Prudent Corporate Advisory Services Limited (NSE: PRUDENT) Q3 2026 Earnings Call dated Jan. 28, 2026
Corporate Participants:
Shirish Patel — Whole Time Director and Chief Executive Officer
Analysts:
Rushad Kapadia — Analyst
Niranjan Kumar — Analyst
Lalit Mohandir — Analyst
Deepanjan Ghosh — Analyst
Saket Koda — Analyst
Anshumin — Analyst
prayersh Jain — Analyst
Presentation:
operator
Ladies and gentlemen, Good day and welcome to the Prudent Corporate Advisory Service Limited Q3 and FY26 earnings conference call hosted by ICIC Securities Limited. As a reminder, all participant lines will be the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star and zero on attached to info. Please note that this conference is being recorded. I now hand the conference over to Mr. Rishad Kapadia from ICSE Securities Limited. Thank you. And over to you sir.
Rushad Kapadia — Analyst
Thank you. Good evening everybody and welcome to the Q3 FY26 results update call of Prudent Corporate Advisory Services Limited. We have with us from the management of Prudent Corporate Advisory Services Limited Mr. Sanjay Shah, Chairman and Managing Director Mr. Suresh Patel, CEO and Whole Time Director Mr. Chirag Shah Non Executive Director Mr. Chirag Kothari, Chief Financial Officer and Mr. Parth Parikh, Head of Investor Relations. Now we would request the management to start with the opening comments post which we can open the floor for Q and A. Thank you. And over to you sirs.
Shirish Patel — Whole Time Director and Chief Executive Officer
Thank you. Thank you dear and good afternoon to everybody. I extend a warm welcome to all of you for joining the today’s Q3FY26 earning call. Thank you for taking time to be with us today. I hope you have the investor presentation handy as we’ll be referring to it through the course of this discussion. So now straight away let us move to slide 45 which talks about the momentum in our AUM growth. So if you look at the slide 45 it shows how our AUM has moved during the quarter. On the left hand you see a comparison of daily Average AUM for first nine months of FY26 which with an AUM as on 31st December 2025.
During the first nine months we earned revenue on a daily average AUM of 1:19,000 crore. Our opening AUM for the current quarter stands at around 130,000 crore. That’s an increase of about 9.2%. This gives us a strong momentum as we enter into the last leg of FY26 and the FY27. In the current month the broader Nifty 500 index has corrected by around 5% and consequently our current AUM stands at approximately 1:26,000. While the month was challenging from a mark to market perspective, we saw strong resilience in net sales. Our equity net sales for the January have crossed 1200 crore as of yesterday.
Which has helped cushion the impact of market volatility. SIP addition has also remained robust during the month with our SIP book increased from 1170 crore compared to 1130 crore in December 2025. On the right hand side we have quarterly average AUM trend. The average AUM for The quarter was 1,27,600 crore. The quarterly average AUM grew by 21% year on year and 7.2% quarter on quarter reflecting steady and sustained business momentum. Now Please move to slide 46. It talks about the equity AUM movement. So this slide shows the movement in our equity AUM on a both year on year and quarter on quarter basis.
Starting with year on year view on left our equity aum grew by 22.4% during Q3 of FY26. It moved from 1,2700 crore in December 24 to 1,25,700 crore in December 25. That’s an increase of nearly 23,000 crore. Two third of this growth was driven by strong niche sales and acquisition of INDUS and the balance 1/3 has been contributed from mark to market gains coming to quarter on quarter view. On the right, Equity grew by 6.9% during the quarter. This was driven by mark to market gain and a strong net sales of 3444 crore. Now please move to slide 47.
This slide highlights our SIP performance. As of December 25th our monthly SIP book stood at 1135 crore. We have added almost about 200 crore over last 12 months. Currently as stated this book has grown to 1170 crore. Our market share has improved by 20 basis points from 3.3% in December 2024 to 3.5% in December 2025. We aim to cross 1200 crore in monthly SIP flows by March 2026. Now let me take you to the last slide which is the consolidated financials. So slide 49 which outlines our consolidated financials. So on the mutual fund side our quarterly average aum grew by 7.2% sequentially while the mutual fund revenue has increased by 8.2%.
