Thank you so much. Good afternoon, and thank you, everyone, for joining the earnings conference call for the quarter and half year ended 30th September 2026.

Today on this call, we have with us the CFO, Mr. Rajesh Sir Bhutara; our Head of Relationships, Investor Relationships, Mr.

Vishal Sanghavi. Jugal Sir Mantri is in Europe holidaying, we don't have him on the call today.

This is the first quarter call I'm doing without him, I miss him in this call. Yeah.

I am very pleased to share that we have delivered another quarter of consistent and fortunately, market-agnostic performance despite the challenging environment. This is our 20th quarter result since we got listed in December 2021.

In every quarter since listing, with God's grace, the PAT growth Y-o-Y has been greater than 20%, excluding the impact of non-business-related items, fair value gains and ESOP expenses, and related tax effects. After tax for the first half year of FY27, after-tax PAT grew by about 23% year-on-year to ₹238 crores, while revenue increased 17% year-on-year to ₹693 crores.

Similar for the Q2 FY27, we reported a consolidated profit, net profit of ₹122 crores, registering a year-on-year growth of 22%. Total revenue during this period rose by about 16% to ₹357 crores.

In the first half year of FY27, the company has delivered 49% of the full-year revenue guidance, which stands at ₹1,415 crores. So, 49% penetration on the guidance of revenue, and 52% penetration in the PAT guidance, 48% more to go of the ₹460 guided.

Continuing our policy of rewarding shareholders, the Board of Directors have declared an interim dividend of ₹4 per share and after a bonus, ₹4 per share of the new 16-odd crores shares, which are outstanding. In the first six months, we have achieved 52% of the PAT guidance of ₹460.

I think that's already mentioned. We've achieved three important milestones in this quarter, which have gone by.

The highest net flow ever in the history of Anand Rathi Wealth of the last 20 years happened in this quarter, which went by, and we collected new, fresh moneys of ₹4,186 crores, which is up 39% from the last year's number, corresponding number of FY26 quarter ending September. So, ₹4,186 crores of net mobilization or new moneys with our clients' gratefulness, and when the clients realized that this portfolio during bad times can hold up, bad times clients have shared more moneys with us.

Second, we recorded our highest-ever quarterly equity mutual fund net flow, again in the last 20 years, we have not been able to achieve that, and with your support and client support, we have achieved ₹2,867 crores, up 39%. It's easy to say buy equities low and sell high, and clients pragmatically have bought more equity, which shows up in IRRs over long periods of time.

Courage translates into IRRs, but not in the short term, in few years. I am very happy to note that our clients, unlike the mutual fund industry has not delivered the best net mobilizations in the first half-year, SIPs of course have been robust, lump sums have been low, in that half-year and the last quarter, we have had a 39% increase in equity mutual fund purchases.

Third, we recorded our highest-ever monthly client acquisitions in the month of September, which will not be apparent in the results, because I'm speaking about September. With God's grace, and clients when they see their portfolios doing relatively better, of course, sadly not the best times, they start referring their friends, who are pareshan with what has happened in their portfolios with aggressive strategies.

In our flagship business of private wealth, during the last 12 months, we have added 1,500 new client families on the net basis, bringing our total client families to 14,309. Client attrition rate in terms of AUM lost remained low, 0.17% for quarter two FY27, and 0.26% for half-year FY27.

Of course, these are second decimal numbers, but yeah, we would ideally want every client family who trusts us with their hard-earned life savings to be satisfied. Regret RM attrition continued to remain low, two RMs whom we considered regret mathematically, of which one, I might want to not call, mathematically, I can't call that person a non-regret, I would say one regret attrition we've had in H1 FY27.

Digital wealth business, which is B2B2C business, registered an AUM growth of 15%, 14% year-on-year, and reached ₹2,531 crores, and the number of clients increased 15% to 7,584. OFA business, Omni Financial Advisor business, which is a SaaS platform, has close to about 6,898 subscribers with a platform assets of about ₹1.66 crores at the end of September 2026.

Has to be remembered, these are just platform assets, which we report. Also, last quarter, we started operations in London, UK, and we have received requisite regulatory approvals to commence operations in Gift City, India.

That's where I stop, and hand over the mic back to the moderator.

Hi. Good afternoon, everyone.

Sir, just a few questions. Firstly, a broader one.

If I have to think about your, say, top 100 customers, roughly in your estimate, what would be the wallet share that Anand Rathi Wealth would have for them?

