EAAA India Alternatives Q2 FY27 Earnings Call: Guides 20-30% FPAUM Growth, Raises Rs. 20,000 Cr In H1 (EDELALTS)

Strong H1 print in first post-listing disclosure

• H1 FY 2026-2027 total income of Rs.616 crores (+35% YoY) — management & advisory fees of Rs.333 crores (+24% YoY); PAT of Rs.169 crores vs Rs.125 crores in H1 FY 2025-2026.
• Q2 FY 2026-2027 PAT of Rs.88 crores — +28% YoY and +9% QoQ; PAT yield stable at 0.72% of FPAUM for H1 and 0.71% for Q2.
• ROE improved to 29.5% — up from ~25% in Q2 FY 2025-2026; cost-to-income steady at 64-65%.
• Dividend of 140% of face value (Rs.7 per share) announced — management aspires to distribute ~50% of annual earnings on a long-term basis.
• First call after the November 2026 stock listing — CEO Amit Agarwal and CFO Hemal Mehta presented; investor presentation filed with the stock exchanges.

FPAUM compounding at 23% over three years; Rs.20,000 Cr raised in H1

• Fee-paying AUM of Rs.49,164 crores as of 30 September 2026 — up from ~Rs.26,000 crores in September 2024, a 23% three-year CAGR; one-year growth of 28% from ~Rs.38,500 crores. Management flagged FPAUM as the key metric given six-to-eight-year close-ended fund structures.
• ~Rs.20,000 crores raised in H1 FY 2026-2027 — ~Rs.8,250 crores across special situations, infrastructure and private equity flagships, plus ~Rs.12,000 crores in listed InvIT strategies.
• Total AUM including dry powder of Rs.95,000 crores — the ~Rs.45,000 crores gap vs FPAUM comprises repaid capital (part of VAR computations) and dry powder estimated at Rs.20,000-25,000 crores (exact figure to be confirmed by the finance team).
• All three flagship funds in fundraising over the next few quarters — the Special Situations Fund, the Infrastructure Yield Fund, and the second vintage of the commercial real estate fund.
• Private equity Fund 2 expected to be nearly 3x the size of Fund 1 (period unspecified) — supported by Fund 1's attractive performance; PE is entering its second vintage after 3 listings (incl. Rentomojo) from the 4-year-old first fund.
• Management raised nearly Rs.31,000 crores over FY26 and H1 FY27 — ~Rs.11,000 crores via listed InvIT strategies and ~Rs.20,000 crores via the fund side, most of it available as dry powder. No private credit vs real assets split of the Rs.20,000 crores was disclosed; management said the breakup will be shared separately.

National Monetization Plan win, Pune office acquisition, Rs.6,300 Cr collected

• Won the TOT 19 bundle under the National Monetization Plan at a bid of Rs.2,259 crores — ~600 lane kilometers of roads on the Madurai-Tuticorin-Thanjavur-Trichy stretch in Tamil Nadu.
• Acquired a 95%-occupied, ~1 million sq ft Grade A office park in Pune — alongside growth capital provided to Science Semiconductors, Gujarat CMIS and Great White via performing credit and special situations strategies.
• Collected upwards of Rs.6,300 crores across strategies in H1 FY 2026-2027 — Infrastructure Fund 1 was fully exited in H1, completing its full life cycle; Q1 FY 2026-2027 numbers include the income/expense impact of this exit.
• Infrastructure Fund 1 exit at a gross IRR of around 19% (19.3% gross return cited) — management used this to argue lower-beta strategies can still deliver attractive risk-adjusted returns, positioned between fixed income (7-8%) and equity (18-20%).
• Platform owns/operates 5.6 million sq ft of completed office space, 7,700 km of roads, 1.73 GW of solar and ~1,800 circuit km of transmission lines — supported by in-house operating platform "Secura" with 66+ domain specialists.

High carry visibility; distribution cost math laid out

• Management sees fairly high visibility of VAR in income/yield strategies — closed-ended funds with 6 to 8 year lives have non-compounding hurdle returns paid as annual cash payouts, strategies are non-equity correlated, and own-and-operate assets carry 20-year contracted cash flow visibility.
• Carry model pays all clients' hurdle returns first — since a large part of hurdle returns are paid annually, management sees far more certainty on carry generation; multiple fund vintages across the 17+-year-old platform make VAR more recurring (slide 42 illustration).
• Average distribution cost is 30 basis points — with a 50-50 distributed/direct mix, P&L distribution cost is 60 basis points; amortized over a 6-7 year period, total distribution cost works out to 3.5-4%, with cash payouts one-third upfront and two-thirds over the fund's trail period.
• Distribution mix: 49% of AUM institutional (direct), 51% HNI/UHNI/family office (distributor-led) — the company states there is no conflict with any distributor domestically or globally; no data was provided on top-3/top-5 distributor concentration.
• Management targets very similar unit economics across special situations, infrastructure and commercial real estate — focusing on net yields (net of distribution costs) rather than gross yields; it did not quantify a revenue-yield differential between real assets and credit.
• Elevated Q1 FY 2026-2027 selling and distribution expense explained — the early full exit of Infrastructure Fund One (ahead of its scheduled fund life) accelerated recognition of forward-period distribution costs that would otherwise have amortized over the remaining fund life; management clarified there is no VAR/revenue sharing with distributors.

Medium-to-long-term targets; fee growth to track FPAUM

• Management would like FPAUM and PAT to grow in the 20-30% range over the medium-to-long term — and believes fee-paying AUM can grow at a 23% CAGR on a three-year rolling basis (period unspecified).
• Management aspires to PAT yields of 65-70 bps of FPAUM (period unspecified) — vs 0.72% of FPAUM actually delivered in H1 FY 2026-2027 and 0.71% in Q2 FY 2026-2027.
• VAR-related earnings expected to contribute 25-30% of total PAT (period unspecified) — now spread across 7 funds and 5 strategies; management aims to operate at a 30% ROE and distribute 40-50% of profits (period unspecified).
• Fee growth lag is mechanical, per management — fees are computed on FPAUM based on actual days, so recent raises reflect in fees only over a few quarters; the Q1 FY27 exit of Infra Fund 1 removed AUM from FPAUM, and management expects fee growth to track FPAUM growth going forward.
• Further raises planned over the coming quarters — across special situations, infrastructure, commercial real estate and private equity.

Management-cited demand pools for India alternatives

• India alternatives penetration at ~4% of GDP vs ~30% in North America — per management's industry study; yield & income strategies projected to rise to ~42% of industry AUM from 33% currently, as industry AUM scales toward Rs.25 lakh crore (period unspecified).
• Rs.17 lakh crore National Monetization Plan asset pipeline cited — alongside ~1 billion sq ft of Grade A office space needing institutionalization and 25,000+ private companies needing private credit, as demand pools identified in management's study.
• Franchise depth: 5,750+ unique client relationships with 77% of AUM from repeat clients — LP mix of 49% institutional / 51% family office-UHNI-HNI; the credit franchise has a 17-year track record with Rs.43,000 crores invested across 190+ companies and >Rs.46,000 crores realized.