Prudent Corporate Advisory Services (PRUDENT IN) – Q4FY26 Result Update – New TER guidelines could lead to consolidation – Downgrade to ‘Accumulate’
Published on 09 May 2026
PRUDENT saw a decent quarter as EBITDA was ahead due to better insurance income. Lower gross MF income was offset by lesser commission which led to net MF revenue being in-line at INR 891mn. Impact of TER change could be 2-3bps that would be passed on to distributors. Hence net MF yields could slightly improve over FY26-28E (28bps in FY26). Competitive advantage within non-GST registered partners may increase, as their yield could decline by 15%. While we remain optimistic on its business prospects, stock is valued at 35x. We raise multiple to 35x from 31x on Mar’28 core EPS and raise TP to INR 2,875 from INR 2,600. Change rating to ‘ACCUMULATE’ from ‘BUY’.
