Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Prudent Corporate Advisory Services Limited (NSE: PRUDENT) Q4 2026 Earnings Call dated May. 08, 2026
Corporate Participants:
Sanjay Shah — Chairman and Managing Director
Shirish Patel — Whole Time Director and Chief Executive Officer
Analysts:
Saket Goda — Analyst
Swarnath Mukherjee — Analyst
Unidentified Participant
Deepanjan Ghosh — Analyst
Lalit Mohandir — Analyst
Unidentified Participant
Prayesh Jain — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Prudent Corporate Advisor Q4FY26 earning conference call hosted by Evander Spark Institutional Equities Private 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 then zero on your touch tone phone. Please note that this conference has been recorded.
I now hand the conference over to Mr. Saket Gora. Thank you. And over to you sir.
Saket Goda — Analyst
Thank you Julius. Good morning everyone and welcome to Q4FY26 earnings call of Prudent Corporate Advisors Services Limited. First of all I would like to thank the management of Prudent Corporate Advisors for giving us the opportunity to host the call. We will have opening comments from the management team post which we will open the floor for Q and A from the management side Today we have Mr. Sanjay Shah who is Chairman and the Managing Director Mr. Sirish Patel Chief Executive Officer and whole time Director Mr.
Chirag Shah Non Executive Director Mr. Chirag Kothari Chief Financial Officer Mr. Parth Parikh, Health Investor Relationships. With this I would hand over the call to Sandeshar for his opening comments. And thank you. And over to you sir.
Sanjay Shah — Chairman and Managing Director
Thank you Sake. Thank you very much and good morning everyone. Welcome to all of you for joining us on Prince Q5FY20 call. Thank you for taking the time out with us today. I hope you have an access to the university presentation handy with you because during the discussions we’ll be referring to lot of slides of the presentation. So before I move to the quarterly number I would like to begin with what we believe is one of the most significant initiative of prudence. So please turn to slide 24 of the presentation which we have uploaded.
So this year marks the 10 year since we launched Funds Baja in May 2016. A platform that has been central to our growth and to the lead which we have built in the B2 B2C segment. Tech adoption has consistently been one of our key growth drivers and we are now taking the next step in that journey with the launch of very powerful AI platform called Prudent Age for our mutual fund distribution partners and Funds Edge for our retail customers on the Funds Bajaar. The platform is designed to transform the way distributors run their day to day business be it goal based planning or business analytics such as discontinued SIPs, EO analysis, cross sell gaps, ready made email and WhatsApp communications marketing support research and on demand client reports Activities that earlier required Navigating multiple sections can now be completed with a single click or simply by voice, including in regional languages such as Gujarati, Marathi, Punjabi, etc.
We believe this meaningfully bridges the gap between technology and the usability for our partners. The platform has just gone live in beta mode. We will closely track partners feedback over next few months and refine the engine accordingly. We see this as a timely and ahead of the curve step for the industry. With that, now let me move to the quarterly performance. Now please move to slide 16. This slide talks about the movement in our overall AUM. So if you look at this slide it’s talking about the moment in overall aum.
And on the left hand side of the slide we are comparing three numbers. The average daily AUM for the full year of FY26 the closing AUM as on 31st March 2026 and our current AUM as on 5th May 2026. So typically our AUM at the end of March tends to be higher than the fiscal year average. But this year the Closing AUM of 1.19 trillion on 31 March came in lower than the full year average AUM of 1.21 trillion. This was largely due to market correction in the month of March. The good news is that we have bounced back strongly.
Our aum as of 5th March has already climbed to 1.33 trillion. This is 9.7% higher than the average AUM of full FY26. This gives us a strong healthy revenue tailwind for the remaining 11 months of FY27. On the right hand side, if you look at it provides a trend of quarterly AUM average AUM. Our average AUM for Q4FY26 was 128,000 crore which grew by modestly 0.3% sequentially. This is particularly noteworthy because market fell by 14.5% during the same period. We managed to grow sequentially due to two reasons.
First, we recorded our highest ever equity net sales in a single quarter of 4300 crore. Second, the quarter correction. The market correction was largely concentrated in the month of March. So on a year on year basis our quarterly JVM grew by a healthy 26. Now please turn to slide 47. This slide shows how our equity AUM has moved both on a year on year basis and on a quarter on quarter basis. So let us start with the year on year view on the left hand side of our slide our equity aum grew by 15.4% during FY26 it moved from approximately 1 lakh 100 crore in March 2025 to 1 15,480 crore in March 2026.
This represent an increase of nearly 15,400 crore. Importantly, this entire growth has came from net new money driven by our SIP flows and acquisition of Indus now coming to quarter. On quarter view on the right hand side, Equity declined by 8.2% during the quarter. This was primarily due to mark to market losses of 14,550 crore reflecting sharp market correction during the period. However, the impact was partially cushioned by our highest ever quarterly net sales of 4300 crore. Notably our mark to market loss of 11.6% was significantly lower than 14% correction seen in Nifty 500 index Reflections
Operator
Ladies and gentlemen, the management line has been disconnected. Please hold while we quickly get them reconnected. Sat thank you for being on hold. The management line has been reconnected. Thank you and over to you.
Sanjay Shah — Chairman and Managing Director
Sorry I think the line was disconnected. So I’m again starting with our consolidated financial slide which is slide number 51. Before that I explained about the SIP growth. So I think the last slide of our presentation which is the I think that’s very important one. So let me just again talk about the consolidated financials. So if you look at on a full year basis our mutual fund revenue growth at 21% is in line with our quad average EVM growth of about 21.7%. Despite impact of back book repricing, our yield have remained more or less stable at 91 basis point not only for the year but for last three years in a row.