Firstly, yes, my top 100 clients, I don't have to think of them because I think of them 24/7. That's on a lighter note.

Okay. Coming back, because that's where we have the platinum segment.

Okay? More than 10 and a half of our clients fall in the platinum segment.

What kind of wallet share? It's very dispersed.

See, basically, we have this principle of home grow the colleagues, home grow the clients. We don't flock on the doors of people who have just had a business sale of ₹200 crores.

I would say that our platinum clients, I can say confidently that 50%-60% of the wallet would be with us. The same clients, if I see the trend, which is what I think is important, would be an upward trend for 95% of the families.

Top 100, I would say 60%-70%. There'll be several with 100% with us.

That's where it stands.

That's a part of, when you say the denominator is the mutual fund net worth or you're saying of the total net worth?

See, wealth has only one definition. Unfortunately, market defines however.

I'm speaking about wealth. Wealth includes all the assets, physical also, which they don't live in.

Okay.

Not just mutual funds and stocks. I count everything as wealth.

Wealth is everything one human being has which he does not consume or aspires to consume.

Got that. The second actually is more of a financial question.

We've seen a very, including the ESOP cost, we've seen a very sharp increase in employee cost from the time you have given ESOPs, this was in the fourth quarter. Now, how should we see this and model, say, next year?

Do we see a increase in expense? Ideally, the ESOP expenses is the highest in the first year and then it's on a declining trajectory.

Should we go in similar manner and assume that the ESOP cost will decline in next year and possibly the overall employee cost will see a much lower growth in next year?

Yes, sir. Non-cash expenses, which is where ESOP falls, mark-to-market and non-cash expenses, the dispersion between your profit before tax which is ₹122 crores and this ₹90 crores will reduce.

Yes, to answer your question, will the ESOP cost reduce? Yes, dramatically, yes.

Got that. Just one final question is on the MLD part where anything that worries you on this business which kind of, say, runs at the top of your mind?

That business has been growing well for us, no doubt on that front, but does any part of that business worries you in any sense?

Prayesh sir, whatever worries us na, we start working on it, okay, long before it becomes an actual wolf knocking on our door. If you ask me, I've said the same thing four years back, it doesn't worry me because all the variables which were my risks were identified much before.

Does it worry me? No.

Does it require professional management to be able to make sure it is not worrisome? The answer is yes.

Is it scalable? The answer is a big yes.

Of course, people would still take it with a pinch of salt because they don't trust the professionals who tends to people, I don't know why, but yeah, I would do a straight talk. No, that doesn't worry me, but yeah, I know most people wouldn't believe that statement.

They didn't four years back, they don't today. Sir,

even in this falling market, you would have given very healthy IRRs on these products?

Yes, sir. We would have given.

Some of them didn't give the maximum IRR in the last quarter. Otherwise, we had 1,190 consecutive products, consecutive products from December 2020 till as much as May-June this year, which is the longest streak of wins any product in the history of, in the history of India would have given expected returns, all of them.

That streak broke in this year, and some products didn't deliver the full 14%-15%, but delivered 6%, 7%. None of them in the history of Anand Rathi's issuance from 2012 December have ever lost money at maturity.

Do you think this slowdown in the growth now will be a challenge for this MLD business? In the near, the question is from the near-term perspective, do you see that as a risk for your future flows?

I can answer it in two ways. One is, if I don't see a growth of 20%-25% this two quarters, for example, if that's near term, I would have revised my guidance downwards.

Got that.

Okay? One thing you can expect from us as professionals is courage.

Right?

Mistakes we do, but we generally have been taught by both my bosses, Mr. Rawal, Rakesh Rawal and Rathi ji, that do a straight talk and tell them.

Near term, am I worried about the summation of 20%-25% PAT growth? The answer is no.

If that was the case with the slightest of the probabilities, I would have revised my PAT guidance down from ₹460, and you can expect this from us in the future as well. Now coming to the structured product, long term, do such small cycles or larger cycles also impact structured product business?

The answer is no. Why?

Because unlike another wealth management product, the agility of a structured product is very high. Tomorrow, today now let's assume, I was just speaking to a journalist a few days back, a couple of days back, and I said Nifty has stopped representing the Indian broader market because there's a lot of short buildup of FIIs in the Nifty stocks because we've opened up some degree of short possibilities there by some regulatory changes.

If tomorrow Nifty is not a great barometer for me to issue a structured product, can I do it on Nifty broad Nifty NSE 500 if there were futures listed? There is a lot of agility is the point I'm making.

