• Event Type: Q1 FY '27 Earnings Conference Call hosted by IIFL Capital Services Limited
  • Date and Time: July 27, 2026 (time zone not specified in transcript)
  • Purpose: Discussion of standalone and consolidated unaudited financial results for the quarter ended June 30, 2026
  • Management Participants:
  • Mr. Sreekanth Nadella – MD & CEO
  • Mr. Vivek Mathur – WTD & CFO
  • Mr. Ram Gattani – Head - Investor Relations
  • Moderator: Mr. Devesh Agarwal – IIFL Capital Services Limited

Financial Performance Highlights

Revenue Performance:

  • Revenue from operations grew 30% year-on-year
  • Sequential growth of 9.6% year-on-year for same quarter last year vs current year
  • Sequential growth over last quarter: 1.6% excluding Ascent, 2.7% including Ascent

Business Mix Evolution:

  • Mutual fund revenue contribution reduced to 55% of total revenue (from 66% in Q1 FY26)
  • Non-mutual fund revenue increased to 38% of total revenue (from 24.5% in Q1 FY26)
  • International business grew 32% year-on-year organically (excluding Ascent)
  • Ascent integration contributed significantly to growth (200% YoY including Ascent)

Profitability Metrics:

  • EBITDA grew 7.1% year-on-year and 5.1% quarter-on-quarter
  • EBITDA margins: 34.2% including Ascent, 39.4% excluding Ascent
  • PAT grew 2.6% year-on-year and 7.3% quarter-on-quarter
  • PAT margins: 21% including Ascent, 26.6% excluding Ascent
  • Ascent EBITDA margin at 8.4%

Cash Position:

  • Healthy cash and cash equivalents of INR 687 crores as of June 30, 2026
  • INR 200 crores allocated for dividend payment
  • 51% of EBITDA converted to free cash flows

Business Segment Updates

Mutual Funds:

  • Grew 16% in AUM vs industry growth of 15%
  • Equity AUM market share improved by 80 basis points vs industry
  • Launched automated SIP processing within 3 working days (industry first)

Issuer Solutions:

  • Added 670+ clients in previous quarter
  • Market share: 80% by market cap on main board IPOs, 50% on NSE 500 companies
  • Won IPO mandates for Razorpay, Garuda, and Pushp Brand
  • Pipeline includes PhonePe, Zepto, Jio, Manipal Health IPOs

International Business (Ascent):

  • Won 6 new fund managers with fund value over $100 million
  • Revenue distribution: 1/3 Singapore/Hong Kong, 1/3 Middle East/Cayman Islands/US/UK, 1/3 digital assets
  • Fund type distribution: hedge funds, private equity, venture capital, digital asset funds
  • Setting up facility in Cayman Islands for regulatory compliance

Alternatives (AIF):

  • Total consolidated count: 731 funds (37.3% market share)
  • Won 15 new funds in previous quarter
  • Business compounded over 60% growth past four years

Wealth Management:

  • Won 3 mandates for mPower Wealth platform
  • In advanced negotiations with bank-based wealth management platform
  • Two revenue models: fixed-fee contract and basis points on AUM

Pensions (NPS):

  • Broken even in previous quarter
  • Contributing 15%+ EBITDA margins
  • Managing over 2.5 million pensioners
  • Won BPI contract in Philippines, pitching for global RFPs

Technology Solutions:

  • Won large data lake solution mandate worth INR 25 crore over 18 months
  • Signed multiple smaller deals (INR 3-5 crore range)
  • mPower platform: 26 clients in India, 8 AMCs, 8 pension fund managers (60% market share)

Strategic Initiatives & Guidance

Cost Optimization:

  • Technology-driven cost optimization initiatives underway
  • Focus on automation, open-source architectures, and platform transformations
  • Expected margin expansion visible from Q2 onwards

Growth Guidance:

  • Revenue growth guidance: 18-20% CAGR maintained
  • EBITDA margin target: 40% including Ascent by year-end
  • PAT growth visibility: 12-15%
  • Ascent targeting double-digit EBITDA margins within 12 months

Diversification Strategy:

  • Non-domestic mutual fund business now contributes nearly 40% of revenue
  • Targeting reduction of mutual fund dependency below 50% within three years
  • Focus on controllable revenue streams (currently 6% of total book)

Additional Notes

  • The transcript was filed pursuant to Regulation 30 of SEBI LODR Regulations
  • The document contains detailed management commentary but no new unpublished price sensitive information
  • The company highlighted ESG score improvement from 54 to 63 and cybersecurity rating of 810 on Bitsight score
  • Corporate actions expected to be tepid in Q2 due to IT services companies not declaring dividends
  • Yield compression of 2% in Q1 attributed to debt-to-liquid movement (30% impact) and contract renewal provisions