be important for us.

Where we can get our unique positioning right in terms of product initiatives is also going to get reflected on the SIFs side. Really, we don't look at our business in that sense as mutual funds, AIFs, and PMSs.

We look at it more from a public markets and a private markets perspective. I think we'd like to grow both on a steady basis and ensure that while we're building out these two businesses, both from a performance perspective as well as from a retentions perspective, we're able to ensure the right quality of business.

Right. Thanks.

I'll just squeeze in one small question. Yatin, on your new to existing client thing, basically, if we look at the number of clients, right, it's gone from 1,800, 1,900, let's say, 4, 5 years back to about 4,100.

Are we kind of seeing this cohort of clients also contributing and also, if I see your presentation, it talks about roughly a 3x multiplier on the contribution that these older clients give. Are we also seeing on this, let's say, five-year cohort of clients, are they contributing as much and are we seeing a similar trend for these clients?

I think we are seeing three three trends. I think the first trend is I think as clients' vintages increases with the firm, I think we see definitely a positive trend towards net new flow coming from the same set of clients.

Also, second thing, of course, is that we're also seeing a segmentation change which is taking place. Clients would have started with 25, 50 crores with us, suddenly after 3, 4, 5, 7 years are in ranges of 250, 300 crores.

Largely the fly-by-wheel which we are creating, also we are seeing a increased wallet share and other platform services getting added to a size of relationship which we could have thought unable to service 5 years 5 years back. Third thing is, of course, the market remains quite fertile for us in terms of the way the wealth creation stories is happening at every segment, not just the IPO market.

I think they are professionals, ESOPs, businesses. I think they're all looking for a professional wealth management firm.

The the velocity of the new clients is is is seen in our A tough market is I think we've always seen a tougher capital market environment does help us in terms of getting market share out of other banks and wealth managers. That trend generally accelerates in such scenario.

If you have to look at 5, 10-period going forward, I think surely on ground, the trend for for wealth management, new clients, addition to net flows, and segmentation premiumization, which is what we are seeing, which is more clients coming on 100, 250 crore plus categories, what I think the most promising and healthy for us to service client on a full 360-degree basis.

Thank you so much. All the best.

Thank you. Thanks, Aditya.

As a reminder, in case you wish to ask a question, kindly tap on the raise hand icon. Next in line, we have Siddharth Negandhi.

Siddharth, kindly unmute and ask your question.

Hi. Congratulations on a great set of numbers.

A couple of things. Just wanted to understand the break-up of the wealth flows between ultra-HNI and HNI.

The second part was on the institutional business, we've seen a sharp increase year-on-year in the TBR revenue there. How much of that is coming from broking versus incremental ECM revenue from IPOs, etc.

that may have come in this time? One of the things spoken of was the synergy that one would get from B&K research and our existing UHNI clients.

If you could quantify any broking synergies that we've got. The third is just to understand on the asset management side, now that there is that carry income that's accruing, if you could give us some color in terms of, therefore, how should we think of outflows on those?

Because gross inflows, we've seen this challenge once before where gross inflows were coming in, but then there was also a set of outflows. Considering carry accrual happens towards the later stages of a fund, how should we think of outflows over the next say, 3 to 4 quarters on the asset management side?

Sorry, Karan.

HNI was close to 500 crores of organic flows last quarter, but what we did was also we are also segmenting our each businesses to ensure that highest amount of attention for that set of clients at 360 ONE is kind of paid to and we kind of deep in the wallet share for that segment. We also transferred some 2,000-odd relationships from UHNI to HNI, and that's where you're seeing the jump of total AUM close to 8.5 9,000 crores for HNI.

Got it.

Yeah.

So— The second one was on the institutional business TBR income, how much of that is broking and ECM, and are any synergies flowing through?

Yeah. I think, to be honest, we've we've seen good growth across all three segments: on the ultra-high-net-worth side, high-net-worth side, as well as on the on the early experiments of ET Money on the regular quote side.