If 30% target for five years is too much to ask for in the contemporary situation, can I make a product with 15? The answer is yes.

Coming back, long term, the agility of a structured product which can embed any long-term derivative becomes so flexible that you, the, if the interest rates are very high, I would start selling calls instead of buying puts, or so basically if your volatility is low, the design changes. If the volatility is high, you will make a low vega product.

If your rho's are high, then you will make a low delta product. That of course, this might sound like Greek and Latin, which literally it is, these are Greek alphabets.

That's the agility the structured product has to become contemporary, unlike a long-only mutual fund has to be long only. Right?

It, extent of long is also not calibratable in the category two of equity mutual funds, for example, and PMS's can, of course, but structured product, agar meri bullishness kam hai, toh main Nifty ki target kam lunga, aise. That's the long-term indication.

Short-term, do I worry about the demand? No, I worry about when do I get my trails to 50% which I have given a guidance.

Got that. Yeah.

Thanks. That's helpful.

If I have a few questions, I'll come back in the queue. Thanks.

Thank you, sir.

Hi. I just wanted to, congratulations for the great set of numbers, very consistent.

You have these HNI clients which are ₹50 crores and above. These are big chunk of your overall revenue.

I just wanted to understand if the yields that you get are similar for this segment versus, say, the ₹5 crore to ₹50 crore segment yields that you fetch?

Absolutely. I get if not the same, marginally better maybe, I've not checked, but we don't give any discount on fee.

Economies of scale only increases value-added services, but does not reduce fee. I can proudly say we may be one of the few wealth management outfits which has never taken a check indirect from a client, irrespective of if the person offered us thousands of crores.

The answer is no. As you go up the pyramid in terms of my clients, that's why we home grow them.

Most of my largest clients have been with us for 15 years, they would have started with ₹2 crores.

Wonderful. Thank you so much.

Thank you, Mehta, sir.

Good afternoon to the team. I have two questions.

My first question is just want to understand the forward guidance. Beyond the regular outlook, what are the top two to three execution priorities you're focusing on in the next few quarters to drive client acquisition, wallet share expansion, and AUM growth?

Alongside that, what do you see as the key risks from market volatility, the constant changing investor sentiment or increasing competition? How are you preparing to manage them while strengthening the company's overall market share?

That's my first question. I'll ask my second after this.

Thank you.

Wow. This is a question where I can go on and on, because you've asked me everything practically I do.

That, yeah, coming to the, on the lighter note, I was saying that, but on a serious note, when you look at our principle, our siddhant or our buniyad on which we build our business, is not do new things every quarter or every year, do the same old thing in a better fashion again and again. What do I do for client acquisition?

I do events of my clients, colleagues, societies. Very low-cost events, I go to their places and collect 15 people.

I have done 130 events. I don't know, Tejas se pucho.

I have our events department, which don't do those fancy events, they do, of course, but those are not the premise of my acquisition. If my client loves me, I will say, "Sir, aapki society mein ek event kara do."

Then he will speak. Udhar mujhe ₹20,000 kharcha karna hai, aur they actually refer us clients there if they think I have added enough value in life.

If I have 14,000 families, my 7,000 families have finished three, three and a half years. There are 2,500 families who've finished 10 years, maybe, right?

2,000-odd. Don't hold me to that number.

Those are the guys who actually give me events. That's one way.

Acquisition, we acquire on the basis of, now today, website leads have become a reasonable source, where people reach out to us, thanks to some degree of awareness of our services, they reach out to us. Over the next three, four years, I would see cold calling is something which we don't like we doing because we don't like as human beings receiving phone calls on a Sunday afternoon, random people.

We want to avoid that in the future, but we're building, references have always been 50%-70% of our clientele, we want that, plus website leads. People either have to walk up to us or they have to be referred.

That's the destination model in three years.

Great. Thank you.

165 events we did in this financial year. We have done, Vishal sir has figured out in the meantime, 165 events we have done.

Chota-chota events, not those where you're trying to brand yourself as bigger and spend crores, that's not the intent. That's on the acquisition side.

Wallet penetration is deliver Jensen's alpha. Most people don't deliver Jensen's alpha.

If you deliver somebody a Jensen's alpha, in India, Jensen's alpha is mistaken to be alpha. Jensen's alpha deliver karo, that will give you the wallet.

We go with the assumption that my client is smart. Of course, that's why he is HNI.

He is 1% or a little lesser than 1% of India. Do I have to convince him to give me money or I have to deliver to give him money?