So if you look at on a full year basis our insurance revenue grew by 18%. This was on the back of a very strong growth in face premium with health insurance growing by 35% and life insurance by 28%. The revenue growth was bit softer than the fresh premium growth laid by rationalization of commission rates. From 1 October 2025 in health insurance vertical on account of GST being reduced to nil rate and change in product mix on life insurance vertical on account of strong growth in both these key variable verticals, total revenue from operation grew by 19.4% and our commission and fee expenses which is a very strong line item has also grew in the same line and the Same pace at 19.8% on a full year basis excluding ESOPs employee expenses during the entire year went up by 21.2%.
This is bit higher on back of Indus acquisition and the cost related to all the employees of Indus and one time provision related to labor code changes which has came in last quarter. With our annual incremental capex cycle now complete and our entire team’s review is also complete, we expect that the employee cost for the existing base will Increase by approximately 14% FY27 if I give you the indication that our salary bill has moved from 8.93 crore in March 2026 to 10.2 crore in April 2026 led by a healthy operational performance, operating Profit grew by 18.2% and operating margin were stable at a 23.6% Profit after tax was lower at 13.5% compared to operating profit growth mainly laid by a dent in other income due to market correction in the month of March of 585 crore of our treasury investments, 200 crore is parked by us in the balance Advantage fund and hybrid SIS on account of steep market correction during the quarter, other income turned negative by 4.7 crore as compared to positive income of 9.5 crore in the preceding quarter is resulted in an overall drag on P and L for last quarter by approximately 13 to 14 crore.
However, all the losses on mutual fund portfolio have since reversed. Current gain on the mutual fund portfolio stand at approximately 11.5 crore and if market remained at current level I think by the 30th of June we expect a very healthy income from other income side on a quarter on quarter basis our revenue grew by 5.1% sequentially lead by a 69% growth in insurance revenue. Operating profit grew by 19.5% sequentially aided by lower employee cost. Employee costs were lower as variable pay provision required in the current quarter was lower compared to what was set aside in the preceding quarters.
However, despite a very healthy operational performance, profit grew at a stronger pace of 2.6% at a slower pace of 2.6% due to negative other income as stated in the commentary above. Now shifting from our financial performance to the regulatory landscape, SEBI has recently made changes in the total expense ratio and I would like to address a few points on that matter. First point is that revised expense ratio which will now be inclusive of all statutory levies including gst. It’s a revenue neutral for those who are registered under gst, but the big advantage is that it removes the earlier anomaly where a GST register distributor earn less than an unregistered one.
This creates a level playing field and helps smaller players to join the prudent platform. So even though it’s a revenue neutral as far as impact is concerned Strategically it is a very very beneficial to us. We have aligned our payout structure in line with regulatory changes wherein rate will also be exclusive at our end and distributor who raised a GST invoice, we will be reimbursing him GST based on the invoicing invoice raised by them. The second point relates to the removal of 5 basis point benefit in lieu of exit load which has been in place since 2012.
This benefit which was available over and above regular TR has now been withdrawn by SEBI. While this represents a cost for the entire industry, we would like to highlight that broader implications are still being discussed and negotiated at the industry level. We expect greater clarity to emerge by end of this month and we will update our stakeholders accordingly once the picture is clearer. So to conclude our full year performance, FY26 has been very very satisfactory year for us. Despite two key headwinds mark to market pressure in the mutual fund segment and yield rationalization in the insurance segment.
Following the reduction of GST to zero, both our key business verticals delivered a close to 20% growth. This is a testament to underlying strength of our business model. A few highlight that stand out for the year. Our equity net sales at 13,900 crore were the highest ever in the history. We added 5,100 new partner during the year reflecting strong and healthy distribution expansion. And our health insurance vertical continued to deliver outstanding performance with phrase premium growing at a 35%.
So across the board our key parameters and the performance indicators have remained robust and we are well poised as we move into FY27. So with that I’ll open the floor for question answer. Thank you.
Questions and Answers:
Operator
Thank you. We’ll now begin the question and answer session. Anyone who wishes to ask question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assemble. The first question is from the line of Swarna Mukerji from 361 Capital. Please go ahead.
Swarnath Mukherjee
Hi sir. Good morning and thank you for the opportunity. Congrats on a great set of numbers. Three questions from my side. So as you highlighted on the you know the 5 basis point XP growth pass on. You are still awaiting clarity. I just wanted to understand. I mean I think last time in the earnings call it seems like that you know the expectation from your side was that you know there will be a pass on. What is. What is the what is the factors like why this is taking time on the lack of clarity is there if you could highlight you know has there been any deviation visa vis what was your expectation previously in terms of the impact?
So that is the first question. Second is if I were to look at your standalone P and L the season commission expenses. If we calculated the percentage of the fees and commission income there is a drop in this ratio. Just want to understand this is a function of indus acquisition and and more direct revenue. How should we think about it? And on the life insurance side I mean what is driving the growth in this segment? Because as far as we understand that apart from retail protection I think the other segments which we do at the industry level has been tepid in 4Q so I wanted to understand that you know our growth has been steady so what is helping that and also given that our fresh to overall premium mix has I think improved if I’m not wrong.
So what is happening on the renewal side? Do we see any kind of persistency related impact playing out there? If we should. Thanks.
Sanjay Shah
Let me first of all address the second question related to your what you call the reduction in the or probably overall you are finding visibly the brokerage payout percentage. So I can tell there are two important points as far as the revenue is concerned. So if you look at as you knew that prudent we have a annual additional trail which we pay to the partner based on their full year net sales and the provision which we have made based on our assumption in first three quarter was sufficient enough for us so that in the fourth quarter what provision was practically nil.
So if you look at in the previous quarter there was an additional trail provision of five and half crore. Finally when the final number arrived in the quarter four the provision for that was zero. So there is a five and half crore of extra so lower expenditure because of that number one. Number two I think we have been all the time telling as far as insurance is concerned that we provide the revenue in our books only when we have absolute clarity and and there is a related to full year revenue of additional about 44 and half crore has been recognized by us in the month of March.
