Prudent Corporate Advisory Services announced strong financial results for the second quarter of FY27, with quarterly average AUM reaching INR1.43 lakh crores, an 8% increase sequentially and 21% year-on-year. The company’s equity AUM saw a 16.2% growth to INR1.37 lakh crores, driven by net sales and strong SIP flows. Revenue from operations grew 11.8% sequentially, with operating profit up 15.4%, highlighting the company’s operational efficiency.
Prudent Corporate Advisory Services Q2 FY27 Earnings Call Highlights
Prudent Corporate Advisory Services Limited hosted its Q2 FY27 earnings conference call on October 29, 2026. The management reported a robust quarter, marked by significant growth in Assets Under Management (AUM) and strong financial performance.
Assets Under Management (AUM) Growth
The company’s quarterly average AUM stood at INR1.43 lakh crores, an increase of 8% sequentially and 21% year-on-year. This growth was attributed to strong SIP inflows and effective fund selection by distributors, enabling investors to benefit from market volatility. Despite a market correction in October, the quarterly AUM remained strong. Current AUM is nearly at par with the first half average AUM of INR1.38 lakh crores.
Equity AUM Performance
Equity AUM showed a substantial year-on-year increase, growing from INR1.17 lakh crores in September 2025 to INR1.37 lakh crores in September 2026. This represents a 16.2% growth or approximately INR19,100 crores. Around 80% of this growth was fueled by net sales, supported by strong SIP flows. Notably, the mark-to-market impact on equity AUM was positive at 2.9%, contrasting with a decline in NIFTY 50 and NIFTY 500.
SIP and Market Share
The monthly SIP book grew by 17.2% over the last year, reaching INR1,272 crores as of September 2026. Prudent’s share of SIP contribution increased to 3.73% in September 2026 from 3.49% in September 2025. The market share in equity-oriented AUM, excluding ETF, also improved from 2.59% to 2.7%.
Financial Performance
Quarterly AUM grew by 7.9% sequentially, with mutual fund revenue increasing by 9.4%. Insurance revenue saw a strong 35% sequential growth, driven by a 54% increase in general insurance fresh premium and 37% in life insurance. Other financial and non-financial products revenue grew by 14% sequentially, largely due to the PMS vertical. Average PMS AUM grew by 37% year-on-year to approximately INR2,020 crores. Overall revenue from operations grew by 11.8% sequentially.
Operating profit increased by 15.4% sequentially due to operating leverage and an expanded operating margin of 26.4%. Other income declined by approximately 82% due to mark-to-market impacts on bond and hybrid portfolios. Reported profit after tax was INR71.7 crores, down 4.1% sequentially. However, excluding other income, profit before tax grew by 16% sequentially and 45% year-on-year.
Half-Yearly Performance
For the half-year ended September 30, 2026, revenue from operations grew by 20% to INR736 crores. Operating profit grew by 37.6% to INR192 crores, with an operating margin of 26.1% compared to 22.7% last year. Profit after tax for the half-year grew by 39.1% to INR146.5 crores.
Regulatory Developments and Future Outlook
The company is adapting to proposed regulatory changes in the insurance distribution sector, particularly concerning Independent Distribution Agents (IDA) and Independent Distribution Entities (IDE). While the proposed changes might impact insurance commissions, Prudent sees potential opportunities to leverage its existing network for mutual fund distribution. The company is also applying for a PMS license, aiming to provide technology and back-office support to PMS managers and serve HNI clients. The launch of the MF PMS framework is anticipated from April 2027.
Prudent is also exploring opportunities in the bond market with an OBPP license and is awaiting clarity on the fixed income channel partner framework.
Source: BSE