I think ET Money, our overall advisory stroke ARR stroke mutual fund and regular quotes moved to round about 3,300, 3,400 crores of ARR AUM, which is which has been quite a good healthy surprise over the less last three-odd months. The HNI portion, as Yatin was talking about, has moved to round about 8.5, 8 8-odd thousand crores, including 2,000 crores of flows from ultra-HNI to HNI.

The ultra-HNI itself has done extremely well. All three put together has become a good engine.

On the on the capital markets side, we're still as as I had said earlier, I think from a full-stack perspective, we'll be really ready 31st March, first week of April in terms of the entire team and talent being there. Needless to say, early green shoots in terms of us winning the right set of mandates has always been always been on the cards.

We've we've done we've we've been appointed stroke will be appointed in round about 8 to 10 issues across the across the across the across the spectrum. Having said that, obviously, I think as a full full-fledged capital markets platform on the on the banking side, we we see really ourselves coming in a big way Q2 of Q2 of next calendar year, or effectively Q1 of of next financial year.

In terms of the big pickups in terms of equity brokerage, I think is largely, I think we had spoke about this at the point of doing the acquisition. I think one of the big things which will which we hopefully kind of hope to leverage about from is the research research availability for the high-net-worth and the ultra-high-net-worth business.

There we do typically equity brokerage of round about 4.5, 5 crores a month. That we've been able to pick up to close to round about 8 to 9 crores a month.

I think that's that's something which will I feel we've kind of under-delivered on for so many years. I think if you just look at our current ultra-high-net-worth, high-net-worth clients, we should be doing round about 15 to 20 crores a month.

I and and that's that's more or less business which should be captive within us because we've already got the clients with us and all their accounts are with us. I think that's that's that's to a small extent happened over the last 4, 5 months, we've seen the 4, 5 crore number move to the 8, 9 crore number.

I see that growing steadily. That complemented and with the with the core equity capital markets business growing.

I think the rest of the ECM piece together with the banking piece will start flowing from Q1 of next year.

Okay. That's very interesting, because that is basically about 3 to 4 crores of synergies per month that you're quantifying just from the B&K acquisition on the broking revenue which will then go ahead.

It's a good number, but it's not a great number. I think we've got the ability to do more there because the clients are already there.

No sure, great start.

It's a great start. It's a great start for sure.

On the AMC, I think your observation is absolutely right. I think with carry income coming in towards the end, there's always going to be a potential outflow of the AUM we've had.

I think if I just fast forward next 12 months, we've got our fund PE 1A, which we'd collected round about 1,000 crores in. I think that fund has done extremely well.

We've already returned 1,500 crores back over the last few years, and we've got another 3, 3.5 thousand crores to of current value. It's only got two assets, NSE and CIBIL.

I think, yes, that fund will go back over the space of next call it 6 to 18 months. That's the only large fund, I think, which is up for redemption, which is round about 3, 3.5 thousand crores.

We'll have to plan for that and ensure that our launches reflect that redemption. Hopefully, just given the performance of the fund and the fact that it's done I think on a gross basis more than the late I think it's done 36, 37% CAGR over 5 years, and maybe on a post-carry basis round about 32, 33%, we'll hope most of the money comes back into the system.

Great. Just one more question on the UBS side.

You'd mentioned about $300 million of flow, a large part of which was existing ultra-HNI clients allocating about $200 $200, $250 million outside. If you could just give us some color around how does revenue sharing on this work and what's the kind of yields or retention that one could expect on those flows?

It's fairly

early days, to be honest. I think we've just about finished our collaboration agreements and revenue sharing agreements and stuff like that in March of last year, and effectively it's gone to stream May to June.

I will give kind of a broader indication. I think on flows both ways, I think it's safe to assume 40 to 50 basis points of retention would broadly kind of come through.

Got it. This is useful.