So there is additional revenue of also about 4 and a half crore. So overall there is a 10 crore of extra revenue. I think that is the one major item and probably the insurance revenue is also a bit higher because there are some contest related money would have came from the insurance. So all put together I think that’s the reason but my belief is that when you look at the overall commission cost you should look at the full year number which is more representative from the point of view of your model rather than the last quarter.
So that is number one. Number two you are talking about regarding the clarity from the AMC side about five business parties concern I think the large AMC has already communicated and I think we assume that at so overall we believe that as far as new business is concerned our yield might remain neutral on the book we are expecting about 2:3 basis point impact as far as exit load related tier rationalizing concern but still couple of AMC are yet to communicate clearly. That’s why I think we are not able to tell you exactly that what is going to be the impact as far as sharing this with our distributor partners are concerned.
Consistently we’ve been maintaining this standard we’ll try to share as best as possible and if not more at least in the existing ratio which we are having as far as sharing with them concern I think we’ll be able to share that. So these are the two questions I think raise two questions I’ll tell probably series to address about the life insurance and the another question also
Swarnath Mukherjee
Sir just a follow up on this one if I may. So I mean in terms of the this you think that it should be relatively neutral in terms of the flow yield. So how does that play out? I mean in the flow yield also would not there have been an impact at an individual level.
Sanjay Shah
So I think there are two things. One is AMC repricing on the existing book and their call on the new business. So we believe I think Sirish will be the right guy to also give you more clarity. But I think based on the whatever indication we have till now I think my new book pricing might remain more or less similar because GST component has already been adjusted so it was a very neutral for us. And 5 basis point impact is not on everybody and somewhere I think our impact would be might be more or less neutral as far as new rates are concerned on the old book I think still will have some impact.
Swarnath Mukherjee
Okay so it is going
Sanjay Shah
To be reprised and that so that we need to pass Also there are two things old book whenever the impact will come to us we need to share with that with our distributed partners. As far as new business is concerned our rate will be more or less neutral. So I think we may not see a significant change. As far as my payout also is payout is also concerned
Swarnath Mukherjee
Right sir. And this yield person would be similar visa we say a national distributor like us and individual agent. I mean just wanted to understand that post that could we be at a similar competitive advantage. Visa via AMC passing on to their individual agents, individual distributors.
Sanjay Shah
So I think probably for us the biggest advantage from 1st of April is the GST rationalizer itself because large player in the industry are less than 21 lakh rupees as far as 20 lakh rupees is concerned as far as revenue is concerned. So most of the player in the industry are non registered, non GST registered partner and they had a huge advantage of gst. Now with that advantage being gone away, we will be very, very competitive as far as what they used to get from AMC and what we used to offer. Now their yield, the rate might remain the same but because of GST being are taken out, I think their yield from AMC will come down by 15%.
So automatically we are competitive by by almost 15% compared to the rate of ANC.
Swarnath Mukherjee
Right sir. Got it. Understood.
Sanjay Shah
So.
Shirish Patel
Regarding the life insurance business, what you asked about that how we could grow better compared to the industry in the life insurance side, two reasons I would say one definitely post 2023 in our life insurance business were little muted because the higher ticket side flow completely majority of the higher ticket side flows died away. So last two years I think business growth was not there. Of course we took some time to settle down and also to change the product mix what we used to sell. So if you look at in this financial year the the new category, I think we were talking last few quarters also that tulip category, that term plus tulip category, I think we have been pushing this category very, very actively.
So whatever we lost in terms of life insurance business from the guaranteed plans, what we tried to recover through this particular product category and this year that category is the biggest selling category in our system because historically we have been trying to sell Tumblr as well as mutual funds had the equity or SIP way. So the tulip brands of the industry I think serves both the purpose which gives the higher life cover as well as the exposure to equity. And this product goes very well in our system and hence I think we could navigate this particular business.
And we are very very confident that over time the tulip category will do better in our system and probably that will help us grow our life insurance business. So that that’s the answer and fourth question I think, I don’t think that any question was there question.
Sanjay Shah
Yeah, if you look at the persistency is probably he’s finding that persistence is bit lower. Could it be because of phrase and new composition or something else? That was the question right
Swarnath Mukherjee
Yeah, yeah. So by my calculation the renewal growth rate has come up while last year it was. I mean the last year fresh growth was also better than the visual group. So I’m just trying to understand that is there a persistency issue or any way to look at it in a different manner?
Shirish Patel
No, no. Persistency is still the highest. I think still we are maintaining more than 94, 95% of persistency. So there is no challenges on a persistent state. Still we have maintained the same. So there is no challenges on that side.
Swarnath Mukherjee
Okay, so this is more like product mix of ticket size length.
Unidentified Participant
Come again?
Swarnath Mukherjee
I. I just wanted to check that you know, can this be like more a function of ticket size rather than. You know as you said that the renewal. Renewal growth is bit tepid.
Deepanjan Ghosh
Can you take this question of Chirag? We need to also look at the data what you are referring. Maybe we can connect you offline and then take it.
Swarnath Mukherjee
Sure, sure. Definitely. Yeah. Okay. Sir, thank you so much. Thank you. And all the best for FY27.
Operator
Thank you. A reminder to all participants that you may press star and one to ask questions. The next question is from the line of Lalit Mohandir from Aquarius Security. Please go ahead.
Lalit Mohandir
Yeah. Hi sir. Good morning. So just two questions. So firstly like as you mentioned that on the older book like we probably there would be an impact of around 2, 3 basis points from the larger AMC. So just wanted to understand like on the non GST distributors like all the partners which we have. So are we aligning our distribution rates for them as well on the older book or are we continuing with the earlier rates itself? And so secondly can you give us the breakup of like the new. Of the non financial other non finance other financial products income which is like around 3035 crores for the full year.