The mutual funds revenue grew at a faster pace laid by an extra income to the tune of 1.4 crore due to release of with yield brokerage following some relaxation in KYC norms. Excluding this one off income, our yield were stable on a sequential basis on a nine month basis. Also, quarterly average AUM and mutual fund revenue grew hand in hand at a 20% and yield have remained more or less stable on a nine month basis as well. On the insurance front our Premium grew by 13% sequentially led by a good uptick in our LI vertical.
However, revenue grew at a slower pace of 3.6% primarily driven by the rationalization of rate post GST changes in the retail health vertical. As stated in the last call, most of health insurance have reduced the rate by 18% from 1st October 2025 onwards following the reduction of GST to a nil rate. So the quarterly revenue from operations grew at a pace of 7.3% sequentially on a nine month basis revenue were higher by 16.6%. Operating excellence also grew at a similar pace of 7.2% sequentially during the quarter. Employee cost included one of provision of 1.49 crore related to implementation of new labour core.
In addition, there was an esop charge of 1.61 crore for this quarter and it will remain the same for next three quarters as an annualized cost for ESOP would be in the range of 7.2 crore. After incorporating these items, operating profit for the quarter grew by 7.8% sequentially on a nine month basis. Operating profit is also increased by 12.2%. The increase in finance cost of 92.32 lakhs please look at the finance cost segment. So increase in finance cost of 92.32 lakhs is attributable to accounting treatment of deferred consideration payable to Indus Capital. Deferred payout is recognized at its discounted present value and periodically recognized as the finance expense.
Accordingly, interest accretion of 92.32 lakh rupees has been charged to P and L. Please keep a note that these costs will continue to be recognized over next 11 quarters until the full deferred consideration is paid to Indus capital. So this 92.32 lakh rupees every quarter will have been added into the finance cost. You’ll see that as an additional cost item. Another change related to the depreciation since the acquisition of Carveen November 2021, we have been depreciating the acquired assets over a 10 year period. Now that the acquisition has completed over four years, we were able to demonstrate based on operating experience that the assets are long term in nature.
Accordingly, in consultation with our auditors, we have revised the useful life of these assets to 15 years, extending the depreciation period up to November 2020. That means from here onward now these assets will be amortized over next 11 years. Consequently, amortization expense for the current quarter has reduced to an extent of 1.7 crore mainly on account of CARVI assets Additionally, acquisition cost of Indus capital will be amortized over a period of 15 years. So overall reduction of carvey depreciation and additional depreciation cost of Indus overall depreciation figure has modestly increased from 7.7 crore to 8 crore despite utilization of 87.3 crore.
From the treasury book cover the Indus Capital acquisition our income grew by other income grew by 16.4% sequentially. This was driven by positive mark to market gain on the equity oriented treasury Investments supported by 7% rise in Nifty50 during quarter ended on December 25. A stable operating performance has led to a net profit growth of 7.6% sequentially and 19.6% on a year on year basis to 57.6 crore. On a nine month basis net profit grew by 13.2% to 662.9 crore. Now I’ll touch base the Merger of Indus so the merger of Indus acquisition is working very well for us.
We now have completed two meeting with all the big clients and there is a significant comfort regarding the integration with Prudent. It’s a highly cash accretive addition to our platform powered by 15 experienced real estate manager under a seasoned business aid. Given the successful integration and experience we are in lookout for similar opportunity in this space wherein distributors are seeking alignment with scale technology driven platform to ensure business and service continuity for their clients. A space where Prudent is well positioned and open to exploring strategic opportunities and our treasury corpus of 537crore provides a robust war chase to pursue such opportunity.
Finally touching upon SEBI’s recent changes in the total expense ratio. Now first point is about the revised expense ratio which will now be exclusive of all statutory levies including GST. Earlier only AMC’s management fee attracted GST over and about TR. Everything else was considered inclusive of GST. So let us assume if I was earning 1% from AMC that one person was inclusive of GST. Meaning my actual income was 85 basis points and 15 basis points went to GST. Under the new structure my rate will be 85 basis point exclusive of GST. So I’ll invoice GST on top of that and still effectively I earn 1%.
So more or less we believe it’s a revenue neutral for those who are registered under the gst. But the big advantage which will accrue to Prudent is that it removes the earlier anomaly where a GST registered distributor used to earn less than an unregistered one. This really creates a very strong labor playing field for us and it helps us attract smaller players to join prudent platform. So even though it’s a neutral in revenue terms, it’s strategically very very beneficial to us. Second point in the entire circular is related to removal of 5 basis point benefit which was available in lieu of exit load since 2012.
