PRUDENTNSEMarch 31, 2026

Prudent Corporate Advisory Services Limited

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11analyst exchanges

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Management on call

Sanjay Shah

CHAIRMAN & MANAGING DIRECTOR, PRUDENT CORPORATE ADVISORY SERVICES LIMITED

Shirish Patel

CHIEF EXECUTIVE OFFICER

Chirag Shah

NON-EXECUTIVE DIRECTOR, PRUDENT CORPORATE ADVISORY SERVICES LIMITED

Chirag Kothari

CHIEF FINANCIAL OFFICER, PRUDENT CORPORATE ADVISORY SERVICES LIMITED

Parth Parekh

HEAD (INVESTOR RELATIONS), PRUDENT CORPORATE ADVISORY SERVICES LIMITED

Sanketh Godha

AVENDUS SPARK INSTITUTIONAL EQUITIES PRIVATE LIMITED

Key numbers — 40 extracted

9.7%

e have bounced back strongly. Our AUM as of 5th May has already climbed to 1.33 trillion. This is 9.7% higher than the average AUM of full FY '26. This gives us a strong, healthy revenue tailwind for

INR 1,28,000 crore

u look at, it provides the trend of quarterly AUM, average AUM. Our average AUM for Q4 FY '26 was INR 1,28,000 crore, which grew by modestly 0.3% sequentially. This is particularly noteworthy because market fell by

0.3%

ly AUM, average AUM. Our average AUM for Q4 FY '26 was INR 1,28,000 crore, which grew by modestly 0.3% sequentially. This is particularly noteworthy because market fell by 14.5% during the same peri

14.5%

which grew by modestly 0.3% sequentially. This is particularly noteworthy because market fell by 14.5% during the same period. We managed to grow sequentially due to two reasons. First, we recorded

INR 4,300 crore

y due to two reasons. First, we recorded our highest-ever equity net sales in a single quarter of INR 4,300 crore. Second, the market correction was largely concentrated in the month of March. So, on a year-on-y

26%

centrated in the month of March. So, on a year-on-year basis, our quarterly AUM grew by a healthy 26%. Now please turn to Slide #47. This slide shows how our equity AUM has moved both on a year-on-

15.4%

et us start with the year-on-year view on the left-hand side of our slide. Our equity AUM grew by 15.4% during FY '26. It moved from approximately INR 1,00,100 crore in March

INR 1,00,100 crore

t-hand side of our slide. Our equity AUM grew by 15.4% during FY '26. It moved from approximately INR 1,00,100 crore in March 2025 to INR 1,15,480 crore in March 2026. This represents

INR 1,15,480 crore

26. It moved from approximately INR 1,00,100 crore in March 2025 to INR 1,15,480 crore in March 2026. This represents an increase of nearly INR 15,400 crore. Importantly, this entire g

INR 15,400 crore

2025 to INR 1,15,480 crore in March 2026. This represents an increase of nearly INR 15,400 crore. Importantly, this entire growth has come from net new money driven by our SIP flows and acquisit

8.2%

of Indus. Now coming to quarter-on-quarter view on the right-hand side: Equity AUM declined by 8.2% during the quarter. This was primarily due to mark-to-market losses of INR 14,550 crore, reflecti

INR 14,550 crore

quity AUM declined by 8.2% during the quarter. This was primarily due to mark-to-market losses of INR 14,550 crore, reflecting sharp market correction during the period. However, the impact was partially cushione

Guidance — 20 items

Sanjay Shah

opening

“I hope you have had access to the investor presentation handy with you because during the discussions, we will be referring to a lot of slides of the presentation.”

Sanjay Shah

opening

“With our annual incremental cycle now complete and our entire team's review is also completed, we expect that the employee cost for the existing base will increase by approximately 14% in FY '27.”

Sanjay Shah

opening

“Current gain on the mutual fund portfolio stand at approximately INR 11.5 crore and if market remained at current level, I think by 30th June we expect a very healthy income from other income side.”

Sanjay Shah

opening

“We have aligned our payout structure in line with regulatory changes wherein rate will also be exclusive at our end and distributor who raised a GST invoice, we will be reimbursing him GST based on the invoice raised by them.”

Sanjay Shah

opening

“We expect greater clarity to emerge by end of this month and we will update our stakeholders accordingly once the picture is clearer.”

Swarnabh Mukherjee

“I just wanted to understand, I mean, I think it seems like that the expectation from your side was that there will be a pass on.”

Swarnabh Mukherjee

“If you could highlight, you know, as there will be deviation vis-a-vis what was your expectation previously in terms of the impact?”