Sanjay Shah
So I think as far as the rate alignment is concerned definitely our payout will also get adjusted as for how the AMC is adjusted. So what we used to pay was the gross rate. Now the rate will be aligned by date of GST on the book if I’m talking about. So I think that adjustment will definitely happen. For the first time in our history it is happening that our payout is going to be delayed by few days this time because still a lot of clarity is required from the AMC. And we have not calculated for the month of April.
So it will be difficult to give you any any clear indication as far as numbers are concerned. But yes, the rate would be readjusted for. So I think the same definition would be followed by us we’ll reduce the GST component and we’ll probably pay the GST wherever GST invoice is raised.
Lalit Mohandir
Should we believe that because of this rate alignment or the gst so the not the smaller distributors in the country like they will be at a very disadvantage. So probably the growth or the additions of the newer channel partners at an industry level might slow down like for the overall industry because of this.
Sanjay Shah
So I think you look at in both this area, I think probably they need to work little bit harder because they had an advantage of GST component which was otherwise also not a part of your remuneration. And you are making little bit extra because of gst. But you are right for the non GST partner. I think across the board there is an impact of 15, 20% of the revenue. And so we normally say that I think it’s a one year mark to market and you need to work a little bit harder. But you are right and probably for us that is the biggest advantage.
Also this year you will see a lot of people getting consolidated under the platform because they’re competitive to sustain independently will become questionable. And they’ll also want that all other expenditures should be borne by somebody rather than facing the customer. So you are right. I think we will see these more consolidation opportunity in the industry. Now coming to your question about the bifurcation of our other financial revenue of 33 crore. Right? That is what you’re asking about?
Lalit Mohandir
Yes sir. Yes.
Swarnath Mukherjee
So
Sanjay Shah
I think a 22 crore has came from PMS 6 cr from FD. So 20 plus 628 and rest is probably small case and LAs and everything. So I think small small product but majority of the income is coming from mobilization through PMS AIF. See. So almost entire reward you other than FD which is about 5, 6 crore is recurring in nature.
Lalit Mohandir
And
Sanjay Shah
I can tell you if you look at current year our revenue in the other product has not grown. Because last year there was about 6.7 crore revenue from liqui loan which has probably discontinued as well as product is concerned. So if you remove 6.7 crore from last year my other product even growth is almost about 34% which is visibly as of now only 5%. But if you struck out, struck off the liquid loan from last year that growth is almost 35%.
Lalit Mohandir
Yes, yes. Great sir. Thank you. Thank you.
Operator
Thank you. The next question is from the line of Deepanj and Ghosh from CT Capital. Please go ahead.
Deepanjan Ghosh
Hi, good morning everyone. So firstly in your presentation I see that there are around thousand NFTs who are thousand plus MFDs who are, who can basically sell SIF. So just two questions on that front. One is what would be the SIF flows in fourth quarter and if you can give some color on the Yield construct for SIFs versus let’s say on the equity book that you have, how does it differ? The second question is on the life insurance business. Now if I look at your annual yield they seem almost similar, marginally lower compared to last year yields despite which yields probably would have been lower because of the ITC impact.
Now you mentioned in your commentary that the term plus yearly product has picked up. So is it just a function of mixed change or is there something to read more into the numbers? The third question is on you know, is on the cash position. So I mean previously you have deliberated multiple inorganic opportunities. You have also kind of ventured and gone ahead with a few of them. So anything else that would be you know, you know that one can expect going into FY27 or 28. Those are my three questions.
Sanjay Shah
So let me answer about the third one first, first to series will try and address. So there as far as acquisition is concerned it’s a work in process and continuously we have been exploring. So nothing at a concrete state but I am sure something I think it’s in the process. We not say that something will happen in 2728 but or 2627 but definitely regularly and we’ve been trying and exploring that opportunity all the time. So Srishna, about SIF and LI
Shirish Patel
Yep. So you asked about the flows in SIF in last quarter. So we did around 90 crores kind of business in SIF in last quarter. So currently I think month on month we believe that we have attained a run rate of around 2530 crores now. And we strongly believe that this is still a new category for us and incrementally every month we strongly believe that this monthly flow will keep on increasing on SIF side. So today I think the industry has got around 6,000 unique distributors who are certified to sell SIF.
And out of 6,000 almost thousand plus are done by prudent and working with Prudent. So that way we are very very confident. On in the same line the second question was how is the margin in SIF versus other products? Probably the SIF margins are in line with mutual funds. So there is not much difference between SIF margin and the mutual fund margin. So you can consider SIF as part of the mutual fund sales or mutual fund margin only going forward forward. So the Margin in SIF would be in line with mutual funds.
So that is the second point. Third point you asked about the yield experience in the life insurance side. Yield experience in the life insurance side. I think few of the things would be positive, few of the things could be negative in the sense which can bring down our which has brought down yield. One is the ULEIP category. Compared to the previous year the the ULEIP cell has gone up by almost 6,7 I think 5,6% I would say. So you can see that the leap growth will bring down the yield in per se.
So that is one. At the same time I would say that the positive side post October definitely because of our quality of the assets and the revenue, the mix of the product we could definitely maintain our commercials with the motor bench or insurance companies. So obviously I think that is a positive sign. So per se I think we could maintain the life insurance yield. Of course ULIP definitely will bring down some kind of yield but otherwise I think other categories we could maintain the yield from the life insurance side.
Deepanjan Ghosh
Maybe just one small question which I’ll squeeze in. You mentioned that you know any repricing that happens in the mutual fund yields the impact on bank book might be in the range of 2 to 3 basis points per your best guesstimate at this point of time and you expect the incremental flows to largely be neutral now only to understand how the economics works for you. Let’s say you generate around 100 crore of flows for a particular mutual fund let’s say in the month of May 26th. Let’s say that comes in at let’s say 90 basis points of gross realizations.