This benefit was available over and over and above the regular TR which has now been withdrawn. This represents this 5 basis point represent the cost for the entire industry. So while a part of this impact will flow through to distributors like us, the exit sharing mechanism between AMC distributor and other stakeholders will become clear only by April 2026. So I think with that I’ll just close my speech and I’ll open the floor for the questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on the touchdown telephone. If you wish to remove yourself from question queue you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen will wait for a moment while the question queue assembles. The first question is from the line of Niranjan Kumar from Avindus Park. Please go ahead.
Niranjan Kumar
Thank you sir for giving the opportunity. Sir, first on the semi recent changes in maters like I wanted to ask has any AMC initiated any negotiating negotiation on this yield cut? Also like to go sometime in the past like when upfront commissions were removed around 61 years back. So how is shape then? Like who took the major hit then? Is it AMC or distributor like Prudent? That’s the first question. Second question sir, the MFD market share has been declining for a few quarters like even in this quarter I think it declined around 200 basis points.
So what’s happening really there? Like are we facing any challenges? Challenges internally or the competitive intensity in the industry has increased like where other players are giving aggressive payouts. So these are my broader set of questions sir.
Shirish Patel
Coming to the first point, whether AMC they have started discussion about the passing on the TR cut. The answer is no as of now no. AMC has started the discussion about the passing on the TR cut. My guess is that by mid of March probably we will have a better clarity. We definitely will start the discussion with the AMC’s mid February but as of now no AMCs have given an indication that what would be the behavior but what I understand that and I’m sure I think most of you would have done some kind of calculations that the TR may be the TR cut and taking the GST out of the base expense ratio probably that is neutral for many AMCs and for other.
But for AMC there could be I think few basis point cut. And as Sanjay Bhai said that 5 basis point of exit code is also out this time. My belief is that the major of the AMCs may pass on the cut to the distributor. And that is what the feeling which we are getting. But no AMCs are communicated yet. So yeah, there is no discussion. But the gut feeling is that the AMCs make pass on the cut to the distribution. The second point what you asked that the way when this earlier TR cut was there how Prudent could manage the passing on to the distribution community.
So we believe that when AMC will pass it on to all their channels including the mfds. And definitely they might pass to Prudent. For Prudent also Prudent also will be able to pass it on to their distributors. So I don’t think that this time will not be able to pass it on. Definitely it will be the same like what we did in past. So. But yes, I think let us wait for a few more months to get a complete clarity. But this time the experience would not be different compared to what it was last time.
Second point you talked about the MFD sharing. The Prudent system has come down. I think mainly it because of Indus acquisition. Because that 2000 crores of AUM is added in B2C. Hence you might be seeing that the MFT share is down. Otherwise in the industry level as Sanjay Bhai would have shared in the presentation also last one year. Definitely I think we have gained the market share. So it is not that we have lost the market share. I hope you have addressed both your question.
Rushad Kapadia
He is talking about number of MFDs joining the prudent.
Shirish Patel
So number of MFDs joining the prudent platform is still the same. So if you look at last year we added close to around 4700, 4800 distributors in Prudent KT. And this year we able to add these many numbers to in the Prudent platform. So we don’t see that. I think the number of distributor joining Prudent has come down. It’s the same. So there is no change. I don’t know.
Niranjan Kumar
That’s it from my side, sir. Thank you.
operator
Thank you. The next question is from the line of Lalit Mohandir from Equerry Securities. Please go ahead.
Lalit Mohandir
Yeah. Hi sir. Good evening. So firstly like in the insurance segment like as you have highlighted that most of the health insurance have passed on the GSP pressure to us. So like similarly in the last call we mentioned that in within the life insurance only 30 was was passed on. So is there any new communication from the other life insurers who have followed the similar suit and passed on the pressure to Ruben? Second just on this non GST distributors which you have talked about, can you please elaborate it in a little better way up like whether whether there will be any benefit to Prudent or not.
And lastly on the non finance and on the non MF products. So like on a sequential basis we are seeing that it’s. It’s currently ranging between 8 to 9 crores on a revenue done date. So how should we see this line item for going ahead for next two years?
