WEALTH - Wealth First Por

📊 NSE: WEALTH 🏢 Finance & Investments 📅 Last Updated: 12/14/2025 15:14

💰 Financial Performance

Revenue Growth by Segment

Business Activity Income (Core Revenue) grew 9.7% YoY in Q2 FY26 to INR 17.9 Cr and 13.3% YoY in H1 FY26 to INR 33.7 Cr. Trail Base Revenue grew 2.9% YoY in H1 FY26 to INR 24.7 Cr, while revenue from trading activities and other income declined due to unfavorable market conditions and M2M drawdowns.

Geographic Revenue Split

Primarily focused on the Indian market with a strong historical presence in Ahmedabad, Gujarat, where the company captured 50% of the retail mutual fund market.

Profitability Margins

PAT Margin was 53.3% in Q2 FY26 (down from 64.4% YoY) and 59.2% in H1 FY26 (down from 64.6% YoY). PBT Margin stood at 73.5% in Q2 FY26 compared to 82.8% in the previous year.

EBITDA Margin

PBT from Business Activity Income Margin was 69.8% in Q2 FY26, down from 75.8% YoY. Core profitability (PBT from Business Activity) grew 8.2% YoY to INR 25.0 Cr in H1 FY26.

Credit Rating & Borrowing

Total borrowings stood at INR 0.66 Cr (INR 66.52 Lakhs) as of September 30, 2025. Specific credit ratings and interest rate percentages were not disclosed.

⚙️ Operational Drivers

Raw Materials

Human Capital (Financial Advisors, Research Analysts, and Management) represents the primary operational cost, with employee benefit expenses accounting for 77% of total operating costs in Q2 FY26.

Import Sources

Domestic (India).

Key Suppliers

Asset Management Companies (e.g., Franklin Templeton), Insurance Providers, and Market Infrastructure Institutions (NSE, BSE, CDSL).

Capacity Expansion

Assets Under Advice (AUA) reached INR 12,574 Cr in September 2025, a 14.6% YoY increase. Trail-based AUM (MF, PMS, AIF) grew to INR 6,011 Cr. Expansion is planned through a new AMC venture and scaling insurance brokerage.

Raw Material Costs

Employee benefit expenses increased by 40% YoY to INR 4.2 Cr in Q2 FY26 and totaled INR 6.1 Cr in H1 FY26, representing approximately 18% of Business Activity Income.

Manufacturing Efficiency

Cost to Income ratio for core business activity was 30.2% in Q2 FY26, reflecting high operational efficiency in the advisory segment.

Logistics & Distribution

Not applicable.

📈 Strategic Growth

Expected Growth Rate

18%

Growth Strategy

Achieving growth through the launch of an Asset Management Company (AMC) following SEBI in-principle approval, scaling the direct insurance brokerage business, and capitalizing on the projected 13% CAGR in India's serviceable asset base to increase specialized wealth management market share from 11% to 17% by 2035.

Products & Services

Specialized wealth advisory, Mutual Fund distribution, Portfolio Management Services (PMS), Alternative Investment Funds (AIF), and Insurance Brokerage.

Brand Portfolio

Wealth First

New Products/Services

AMC venture and Insurance Broking services; insurance revenue is already contributing to the 9.7% YoY growth in core business activity income.

Market Expansion

Targeting the 'Uber Rich' and 'Mass Affluent' segments in India, with a focus on capturing a larger share of the projected $9.3 trillion serviceable asset market by 2035.

Market Share & Ranking

Specialized wealth managers currently hold 11% of the $2.7 Tn addressable market; company historically captured 50% of the Ahmedabad retail MF market.

Strategic Alliances

Strategic partnerships with major fund houses and insurance providers; historically served as an exclusive distributor for Franklin Templeton schemes.

🌍 External Factors

Industry Trends

Specialized wealth management is projected to grow at an 18% CAGR, while active equities AUM is expected to grow at over 20% CAGR in the medium term due to rising household net worth.

Competitive Landscape

Competes with domestic banks, global bank wealth units, and unorganized players such as RIAs, IFAs, and MFDs.

Competitive Moat

Moat built on a 30-year track record, being the first IFA practice listed on NSE, and a history of 100% client wealth protection during major crises like the Lehman collapse and NSEL scam.

Macro Economic Sensitivity

Highly sensitive to Indian equity market performance and nominal GDP growth; historical AUM growth includes a 12% CAGR from MTM gains.

Consumer Behavior

Increasing consumer preference for specialized wealth advisory services over traditional bank-led models is driving a long runway for growth.

⚖️ Regulatory & Governance

Industry Regulations

Operations governed by SEBI regulations for Portfolio Managers and Investment Advisers, and IRDAI norms for direct insurance brokerage.

Environmental Compliance

Not applicable.

Taxation Policy Impact

Effective tax rate of approximately 26.6% based on H1 FY26 PBT of INR 36.8 Cr and PAT of INR 27.0 Cr.

Legal Contingencies

No significant fraud or material changes in internal controls reported for the financial year ended March 31, 2025; auditors provided a clean opinion on standalone and consolidated statements.