Now let’s say the customer stays in the ecosystem and the AUM compounds over the next three to four years. How are the trail commissions organized in this case? If you can give some color on the economics of the business after the initial money has come into the ecosystem.
Sanjay Shah
So actually if you look at because the transaction level yield is always defined. So for example today I have brought somebody’s one lakh rupees wherein I am earning let’s say 90 basis points. So one is your back book as of the book as on the 31st of March, hypothetically I’m assuming my entire book is going to be repriced by let’s say lower than 2 basis point. So whatever the trans. And so when I. When it’s a question of income, right? Say for example Sanjay Shah has given me a crore before five years and my my earning on that particular particular investment or let’s say 50 budget per now it will come down to 48 this point.
There is one part of the story as far as back book is concerned regarding the existing business which I’ve told you that I don’t see a significant change as far as my earnings because one was repricing back book, another was taking a call on the new business and current indication is such that I might have an impact of 2C base point in the back book but not into the new business. If you look at the my book and the new business I think probably if you look at gross to net ratio 50% we are expecting that this year my gross sales has to be in the range of 30.
35,000 crore on a total of one like 30,000 crores. So my net new sales is always in the range of 20%. So probably you might see that my book virtually would. A 20% book might get repriced by end of the year. But then as long as the money remain into the system I think will continue to enjoy the same rate unless there is a change in the back book repricing. Otherwise we’ll continue to have the same rate because the rate is mapped to a particular transaction whether it is a thousand rupees sip or a one crore lump sum.
Deepanjan Ghosh
Okay, so. No, no, I think, I think I get that Sanjay. So just to kind of close the argument, you’re saying that if you get let’s say thousand crore rupees today at let’s say 90 basis points gross yields and the money stays in your ecosystem for next 10 years the yield will be 90 basis points. As long as there is no one off back book repricing. Some of the ANCs did last. Last year. Last year. Right.
Unidentified Participant
Perfect. Perfect. Absolutely
Deepanjan Ghosh
Got it sir. Thank you and all the.
Operator
Thank you. A reminder to all participants that you may press star and one to ask question. The next question is from the line of prayers Jain from Motilal Oswal. Please go ahead.
Prayesh Jain
Yeah. Hi. Joining a bit late. I don’t know whether this point has been discussed. So one is the GST impact that is there and the second is the exit load impact. The five basis points going away. Now whenever you consider the passing it on, passing it on to your distributors. What is the thought process that student has with respect to maintaining its margin? Whether it is the absolute spread that you would. Example if you’re earning 90 bits and earlier you were giving 70 bits to the distributor.
We were earning 20 bits. Now that goes to 88 bits. You would maintain that 20 bits and give 68 bits or would it be on a percentage basis? How does that. How does the company think about passing it on to the distributors?
Sanjay Shah
So I think we. You are right. Before you join we try to discuss about the. How are we going to manage the. The changes which are going to happen. So one thing is we just wanted to communicate that whatever AMC has done for the distributors as far as changing the rate is concerned because previously your rate was let’s say, for example 1% increase of GST they have reduced. The revised rate would be 85 basis point and whoever is a part of GST has to raise an invoice for that. So the similar impact would be at our end also.
However, we will not be able to crystallize anything in the monetary terms because here the April calculation is pending. So that is. I think that’s. That’s the answer to your question and second question you said about the exit load. Also I think we are expecting roughly about. So then in case exit load also if you look at the back book and the new business which will be mobilized. So we assume that as far as book is concerned there might be impact of 2 to 3 basis points on the entire AUM on a weighted average business.
This is also presumption because still couple of AMC are yet to be closed. But I’m assuming it means a two to three basis point and that also will try and share with our distribution partners the way we used to share either in absolute terms or in. In form of a percentage sharing. So I think that is about the exit load impact on the existing book. I think the in the new business current indications are such that probably our yield would remain more or less similar and we do not see a significant change as far as my new yield is concerned and hence probably the overall my pricing strategy also would remain the same.
Prayesh Jain
Got that answer. You know the other part was the SIP run rate and stickiness or SIP new generation now that the SIP returns I have kind of, you know, been one year SIP return terms have been very moderate for the last I think many months now. And it’s reflected in your numbers as well. The SIP momentum has slowed down. What. What are the ground pillars that you’re getting with respect to SIP momentum going ahead? Sirish.
Shirish Patel
So in terms of new registration last financial year we have done the highest gross registration in terms of new ship that way. Yes, I think you can say that. I think post February mid and that time I think yes we have seen some kind of low reduction in the new ship registration but annualized basis we have done the highest registration a new sheep registration. Regarding the termination or the cancellation, obviously I think the last financial year we have seen that higher termination compared to the previous year.
Obviously when the market returns are not that great, two years SIP are not delivering great returns, two things happen. The new registrations come down and cancellation increases little bit. So considering both these things, definitely the cancellation has gone up in last financial year compared to the previous year. But as I stated, the gross has helped to grow kind of returns continue for longer time. Definitely there could be some impact on the new CP and the cancellation both. Having said that experience of investors, the confidence level of investor is much much different compared to what it used to be earlier.
So hence we have seen the trend that the cancellations are low and still the investors are making giving more money. But again that depends how the market returns in next one year. As of now we are very, very confident.
Prayesh Jain
My other question was on your overall revenue profile, you know, how do you see that revenue profile between ESA and insurance and other financial products? Obviously that mix has gone through, you know, some changes over the last few years. How do you see this changing in the say next three years? Do you think that you know these all the new businesses can scale up materially from year on? And what would be the your dependence on mutual funds will go down? How do you see the mix panning out in the next two, three years?