Shirish Patel
Coming to your question the last fall what we spoke that in general insurance most of the companies are passed on the GST card to the brokers or prudent in life insurance we said last time that around 30% of the insurance company or the business has seen the GST cut. I would say that I think there also we could negotiate some part of that. So the actual impact in the life insurance is not now, not even 30% is lesser than 30% now in the month of December we could renegotiate that cut with the same manufacturer. So as of now I think at least till March the cut in the GSE component from the life insurance business is not even 30%.
I think it will be less than 10% now. So that way yes we could save on that part, the second part. But this is till March. This arrangement, whatever we are right now we are talking about is only till March from April. As of now there is no discussion. So we don’t know that what will be the scenario post April but till March we don’t see any major impact or major change in the GSE now coming to the part the non GSE partners or the GSC cut how it is going to impact Prudent or little more explanation what you sought.
So what used to happen that whenever Prudent or earlier Sanjay Bhai said that the commission used to be inclusive of gst. So whether the distributor was under the GST or out of the GST net both of them were getting the commission rate including gst. So those who were out of the GST net they were not paying the GST but they were still getting the inclusive GST commission. So obviously when Prudent has to pay the GST on a total brokerage and there are many distributors who need not to pay the GST obviously I think the competitiveness or the margin of prudent may be conducted.
Now from 1st of April all the commission rates would be exclusive of gst. Whether the person is under GST or not under GST the commission rates would be exclusive of gst. So earlier the person, non GSE person used to get X commission from April on the same business he will get X minus 18. So by default the competitiveness or the margins of prudent on that particular partner or that particular MFD will increase. So yes, I think that is a very very positive point. Third I missed the point. So I think Sanjay if you can take that point, third point, he’s saying.
Rushad Kapadia
That we have a run rate of 8 to 9 crore on MF non insurance revenue. So what is your view on that which is basically all other product other than the mutual fund insurance.
Shirish Patel
So basically if you see the other products last few years I think we started focusing very very aggressively. One important product which was P2P. Now the revenue from P2P is almost zero. So obviously we replace the revenue of P2P through other products without impacting the fall in the other revenue. Here I would say that yes, I think our PMS book is increasing steadily. So that also contributes a bigger pie FD business. The momentum is picking up and there also the revenue is there. Loan against mutual fund which we added last year very very aggressively. And while we are talking our book is almost I think 300 crore.
So that is one more. Of course the revenue would be little less but obviously that is one more revenue item. I would say that that is also contributing to our revenue. Broken side as we communicated earlier that the prudent broking is now merged with prudent corporate. So most of the clients I think who were in the funds but they were not able to trade on the stocks. Now they are able to trade on the stocks. Though the seriousness of our system also on the broking side has gone up. Obviously I think the revenue front it is not visible yet.
But we strongly believe that broking also going forward will contribute better in our total pie. So non mutual fund, non insurance product wise. Yes. Pms, cif, the alternate products are growing. FD is really doing good. Less last year added doing good. Broking still will do better. SIF is a new product in the kitty as we categorize that in the mutual fund only. But we strongly believe that going forward SIF is going to become a very big product line for us. So that also we are very very positive. Yeah. If you want to at any point.
Lalit Mohandir
Yeah, no, no. Perfect, perfect.
Shirish Patel
Thank you.
operator
Thank you. The next question is from the line of Deepanjan Ghosh from CT Group. Please go ahead.
Deepanjan Ghosh
For us as well. Yeah, so first question was on the, on the commission payout part. If I look at the commission fee number to your revenues that seems to be a little down compared to the normal run rate. So I mean what really happened out there? So that’s the first question. Second, if I look at the life insurance field when you mentioned, you know, the impact has been contained at 10% but on a quarter, quarter yields are actually up. So is it a function of higher new business or some sort of product mix shift if you can give some color on that.
The third question is on the, you know, on the capital part. I mean obviously you have highlighted couple of times that you use some inorganic opportunity if it comes under the scope. So anything under the radar or whatever you really focusing on out there. And lastly one data keeping question. Number of employees as of 31st December.
Shirish Patel
So number one, you are talking about the commission payout looks little bit reduced. That’s mainly because if you look at in as also said, I also said because of Indus, our ratio in favor of direct has improved by about 1%. And that’s the reason if you look at 60% or 65% of that must be the visibility of a reduced payout ratio. That’s mainly because and Indus is roughly about finally Indus on an average business has been about 1.2 or 1.2% something. Right? So 60% of that will be 78, 80 basis points. You will see a 78 to 80 basis point improvement in the payout ratio.