Thank you.

Thank you. As a reminder, in case you wish to ask a question, kindly tap on the raise hand icon.

Next in line, we have Dipanjan Ghosh. Dipanjan, kindly unmute yourself and ask your question.

Hi, hi everyone. Few questions from my side.

Firstly, Karan, at the start of the call, you or I think Sanjay mentioned that in terms of new mandates, you're able to see a very high win rate or portion of wallet that you are able to get. Now, obviously, the primary market pipeline is very strong, and you would have some visibility of incremental monetization events that happens with existing clients or existing firms where you private equity would have invested, or even in your existing clients where there might be some monetization because of them having holdings in some unlisted entity which is about to get listed.

From that perspective, that 12 to 15% of flows to opening AUM given how the first half has turned out and the pipeline of IPOs that is there for the next maybe 6 to 9 months, do you think there's a possibility of you kind of delivering either towards the higher end of the spectrum or maybe even higher, because you have some visibility on the primary side of things? That was on the flow side.

The second question is on the TBR, and this is more on the ultra-HNI TBR, which is maybe the core TBR that we used to understand of 100 to 150 crores per quarter way back in time. Now, I think this quarter it was a little soft, maybe one of the softest in quite some time.

Now, I just wanted to get some visibility of deals on that part of the segment. I understand it's lumpy and volatile and maybe variable also.

If you can give some color on that, ex of the broking business which you kind of mentioned the synergies out there, how does that look like for the second half? Third, on the carry bit, I don't know if I understood this correctly.

Did I hear it correctly that you mentioned that around 60% of the carry for the quarter was recognized by the wealth segment due to distribution of third-party products? Now, if that's the correct understanding, then between your carry recognition between wealth and AMC, I think this quarter was more towards the wealth side.

Is that more recurring like a normal carry which gets adjusted every quarter, or this was some lumpiness out there?

Thank you. Thank you, Dipanjan.

Very quickly, on so I'll start off with the second question, which is on the

on the on the

on the TBR side. I think you're right.

I think TBR, generally speaking, TBR generally speaking is is been soft in the last quarter. I think, as I've specified in some of my previous calls in the previous quarters, I think the nature of TBR in this business is dramatically changing.

I think what used to be TBR practically doesn't exist anymore. If I just go back and look at the TBR five years back, it had a element of upfront income on AIFs.

It had an element of, and if I go back further 10 years from back from today, it had an element of mutual fund upfronts, and then before is in between it had PMS upfronts, and so on and so forth. Now all of that has disappeared.

In in in the middle, we obviously had a lot of activity on the on the unlisted side, and so on and so forth. Today, I think practically speaking, the components of TBR are very little.

If you actually come back, because all all financial product distribution has no no upfront income at all. In the middle, you had, not that we did much of it, but you had structured notes between '21, '22, '23, that's also practically zero today.

Honestly, if you see what is TBR, it's just a function largely of for the lack of a better word, it would be it would be brokerage. Brokerage obviously could spread across listed equity, listed debt, it could be it could be real estate to a certain extent, it could be physical real estate, it could be it could be unlisted equity, and so on and so forth.

Then obviously, you supplement it with with banking and capital market transactions. Then obviously, in our in the third segment you've got is the institutional brokerage piece.

I think as as things go forward, I think, generally speaking, I've been talking about this, I think the the quality of TBR, generally speaking, will improve, because some of these are going to be in that sense more recurring than being ad hoc. At the same point of time, I think I don't see that dramatically increasing.

If I would just kind of go back 7, 8, 10 years back, I think if our revenue was round about 6, 7 years back 1,000-odd crores, TBR was practically 550, 600 crores. Fast forward to today where, let's say, revenues is, give or take, I'm just going to use a

a a

sorry.

I'm

going to use a number. Revenues let's say round about 1,000, 1,100 crores or let's say 1,000 crores a quarter, TBR is still in that zip code of round about 200, 225 crores.