Shirish Patel
So currently other revenue, other product revenue is very, very significant. If I exclude the insurance side. So obviously I think there is a lot of scope to grow the other products product revenue. As Sanjay Bhai said earlier that if I exclude the liquid on which product is not there now, last year other product revenue growth was around 34, 35% and PMS contributes the highest one. Obviously as we know that, I think PMS business is also kind of cyclical. When the market details are not that great, PMS sales also comes down.
So assuming in a normal scenarios, we surely believe that the PMS CIF and the FD which are the new products for us in the alternate side, definitely it is going to grow drastically in our system as well. SIF is a new product category though we consider or treat SIF as a part of mutual fund only. But incrementally SIF is definitely going to contribute a lot in our system. Insurance. Yes, we are very very bullish on specifically health insurance side. So that component also may grow. But this financial year we may see some kind of yield reduction in insurance because regulatory is talking about rationalizing the commission or not.
But having said that mutual fund business, we are very, very confident that we will grow it. Though the base is very high still it will grow. But all the products what we have introduced in last 4,5 years may grow faster than the mutual fund in terms of percentage. But there is no clear cut indication that what would be the percentage share of other products versus mutual fund. Because we want to grow mutual funds as well. Well,
Prayesh Jain
Got that. And last question, sir. You know the MSB business has seen, you know, many players coming in. So do you think that the competitive intensity to acquire MSBs as well as the rates that one needs to share with these MFDs that could be a challenge going ahead. How do you assume the competitive environment among different types of players, different types of national distributors and because many players are getting into B2B2C mutual fund distribution now. So do you think that the competitive intensity will be high in terms of sharing?
And that would impact especially on the new flows front because back book takes almost a year to transfer. But at least on the new flow front people can share significantly higher end take away some MFDs or incremental share could be lower for us. How do you see the environment there
Shirish Patel
Price now These new competitions are not new. Last year the same question definitely would definitely could have said that they are new. Now they are already two years old. The competition is there for last two years. We have experienced what they are doing and what we are doing in last two years. Having said that last, that is 25, 26. We have seen all these competition. But if I tell you that my equity gross sales was the highest ever equity net sales was the highest ever equity gross new SIP registration was highest ever.
My health insurance business was highest ever. My life insurance business was second highest ever. So obviously the competition comes. We have to be mindful. But to be very honest, we have not seen any big impact or any impact on in terms of business. We are very very I would say alert what they are doing and what the competition can do it. But the other side of this coin, I would say that because of so many B2C platforms, I think more and more MFDs are becoming aware about the advantages of platform.
So we also get this indirect advantage of platforms being more popularized. So obviously that is a bigger advantage. Then I think the worry about these guys will pay more brokerage and will take distribution. And now I think specifically from April onwards, I think the level playing field with the AMC is especially for the smaller distribution. I think the market for the platform business is going to become very, very big. So we are not worried about what this competition will take something but rather I would say that the market has become bigger and bigger.
I think how we can get the maximum pie out of the growth opportunity in the market. So that is how we consider.
Prayesh Jain
Got that. Thank you.
Operator
Thank you. The next question is from the line of Gaurav Jain from ICICI Prudential Mutual Fund. Please go ahead.
Unidentified Participant
Thank you for taking my question. Just one question from my side on Indus Capital Acquisition. If you can highlight how much AUM we have been able to retain if there is any attrition or outflow we have seen on that front is one. And second, do you think there can be further such acquisition potential opportunities which we can find in the market? That is all from my side, sir. Thank you.
Shirish Patel
So if I talk.
Sanjay Shah
Sorry, yeah, I’ll just talk about the Indus then probably you can just cover. So I was talking about the Indus as an acquisition. So I just say that Indus the experience has been very, very positive. We communicated that we acquired 2085 crore was the AUM when we were supposed to acquire. And Finally I think 1015 crore here and there. We got roughly about 2060 crore in our code by end of September. And if I tell you the latest number, the AUM is 2,250 crore. It has grown in line with my overall AM growth and the gross sales, net sales SIP book.
Everything has been reasonably great. I think the retention of Mentor is absolute. Everybody is there. Not a single person is left. The senior guy who is managing the business also very, very settled into the system. So overall if you look at on all key parameters, I think the experience, adaptability, client adaptability, we have a couple of discussions with the client also. So overall it’s very, very satisfactory thing. Regarding another acquisition. I think we. I already try and address that.
It’s a working process. We regularly try and assess. So nothing is concrete. So I’ll not say that something is definitely going to happen in next three months. But it’s always a regular agenda for us to scout and look for some good acquisition. Yes,
Shirish Patel
I think you answered both.
Unidentified Participant
Got it sir. Thank you so much and all the best.
Operator
Thank you. The next question is from the line of Abhijit Sarge from Kotak Securities. Please go ahead.
Unidentified Participant
Good morning everyone. So my first question is on slide 32. Just wanted to check what is the aum share of NFTs with more than 10 crores of AUM? I don’t know if that number is disclosed anywhere else in the presentation.
Sanjay Shah
I think there is a slide. If you look at more than 10 crore. We say that we have 2220 people as of March west cost 10 crore AUM. And so I think we have not provided the AUM. But if you look at the average AM so I probably can give the number.
Unidentified Participant
Okay. And so just qualitatively, qualitatively. Sanjay sir, of the MFDS that you are acquiring, how has been the direction in terms of firstly at what AUM level they are joining the platform and has it changed materially in the last two to three years?
Shirish Patel
Basically NFDs joining RF2 categories. One new to industry and secondly the existing mutual. Almost. I would say that 40 to 50% of the MFDs joining us. I think we convert them from other and bring them in the mutual fund industry. So practically they start at 0 AUM, 0 mutual fund clientele and everything. And that is what we build upon. As I said, I think other 50% who joins us from the industry I think they vary from 0 AUM to even 100 crores or 200 crore. Many of the Binger employees don’t join us for the mutual fund business.