Actually, if you think logically, I don't have to convince him. I just have to deliver.

Deliver not absolute return because absolute is not in my control, Trump sahab baithe hain na. Right?

Relative is in my, relative is in my influence, not even in control. That's where, like you do a mutual fund selection out of 927, you try and make sure that you beat the Nifty or NSE 500 by 2% to 3% after earning my 1%.

Then, the client knows, okay, he's accumulating small, small buffers. Like our model portfolio on the equity mutual fund side, from 1st of June 2013, audited, okay, across 13 years, has delivered 198% alpha on Nifty and about 100% alpha on NSE 500.

Right? Even if the market fell by 50%, the guy has still beaten Nifty in 13 years.

Do you understand what I'm saying? That is in control.

How do you penetrate into one's wallet? By doing finance like a treasury, not like a wealth manager.

Great, thank you. Can I ask my second question?

Yes, sir, absolutely. It's your right, sir.

Yeah.

My second question is to Mr. Bhutara.

From an operations and financial management point of view, what are the key risks you're monitoring around cost structures, technology investments, and regulatory compliance, or business scalability? What measures are being taken to ensure the cash keeps on flowing and margins are maintained at stable rates?

Rajesh Bhutara ji has to only be Rajesh Bhutara and this all will happen because Rajesh Bhutara has finished 25 years in this company. Rajesh sir, aap hain?

Ek, do cheezein batayein phir main tippani deta hoon apni.

Yes, sir. Hello, good afternoon, everyone.

Haan sir. Margin maintain hoga, pooch

rahe hain? Nahi nahi, we have maintained all the margin.

No treasury-wise risk in our case,

or Rajesh [unclear] Hm-hm. Aap kuch keh rahe hain?

Yes, tell me Rajesh

sir. Nahi nahi, technology side we have a strong technology team, as well as a strong system.

Technology side is not a, have any issue for our business.

Thank you, Rajesh ji. To add to Rajesh sir, one is how we look at cost, we look at it that we don't want operational efficiencies, matlab what do you call that, operating leverage.

Okay? We want to reinvest in our business.

40% is my target, I have to have my PBT above 40%, I have to have my PAT above 30%. This is what has been told by my boss, it's patthar ki lakeer, we try and do that.

How do we look at cost? We don't become flamboyant sometimes when things are good, on and so forth.

Point one, is our technology going to become more efficient? Our costs are going to go up?

I don't think it'll go up. Second, are we building our technology very, very on a different tangent than the industry?

The answer is yes. Now, for example, we hired four IITians who are designing algos for me to research, okay, matlab the kind of stuff which happens in a treasury more so.

Technology, we will spend some money, but anytime our PAT, PBT increases beyond a certain level, we would want to reinvest in strengthening a lot of verticals, okay, which is what Rakesh sir says. If you have to, in good times, when your PBT is going to go up more than your expected, 43, 44, 45 is okay, it's in the order of magnitude of 40, if it became 48, now I don't want to impress the shareholder saying that I have operational efficiencies, I would bring it back down by investing in things which I think which will keep my business up and running and consistently running 20 years from now.

Thank you.

And That's how, if you can get a little more narrow, I'll tell you. Sorry.

No, it pretty much answers my question. Thank you and best wishes.

Thank you, sir.

Yeah. Hi.

Thanks for the opportunity. Just one question.

How [unclear] I'm

Is it better?

Is it better?

Good afternoon. How much are the non-cash charges in the quarter?

Sir, non-cash charges and mark-to-market, right?

Yeah.

Non-cash charge kitna hai? I think ₹40 crores.

Non-cash charges, Feroze bhai, ₹46 crore.

₹46.

What was it in the corresponding quarter of the last year?

Zero, sir.

Last year is zero.

Same quarter last year was zero?

Yeah.

Yes.

Okay. Thank you.

Thank you for the question, sir, Milind sir.

Hi, everyone. My question is so, we've been hearing about the company.

In July 2026, your wholly owned subsidiary Anand Rathi Wealth FZE, it received in-principle approval from IFSCA. Could you please throw some light about the revenue opportunity we are targeting through it?

Sir. If I understand it right, Gift City, we've got an approval.

What kind of revenues would you expect or what kind of revenue opportunities do you expect?

Yes. Yeah.

Correct, sir? We are a very India-centric organization, we will use that license as, of course, expected, and the license in nature as well, to bring money to India.

When you bring money to India, we will try and deliver the Indian resident proposition to an NRI. Today, in an Indian resident proposition, we have mutual funds, which we choose mathematically, and then we design structured products.