If you actually see the growth in TBR, it's it's it's going to happen in a more late single digits to a early double digits way, as opposed to the growth in ARR AUM, which obviously has the benefit of having flows and also getting a mark-to-market growth. I think, if I just fast forward my head and here the day we're doing round about 5,000, 5,200 crores of revenue, or 5,500 crores of revenue, I see the TBR being in the zip code of, 800 to 1,000 crores.

I I I think that's that's really the way I would look at it. I think the components will largely become brokerage, the way you want to call it.

I think the asset class within brokerage will be six or seven, that's our strength. Our strength is the fact that we we are active in broking across all of these six, seven asset classes.

We are not only dependent on pure equity. We're also active in broking across multiple segments, whether it's, wealth or institutional.

At the same point of time, if you can if you build out the banking, capital markets piece that that would also kind of supplement it. All put together, I see this this kind of broadly broadly being in in in that zip in that zip code.

Carry income, our accounting is very conservative, even for the third-party funds. We follow the same operating principle.

It should have become carriable for the entire life of the fund, only then it kind of starts coming into the to the carry calculation. In that sense, it mirrors exactly the same same same process pattern as our own funds.

Coming to your first question was—

The flows.

Yeah. The flows, I think flows, honestly I think is quite interesting, because we were doing some analysis internally, and for the first time, even though the flow numbers is quite healthy, we were quite excited about the fact that 50% of the flows actually came from enhancement of wallet share, and 50% actually come from new mandates.

Now, typically for us, that's been 65, 70% coming from new mandates and 30% coming from wallet share gains. I think the completeness of the platforms allowing us to kind of go deeper with our clients.

I think if we can reach this number, it's just one quarter, but I think if we can reach the number of where we are able to kind of go 50-50 with our clients, I think that will give a fair degree of confidence for us to keep achieving our net flow targets. There's a revived degree of excitement on the private market side also.

In the last quarter, we've seen at least four transactions where we've seen flows come out of dilution or sale of unlisted businesses. I think it's quite exciting.

I think flows will continue. At the same point of time, we'll have to kind of ensure that we go deeper with our existing clients also to kind of increase their net flows.

Karan, just one data-keeping question. You mentioned the CAGR on gross sales in AMC.

Possible to quantify the gross sales number for first half in the AMC or the AIF space?

Let Sanjay come back to you in 2 minutes on that. Or Anshuman knows the number, yeah.

If I look at the last quarter, and I think it's important to note that given our size and scale on the alternates side, as well as the multi-asset, and now we are at a multi-vintage stage. Last quarter for us, we saw distributions of about 2,500 crore plus.

Despite the 2,500 crore plus of distributions across asset classes, we actually saw close to 2,500 crore net inflows coming in. Gross inflows was closer to the 4,800, 4,900 crore mark.

I think it's just a reflection now, unlike earlier where we had chunky flows kind of going out, now quarter-on-quarter we will have a combination of inflows and outflows, but the multi-asset class and the multi-vintage allows us to go through it in a relatively smooth manner.

Thanks, Karan and Anshuman, and all the best.

Thank you. Next in line, we have Abhijit Sakhare.

Abhijit, kindly unmute and ask your question.

Hey, hi. Good evening, everyone.

A broader question. Karan, you mentioned on the mix between new clients and old clients, and Yatin earlier mentioned that you're kind of seeing more traction towards mandates with bigger sizes, which I'm guessing tend to go through the advisory route.

Now, does this sort of play out in a way where on the new wins generally the realizations are lesser, whereas the older existing clients where deepening is happening kind of take care of some of those lower realizations in the early stages?

I think it's fair to say that the newer, larger mandates, most of them are either coming through advisory or through non-discretionary PMS. I think but in terms of our engagement with the client, both are the same, because they're both fiduciary in nature.