They join us for alternate products or the insurance business this kind of product. And when their experience becomes better they join us or they start. They may start doing mutual. So would not be any single answer that at what AUM distributors join. So it’s an. It’s a different range.
Unidentified Participant
That’s an. Alternatively is there a leakage in terms of let’s say somebody crossing let’s say 100 crores or any such number after which they want to venture on their own or that’s they still not at that stage.
Shirish Patel
To be very honest, after 100 crore till date I don’t remember any any MFD who has left. Okay. But yes with the leakage specifically in the range of 10 or 20 crores earlier and again that I would. Yes, we have not seen him that kind of very difficult for any MFD to move out after attaining a certain scale.
Swarnath Mukherjee
All their customers are on funds
Shirish Patel
Moving their all the explorer to Y platform becomes very very
Swarnath Mukherjee
Bigger the scale.
Shirish Patel
It’s difficult for any MMD to move out of any platform.
Swarnath Mukherjee
Got it
Unidentified Participant
Sir. Thank you so
Operator
Much. Thank you. The next question is from the line of Deepanjan Kosh from City. Please go ahead.
Deepanjan Ghosh
Sorry, just a few follow ups from my side. One is if you can quantify the employee Number as of March 31st Second, you know given all the discussions around MF yields will be possible to give some color on what are the incremental yields currently.
Sanjay Shah
There’s on the 31st of March is concerned the precise number is 1540 people and their new salary bill would be. I said about 10.2 crore. So that is about the entire number of employees. Regarding the new business yield, it will be difficult because still like as I told you that and then the yield also vary based on the composition which segment more money will come, which scheme more money will come. So it’s not a single answer that. Because you knew, right? Because if the more money comes in largest scheme of Bev or the smallest scheme of Bev, I think the yield difference will be almost about 30, 40 basis points.
So to give you an indication that what is likely to be the blended it will be very, very difficult. And that probably and normally we are difficult to give you about the book yield and the existing business. Normally it’s very difficult for us to. And normally we do not communicate also that number.
Deepanjan Ghosh
Thank you and all of us,
Operator
Thank you. The next question is from the line of Gaurav Cheney from Prabhu Das. Please go ahead.
Unidentified Participant
Thank you, sir. So just two questions just to simplify. I mean your distribution yields would kind of probably, you know, go down a bit, right? Would that be offset by the fees and commission? Right. So is that a correct way to understand and hence would we be able to maintain our net yields is the first question.
Sanjay Shah
Overall my yield should remain in the model. So my yield should not come under any compression. Because on the book other than GST we might see a 2, 3 basis point impact which to a large extent we should be able to share with our distribution partners and the new business. I told you that I don’t see any change as far as my yield is concerned. So overall my book yield should remain static. I think whether my earning, how it will get adjusted would be. I’ll be able to tell you only once the entire thing is implemented into the system.
But somewhere we should see an improvement in our yield as far as my overall yield is concerned.
Unidentified Participant
So you mean the net yield.
Sanjay Shah
Yeah, Native should be positive. Overall yield should remain more or less static. The two things my earning, let’s say today I’m earning 91 basis point. For example, as on the 31st of March. My belief is that in April on the total book my yield might probably move by about 11 1/2 basis point on the total 2 basis point. But overall my, my 5 because I’ll be able to sharing. Able to share this with my partner also. So overall my earnings should not be, should not go down in any case. I think I should be able to protect my overall earning yield
Unidentified Participant
Which is also our trying to get at. Sir, I. I got your point so appreciate that. And then lastly you know what will be. What is the expected ESOP cost in the upcoming year? This year it was I think 3.3 crore.
Sanjay Shah
So last it was about 6.7 crores or let’s say it was 7 crore on annualized basis I think I assume that it has to be linked to the stock price 2600 rupees. I think the cost was roughly about 7 crore. So probably I don’t know what the price of the share. But one thing is clear. We have decided that every September or October we are going to to this in announce the ESOP now because so that we can have next four quarters continuous amortization and there should not be any spillover into the so there should not be a double provisioning on a particular quarter.
So now more or less probably number of sales might change by few sales here and there but so probably you can assume that cost might go up by 15 20%. So if let’s say this time the cost is likely to be 7 crore next year it could be 8 and a half crore. So here I should not go on to the board. You cannot take it as a projection. But I’m just giving my thought.
Unidentified Participant
Understood Answer. Correct me if I’m wrong. You mentioned that total employee cost would grow by 14 in FY27, right?
Sanjay Shah
Yes, existing not the total cost. My existing employee salary which used to be 8.93 crore in March would be 10.1 crore in the April. Same people who was were on the books. So I’m not talking about the April. Maybe both are looking to join KOI so I’m not talking about their salary. The guy who was with me on the 31st of March, his salary has been revised on 1st of April and that that growth is about 14%.
Unidentified Participant
Perfect. Thanks a lot. I appreciate your.
Operator
Thank you. The next question is from the line of Lalit Mohandir from Aquarius Securities. Please go ahead.
Lalit Mohandir
Yeah. Hi, there’s two follow up questions. So like in the last quarter we had mentioned that like the am coming from the top 5amcs are in the range of around 50 51% now I just wanted to understand like from a flow perspective what where could that number be and also like within that a total em of around 1.3 kilak. Like could you just bifurcate it between the direct channel AM and like the AM coming from the from the partners level.
Shirish Patel
Basically all five AMC as you said contribute around 50% of the and between direct and the regular channel. I think the ratio what we maintained earlier also that still continues as it is around after acquisition. It has little right now it is 9010 90% contribution comes the AUM wise. 90% of the contribution is from our B2B2C channel and around 10% contribution is from the direct plus in this channel.
Lalit Mohandir
If I talk about the.
Shirish Patel
If you talk about the new flows new flow it would be around. You can save 6 to 7% coming from the direct channel and almost 93, 94% coming from the B2B2C channel.