We will try and deliver the same proposition in a more tax-efficient fashion to an NRI, that's the expectation. What kind of revenues are possible?

I don't want to count my eggs today, but do I see very, very exciting times for me if I can get global capital into a already validated proposition? The answer is yes.

Will I do anything different? No.

Will I do what I have done in a different platform for a larger universe and a larger canvas? That is yes.

If, for example, if there's a London guy who wants to invest in India, I would use the platform to be able to offer my India proposition, which has a credibility of 14, 13, 14 years, to him.

Okay. Any schemes planned for this year?

Yes. Sorry to interrupt.

Any schemes planned for this year? In Gift City.

Yes. See, yes, there are a lot of advantages there.

Should I plan as any revenue, you should go with for my first 20%-25% PAT growth or revenue guidance for this year, I have not provisioned anything.

Okay.

We've not provisioned anything. We like to see the proof of concept, what our client objections initially, then we mend that.

We do a lot of trial and error before we become very confident to put them into our revenue targets.

Got it. Thank you.

Thank you, sir.

Yeah. Hello, Feroze and everybody in the team.

Always wonderful to have a talk here. Sir, my point was about the Gift City thing, and I think we got some clarity there.

It's going to be inward remittances or inward investments. Are we looking at doing something out of India, replicate our model to take money out of India through the Gift City as well, or it's just going to be inward, at least to start with?

That's my first point there.

Sunil sir, okay, you want me to answer the first one first?

Please.

Because you paused, that is implied.

Yes,

Sunil sir, in the short term and in the long term, current thought process is to only look at inward, because I think India itself requires a lot of homework currently. I can give you example after example of what kind of research is unraveling our understanding of Indian capital markets, right?

Now we were doing a study on 213 derivative stocks, and there's so much understanding still left and I feel ashamed that I've worked in this market for 22 years as a professional and I'm still not understood some facets of the hypothesis which I tested. Coming back to the point and not go beat around the bush, it'll be inward and even long-term inward, because we want to miss some opportunities and to have focus.

Focus is underrated, opportunities are overrated, is our belief, right? Opportunity is there, but that comes at a cost of focus.

We want to master India as much as possible, and I think we've still scratching a surface. If I told you some hypothesis I've tested, which I'm surely going to put it on media, will surprise us saying that India mein aur kitni research ki ability hai.

Yes, sir, always inward, so far. Long term also, inward.

Great, great. Good, good, very happy to know that.

My second point was on the mutual fund license application. Have we done something on those lines?

Some media news were talking, so, we have applied for a mutual fund license and if so, what are the thoughts around that?

Rajesh sir, kitni tayari ho gayi? Tayari kar rahe hain, Rajesh sir.

Sunil sir, okay, I'll let Yeah. Which can I Feroze bhai,

this month end, we applied for mutual fund license application.

Okay.

We're already in preparation, almost that is prepare, mostly into up to 20th October, we can file.

Okay. By this month end, sir is expected to file.

Sunil sir, that's the confidence of Rajesh ji. Agar Rajesh ji ko ek cheez bol do, toh phir follow-up hi nahi karna padta.

I am unaware, but he is as prepared as this month end. Okay?

Whenever Rajesh ji speaks, I feel very happy and excited because he is one person who has been in this company longer than half my product team was born.

Great.

Okay? Gives me so much pride because that's where, finance is where maximum attention is needed so that you don't slip anywhere inadvertently as well.

Thank you, Rajesh ji. I'm using this platform to acknowledge his contribution to bring us thus far and further.

Sir, if I can just

discuss

this in more detail. See, essentially we like the company with the reason that we are re-focused on the things which we do.

We are taking care of our client wealth and we are investing into mutual funds. Managing money and the part of distribution, that's significantly different.

What is required for a mutual fund would be more about investment mindset, extra, extra. Sir, I just wanted to understand are we digressing from what we are great at?

Just wanted to understand this piece if it is possible to be shared on the platform right now.

Of course, it is possible, sir. Transparency is the least my shareholder can expect, especially Sunil sir, who has added value to us by every question all the 19, 20 quarters.

Yes, will we digress? The answer is no.

Only a platform doesn't imply digression. What you do with the platform implies digression.

I could have used Gift City to invest in Korea, then it implies digression. Whatever we will do on the mutual fund platform, if somebody can do better, we are not an egoistic platform to try and do it ourselves.

