Prudent Corporate Advisory Services Limited , a leading wealth management and financial services firm, has reported robust growth in its second quarter of fiscal year 2026, despite facing regulatory challenges in the insurance sector.

Strong AUM Growth and SIP Performance

The company's Assets Under Management (AUM) reached INR 127,000.00 crores, marking an 11% increase from the first half of FY26. The quarterly average AUM grew by 17% year-on-year and 8% quarter-on-quarter, reflecting steady business momentum. Notably, the equity AUM saw a 13.2% year-on-year growth, reaching INR 117,650.00 crores in September 2025.

Prudent Corporate Advisory Services' Systematic Investment Plan (SIP) book demonstrated resilience, with monthly SIP inflows standing at INR 1,085.00 crores as of September 2025. The company added approximately INR 210.00 crores over the last 12 months, improving its market share to 3.5%.

Financial Performance Highlights

The company's mutual fund revenue increased by 9.00% quarter-on-quarter, driven by stable yield and an additional day in the quarter. Insurance revenue grew by 11.50% sequentially, with retail health fresh premiums showing a strong 33.00% year-on-year growth.

Regulatory Impact and Strategic Moves

Prudent Corporate Advisory Services is navigating through regulatory changes in both the insurance and mutual fund sectors:

1. Insurance Sector GST Impact: The company is facing varying impacts across life and health insurance segments due to recent GST-related changes. In health insurance, about 70% of the business saw an 18% cut in revenue due to GST transfer, while in life insurance, approximately 30% of the business was affected.

2. SEBI Consultation Paper: The company is analyzing the potential impact of SEBI's recent consultation paper on mutual funds, particularly regarding changes in the Total Expense Ratio (TER). Management believes that while there might be a 6-7 basis point impact on TER, the company is well-positioned to manage this change.

3. Indus Acquisition: Prudent Corporate Advisory Services successfully completed the merger of Indus, adding INR 2,050.00 crores to its AUM. This acquisition is expected to contribute INR 22.00-23.00 crores in annualized mutual fund commission and approximately INR 15.00 crores in cash profit before tax.

Employee Stock Option Plan (ESOP)

The company has granted 130,945 options to 388 employees, with an expected P&L impact of INR 7.10 crores to be amortized over the next 12 months.

Future Outlook

Despite regulatory challenges, Prudent Corporate Advisory Services remains optimistic about its growth prospects. The company's strong distributor network, growing SIP book, and strategic acquisitions position it well for continued expansion in the wealth management sector.

Sanjay Shah, Chairman and Managing Director, commented, "We continue to see growing interest from distributors seeking alignment with scale and technology-driven platforms. Our robust treasury corpus of INR 480.00 crores provides us with the flexibility to pursue select inorganic opportunities that are strategically relevant and value-accretive."

As the financial services landscape evolves, Prudent Corporate Advisory Services appears well-equipped to navigate regulatory changes while maintaining its growth trajectory in the Indian wealth management market.

Prudent Corporate Advisory Services Limited , a leading wealth management and financial services firm, reported robust growth in its Q2 FY26 earnings conference call held on November 6, 2025. The company showcased strong performance across key metrics, including Assets Under Management (AUM) growth, Systematic Investment Plan (SIP) book expansion, and strategic acquisitions.

AUM and SIP Growth

Prudent Corporate reported a significant year-on-year growth of 17.00% in its quarterly average AUM, reaching approximately INR 119,000.00 crores (excluding Indus AUM). The company's current AUM stands at INR 127,000.00 crores, reflecting an 11.00% increase from the first half of FY26. This growth momentum positions the company strongly as it enters the second half of the current financial year.

The company's equity AUM grew by 13.20% year-on-year to INR 117,650.00 crores in September 2025, driven primarily by strong net sales despite negative mark-to-market impact. This growth highlights the resilience and confidence of Indian retail households in systematic investments.

Prudent's monthly SIP book reached INR 1,085.00 crores, with an addition of INR 210.00 crores over the last 12 months. The company aims to reach around INR 1,200.00 crores in monthly SIP flow by March 2026.

Financial Performance

On the mutual fund side, Prudent's quarterly average AUM grew by 8.00% sequentially, while mutual fund revenue increased by 9.00%. The company's insurance revenue grew by 11.50% sequentially, driven by strong traction in fresh premiums. Notably, retail health fresh premium grew 33.00% year-on-year, with the book now at INR 162.50 crores.

Strategic Acquisition and Future Outlook

Prudent Corporate successfully completed the merger of Indus acquisition, which is expected to deliver annualized mutual fund commission of about INR 22.00-23.00 crores and cash profit before tax of approximately INR 15.00 crores. This highly cash-accretive addition to the platform is powered by 15 experienced relationship managers under a seasoned business head.

The company's treasury corpus currently stands at INR 480.00 crores, providing the ability to pursue select inorganic opportunities that are strategically relevant and value-creative.

Regulatory Impact and Industry Trends

The company addressed the potential impact of SEBI's recent consultation paper on mutual fund expense ratios. While the proposed changes could lead to a reduction in Total Expense Ratio (TER) by 6-7 basis points, Prudent believes it may benefit from the level playing field created for GST-registered distributors.

On the insurance front, the company is navigating through the recent GST-related changes, particularly in the health insurance segment where about 70.00% of the business has been impacted.

Employee Stock Option Plan (ESOP)

Prudent granted 130,945 options to 388 employees, with an expected P&L impact of about INR 7.10 crores to be amortized over the next 12 months.

In conclusion, Prudent Corporate Advisory Services demonstrated strong growth across its business segments in Q2 FY26, successfully integrating a strategic acquisition and positioning itself for continued expansion in the wealth management and financial services sector.