Lalit Mohandir
From the top five AMC’s contribution from from a flow perspective,
Shirish Patel
It does similar. There is hardly any change. There could be a change of 1 or 2% because new AMC is coming in. They might eat into some kind of sharing from the bigger AMCs. But if you look at the share of in the business and share in the eum of course there would be the new business share would be little lesser than the AUM share. But there is no drastically different because as I said new MCS will eat into the existing assets of the bigger AMCs. But there is no meaningful difference. You can highlight.
Lalit Mohandir
Thank you, sir.
Operator
Thank you. The next question is from the line of Sanket Gora from Evander Spark Institutional Equities. Please go ahead, sir.
Saket Goda
Yeah, thank you for the opportunity, sir. My if I look at the graph flows numbers in the current month, current quarter, it seems to be more driven by the lump sum number rather than the SIP which has been pretty stable. So just wanted to understand whether this amount came predominantly when the market corrected. And is it fair to say that it might not repeat if the market come back and therefore we can go back to that lumps of number around 4,000 odd crore kind of figure instead of 5,300 crore figure.
What you experience in the current quarter and I just wanted to understand whether it came in the month of March or it was more uniformly distributed.
Shirish Patel
So basically I think whenever market corrects the initial phase, we historically we have seen that the lump sum money takes advantage of the market and hence the lump sum flows would be higher than the SIP flows during that period. Long term, I think always you would see that currently in our system Almost it is 50, 50% kind of number. So long term I think 50% contribution comes from kind of SIPs and almost similar from the number overnight my SIP numbers cannot change. So tomorrow market corrects obviously I think lump sum will take it over in terms of share.
And tomorrow if the market is and longer term if the market is not doing that great, that time we will see that the new flows or the fresh flows will come down significantly and that time you will see that the SIP sales is much much higher than the new new sets. But long term I think Currently system is 50 50. Specifically we talk about whether the flow has come in the month of March or April. I would say that the difference in Jan, Feb March if I look at the phrase flows, hardly any difference.
I think of course there was a difference of around 100 crore. You can say around 10% deviation in the Jan fib March number. But you can’t say that I think the March number was 30 40% higher than my January number. So it was hardly 100 crore difference difference in Jan and March number. So yes there was a difference but not much.
Saket Goda
Understood sir. And the second question is predominantly on the SIP market share. That monthly sib market share if I see it’s been stuck in that zone of 3.5 to 3.7 kind of a number. Just wanted to understand, I mean this pain is coming from more other platform companies where we are not able to expand market share. It’s not paying but we are not able to expand the market share. Is it largely coming from the other platform companies or is it more and more people choosing to take direct in your view, sir?
Shirish Patel
Definitely. I think you would see that more and more people in the industry market share of direct is increasing. So when you are comparing the share only on a total SIP registration if you are seeing that we are maintained in a scenario wherein the overall share of direct is increasing that way you yourself is saying that I think we are gaining the markets in a regular plan. So that says that we are not losing the share to other competition platform or other regular plan platforms on that particular space we are gaining the market share.
But when we are talking about the overall industry, yes, I think the share is maintained.
Saket Goda
Understood? Absolutely. But any number you have in mind sir, like this number should be at least four or four percentage, four and a half percentage in medium term as a market share.
Shirish Patel
So practically I think we don’t target this kind of number. But of course I think we keep on tracking the growth or the shares month on month or quarter and quarter. And I think every month it is at least few basis point higher than the previous one. So I think we are on the that zone that I think we are growing. But specifically if you say that are we targeting 4%, 5% of the market share that way? I think because direct I will not be able to control how the direct goes. How many platforms will become stronger on the direct side?
I think it is anybody’s guess to say. But yes, I think always there is a focus that we should be able to increase the market share in the overall industry and specifically on a regular plan. But no number in mind.
Saket Goda
Okay, Understood sir. And lastly on. On this due to GST think the unorganized MFDs who probably don’t pay GST in your assessment how big is that number or how much AM is managed by them and, and if they come on the platform and if we take a bit of market share very similar to what we have today. Maybe, maybe too early to tell but. But just, just any, any numbers you have in your mind how many people are there, how much of a is given by these guys, managed by these guys and if they come to our platform how much potentially bump up we can see in the AEM in that sense.
Shirish Patel
So here definitely one thing is very clear that the competitiveness of platform has increased compared to what it was last year. Now how this will play out I think only the time would say. I don’t have any exact number on the industry side that what percentage of the AUM these GST non GST guys were contributing. But I think AMC would be the right person or the RTS would be the right person to give you the number. But I think what I understand again I think I would say that it’s not the authenticate number but what I heard in the market maybe around 15 to 16% of the AUM is contributed by non GST registered partner.
Now whether this is the entire industries or only MFDs even so in terms of number of distributors would be much much higher. But the contribution in terms of overall AUM definitely will be much lesser than what it looks like. So of course it’s an opportunity for all the platforms that these non registered distributors may join them. But it is not only non registered distributor. I think I would say that the entire industry for that particular the platform competitiveness has increased whether it is non registered or the registered.
So only thing how it plays out I think. Let’s see. I think after one year we’ll be able to see that how it works.
Saket Goda
Understood sir. Thank you. Thank you. That’s it for me.
Operator
Thank you. As there are no further question from the participants I now hand the conference over to Mr. Sanjay sir for closing comments.
Sanjay Shah
Thank you. Thank you everyone. I think we probably tried to address all the queries. However if you any question you can definitely reach out to our IR Guy. Partake will be happy to answer all your questions. Thank you very much. Thank you.
Lalit Mohandir
Thank you. Thank you.
Operator
Thank you. On behalf of Aventus Park Institutional Equities Private Limited. That concludes this conference. Thank you for joining us. You may now disconnect your lines.