We will do something which is not me-too whatsoever. If anything can be delegated, has to be delegated, is our principle.

Why do I need to build a long-only ability when I have the stars in the country? What we will build will, again, of course, unfold for people to see, but it is not going to be me-too, for sure.

Okay. Fine, fine.

Look forward to that interesting opportunity which will come with us going forward.

Yes. I don't want to

Sir. Spill my beans too much.

I don't want to spill my beans too much because I don't want any shareholder to extrapolate anything before the eggs are hatched. Matlab yeah, before don't count the chickens, they say, no?

That's why, I'm not expressing too much. I'm so happy and excited for the fact that the group has decided an AMC inside this company.

My shareholder gets to participate on the IP built here, which can also be executed on a mutual fund platform. I don't know whether I've been able to articulate that well enough.

I was very excited to have that as a fully-owned subsidiary of ARWL, which is 60%, 50%, 50% free float or even more.

Sure. Thanks for all this.

All the best and look forward to many more quarters of growth from the company. Thanks.

All the best to each and one, everyone.

Keep working for the long-standing shareholders like yourself.

Yeah. Good evening, and congratulations to you and your team for consistently performing, even in testing times.

The question is

Yes, sir.

Yes? I hope I'm clear?

Yes, Arun sir. I can hear you very clearly.

Yeah. Our assets have crossed around 100, ₹1.08 lakh crores, a milestone, which is good, which is an 18% growth year-on-year.

Could you help a breakdown of how much of the growth is driven by the new money, which inflows versus the mark-to-market gains from the performing equity markets? What's the target for the net inflows if the market volatility increases in the coming quarter, in the coming half-yearly?

Arun sir, namaste, sir. We have a target of ₹1.2 lakh crores for the year on the AUM bit.

Okay?

We have a target of generating net flows of ₹6,000-₹7,000-₹8,000 crores with God's grace for the residual year. The mark-to-market, so far, has not contributed too much in the last quarter.

Since our mutual funds delivered stupendous excess returns, it has helped us keep the number ₹2,000 crores more from the last quarter end, in spite of one of the worst quarters for Nifty. How much is Nifty, sir?

Nifty fell last quarter by about 8%, 7%? One second, Vishal sir is checking.

In spite of that, we brought in ₹4,000 crores. Ideally, if there was zero mark-to-market, we should have been at ₹1,10,000 crores.

There is a ₹2,000 crores mark-to-market loss this quarter. Nifty is down 5,000, 5%, our total overall assets would have fallen about 1.5%.

Okay.

Will we get to ₹1,20,000, don't know, but will we get to the net flow of ₹3,000-₹4,000 crores for the next two quarters? We'll try our best.

That will mean, if we get some 2%-3% mark-to-market, our most volatile guidance, which is AUM, because it depends on Trump sir and so many other external variables, is the most volatile one, unlike revenue and guidance, because AUM is captured on one single day, 30th September, 31st March. We have a target.

That's the bit. Does it answer, Arun sir?

It does answer. Thank you very much.

Thank you.

Thank you, sir, for your question.

No, my question on ESOP was asked and answered by Feroze already.

Thank you.

Good afternoon, sir. Thank you for the opportunity.

Sir, two questions. Firstly, among the net flows, what would be a broad breakup between let's say your existing clients and new clients, if you could share how do you look at that?

Yes, sir. I can tell you this intuitively, of course, Vishal ji will give precise number.

How we look at it na, sir, we don't push clients to start big. Okay?

Generally, our 70% of the net sales is generally 60% to 70% will be existing clients, because unlike other private wealth companies who will say start with ₹5 crores, we say start with ₹1 crore as long as you have 10 somewhere. I will prove my merit over a period.

Of course, in bad times, it becomes difficult to prove to the initial clients, new clients. I'm now conceptually wanting to answer rather than mathematically.

I'll come to the mathematics of it. Conceptually, we've always as a wealth management outfit, my boss has told me be secure in your skin, don't push them to start big.

Rishton ka business dheere se start karo, umeedein kam rakho, aur build karo apna confidence logo ka. If I got some 200 clients last month or more than that, I would tell people start with ₹1 crore, ₹2 crore, no problem.

If I get ₹1,000 crores in that month, hypothetically, then I would get 75% from existing clients and ₹250 crores or the new my clients would be about ₹1 crore, ₹1.5 crore each. We generally try and validate whether each of them have the money to give me.

If they have ₹10 crores to give me, I'll start with ₹1 crore, no problem. If I deserve it, you will give me.

