Other income drove profit as operating margin plunged to -158.78%
Standalone revenue fell -61.99% YoY, while a tax credit and other income of Rs 329.34 cr lifted net profit despite an operating loss.
Filed 16 Jul 2026, 15:21 IST · 360 ONE WAM Ltd (360ONE)
Key takeaways
- Standalone net profit rose +252.88% YoY even as revenue fell -61.99%, because other income contributed 136.09% of pre-tax profit.
- Operating margin fell 202.58 percentage points YoY to -158.78% as expenses grew +75.01% while revenue declined.
- The stock fell 4.82% on the results day, close to its 4.22% median absolute post-results move across the last eight quarters.
Price around the results
Profit came from outside operations
The standalone business reported an operating loss of Rs 40.14 cr, but profit before tax reached Rs 242.01 cr because other income was Rs 329.34 cr. Other income accounted for 136.09% of pre-tax profit, making the reported net profit of Rs 248.46 cr heavily dependent on non-operating items. A tax credit, reflected in a tax rate of -2.67%, also supported net profit.
Costs widened the operating loss
Revenue declined -61.99% YoY while expenses increased +75.01%, so operating margin narrowed 202.58 percentage points to -158.78%. Interest expense rose +73.08% and depreciation increased +106.76%, adding to the pressure below operating profit. Sequentially, revenue fell -17.55% while expenses rose +110.42%, driving a 157.38-percentage-point margin decline.
The margin profile remains highly volatile
Operating margin moved from 44.64% in Q2FY26 to -1.40% in Q3FY26 and -158.78% in Q4FY26, so the latest decline follows a sharp reversal rather than a third straight quarter of deterioration. Among 52 Financial Services peers that had reported the quarter, 360 ONE's operating margin was 218.19 percentage points below the 59.41% median and ranked first from the bottom.
Management is broadening the platform
Management said it remains focused on an integrated model spanning Wealth, Asset Management and Capital Markets, and said the Investment Banking platform is being strengthened. The company also said it launched a Centre of Excellence for AI to build core AI agents. In Q4FY26, management reported Wealth Management ARR net flows of Rs 6,957 cr and Asset Management ARR net flows of Rs 2,028 cr.
The market reaction was broadly in line with history
The stock fell 4.82% on the reaction day and was down 5.55% after five sessions, with the move relative to the market at -4.01% on day one. The initial decline was only modestly larger than the 4.22% median absolute move after the last eight results, when four reactions were positive and four negative.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹25 cr | ₹31 cr | -17.55% | -61.99% |
| Other income | ₹329 cr | ₹40 cr | +717.83% | +486.43% |
| Expenses | ₹65 cr | ₹31 cr | +110.42% | +75.01% |
| Operating profit | ₹-40 cr | ₹-0 cr | -9234.88% | — |
| Operating margin (%) | -158.78% | -1.40% | — | — |
| Interest | ₹38 cr | ₹28 cr | +38.19% | +73.08% |
| Depreciation | ₹9 cr | ₹12 cr | -23.34% | +106.76% |
| Profit before tax | ₹242 cr | ₹1 cr | +44716.67% | +311.16% |
| Tax | ₹-6 cr | ₹0 cr | — | +44.16% |
| Net profit | ₹248 cr | ₹0 cr | +55113.33% | +252.88% |
| EPS (₹) | ₹6.12 | ₹0.01 | +61100.00% | +240.00% |
Operating margin of -158.78% compares with a Financial Services sector median of 59.41% across 52 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -4.82% | -4.01% |
| Next session | -5.06% | — |
| 5 sessions | -5.55% | -3.93% |
| 15 sessions | -0.56% | — |
| 30 sessions | -3.11% | — |
Volume on the results session was 4.55× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Wealth Management ARR net flows were Rs 6,957 Crs in Q4 FY26.
- Asset Management ARR net flows were Rs 2,028 Crs in Q4 FY26.
Guidance & outlook
- 360 ONE remains focused on building an integrated model across Wealth, Asset Management and Capital Markets to meet evolving client needs.
- The company says it is well positioned for sustained growth and long-term value creation.
Expansion
- The company is strengthening its Investment Banking platform.
New initiatives
- 360 ONE launched a Centre of Excellence for AI to build core AI agents for scalable impact.
Problems & risks
- FY26 was marked by volatility and shifting global conditions, making discipline and execution critical.
What to watch
- Whether operating margin recovers from -158.78% in the next reported quarter.
- Whether other income's contribution falls from 136.09% of pre-tax profit.
- Whether Wealth Management ARR net flows remain above the reported Rs 6,957 cr.