Strategic Developments & Business Updates

Lakshya Asset Management Company (AMC):

  • Received final SEBI approval to establish Lakshya Asset Management Private Limited
  • Entire approval process completed in 14 months from application to license
  • Wealth First has invested ₹41 crores in the AMC joint venture
  • Founding team includes Ashish Shah, Sanjiv Shah, Rajan Mehta, and Sanjay Gaitonde (pioneers of Benchmark AMC who introduced ETFs in India)
  • Planning to file first innovative products with SEBI by 5th-10th June 2026
  • Target to launch at least three products within the next 12 months
  • Dedicated office established in Ahmedabad with 9 professionals already onboarded

Wealthshield Insurance Broking:

  • Received IRDAI license to operate as a direct insurance broker through wholly-owned subsidiary Wealthshield Insurance Brokers Private Limited
  • Business operates through two verticals: B2C (existing client base) and B2B (new growth avenue)
  • Currently has 6 people hired, planning to expand to 15-20 people in next year
  • FY26 insurance revenue was approximately ₹7.5 crores
  • Expecting 20-25% growth in insurance segment

Other Strategic Initiatives:

  • Launched index-based PMS tailored to NRI clients in US and Canada
  • Reduced equity trading book to zero to improve earnings stability and predictability
  • Capital released from trading book redeployed towards AMC capitalization and future expansion
  • Planning inorganic expansion outside Gujarat in the near future

Financial Performance - FY26

Consolidated Results:

  • Revenue from operations: ₹68.4 crores (up 28.7% YoY from ₹53.2 crores in FY25)
  • Profit After Tax: ₹38.3 crores (vs ₹34.1 crores in FY25)
  • Final dividend declared: ₹1 per equity share (face value ₹10)
  • Total dividend for FY26: ₹13 per share (approximately 35% of profits)

Q4 FY26 Performance:

  • Revenue from operations: ₹16.5 crores (vs loss of ₹3.3 crores in Q4 FY25)
  • Profit After Tax: ₹10.5 crores (vs loss of ₹4.3 crores in Q4 FY25)
  • Turnaround driven by strong insurance sales, steady net sales of ARR assets, and absence of MTM impact from reduced trading book

Cost Structure:

  • Cost-to-income ratio (excluding exceptional items): 29.9% in FY26 vs 23% in FY25
  • Increase due to one-time strategic investments including BSE listing expenses, PMS renewal fees, SIF registration fees, elevated CSR obligations, and higher employee benefits
  • Target sustainable cost-to-income ratio: 20-25%

Assets Under Advisory & Management

Overall AUA:

  • Total AUA: ₹12,157 crores (4.6% YoY growth)
  • Growth entirely net sales driven (not market appreciation) as equity markets were negative
  • 12-14% market correction in Q4 FY26 compressed closing portfolio valuation

Breakdown by Asset Class:

  • Trail-based AUM (MFs, PMS, AIFs): ₹5,558 crores
  • Fixed deposit AUM: ₹234 crores (up 10.6% YoY)
  • Bond portfolio AUM: ₹4,014 crores (up 7.3% YoY)
  • Direct equity AUM: ₹2,272 crores (up 2.2% YoY)
  • Insurance book: ₹78 crores (up 30% YoY)
  • Net equity inflows of ARR assets: ₹386 crores during FY26

Operational Metrics

Client Base:

  • Total client families: 6,889 (up 5% YoY, addition of 311 new families)
  • Total individual clients: 21,746 (up 5% YoY, addition of 987 clients)
  • Over 80% of relationship managers have more than 5 years of experience with the organization

Team Strength:

  • Total professionals across group: 87
  • Relationship Manager count: 41 (up from 35 in FY25)
  • 80% of RMs have over 5 years of experience with the organization

Geographic Presence:

  • Headquarters: Ahmedabad
  • Offices: Pune (3 years), Surat (6 months)
  • Over 30% of business revenue comes from outside Gujarat
  • Planning additional physical presence outside Gujarat through inorganic expansion

Capital Deployment & Balance Sheet

Inventory Balances (as of 31st March 2026):

  • Total inventory: ₹134 crores
  • Includes: ₹41 crores investment in Lakshya AMC, ₹27 crores in bond inventory, remainder in cash/money market funds

Future Capital Deployment Plans:

  • AMC capitalization: ₹41 crores already invested
  • Inorganic expansion: Planned in next 3-6 months
  • Infrastructure expansion: Planned in Q3 FY27

Business Outlook & Growth Strategy

Revenue Mix Expectations:

  • Insurance revenue expected to contribute 15-20% of total business revenue in FY28
  • AMC expected to become significant contributor once operational

Growth Targets:

  • Insurance business: 20-25% growth expected
  • Wealth business cost-to-income ratio target: 20-25%
  • Continue minimum 30% PAT dividend distribution policy

Client Acquisition Strategy:

  • Primary source: Word-of-mouth referrals (80%+ clients with over 5 years tenure)
  • Investment awareness programs and corporate seminars
  • 50-70% conversion ratio from educational events

Bond Portfolio Strategy

  • Government bonds remain in books (₹27 crores as of 31/03/2026)
  • Focus on providing liquidity to investors rather than trading
  • Minimal volatility expected due to accrual interest nature

#Tags: #WealthFirst #Q4Results #FY26Results #LakshyaAMC #SEBIDisclosure #EarningsCall #FinancialUpdate #Neutral