Sanjay Shah

“And if not more, at least in the existing ratio, which we are having as far as sharing I concerned, I think we will be able to share that.”

Swarnabh Mukherjee

“So, I mean, in terms of this, you think that it will be relatively neutral in terms of the flow yield.”

Sanjay Shah

“Now, with that advantage being gone away, we will be very, very competitive as far as what they used to get from AMC and what we used to offer.”

Risks & concerns — 15 flagged

Despite impact of back book repricing, our yield has remained more or less stable at 91 basis point, not only for the year, but for last three years in a row.

— Sanjay Shah

This resulted in an overall drag on P&L for last quarter by approximately INR 13 crore to INR 14 crore.

— Sanjay Shah

So, to conclude our full-year performance: FY '26 has been very, very satisfactory year for us despite two key headwinds mark-to-market pressure in the mutual fund segment and yield rationalization in the insurance segment following the reduction of GST to zero.

— Sanjay Shah

So, firstly, like as you mentioned that on the older book, like probably there will be an impact of around two, three basis points from the larger AMCs.

— Lalit Mohan Deo

So, it will be difficult to give you any clear indication as far as numbers are concerned, but yes, the rate would be readjusted for.

— Sanjay Shah

For the non-GST partner, I think across the board, there is an impact of 15%-20% of the revenue.

— Sanjay Shah

And current indication is such that I might have an impact of 2-3 basis points in the back-book, but not into the new business.

— Sanjay Shah

And second question you said about the exit load also, I think we are expecting roughly about, so then in case of exit load also, if you look at the back-book and the new business which will be mobilized, so, we assume that as far as book is concerned, there might be impact of 2 to 3 basis points on the entire AUM on a weighted average basis.

— Sanjay Shah

So, do you think that the competitive intensity to acquire MFDs as well as the rates that one needs to share with these MFDs, that could be a challenge going ahead?

— Prayesh Jain

It is very difficult for any MFD to move out after attaining a certain scale.

— Shirish Patel

All their customers are on fundzbazar, moving their all the x platform to y platform becomes very, very difficult.

— Shirish Patel

Bigger the scale, it is very difficult for any MFD to move out of any platform.

— Shirish Patel

Regarding the new business yield, it will be difficult because still, as I told you that, and then the yield also vary based on the composition, which segment more money will come, which scheme more money will come.

— Sanjay Shah

So, to give you an indication that what is likely to be the blended yield, it would be very, very difficult.

— Sanjay Shah

And that probably, and normally, we are difficult to give you about the book yield and the existing business.

— Sanjay Shah

Q&A — 11 exchanges

Two questions from my side. Sir, as you highlighted on the five basis point exit load pass on, you are still awaiting clarity. I just wanted to understand, I mean, I think it seems like that the expectation from your side was that there will be a pass on. What are the factors, why this is taking time on the lack of clarity is there? If you could highlight, you know, as there will be deviation vis-a-vis what was your expectation previously in terms of the impact? So, that is the first question. Second is, if I were to look at your standalone P&L, the fee & commission expenses, if we calculated

Sanjay Shah

So, I think, let me first of all address the second question related to your, what you call the reduction in the, or probably overall, you are finding visibly reduction in the brokerage payout percentage. So, I can tell you there are two important points as far as the revenue is concerned. So, if you look at, as you knew that Prudent, we have an annual additional trail which we pay to the partner based on their full year net sales. And the provision which we have made based on our assumption in first three quarters was sufficient enough for us so that in the 4th Quarter, our provision was prac

Sir, just two questions. So, firstly, like as you mentioned that on the older book, like probably there will be an impact of around two, three basis points from the larger AMCs. So, just wanted to understand like on the non-GST distributors, like all the partners which we have, so are we aligning our distribution rates for them as well on the older book or are we continuing with the earlier rates itself? And sir, secondly, can you give us the breakup of like the new of the non-financial, other non- financial, other financial products income which is like around INR 30-35 crores for the full ye

Sanjay Shah

So, I think as far as the rate alignment is concerned, definitely our payout will also get adjusted as per how the AMCs have adjusted. So, what we used to pay was the gross rate and now the rate would be aligned by net of GST on the book if I am talking about. So, I think that adjustment will definitely happen. For the first time in our history, it is happening that our payout is going to be delayed by a few days this time because still a lot of clarity is required from the AMC and we have not calculated for the month of April. So, it will be difficult to give you any clear indication as far a

