Parag Parikh Financial Advisory Services Ltd. (PPFAS)

1Business Model & Revenue Model Group structure Parag Parikh Financial Advisory Services Ltd (PPFASL) — the unlisted holding company incorporated 12 Oct 1992. This is the share that trades on unlisted platforms. PPFAS Asset Management Pvt Ltd — incorporated 8 Aug 2011, 100% subsidiary, Investment Manager to PPFAS Mutual Fund. This is effectively the entire business. PPFAS Trustee Company Pvt Ltd — SEBI-mandated trustee entity, negligible economics. PPFAS Alternate Asset Managers IFSC Pvt Ltd — GIFT City arm, incorporated Nov 2024. PPFAS Pension Fund Managers Pvt Ltd — newly incorporated 8 May 2026, ₹60 cr capital infused 15 May 2026. PPFASL standalone revenue is tiny (₹3.36 cr in FY25) and its profit is essentially just dividend received from the AMC — so AMC standalone numbers are a near-exact proxy for group consolidated. How revenue is earned Single source: asset management fees charged as a percentage of AUM — ₹570.66 cr in FY26, which is 95.6% of gross income. Blended fee yield roughly 0.449% of average AUM in FY26, up from about 0.428% in FY25 — yield rose despite periodic expense ratio cuts, helped by the equity-heavy mix. Treasury income of ₹25.59 cr (4.3% of income) earned on the AMC's own ₹880 cr investment book. Volatile and non-core; it halved year on year. SEBI rules bar the AMC from charging management fees on its own money parked in its own schemes, so the treasury generates returns but no fee revenue. Segment disclosure is blunt: one customer (PPFAS Mutual Fund) accounts for 100% of revenue, one reportable segment, all revenue from India. What makes the model distinct No distribution arm, no insurance cross-sell, no bank parent, no lending book — the purest AMC exposure available in India, and also the most concentrated. Deliberately narrow shelf of seven schemes; management states it will launch only a limited number of funds where it can add value. Expense ratios cut as AUM scales, so revenue deliberately grows slower than assets. Cash-holding philosophy retained verbatim in FY26: the firm does not force itself to be fully invested at all times. Asset-light and debt-free — around ₹41 cr of gross property and equipment and ₹968 cr of total assets producing ₹346 cr of PAT.

2Founders & Leadership The founder — Parag Parikh (1954–2015) Founded the firm in 1992 as a broking and advisory house on the BSE, extending to NSE two years later. Among the first firms to receive a PMS licence in 1996. India's leading popularizer of behavioural finance and value investing; author of Value Investing and Behavioral Finance and Stocks to Riches. Launched the first mutual fund scheme — the Long Term Value Fund, now Flexi Cap — in May 2013, at the age of

59Died in May 2015 in a road accident in the United States while returning from the Berkshire Hathaway annual meeting. Current leadership Neil Parag Parikh, 44 — Chairman & CEO. Son of the founder. MBA from IESE Barcelona, BA Economics from UNC Chapel Hill. Institutional dealer at PPFAS 2004–08, Whole Time Director 2010–15, took charge 5 May 2015. FY26 remuneration ₹7.89 cr. Rajeev Thakkar, 53 — CIO and Equity Fund Manager. CA, CFA, Grad ICWA. Joined 2001, was CEO of PPFAS until 2012, ran the ₹300 cr PMS book. FY26 pay ₹11.25 cr plus ₹3.93 cr in ESOP and perquisites — notably more than the CEO, which tells you where the value is concentrated. Raunak Onkar, 40 — Overseas Investments Fund Manager and Head of Research. Joined as an intern in 2009, Head of Research by 2011. ₹3.61 cr plus ₹3.02 cr. Raj Mehta, 36 — EVP and Fund Manager, Equity. CA and CFA. Intern in 2012, analyst in 2013. ₹2.64 cr plus ₹2.11 cr. Rukun Tarachandani, 36 — EVP and Fund Manager, Equity. Previously Goldman Sachs research and Kotak AMC. Vikas Gandhi — CFO and Whole Time Director, appointed 13 Nov 2025 after Himanshoo Bohara resigned on 29 Sep 2025. Sonal Dave — Independent Director appointed 17 Feb 2026; the secretarial auditor flagged a delay in appointing a woman director as the year's only compliance exception. Two observations on people risk Thakkar, Onkar and Mehta were all promoted from within, most from internships — this is a grown investment team, not a hired one, and they hold roughly 6.8% of PPFASL equity directly. The Parikh family held 74.91% as of Dec 2025 — Neil 42.20%, Geeta 18.36%, Sahil 14.35%.

3Financials & Valuation FY26 profit and loss (audited, year ended 31 March 2026) AMC fees: ₹570.66 cr versus ₹374.20 cr, up 52.5%. Treasury and mark-to-market gains: ₹25.59 cr versus ₹49.47 cr, down 48.3%. Gross income: ₹596.84 cr versus ₹423.94 cr, up 40.8%. Employee benefits: ₹88.40 cr versus ₹59.75 cr, up 48%.. Profit after tax: ₹346.22 cr versus ₹246.45 cr, up 40.5%. PAT margin 58.0%, essentially flat versus 58.1%. Balance sheet Treasury investments ₹880.42 cr versus ₹542.35 cr. Total assets ₹968.11 cr versus ₹638.15 cr. Net worth at AMC level ₹907.21 cr versus ₹586.44 cr. Debt: nil, in both years, with no borrowings of any kind. Contingent liability ₹0.42 cr — an income tax appeal for AY 2013-14. Treasury at cost ₹723 cr against market value ₹880 cr, giving an unrealised gain of ₹157 cr, or ₹133 cr after deferred tax. Defensive rotation during FY26: own Liquid Fund went from ₹58 cr to ₹439 cr, Arbitrage from ₹49 cr to ₹115 cr, while third-party arbitrage was cut hard — Kotak from ₹81 cr to ₹17 cr, Bandhan from ₹75 cr to ₹9 cr. This is why MTM gains fell; it was deliberate de-risking, not underperformance. Return on equity around 46%. Dividend ₹7 per share totalling ₹25.01 cr, a payout of only about 7% of PAT. Valuation At ₹17,850 per share on 78,68,774 shares, market cap is ₹14,046 cr — a P/E of about 40.6× on FY26 PAT. At ₹19,300, market cap is ₹15,187 cr — a P/E of about 43.9×. Consolidated FY26 EPS works out to roughly ₹440. Market cap to AUM is 9.5% at ₹17,850 and 10.3% at ₹19,300. Price to book is roughly 14–15× on estimated consolidated net worth of about ₹1,010 cr. Versus listed peers PPFAS: FY26 PAT ₹346 cr, growth 40.5% (64.5% ex-MTM), P