So that is number one. Number two regarding the capital opportunity because that’s something which we have been looking for April to April like Indus, where I think the quality assets with the team and everything. So definitely we are looking, looking for the lot of opportunity. Nothing is complete as of now. And we are also looking for the experience of Indus and probably after three years now we are very, very, very confident that we’ll be able to look for the opportunity further. Third is number of employees are 1539. 1539 as on 31st December number of employees.
Deepanjan Ghosh
And Sirish, if you can just touch base, he’s saying that your LI yield has improved because of mix or what? What is the reason?
Shirish Patel
Yeah, so basically if you see, I think what we said is the GST impact which was around 30% of the business in the month of October. By December we could cut it down to 10%. So obviously but still there Is a gst impact of 10% when you are comparing the yield compression. Second, I would say that the composition of business. So I think if you look at our composition till last year it was majorly skewed towards the traditional plants. Last one, one and a half, two years. It is increasingly it is moving towards the tulip product which is term plus combined product which is a new entrant in the industry last three years.
And in that segment the of course the yield is little lesser than the traditional plants. And today tulip is the biggest selling product in our system. Second, historically we were not selling ULEIP at all. Now ULEIP is also having some higher single digit market share in our system. So mainly I would say that the composition of the product has changed. That has brought down the yield. Second, I would say that still compared to the September the yield as I said that compared to that month still there is some pressure of around 10% to both the reason combined you can say that the yield is little.
Deepanjan Ghosh
So just one question, you know, if I to let’s. Let’s look at your net M50 addition and split it between dos and attrition. I mean given the competitive N of the industry, I mean five years back versus now. Are you seeing any shift between this, you know, necessary shift in this efficient risk and all the best.
Rushad Kapadia
Clear question.
Deepanjan Ghosh
Yeah, sorry, so clear question. But I think you want to understand because of competition are we seeing shifting of distributor from PR to other platform? That is the question.
Shirish Patel
Yes, yes, absolutely. Yes, exactly. I mean what you pointed out.
Deepanjan Ghosh
Yes. Is attrition or behavior change in the mfd.
Shirish Patel
So basically if you see, I think in the last call, I think last to last call probably we had said that there are many platforms have entered in the industry. Obviously since they are expanding the branch, the first target for their manpower requirement could be the existing platforms, whether it is V or at the lj. So last year definitely we saw the highest earning I would say in our system wherein the attrition was higher than our normal average in the last year. But I believe last few months or few quarters that attrition has come down which has become.
Which has become now the average one. Obviously by joining existing team member joining any competition platform, does it impact our momentum? Yes, I think for certain few months. I would say that in that particular branch we get disturbed. But we have not seen any major attrition of our channel partners joining the platform. Yes, we can say that those who joined plural platform might be recently the. The. I would say that the joining was Done by the RM who has joined the competition platform. The person joined with us last probably 12 years or not scaled up the business very, very small business. Few of them may have started experiencing some how the new behavior platform works. But those guys anyways I think never worked with us in aggressive way because they joined recently their AUMA was not strong. So you can see that. Yes, we have seen some small partners looking at these platforms because their commercial definitely at a base level commission would be higher.
But can we say that we have seen the attrition of partners? The answer is clear cut no. And that is visible in our business. Also even the new addition of partners is increasing at the same time. If you talk about the simple parameter of the net sales or the gross sales or the new SIP or even the new health insurance business or the life insurance business, probably quarter on quarter that number is becoming stronger and stronger. Probably this quarter was the highest ever net sale this month. I would say that the highest ever SIP business we have done this month again that is I’m talking about the January.
So we are doing the highest ever SIP business, highest ever gross sales business, highest ever net sales business, highest ever health insurance, highest ever, second highest in terms of life insurance. So I would say that if that would have been the impact our quarter and quarter business would not have grown. So the answer is no, we have not seen the great attrition. But yes, small level of partners we have seen few guys joining them.
Deepanjan Ghosh
Thank you for the detailed explanation and all the best.
Shirish Patel
Thank you.
operator
Thank you. The next question is from the line of Saket Koda from Avindus Park. Please go ahead.
