360 ONE WAM targets wealth AUM growth through UHNI flows and operating leverage

Investment View and Core Thesis

Motilal Oswal Financial Services, in its September 18, 2026 company update on 360 ONE WAM, reiterates a Buy rating with a target price of Rs 1,300. The broker views 360 ONE as a structural compounding opportunity linked to India’s expanding ultra-high-net-worth individual (UHNI) wealth pool.

The core thesis rests on sustained wealth flows, rising relationship-manager productivity, UBS-led opportunities and the scaling of HNI and adjacent businesses. Recurring Wealth and AMC revenues account for about 75 per cent of operating revenue, which the broker believes provides better earnings visibility than traditional capital-market businesses.

UHNI Opportunity and Wealth-Management Growth

Motilal Oswal highlights considerable headroom for client acquisition. India’s USD30 million-plus UHNI population was about 19,877 in 2026 and is expected to exceed 25,000 by 2031, according to the report. 360 ONE had more than 4,000 UHNI families compared with an addressable base of 40,000 to 45,000.

The broker believes the company’s advisory model supports wallet-share gains across investments, tax, estate planning, lending, philanthropy and capital markets. Wealth AUM per client increased to about Rs 1.2 billion in Q1 FY27 from Rs 930 million in FY21, even as the number of clients with more than Rs 100 million AUM rose to 4,000 from 1,825.

Client Acquisition and Relationship-Manager Productivity

The broker expects wealth AUM growth of 20 per cent to 25 per cent, driven by 12 per cent to 15 per cent net new money and 8 per cent to 10 per cent market appreciation. Wealth-management flows in Q1 FY27 were already 6 per cent of opening AUM, and Motilal Oswal expects FY27 flows of 18 per cent of opening AUM.

As of FY26, 163 relationship managers served about 3,800 UHNI families, or 23 clients per relationship manager. Management plans to add 30 to 40 relationship managers annually, aiming to serve about 10,000 families over the next three years.

The broker also sees the HNI business as a new growth vector. The business has 60 relationship managers and around Rs 200 billion of AUM. Its illustrative potential case assumes HNI business breakeven in FY28.

Adjacent Businesses and Capital Deployment

Beyond core wealth management, 360 ONE Capital, formerly B&K, broadens the group’s capital-market capabilities. Management sees a medium-term transactional broking revenue opportunity of about Rs 8.5 billion to Rs 10 billion across equity brokerage, investment banking, debt, real estate and structuring.

Motilal Oswal forecasts transactional and broking revenue of about Rs 9 billion by FY28, versus Rs 7.7 billion in FY26. The AMC business, with about Rs 1 trillion of AUM and a skew towards higher-yielding PMS and AIF products, offers cross-selling and client-acquisition potential.

UBS referrals and roughly Rs 15.8 billion of potential warrant-conversion proceeds could support lending and alternatives capacity. The broker estimates potential incremental revenue of up to Rs 3.2 billion from deploying this capital between the loan book and alternatives.

Operating Leverage and Earnings Outlook

The key earnings driver is operating leverage. The cost-to-income ratio exceeded 51 per cent in Q1 FY27 because of recent hiring and the investment-banking team build-out.

Motilal Oswal expects the wealth cost-to-income ratio to trend towards 51 per cent by FY28 as relationship-manager productivity improves, HNI and ET Money approach breakeven around Q4 FY27, and the transactional platform scales. With AMC cost-to-income expected to remain near 40 per cent, group cost-to-income is forecast to decline to about 48 per cent by FY28.

The broker forecasts FY26 to FY28 revenue CAGR of 18 per cent and PAT CAGR of 20 per cent.

Valuation and Key Risks

Motilal Oswal values 360 ONE using a sum-of-the-parts method. It applies 36 times FY28E PAT to annual recurring revenue and 20 times FY28E PAT to transactional broking and other income, deriving a fair value of Rs 1,300.

Forecast delivery depends on sustained client flows, wallet-share expansion, relationship-manager execution, successful HNI and adjacent-business scaling, and improvement in the cost-to-income ratio.

The report also notes that brokerage caps and a volatile market environment could limit transactional broking growth, which the broker forecasts at high single digits.