Prudent Corporate Advisory Services Ltd

Meeting Details

• Date and event: July 27, 2026, audio recording of Q1 FY26-27 results conference call.
• Type and mode: conference call; exact mode not explicitly specified.
• Organiser/event: Q1 FY26-27 results conference call (analysts and investors) mentioned.

Participants

• Key company participants not disclosed in filing.

Purpose

• Purpose: audio recording of Q1 FY26-27 results conference call made available.

Additional Notes

• Recording available on company website; no links included.

Q1 FY27 financial highlights

• Total revenue from operations: Rs 347.6 crore, up 18.3% YoY.
• Operating profit: Rs 89.1 crore.
• Profit after tax: Rs 74.8 crore; up 44.4% YoY.
• Closing AUM: Rs 1,38,630 crore.
• Equity AUM: Rs 1.34 lakh crore; up 18% YoY.
• SIP book: Rs 1,203 crore in June 2026; up 21% YoY.

AUM growth and drivers

• Revenue growth driven by 20.8% QoQ rise in average AUM and 20.6% insurance growth.
• Equity AUM up 18% YoY, aided by Indus Capital acquisition.

Outlook and strategy

• Plans to expand branch network and scale the Specialized Investment Fund.
• Evaluate value-accretive acquisition opportunities.
• Strong balance sheet to support growth and multiple growth levers.

Business Overview

• Core business comprises mutual funds distribution, insurance distribution, stock broking, and other financial products.
• B2B2C model with technology-enabled platform Fundzbazar enables distribution across AMCs.
• 156 branches across 21 states; 24% of AUM from underpenetrated B-30 markets.
• Key platforms include Edge+ AI, Partner Desk, research, and learning programs for MFDs.

Operational Highlights

• Q1 FY2027 consolidated revenue ₹347.6 crore; PAT ₹74.8 crore.
• Operating profit ₹89.1 crore; margin 25.6%.
• AUM averaged ₹133,096 crore; current ₹134,444 crore.
• Live SIPs 1,63,751; monthly SIP book ₹10.83 crore.
• Karvy MF AUM merger completed in November 2021.
• Indus Capital MF AUM merger completed in October 2025.
• iFast MF AUM acquisition: AUM ₹517 crore; cost ₹2.26 crore.
• FY27 gross SIP inflows estimated ₹14,256 crore (12% of opening AUM).
• B-30 penetration accounts for 24% of AUM.
• Two-thirds of MFD base joined in last five years.

Financial Performance

• Total revenue from operations ₹347.6 crore; YoY growth 18.3%; QoQ -3.6%.
• PAT ₹74.8 crore; PAT margin 21.5%.
• Consolidated revenue growth 32.4% YoY in Q1 FY27.
• Consolidated EBITDA up 44.4% YoY; PAT up 49.9% YoY.

Liquidity & Capital

• Cash flow from operations ₹585 crore by March 2026; 30% CAGR.

Strategic Initiatives & Outlook

• Edge+ AI tool enhances MFD productivity and cross-selling.
• FY27 gross SIP inflows estimated ₹14,256 crore (12% of opening AUM).
• Inorganic growth supported by Karvy, Indus, and iFast acquisitions.

Risks & Governance

• Regulatory changes noted; growth resilient due to diversified product mix.

Governance & Leadership

• Chairman & MD: Sanjay Shah; CEO: Shirish Patel; CFO: Chirag Kothari.
• As of 30 Jun 2026, Promoters 55.31%; DII 21.88%; FII 13.98%; Non-Institutions 8.83%.
• Market cap ₹11,966 crore as of 24 Jul 2026.

Financial results and audit status

• Board approved unaudited standalone and consolidated results for the quarter ended June 30, 2026.
• Limited Review Reports by Deloitte Haskins & Sells enclosed; no material misstatement detected.
• Consolidated results include two subsidiaries reviewed by other auditors; conclusion not modified.
• Single operating segment: distribution and sale of financial products within India.

Meeting Details

• Board meeting on July 25, 2026 to consider unaudited results for the quarter ended June 30, 2026.

Key Agenda Items

• Consider and approve unaudited financial results for the quarter ended June 30, 2026.

Other Notes

• Trading window closed from July 1, 2026 until 48 hours after results are declared.
• Results will be declared after the board meeting on July 25, 2026.
• Post-results conference call with investors scheduled for July 27, 2026.

Dematerialisation processing and listing status

• Securities received for dematerialisation were processed and confirmed to depositories.
• Securities dematerialised have been listed on the stock exchanges where previously issued.
• Certificates for dematerialisation were mutilated and cancelled, with depository name registered as owner within timelines.

Overview

• Standalone BRSR for FY2025-26; main activity is financial advisory and brokerage.
• 143 offices nationwide across 21 states; exports 0.02% of turnover.
• CSR turnover: 1,28,445.02 Lakhs; net worth: 73,444.76 Lakhs; paid-up capital: 2,070.33 Lakhs.

Key ESG Risks & Opportunities

• Regulatory compliance risk; mitigated by robust framework, audits, and training.
• Cybersecurity and data privacy risk; mitigated by secure IT, DR, access controls.
• Customer trust and service quality risk; mitigated by transparent disclosures and grievance mechanisms.
• Digital transformation offers growth through digital platforms and fintech innovations.
• Human capital development and retention risk; mitigated by learning, succession plans, and engagement.
• Business continuity and resilience risk; mitigated by disaster recovery and risk assessments.
• Financial inclusion opportunities from diversified products and geographic reach.

