Aditya AMC — Q1 FY26 earnings call

Call held 24 Jul 2025

Management summary

Aditya Birla Sun Life AMC delivered a strong Q1 FY26, highlighted by crossing the ₹4 lakh crore Mutual Fund AAUM milestone and achieving double-digit growth across all key profitability metrics. The quarter was characterized by a massive expansion in the alternate assets business following the commencement of the ESIC debt portfolio mandate. Management remains focused on improving equity fund performance and expanding its HNI and corporate distribution reach to maintain market share.

Highlights

  • Revenue from operations stood at ₹447 crores, up 16% YoY

  • Operating profit reached ₹254 crores, representing a 21% YoY growth

  • Profit After Tax (PAT) increased to ₹277 crores, up 18% YoY

  • Total Average AUM (AAUM) grew 21% YoY to ₹4.43 lakh crores

  • Mutual Fund AAUM crossed the ₹4 lakh crore milestone during the quarter

  • PMS and AIF assets witnessed explosive 8x growth to ₹28,657 crores, driven by the ESIC mandate

  • Equity AAUM stood at ₹1.8 lakh crores, growing 11% YoY

  • Passive assets reached ₹36,400 crores, a 22% YoY increase

Key financials

  1. Revenue from Operations ₹447 Cr +16%YoY
  2. Operating Profit ₹254 Cr +21%YoY
  3. Profit After Tax ₹277 Cr +18%YoY
  4. Total Average AUM ₹4.43 lakh Cr +21%YoY
  5. Equity Average AUM ₹1.8 lakh Cr +11%YoY

What they filed

Q1 FY27: revenue up 3.6%, net profit up 11.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue424 445 429 447 461 +9%478 +7%458 +7%463 +4%
EBITDA250 274 244 266 283 +13%290 +6%266 +9%258 −3%
Net profit242 224 228 277 241 −0%270 +21%187 −18%309 +12%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Mutual Fund
    ₹4.03 lakh Cr Average AUM₹1,140 Cr SIP Contribution (June)₹84,000 Cr SIP AUM
  • Alternate Assets (PMS/AIF)
    ₹28,657 Cr Total Assets₹24,260 Cr ESIC Mandate AUM751% Growth

Guidance & targets

Headcount

  • HNI Team Size Headcount · Near term · High confidence 100

    Previously 95 → 100

    Now we already have about 95 team members. And anyway, right now, we have taken a call, we'll go up to 100 team members.

    — A. Balasubramanian, MD & CEO

Market Share

  • Corporate Coverage Market Share · Next phase of expansion · Medium confidence 12,000 companies

    From 9,000 today

    we currently handle roughly about 9,000 corporates across the country... we target to take it about 12,000 companies.

    — A. Balasubramanian, MD & CEO

Other

  • GIFT City Subsidiary Crystallization Other · FY26 · Medium confidence 6 months
    Anyway, that will take about 6 months for us to crystallize it.

    — A. Balasubramanian, MD & CEO

  • Headline Inflation Other · Full fiscal year FY26 · High confidence <3.5%
    Headline inflation has dropped significantly, averaging 2.7% in Q1 FY26 and is expected to remain below 3.5% for the full fiscal year.

    — A. Balasubramanian, MD & CEO

Risks & concerns

  • Offshore fee withdrawals

    medium

    Witnessed fee withdrawals from large customers due to portfolio restructuring and global political uncertainty, though management claims minimal impact on overall profitability.

    Management acknowledged

  • Mid and Small Cap performance

    medium

    Management admitted they are not currently positioned strongly in the mid/small cap segment and are focusing on reviving performance before pushing these funds.

    Management acknowledged

  • Yield compression from AUM slab movement

    low

    Analysts noted a 1bp sequential drop in equity yields; management attributed this purely to the natural movement of AUM into higher slabs rather than commission tweaks.

    Analyst downplayed

Areas of evasion (1)

  • Specific net sales numbers for the quarter were not disclosed, though described as 'equivalent to last year's net sales'.

Q&A highlights

3 direct
Yield compression and employee costs Direct
the yield on the equity is around 67- 68 basis points. It is in the range of around 24- 25 [for debt]. And liquid, it is in the range of around 13- 14 basis points.

Management provided granular yield data by segment, confirming that equity yields are holding steady despite AUM growth, and explained that employee cost declines were due to variable pay timing.

Asked by Lalit Deo, Equirus Securities

SIP reporting methodology change Direct
we used to report SIP book in our presentation that methodology we have changed to SIP contribution from this quarter onwards, which is in line with what AMFI has also started disclosing.

Clarifies the discrepancy in reported SIP numbers compared to previous presentations, aligning the company with industry-standard reporting.

Asked by Tanmay Choudhary, Mentor Securities

Product focus and market share strategy Direct
we have to identify 7, 8 products in consultation with the investment team and position that as a product where we need to get flows... Large Cap Fund, Flexi-Cap Fund and Multi-Asset Allocation Fund, Balanced Advantage Fund and GenNext funds.

Reveals the company's concentrated sales strategy to regain market share by focusing on a few high-conviction products rather than the entire bouquet.

Asked by Abhijeet, Kotak Securities

2 min read 5 chapters

Detailed narrative

Milestone AUM and Market Momentum

Aditya Birla Sun Life AMC achieved a significant milestone by crossing ₹4 lakh crore in Mutual Fund AAUM during Q1 FY26. Total AAUM, including alternate assets, reached ₹4.43 lakh crore, representing a 21% YoY growth. Management noted that net sales for the quarter exceeded the total net sales of the entire previous fiscal year (FY25), driven by improved fund performance across categories.

Explosive Growth in Alternate Assets

The PMS and AIF segment witnessed an 8x growth in assets, rising from ₹3,368 crores in Q1 FY25 to ₹28,657 crores in Q1 FY26. This surge was primarily driven by the commencement of the ESIC debt portfolio mandate, which contributed ₹24,260 crores. While the ESIC mandate offers lower margins, management views it as a strategic investment to serve the Government of India and build scale.

Yield Dynamics and Revenue Composition

Equity yields remained relatively stable at 67-68 basis points, despite a slight sequential compression attributed to AUM slab movements. Debt yields were reported at 24-25 bps, while liquid funds yielded 13-14 bps. Revenue from operations grew 16% YoY to ₹447 crores, while non-MF operational income from alternate assets contributed approximately ₹32 crores for the quarter.

Strategic Distribution and Sales Focus

The company is implementing a concentrated sales strategy, focusing on 7-8 core products including Large Cap, Flexi-Cap, and Multi-Asset Allocation funds to regain market share. To support this, the HNI coverage team is being expanded to 100 members, and corporate coverage is targeted to increase from 9,000 to 12,000 companies. SIP contributions remained steady at ₹1,140 crores for June 2025.

Macroeconomic Outlook and Inflation

Management expressed high confidence in the Indian economy, citing a 6.5% growth forecast for FY26 and stable macroeconomic fundamentals. Headline inflation averaged 2.7% in Q1 FY26 and is expected to stay below 3.5% for the full year, well under the RBI's 4% target. This favorable environment is expected to support continued inflows into the mutual fund industry.

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