I think on their core portfolio, which is largely let's say the mutual funds and the PMSs and AIFs, and so on and so forth, I think there on the advisory side, I think retentions would be in the 35, 40 basis points range. I think in some select mandates if the numbers do go into four digits in terms of crores, obviously the retentions can come closer to the 20, 25 basis points.

Having said that, today reality is that the portfolio looks quite diverse. The portfolio today has a combination of listed equity, it has a lot of REITs and InvITs, it has a lot of AIFs, it has some bit of global feeders put together, and plus it has its own elements of family office structuring, and so on and so forth, and plus a trust and succession angle, all of which, and sometimes through the year, also a little bit of lending, and so on and so forth.

Overall, I think, generally speaking, the larger mandates, we've seen end up giving us a fairly decent retention. Sometimes as close to, if not slightly higher than the mid-sized accounts also.

It's just that the nature of revenue is slightly different. I think the core advisory revenue remains in that zip code of 20, 25 basis points on the absolute large guys and coming to the 30, 35 basis points to the mid-sized, large mandates.

I think if I look at the relationship overall, I think we're coming back to the same 65 to 70 to 73 basis points overall.

Got it. Thanks a lot.

Thank you. We have a follow-up question from Prayesh Jain.

Prayesh, kindly unmute and ask your question.

Yeah. Thanks for the opportunity again.

Just one question actually, Karan, and it's again a slightly longer-term question. Our tangible RoE was about 16% in this quarter.

We have inflows of warrant conversion that would come in from the UBS. That also kinds of comes in.

How do you think about the RoE moving back to tangible RoE is moving back to 25% kind of range? What should be the duration that we look at?

How do you think you would utilize the warrant conversion money that comes in in February? No,

I think it's a great question. I think, to be honest, that's one of the biggest priorities.

I think to keep it relatively simple, I think we have to kind of reach a reach a reach a profitability of I think the first target really is if you look at our tangible tangible net worth, we've got round about 7,400-odd crores, give or take. I think 7,400 crores, and we are effectively you add another close to 1,600 crores or thereabouts coming from coming from UBS.

We are obviously adding, let's say, round about 1,000, 1,200 crores of profit after tax post dividend for the next 2, 3 years. I think I think we're sitting on round about, give or take, 10 to 11, 11.5 thousand, 12,000 crores of of of tangible net worth.

I think our first target really in that sense will be to ensure that over the next, 2.5, 3 3-odd years, we are able to kind of move our rather 3.5 years, we're able to double our profits. If we can double our profits over the next 3.5 years and and honestly don't see any need to raise capital, we can ensure that we hit the 20% number.

I think, as as as as time goes by, depending on the operating leverage we can get in and, some of the tailwinds we can get in the rest rest of the businesses, we can try and push the 20 to 25. I think in the short term, I would say over the 3.5-year period, given our requirement or of capital both on the NBFC side together with the which is which is a core part of the wealth business, together with the our sponsor capital on the alternate side, I think I feel more comfortable with a 20% number as opposed to the 25% number.

Obviously, if we if we individually kind of look at all the three businesses, the RoE numbers can look different. The wealth business itself can, show a 45, 50, 60% RoE, but factually, it needs to be complemented with the with the lending business on the NBFC side.

The pure listed business can obviously show an RoE of 35, 40%, but that's only one part of the business. On the alternate asset side, I think we definitely need to put in 3 to 4% of our AUM as our sponsor capital.

All put together, I feel quite comfortable with the 18, 20% RoE. I think if I if I kind of merge all the three businesses together with the together with the lending business.

I think we definitely would aim to kind of, over a period of 3, 3.5 years, ensure that we are around that 20% zip code on the on the tangible on the tangible net worth.

Great. Thank you so much.

All the best.

Thank you. Thank you.

I think that's all we have time for. Thank you, Karan.

Thank you, Yatin, Anshuman, and Sanjay. Thank you, everyone, for joining us for this conference.

Have a—