Saket Koda
Yeah, thank you for the opportunity. I have three questions. So the first question is to you to just check that out of the total AEM maybe top 5 AEM where probably the TR will have an impact on their net yield and probably pass on the pain to the distributors. Maybe the smaller ones might not. So just wanted to understand maybe from an index point of view top fund contribute how much to totally maybe top five, then top next top ten and then residue how much it contributes to total aum. And if you think larger ones pass on and smaller ones don’t do anything to your payouts then if you have done your internal assessment likely impact on the yield.
If you can give a bit of color there it will be useful.
Shirish Patel
So top 5AMCs contribute around 50% of our AUM. Whether they will pass it on that cut to the distribution community, the answer is definitely yes, they would pass on some cut or the entire Cut to the distribution community, will it impact our gross yield? Yes, it will impact the gross yield. Because when you are 50% of the EUM I think if they see some kind of cut in the procurement obviously the gross yield may come down. But whatever cut they pass it on to the distribution community, we assume that they will do it the similar for all their channels because it’s a regulatory change.
So if they are doing the similar way to all their channels, we also will be able to pass it on to our distributors. So yes it may impact the gross yield, but when we talk about the net margin, we don’t see a challenge in maintaining our net yield margin.
Saket Koda
But shirish on net yield given, given you pass on to 65 to them. Assume your yields come off by 1 or 2%, 1 or 2 bips then, then, then given 65 percentage is passed on to the to, to to the your partners then then is it say that if it’s 2 bips then then you will have an impact of 0.6 0.7 bips on, on your net realization.
Shirish Patel
One important point I think what we already highlighted is the GST component from 1st of April all the rates are going to be net of gst. So obviously on a historical book also what we were we were paying to maintain our competitiveness. Obviously we will see some benefit and not showing the hundred percent benefit but we will also see some benefit of those guys who are not paying the GST. Today I would say that almost my more than 50% of our AUM is contributed by those guys who are non gst. Whatever we will be able to save that will definitely compensate the loss in the lead.
Saket Koda
Understood. So basically what you’re trying to say, that your payouts are little competitive because the individual guys who were not paying the GST they were getting better yields and, and now everyone gets net of gst. Maybe you can change your payouts in such a way that your net yield will not change that. That’s a fair understanding.
Shirish Patel
Yeah, yeah, it is a fair understanding.
Saket Koda
Understood. Understood. Perfect. That’s. That clarifies my question. And, and, and, and second they just wanted to understand given, given the smaller guys will be better off in. Is. It fair to say that you will negotiate with the smaller guys on the higher rates?
Shirish Patel
I think it’s difficult to say that we will negotiate the higher rate from the smaller guys but at the same time I would say that our competitiveness in the industry has gone up substantially. So I think it’s too early for me to tell you that we’ll be able to negotiate more or not but at least the gap between we and the non GST MFDs in the industry I think that will become wider and it will either help us improve the margin or it will help us improve the competitiveness. So which way how the AMCs will behave I think only will come to know by April.
But in either ways I think we to increase our margin or I would say that we’ll be able to increase our competitiveness. So in either way I think it would be beneficial.
Saket Koda
Understood? Understood. Got it. And. And the second question is that given given in the current quarter we had a benefit of some release of the withhold brokerage. Just wanted to understand maybe maybe on the current outstanding book there will be still some withhold of brokerage. If you can assume everything gets released eventually how much is that number you are sitting on at the current junction? Whether it’s a material number or it’s meaningfully very small number to see a benefit one time benefits recurring in the next subsequent quarters too.
Shirish Patel
Sankesh the outstanding amount must be very large because the non KYC cases there are some five requirement for your KYC to be authenticated and out of five sebi say that one which is related to proof can be waived off and you can continue to do the business in the existing amc, not into the new amc. So that already if you invest in let’s say X AMC then we’ll allow you to continue investing there. And they have converted that status from a hold to register where the brokerage has been released. So one time 1.4 crore has been released.
There are many cases where probably still brokerage has not been released because we are supposed to complete the KYC process by meeting the customer and that’s a very tedious job. There is a back office team who has been regularly doing this exercise but it is very difficult to tell me that how much will again come but there is some amount. So probably either the rule has to change or we need to complete the KYC and that’s a regular process but this one time is whatever we are.
Saket Koda
Supposed to be received. But I just wanted to check given given this is like a potential additional revenue or profit full just wanted to understand that number is meaningfully very big like like maybe running in pink crores or something on that site.
