Shah attributed the revenue drop in the April-June 2026 quarter mainly to regulatory changes in mutual fund trail commissions, which provide ongoing commissions to distributors as long as investors stay invested, along with seasonal fluctuations in the insurance sector.
Although Prudent’s average yields have decreased from approximately 91.2 basis points to 88.4 basis points due to SEBI’s updated trail commission framework, he noted that increased assets under management (AUM) and a growing systematic investment plan (SIP) portfolio should bolster revenue growth in the upcoming quarters if market conditions remain stable.
Prudent Corporate Advisors currently oversees around ₹1.40 lakh crore in assets, with a monthly SIP inflow of ₹120-140 crore.
The insurance division will continue to be a vital driver for growth. Prudent aims for a 40-45% increase in health insurance premium collections, while the broader insurance business is estimated to grow by at least 30% this financial year.
Enhanced traction in life insurance products launched over the past year is also expected to aid premium growth during FY27.
The company’s current market capitalization stands at ₹11,882.68 crore.
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