Company Update : Prudent Corporate Advisory Ltd by Motilal Oswal Financial Services Ltd
Revenue in line; 6% beat on EBITDA
* Prudent reported operating revenue of INR3.2b, +12% YoY (in-line) in 2QFY26. For 1HFY26, it grew 15% YoY to INR6.1b.
* Commission and fees income for the quarter rose 11% YoY to ~INR3.2b, of which INR2.7b (+16% YoY) was contributed by the distribution of MF products, while the contribution from insurance products declined 4% YoY to INR324m.
* QAAUM grew 17% YoY to INR1.2t, while the closing AUM grew 13% to ~INR1.2t for the quarter. Monthly SIP flow grew to ~INR10.9b from INR8.7b in 2QFY25, reflecting a market share of ~3.5%.
* Total insurance premium for the quarter came in at INR1.9b (+21% YoY), of which life insurance premium stood at INR1.4b (+20% YoY) and general insurance premium stood at INR481m (+26% YoY).
* Operating expenses grew 14% YoY to INR2.5b (in-line); fees and commission expenses rose 17% YoY, employee expenses grew 11% YoY, and other expenses dipped 1% YoY. The CIR came in at 17.9% vs 18.9% in 2QFY25 and 18.2% in 1QFY26.
* EBITDA grew 5% YoY to INR722m (6% beat), reflecting an EBITDA margin of 22.6% (vs. 24% in 2QFY25 and our est. of 22.3%).
* Other income grew 4% YoY but declined 20% QoQ to INR82m.
* PAT grew 4% YoY/3% QoQ to INR535m (in-line). For 1HFY26, it grew 10% YoY to INR1.1b
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