So, firstly, in your presentation, I see that there are around 1,000 plus MFDs who can basically sell SIF. So, just two questions on that front. One is, what would be the SIF flows in fourth quarter? And if you can give some color on the yield construct for SIF versus, let's say, on the equity book that you have, how does it differ? The second question is on the life insurance business. Now, if I look at your annual yield, they seem almost similar, maybe marginally lower compared to last year is despite 2H yields probably would have been lower because of the ITC impact. Now, you mentioned in y

Sanjay Shah

So, let me answer about the third one first. First two Shirish will try and address. So, as far as acquisition is concerned, it is a work in process and continuously we have been exploring. So, nothing at a concrete state, but I am sure something, I think it is in the process. We will not say that something will happen in '27-'28, or '26-'27, but definitely, regularly, something or something will keep on coming and we have been trying and exploring that opportunity all the time. So, Shirish, about SIF and LI. So, you asked about the flows in SIF in last quarter. So, we did around INR 90 crores

Hi. I joined in a bit late. I don't know whether this point has been discussed. So, one is the GST impact that is there and the second is the exit load impact, the 5 basis points going away. Now, whenever you consider the passing it on to your distributors, what is the thought process that Prudent has with respect to maintaining its margin, whether it is the absolute spread that you would be earning? So, for example, if you are earning 90 bps and earlier you were giving 70 bps to the distributor, you were earning 20 bps. Now, that goes to 88 bps. You would maintain that 20 bps and give 68 bps

Sanjay Shah

So, I think you are right. Before you joined, we tried to discuss about how are we going to manage the changes which are going to happen. So, one thing is we just wanted to communicate that whatever AMC has done for the distributors as far as changing the rate is concerned because previously your rate was, let's say, for example, 1% inclusive GST. The revised rate would be 85 basis points and whoever is a part of GST has to raise an invoice for that. So, the similar impact would be at our end also. However, we will not be able to crystallize anything in the monetary terms because here the Apri

Sir, thank you for taking my question. Just one question from my side. On Indus Capital acquisition, if you can highlight how much AUM we have been able to retain, if there is any attrition or outflow we have seen on that front is one. And second, do you think there can be further such acquisition potential opportunities which we can find in the market? That is all from my side, sir.

Sanjay Shah

Yes. No, I will just talk about the Indus, then probably you can discuss. I was talking about the Indus is an acquisition. So, I was just saying that industry, the experience has been very, very positive. We communicated that we acquired INR 2,085 crore was the AUM when we were supposed to acquire. And finally, I think INR 10-15 crore here and there, we got roughly about INR 2,060 crore in our quote by end of September. And if I tell you the latest number, the AUM is INR 2,250 crore. It has grown in line with my overall AUM growth and the gross sales, net sales, SIP book, everything has been r

So, my first question is on Slide 32. Just wanted to check what is the AUM share of MFDs with more than INR 10 crores of AUM? I do not know if that number is disclosed anywhere else in the presentation.

Sanjay Shah

I think there is a slide if you look at more than INR 10 crores. where we say that we have 2,220 people as on 31st March who have crossed INR 10 crore AUM. So, I think we have not provided the AUM, but if you look at the average AUM. So, I probably can give the number. And sir, just qualitatively, Sanjay sir, of the MFDs that you are acquiring, how has been the direction in terms of firstly at what AUM level they are joining the platform and has it changed materially in the last two to three years? Shirish? Basically, MFDs joining are of two categories. One, new to industry and secondly, the e

Sorry, just a few follow-ups from my side. One is if you can quantify the employee number as of March 31st. Second, given all the discussions around MF yields, would it be possible to give some color on what are the incremental yields currently?

Sanjay Shah

As of 31st March is concerned, the precise number is 1,540 people. And their new salary bill would be, I said about INR 10.2 crore. So, that is about the entire number of employees. Regarding the new business yield, it will be difficult because still, as I told you that, and then the yield also vary based on the composition, which segment more money will come, which scheme more money will come. So, it is not a single answer that, because you knew, right? Because if the more money comes in largest scheme of BAF, or the smallest scheme of BEF, I think the yield difference will be almost about 30

So, just two questions. Just to simplify, I mean, your MF distribution yields would kind of probably go down a bit, right? But that would be offset by the fees and commission, right? So, is that correct to understand? And hence, would we be able to maintain our net yields is the first question.