That's the hypothesis. Now coming to the exact number for the last quarter.

62 is

62 is existing, 38 is new, sir.

Okay. Thank you, sir.

Very helpful. Secondly, let's say if you look at the business from a strategic lens for the next three, four years, what are the key areas where you would like to focus on?

Let's say get deeper into existing clients wallet share, or expand more geographically, or are you looking at new products? How do you look at a business?

Sir,

okay, let me again, I might sound a little philosophical. We're only focused primarily, we are, obsessed is a bad word, we are, okay, let me use the word obsessed.

We're obsessed with client outcomes. Everything else follows.

Now coming to we are looking at how do we deliver 6%, 5% to 6% Jensen's alpha to clients. That's the sole-minded focus of 182 research people.

Also my relationship managers, they have to implement advice. That is when concepts translate into money into portfolios.

Our sales fraternity, if you have to call them that, which I don't like to call them, the wealth, the delivery engine, which is account managers and RMs, which is about 900-odd people, are focused on making sure that paper money becomes actual money. You don't have to walk up to a client and say, "I told you so."

That doesn't help the client. Right?

It just makes me feel good about it. "I had said this, sir, you didn't do, but I told you so."

First in the topic of what are we focusing on, if I went straight to your answer, it'll be unfair to not tell you what we are obsessed about. We're obsessed about client outcomes.

In the given environment, of course, my new clients might not be happy. They're saying, "Yaar, tune socha tha maine socha tha 10%-15% banega.

I'm making 2%, 3%." Yes.

Now coming to what are we focusing on, we are focusing on all four engines. The first engine is client's performance.

If clients make 12% this year, my revenue next year goes up by 12%. The second, which is what I touched upon, the second thing which we're focusing on is capacity utilization.

Today, we have 431 relationship managers still having a capacity to handle 8,000 more clients. I'm submitting to my existing clients to refer me to their friends if they think I will not be unfair to their friends.

That's unutilized capacity. That's the second thing we're focusing on, and clients are generously referring their friends, which is a win-win.

Third, I am focusing on new plant and machinery or new capacity, which is our relationship managers we are for the future, which are our account managers, which is 500 people, some from IIMs, some from CA background, some from now IIT, some from basic colleges, but intelligent, sharp, genuine human beings. The next 100 RMs are already identified and being trained to be promoted in the next one year, one and a half years, but we have some capacity constraint in terms of how many do we want to bite before we can chew.

That's the third leg of growth. The fourth and the final leg of growth is the penetration into clients' wallet, which is my fourth leg of growth.

Existing assets, if there's mark-to-market, my revenue increases. Capacity utilization, capacity creation, and lastly, penetration.

We may have more than ₹1 lakh crore plus with the same set of 14,000 families who are evaluating us at different stages of life. Somebody who's evaluated me for 10 years is a full, sole advisory client, like that.

These are the four things we're focusing on: performance, penetration, capacity building, and capacity utilization.

Very helpful, sir. Thank you so much for your time, and all the best for the coming

Thank you for your kind questions, sir.

Thanks for taking my question. Sir, just two questions from my end.

Firstly, if you can just brief us on how the MLDs work and how the IRR on this product has worked over the years in the bad and the good markets? Secondly, how you tap the ultra HNI segment?

You already did mention that you do conduct the events that help you to garner the new clients, but apart from that, more into the fact that how do you tap ultra HNI clients, and how it is different versus peers?

Wow, great. Firstly, structured products, how do they work?

There's a lot of content on the secondary space. If you said Feroze Azeez explaining structured products, there'll be there enough.

Let me give you a sense of it. Structured product issuance requires some NBFC who is not very flamboyant with their NIMs.

They have to keep the money safe. That's the first condition.

Most NBFCs who issue structured products don't want to keep 50% in investments. Generally, an NBFC who issues structured products, which has some derivative hedging to be needed, has to have 50%-60% of their money in a Demat account.

That's the first step to keep the money safe. Markets are markets.

You need to have margin enough to hedge it correctly as per the Black-Scholes pricing model. Then, you embed their long-term derivatives depending on your delta, gamma, vega, theta, rho's opinions.

That's the second thing. Third, you have to back test and get your outcomes such that your front test using Monte Carlo simulators should always supersede your back test results.

That's what most of the products which we have designed and launched from the last 14 years would have shown a probability of 90% of the victory, but actual transpired is 94%-95%. That's where the Monte Carlo simulator needs to throw up in the future.

