1. Opening Hook
When SEBI drops a draft paper right in the middle of your quarter, and GST decides to crash your insurance party — you either panic or pivot. Prudent chose to talk calmly, sip chai, and quote slides like a guru on caffeine. Despite headwinds, they flaunted an 11% jump in AUM and pretended that “unclear GST clarity” isn’t a contradiction. Investors stayed on for what turned out to be an epic saga of regulation, repricing, and relentless optimism. And trust me, it only gets spicier from here — from SEBI shocks to ESOP sprinkles. ☕
2. At a Glance
- Revenue up 9%:CFO blamed it on “an extra day” — even time bends for growth.
- AUM up 11%:Because markets may wobble, but retail SIPs never ghost.
- Insurance revenue up 11.5%:Despite GST gremlins — they still sold policies like Diwali sweets.
- Net Profit up modestly:Treasury income sulked; commissions overshot — profit decided to nap.
- SIP Book ₹1,085 cr:Retail investors refused to flinch — they’re dating SIPs for life.
- Stock stable:Because analysts were too busy deciphering GST maths.
3. Management’s Key Commentary
“Our AUM grew 17% YoY and 8% QoQ, excluding Indus integration.”(Translation: Ignore the fine print — the big number still shines.)
“Despite negative mark-to-market, retail investors stayed consistent.”(Read: Everyone’s still blindly auto-debiting their SIPs 😎.)
“GST clarity hasn’t fully emerged — we’ll know by December.”(Or maybe by Christmas… or the next budget.)
“Insurance yields dipped due to earlier revenue recognition.”(They basically paid themselves early — now paying for it later.)
“SEBI’s TER draft is revenue-neutral but strategically great for us.”(They mean: finally, the playing field isn’t tilted against us… unless SEBI changes its mind.)
“ESOP cost of ₹7.1 crore will hit P&L equally for next 12 months.”(Basically, employees got candy — shareholders got cavities.) 🍬
“Indus acquisition adds ₹22–23 cr top line and ₹15 cr pre-tax profit.”(Indus is their latest cash cow — and it’s already mooing.) 🐮
4. Numbers Decoded
| Metric | Q2 FY26 | QoQ | YoY | Commentary |
|---|---|---|---|---|
| Average AUM | ₹1.19 lakh cr | +8% | +17% | Momentum strong, Indus yet to kick in fully |
| Equity AUM | ₹1.17 lakh cr | +3.3% | +13.2% | Retail inflows rule; MTM losses minor |
| SIP Book | ₹1,085 cr | +24% YoY | Goal: ₹1,200 cr by FY-end | |
| Insurance Revenue | +11.5% QoQ | Health premium up 33% YoY | ||
| Trail Commission | +10% | Provisioning timing distortion | ||
| Other Income | ↓ | Treasury MTM losses hurt bottom line | ||
| ESOP Charge | ₹7.1 cr (annualized) | Expensed quarterly under employee costs |
Analysis:Revenue pacing ahead of AUM — thank leap years and math. Treasury income played villain, while ESOPs joined the cost party. The Indus integration is the silver lining — adding size without indigestion.
5. Analyst Questions
Q:Are new distributors being lured with crazy 90% first-year commissions?A:“Competition exists, but we’re zen.” (They won’t overpay to win Tinder matches with MFDs.)
Q:Any GST chaos?A:“Yes, but too early to tell.” (Translation: everyone’s still Googling the rules.)
Q:Attrition among top distributors?A:“Zero.” (Either true or nobody’s resigning till bonus season.)
Q:Will SEBI’s TER slash hurt you?A:“We might actually gain.” (They’ll suffer less than others — survival of the neatest.)
Q:ESOP cost impact?A:₹7.1 crore over a year. (The cost of happiness, spread quarterly.)
6. Guidance & Outlook
Management sees the second half riding on festive SIP flows, Indus