Governance & Policy Highlights

• CSR Committee oversees ESG policies; annual reviews by board.
• Policies cover all NGRBC Principles; board-approved and procedures translated.
• No fines or penalties; no external assurance; anti-corruption and whistleblower policies exist.

Social Responsibility & Workforce

• Total employees: 1,431; permanent 1,419; 12 others.
• Female representation on board: 1 of 6 directors (17%).
• 21% of employees trained on human rights issues.
• LTIFR: 0; no recordable incidents.
• Health and accident insurance and maternity benefits provided.
• Return-to-work after parental leave: 100% for women; 80% retention.
• Three-tier grievance mechanism; no employee grievances in FY2025-26.
• Offices accessible to differently abled; equal opportunity policy.
• Wage practices: no employees paid at minimum wage; all above.
• CSR programs include LakshMe, Jeevika and Samarth initiatives; environment contributions.

Environmental Performance

• Total energy 1660 GJ; no renewable energy use reported.
• Scope 1 emissions: 5.7 tCO2e; Scope 2: 299.6 tCO2e.
• Emissions intensity: 0.24 MT CO2e per crore turnover.
• PPP intensity: 0.50 MT CO2e per MUSD turnover.
• Emissions data assessed by Sustainability Actions Private Limited.
• Water withdrawal: 4716 KL; groundwater 460 KL; third-party 4256 KL.
• Water intensity: 3.74 KL per crore turnover; PPP 7.71 KL per MUSD.
• Total waste 0.12 MT; 0.06 MT plastic; 0.06 MT e-waste; 0.12 recycled.
• 12,500 trees planted; Miyawaki forest developed in Ahmedabad.
• No sites in ecologically sensitive areas; EIA not applicable; compliant with environmental laws.

Stakeholder Engagement & Complaints

• Stakeholders: customers, employees, communities, investors, regulators; engagement ongoing.
• Customer complaints: 18 filed; 2 pending at year-end.
• Shareholder complaints: 7 filed; 0 pending at year-end.
• SEBI IA complaints: two resolved between Mar and May 2026.
• Data privacy/cybersecurity: 0 data breaches; robust privacy and information security policies.
• Grievance channels include helplines and online query modules.

Other Notable Metrics

• MSME inputs: 13.92% of inputs; 100% sourced in India.
• Sales concentration to dealers: 93.57% of sales to 36,880 dealers.
• Top 10 dealers account for 2.62% of dealer sales.
• Related-party transactions: purchases 0.06%; sales 0.11%; investments 0.61%.
• Affiliations: one trade association, Financial Intermediaries Association of India.

Financial highlights

• Standalone revenue ₹1,317.3 cr, up 19.4% YoY.
• Standalone PAT ₹222.1 cr, up 13.5% YoY.
• Standalone EPS ₹53.63.
• ROE 28.7%.
• Consolidated PAT ₹222.05 cr; EPS ₹53.63.
• Closing MF AUM ₹1,19,304 cr; 96.8% equity-oriented.

Strategy & platform milestones

• Edge+ AI engine launched for MFDs in May 2026.
• Stock Pulse launched for automated stock-portfolio analysis.
• Tax harvesting and goal planning added to platform.
• Platform integrates funds, insurance, equities, NPS, bonds.
• Edge+ and FundzBazar deepen multi-product cross-selling; platform anchors growth.
• Consolidation strategy: organic distributor growth and inorganic acquisitions.

Indus Capital acquisition

• Indus Capital MF distribution acquired Oct 2025; all-cash.
• Indus MF AUM ~₹2,104 cr at acquisition; ~₹2,250 cr by May 2026.
• PMS-AIF AUM ₹145 cr; ~3,571 active client families.
• Upfront cash ₹87.25 cr; balance ₹36.50 cr due in 3 years.
• Indus staff retention: RM retention 100%.

Capital, dividends & equity

• No debt; debt-to-equity 0%.
• Treasury book around ₹585 cr supports consolidation.
• Final dividend ₹3.50 per share; Record date 17 Jul 2026; payout 7 Aug 2026.
• Promoters hold 41.96% of equity.
• Share capital ₹2,070.33 lakh; 41,406,680 shares.

Governance & leadership

• Board size six; one woman independent director.
• ESOP 2025: 1,30,945 options; exercise ₹2632; vest in 1 year; 4-year exercise.
• Remuneration for Shirish Patel proposed ₹1,239.72 L per year.
• Head of Digital Initiatives Maitry Shah appointed for 5 years; ₹65 L in 2026-27; ₹125 L thereafter.
• Statutory auditor Deloitte Haskins & Sells; tenure to 2027-28.
• Secretarial Auditor MC Gupta & Co; five-year engagement.
• Annual board evaluations; independence confirmed by Independent Directors.

CSR & ESG

• CSR spend ₹309.21 L; Kokilaben Trust ₹54.80 L.
• Miyawaki forest planted ~12,500 indigenous trees.
• Main sponsor of Indian Blind Football League; 80 athletes.
• 24 LakshMe workshops; 1,500 attendees.
• 277 BFF sessions; 580 magazine subscribers.

Risks & outlook

• AMFI projects industry AUM to ₹2,791 lakh cr by 2047.
• GST regime change risks 15-20% distributor income loss for non-GST entities.
• Industry consolidation favors platforms; Prudent well-placed for continued growth.
• Business is asset-light; strong cash generation enables expansion.