Probabilities have to be greater than past probabilities. On that whole thing, you will design two things and continue the same two things 2,000 times.

Right? We do the same product.

The product I did in 2012

Yes. How has been the output?

Monte Carlo simulator, when we designed it, told us 94, it delivered 94% of maximum outcomes. Back tests are very short periods of time.

We don't do path-dependent products. We do only end-dependent products.

All our learnings which I learned in Religare and Macquarie, when I started issuance from 2006, whatever mistakes I did became an embargo to not do here and do the same product. Clients tell you to design customized structured products.

We say, "Sir, you don't understand embedded derivatives. You don't understand option Greeks first order, you will not customize.

If you want to buy what I put on the table, buy it because for you to customize, you'll have to run so many models." Unlike most wealth management outfits who are ready to design anything for anyone, we don't customize structured products.

If somebody want customization, then they need to understand option Greeks so deeply, third-order Greeks have to be understood. What do we do in structured products?

We embed derivatives which have a larger probability, not certainty of victory. That's why all the 1,900 products approximately matured have not lost money in spite of they having matured, some of them having matured in COVID.

That's one. Second, we don't acquire ultra-HNI.

We build ultra-HNI. That's the key difference.

Today, newspapers can tell you who sold the biggest property, who sold the biggest business to a private equity guy, who did an IPO. Those information is available.

Most wealth management outfits go to those doors, saying that, "I will do it in low cost, come to me." We say, "We don't do in low cost.

If I don't deserve 1%, I don't want to be on that table. I will try and do my best to add value to you and earn my 1%."

We don't go to ultra-HNI straight unless he's my client's friend. We take a client with ₹5 crores, ₹7 crores, ₹10 crores and build them to hundreds of crores, if that answers.

Sir. Thanks.

Thank you.

Thank you, madam, Jyoti.

Good afternoon, sir. Congratulations for good set of numbers.

I had a question that what are the primary and secondary issuances of MLDs for this quarter?

Vishal sir will give us this.

Primary for the quarter was ₹4,200 crores. Sorry, sir.

1 second, huh? Primary, ₹2,000 crores, ₹2,073.

₹2,073. Total?

Secondary for the quarter is ₹750-odd Crs.

₹750 secondary, ₹2,000-odd in primary.

Okay. Thank you so much, sir.

Thank you, sir.

Hello, am I audible?

Yes, sir.

Sir, there was a news article that SEBI is planning to give the portfolio managers also the mutual fund advisory services. Any take on it, sir?

It claims to be

Yes, sir, on this subject, I had spoken some time back that most people who surrendered their advisory license were using a PMS license to run a mutual fund portfolio. Basically, SEBI has regularized it by creating PMS where mutual funds can be bought.

I think in a mutual fund, a PMS platform is not so required, because mutual funds you don't transact every day. In stocks, you transact every day.

In PMS, I don't know why, only to charge a fee, a PMS becomes easier because if you're a registered investment advisor and you go and take a check from a bank account, it is not very easy. I think registered investment advisors will find it very useful, because if you put mutual funds in a platform and then charge them in terms of units with a power of attorney, it becomes lesser emotional drain for an Indian to pay a fee, especially during bad markets.

Does it have a huge merit for registered investment advisories to move into mutual fund PMS platform? The answer is yes.

I don't see a reason why a client, especially in the HNI segment, needs to delegate a discretionary mandate to something which he transacts two times a year.

Sir, I was asking whether it could be competitive, it will not be competitive for us, na, then? No, sir.

No, sir. Not at all.

Thank you, sir. Best of luck for the future.

Thank you, sir.

Hello, sir. Good afternoon.

Good afternoon, sir.

Congratulations on your numbers and also on the approval for a Gift City operating, sir. My question is, when do you think would that become operational, and initially how many funds are you planning to launch?

Vishal sir, two. In the next two, three months latest.

By the next quarter, I think we will be able to give them a good news in January results, matlab December.

Yes, sir. In a couple of months, not too far, and two funds.

Thank you, sir. That was of great help.

Thank you, sir.

Thank you, madam. I'd like to thank everyone for being a part of this call.

We hope we have tried to answer your questions. If you need any more information, please feel free to reach out to Mr.

Vishal Sanghavi, our beloved Investor Relationships Head, and Rajesh Sir Bhutara, our beloved CFO, which, while wishing everyone a very happy Diwali in advance, because we're going to speak after Diwali, and hope the festival season brings joy and prosperity to one and all. Thank you to spend time on a Monday evening.

Have a wonderful week.