360 ONE WAM Ltd (formerly IIFL Wealth) just declared a ₹287 crore quarterly profit, flaunting a 20% ROE while hiding behind an 89.6% promoter pledge – that’s like showing up to a Ferrari launch wearing borrowed chappals. The stock trades at 40x earnings, 5.8x book, and still manages to convince HNIs that their yacht money is safe here. But as auditors, we smell not just champagne, but also debt sweat mixed with a whiff of SEBI settlement notices.
2. Introduction
Picture this: a company that manages ₹4.66 lakh crore of India’s wealthiest people’s money, but itself lives on borrowed funds with ₹11,160 crore debt on its books. Yes, 360 ONE is that rich uncle who borrows your scooty to attend weddings but insists on parking it next to BMWs.
The rebrand from IIFL Wealth to “360 ONE” was supposed to sound global, holistic, and fancy. But to an auditor like me, it feels like a desperate cover-up – “One” because promoters hold only 6.27%, and “360” because that’s the angle of rotation their pledged shares will soon take.
Let’s be fair – they’ve built a business that gives the Ambanis, Adanis, and wannabe HNIs curated advice, PMS schemes, and offshore deals. Their ARR-heavy model means revenues are recurring, sticky, and less market-dependent. But the governance alarms? Chef’s kiss. Promoter holding falling from 23% in 2022 to barely 6% now, with 90% pledged? This is the financial equivalent of selling your house but still keeping your nameplate on the door.
So, should retail investors (with their 2-lakh SIPs) trust a company that only caters to people with ₹25 crore portfolios? Or is this an exclusive club where the cover charge is your sanity?
3. Business Model – WTF Do They Even Do?
Let’s simplify:
Wealth Management (85% of AUM) Basically babysitting rich people’s money. They decide whether Mukesh bhai’s spare ₹100 crore should go into equity PMS, an AIF in private credit, or a luxury condo in Mauritius. Discretionary and non-discretionary advisory, lending solutions, treasury products – in short, “Sir, paisa kahan daalna hai, bolo.”
Asset Management (15% of AUM) This includes AIFs, PMS, and mutual funds. They pitch funds with fancy names like “Absolute India Opportunities Fund” or “Credit Opportunities Fund” which essentially mean “Trust us, bro.”
Lending (via 360 ONE Prime) Loans against securities, real estate funding, margin trading. This is the business where they pretend to be a bank without actually being one. Loan book: ₹3,558 crore. NPAs? Well, once 2.3% in FY21, now “zero” as per official claims. Auditor’s eyebrow: raised.
Clientele? 11,000 individuals, with 2,750 whales (₹10 crore+ AUM) making up 93% of their wealth business. In short: they don’t care if your net worth is under ₹5 crore – you’re not even on the guest list.
Question for readers: Would you trust your CA more if he also doubled as your loan shark? Because that’s basically what 360 ONE is doing.
4. Financials Overview
Quarterly Snapshot (Q1 FY26 vs Q1 FY25)
Source table
Metric
Latest Qtr (Q1 FY26)
YoY Qtr (Q1 FY25)
Prev Qtr (Q4 FY25)
YoY %
QoQ %
Revenue (₹Cr)
725
696
821
+4.2%
-11.7%
EBITDA (₹Cr)
453 (62% margin)
423 (61%)
461 (56%)
+7.1%
-1.7%
PAT (₹Cr)
287
243
250
+18.1%
+14.8%
EPS (₹)
7.1
6.1
6.4
+16.4%
+10.9%
Commentary: Revenue fell QoQ because rich clients were too busy attending pre-wedding concerts in Jamnagar to trade. But PAT jumped because the company squeezed interest costs better than a chartered accountant squeezing lemon on pani puri. Annualised EPS of ₹28.4 gives a P/E of ~37 at CMP, way above industry average of 17.
5. Valuation Discussion – Fair Value Range
Let’s audit three angles:
P/E Method: Industry P/E = 17. Company EPS annualised =