Shirish Patel
I can say the number afterwards I think let me just recheck number we have been keeping that data with us so I’ll once check that number and I’ll probably let you know separately.
Saket Koda
Okay, understood. And on this brokerage release part you also share it with the mfds or you retain completely with yourself.
Shirish Patel
No, no, it is I think wherever. So I think the almost 50% was related to KYC of Carvey customer which is not owned by anybody. So that has been our income and raise 50% was for the MFD where regular selling will definitely happen to him. It is their business and any. Any. Any amount which accrue related to distributor business definition sharing will happen to them.
Saket Koda
Understood. This is useful. And and second thing last question of amortization cost which you told in the initial part from 10 to 15 years both for carvey and Indus or rather Indus is 15 not like Carvey 10. Then then is it fair to say that incremental amortization both from Carvey and INDUS incrementally be 18.33 crores every every year. Right.
Shirish Patel
So I think it’s a fair assumption. You are right. Yeah, I think you are absolutely right. Previously we used to amortize 15 crore of Carvi every year. Now from that I think this amount should go to 18 crore. That is you are talking about the annualized number, right?
Saket Koda
18 crores including Indus and Carvey Carvey will be 10 crores and 8.3 crores will be. Will be. Will be interested.
Shirish Patel
Perfect. Perfect. Carvey would not be. I think you are 60 crore divided by 10. Roughly about 61 crore would be Carvey and 61 crore should be. And then there is another depreciation also. So I think the number would be about the Carvi and so I can tell you the Sanket the written down value WDV of Karvey was roughly about 65 crore and 90 crore. So 90 crore was Karve and the 106 crore 107 crore of the what you call the Indus because of the entire valuation mechanism. So I think it’s roughly the same amount and you amortize that over a period of carvey would be 10 years from now onwards and Indus would be 15 years.
Another important point is that this 92.32 crude lakhs which I told you which is a part of finance course that is probably will amortize. We will take up P and L hit for next 12 quarters every year. So there’s another about you can say about 1112 crore which is going to be the consistent cost on P and L because of Indus.
Saket Koda
Understood. This this is useful. Thanks for your answer.
operator
Thank you. A reminder to all the participants, you may press star and one to ask question. The next question is from the line of Anshumin from ICIC securities, please go ahead.
Anshumin
Yeah, thanks for the opportunity. So just to kind of what you said on the insurance side that life insurance have been only able to pass on around 10% to you while themselves taking the remaining 90 hit. But on the health side you have, they have been able to pass on 100 to the distributors. This understanding is right as of now. As of March.
Shirish Patel
As of now, March understanding is right.
Anshumin
Okay. And secondly, no on this continued market correction, we know the SIP numbers are good, etc. But any sense which you can share in terms of the overall outlook you see on chip demand or because now it has been some time that the returns have been not that great for investors, what is the sense that you get as one of the top mutual fund distributors in terms of consumer sentiment on sip?
Shirish Patel
To be very honest, I think this time the returns are not there, but SIP returns were there. So even last one year SIP returns were there. If you exclude this last one month of volatility or the negativity, I think in SIP returns were there. To be very honest, this time we have not seen any major termination coming from the sip. I think yes, if you are comparing the termination ratio versus the last year, definitely it is higher than the last year, but last few months, I don’t think that it is alarming. Till now, even this month also where we have seen the major correction in the market, we have not seen the increased termination.
But yes, I think if this kind of market continues for a few more months or few more quarters, then definitely we may see higher termination and lesser new registration. And that is a human behavior. But assuming this kind of market, I think market revival after a few months or a few quarters, I think as of now, to be very honest, we are not much worried. As I said this month our SIP numbers are the is all the numbers are highest. We need to put more effort, we need to educate more to our investors and the distribution community in this kind of market.
And that is what we are doing. So. But it’s too early for us to tell you that whether we’ll see the negative nature or negative sip, that is helpful.
Anshumin
And in terms of our, our numbers.
Shirish Patel
In January, as I said, our numbers in January is the highest ever in new SIP registration, the highest ever in net SIP addition, the highest ever in net sales, the highest ever in health insurance, the second highest in life insurance. So that’s what I said. I think in this kind of market we need to up our action and that is what we are doing. So but yeah, we have not seen any many very worrisome signals in the market right now or in terms of business.