Sanjay Shah

Overall, my yield should not come under any compression because on the book, other than GST, we might see a 2-3 basis point impact, which to a large extent we should be able to share with our distribution partners. And the new business, I told you that I don't see any change as far as my yield is concerned. So, overall, my book yield should remain static. I think whether my earnings, how it will get adjusted would be, I will be able to tell you only once the entire thing is implemented into the system. But somewhere, we should see an improvement in our yield as far as my overall yield is conce

Just two follow-up questions. So, like in the last quarter, we had mentioned that the AUM coming from the top five AMCs were in the range of around 50%-51%. Now I just wanted to understand, from a flow perspective, where could that number be? And also within that, a total AUM of around INR 1.33 lakh crores, could you just bifurcate it between the direct channel AUM and the AUM coming from the partner's level?

Sanjay Shah

Shirish? Basically, top 5 AMCs, as you said, contribute around 50% of the AUM. And between direct and the regular channel, I think the ratio what we maintained earlier also, that still continues as it is. After Indus acquisition, it has changed a little. Right now, it is 90-10. So, 90% contribution comes from the AUM, while 90% of the contribution is from our B2B2C channel, and around 10% contribution is from the direct plus Indus channel. If you talk about the new flows, it would be around, you can say, 6% to 7% coming from the direct channel, and almost 93%-94% coming from the B2B2C channel.

Sir, if I look at the gross flows numbers in the current quarter, it seems to be more driven by the lump sum number rather than the SIP, which has been pretty stable. So, I just wanted to understand whether this amount came predominantly when the market corrected? And is it fair to say that it might not repeat if the market comebacks? And therefore, we can go back to that lump sum number around INR 4,000-odd crore kind of figure instead of INR 5,300 crore figure what you experienced in the current quarter. And I just wanted to understand whether it came in the month of March or it was more uni

Shirish Patel

So, basically, I think whenever market corrects the initial phase, historically we have seen that the lump sum money takes the advantage of the market and hence the lump sum flows would be higher than the SIP flows during that period. Long term, I think always you would see that currently in our system almost it is 50%-50% kind of number. So, long term, I think 50% contribution comes from kind of SIPs and almost similar from the lumpsum number. Overnight, SIP numbers cannot change. So, tomorrow market corrects, obviously, I think lump sum will take it over in terms of share. And longer term, i

Thank you. Thank you, everyone. I think we probably tried to address all the queries. However, if you have any question, you can definitely reach out to our IR guy, Parth Parekh. We will be happy to answer all your questions. Thank you very much. Thank you.

Shirish Patel

Thank you.

Speaking time

Sanjay Shah

Shirish Patel

Moderator

Swarnabh Mukherjee

Gaurav Jani

Lalit Mohan Deo

Sanketh Gowda

Dipanjan Ghosh

Prayesh Jain

Abhijeet Sakhare

Opening remarks

Sanketh Godha

Thank you, Julius. Good morning, everyone, and welcome to Q4 FY '26 Earnings Call of Prudent Corporate Advisors Services Limited. First of all, I would like to thank the management of Prudent Corporate Advisors for giving us the opportunity to host the call. We will have opening comments from the Management Team, post which we will open the floor for Q&A. From the Management side, today we have Mr. Sanjay Shah, who is Chairman and the Managing Director; Mr. Shirish Patel – Chief Executive Officer and Whole-Time Director, Mr. Chirag Shah – Non-Executive Director, Mr. Chirag Kothari – Chief Financial Officer, Mr. Parth Parekh – Head (Investor Relations). With this, I would hand over the call to Sanjay sir for his opening comments. Thank you, and over to you, sir.

Sanjay Shah

Thank you, Saket. Thank you very much. Good morning, everyone. Warm welcome to all of you for joining us on Prudent's Q4 FY '26 Earnings Call. Thank you for taking the time out with us today. I hope you have had access to the investor presentation handy with you because during the discussions, we will be referring to a lot of slides of the presentation. So, before I move to the quarterly number, I would like to begin with what we believe is one of the most significant initiatives of Prudent. So, please turn to Slide 24 of the presentation which we have uploaded. So, this year marks the 10th year since we launched Fundzbazar in mid- 2016, a platform that has been central to our growth and to the lead which we have built in the B2B2C segment. Tech adoption has consistently been one of our key growth drivers and we are now taking the next step in that journey with the launch of very powerful AI-led platform called Prudent Edge for our mutual fund distribution partners and FundzEdge for ou

A few highlights that stand out for the year

Our equity net sales at INR 13,900 crore were the highest ever in the history. We added 5,100 new partner during the year reflecting strong and healthy distribution expansion and our health insurance vertical continued to deliver outstanding performance with fresh premium growing at a 35%. So, across the board, our key parameters and the performance indicators have remained robust, and we are well poised as we move into FY '27. So, with that, I will open the floor for question-and-answer. Thank you.

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