Anshumin
Thanks a lot. Thank you.
operator
Thank you. The next question is from the line of prayersh chain from Motilaloswan. Please go ahead.
prayersh Jain
Yeah, hi. Just extending on the previous question. Generally we had seen that the lump sum flow flows used to see some. Pickup in market corrections. In the last five years whenever there has been some down cycle in the markets correction in the market we’ve seen lump sum pickup.
Shirish Patel
Are we seeing any such trend in the current downturn? So historically we have seen the lump sum pickup comes when the market corrects immediately. So that actually we saw last year right now the market in a correction zone for almost last 12 months. So expecting that another new additional flow comes when the in the month of January I think or the February market correction comes. As of now it looks unlikely because there are so many negative news floating around. But as such we have not seen that more and more people participating in the market and industry 10 also what we.
I understand I don’t have the industry number right now, but I don’t see that that kind of trend is visible in the industry when the class. The. The investors sitting on sideline are investing in equity because of the market correction. Okay. The other question was, you know, in case the.
prayersh Jain
The AMC pass it on to you. The, the cut off 5 basis points. Given the competitive environment in the way, you know quite a few of the new, new, you know, B2B 2C players coming in the market and are ready to share 90100 of their first year at least the first year commissions. Do you think that competitive intensity will further increase and it will be challenged for you guys to pass it on, pass it on to your distributors or you are pretty confident that the way you passed it on last time you’ll be able to pass it on this time also.
Shirish Patel
So I’m assuming that all these platforms also may have to pass it on if the AMCs cut their commission. That is one attendees. Even if they don’t cut it, I think they have hardly anything to pass it on. Obviously we can’t take that kind of call that we are not able to pass it on. So we are very confident that we will be able to pass it on at least if the percentage sharing issue at least. Okay.
prayersh Jain
And the last question is on the again, mutual fund set market share. If you look look at it, it’s kind of stagnated now, you know, in the last few months or so.
Shirish Patel
How do you think that you know.
prayersh Jain
Whether this is the direct competition that’s increasing or what is the real challenge out there to further increase our market share here.
Shirish Patel
So when you compare with the industry’s market share so definitely you always can see that the numbers could be stagnated. And one thing is very very clear that I think when we always believe that direct will command increase higher share than the regular. So incrementally direct is becoming more and more popular. When you look at the industries number, industries numbers are growing faster than the regular plants growth. So that is very very clear. So when you compare our numbers in the industries number definitely I think we don’t see that the growth in the percentage term when you compare including regular and direct that number will grow very very fast.
Even if we are able to maintain that particular number. In a scenario wherein the direct is going much faster than the industry’s growth then itself I think it says that in a regular plan business we have strengthened our bottom position. But having said that also last one year we have increased our SIP share by around 18 to 20 basis point. So yeah in this kind of scenario also we could increase the share. But as I said I think direct is definitely grow faster than the industry and in that scenario even if we can maintain the share I think that is good enough for us.
What according to you would be the.
prayersh Jain
Market market share of direct Direct shift in in terms of monthly flows?
Shirish Patel
Oh I don’t know. Actual numbers. Yes. It’S roughly about 35 of the total book that was I think last cafe article if I remember. So out of new sips new sip the number is I believe upward of 50 now but it varies month on month. I think Sanjay is talking on a book. I do. I believe you are a smaller. I am basically asking from the 30000 crore of chip inflow that the industry.
prayersh Jain
Is getting on a monthly basis roughly what would be the share of direct unit?
Shirish Patel
That is what I think 1/3 of that is 10,000 groceries roughly about 1 1/3 35% is 35 comes direct. 35% comes from direct so about 3 1/2%. You should look at what series is saying that you should look at that 20,000 questions. Crore of we have to look at our selling 35,000 20,000 crore rather than 30,000 crore.
prayersh Jain
Got that sir.
Shirish Patel
Got that.
prayersh Jain
So thank you so much and wish. You all the best. Thanks.
operator
Thank you. A reminder to all the participants you may press star and one to ask the question. Participants may pistar in one to ask the question is there are no further questions from the participants. I would now hand the conference over to the management for the closing comments. Over to you, sir.
Shirish Patel
Thank you. Thank you everybody for attending this call and me. Entire management and Parth is available for any further clarification which you require. Thank you. Thank you.
Rushad Kapadia
Thank you. On behalf of ICIC securities limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.