Aditya AMC — Q1 FY27 earnings call

Call held 21 Jul 2026

Management summary

Aditya Birla Sun Life AMC reported strong Q1 FY27 results with overall average AUM growing 42% YoY to ₹6.28 lakh crore, driven by new mandates and robust performance. Revenue and PAT saw double-digit YoY growth. While the SIP book experienced a marginal reduction due to ELSS outflows, the company is focused on strengthening core schemes, expanding alternate and passive businesses, and leveraging digital initiatives for future growth, maintaining stable yields and managing costs effectively.

Highlights

  • Overall average AUM (incl. Alternate assets) grew 42% YoY to ₹6.28 lakh crore, surpassing the ₹6 lakh crore milestone.

  • Q1 FY27 Total Revenue increased 11% YoY to ₹625 crore, and PAT grew 12% YoY to ₹309 crore.

  • The company secured a significant EPFO mandate of approximately ₹6.08 lakh crore, contributing to the closing total AUM crossing the ₹10 lakh crore milestone.

  • Equity yields are maintained at 63-64 bps, with overall yields expected to remain in a similar range going forward.

  • Strategic initiatives in digital transformation, distribution network expansion, and new product launches (GIFT City, SIFs) are underway to drive future growth.

Concerns

  • A marginal reduction was observed in the SIP book this quarter, primarily due to outflows in ELSS schemes and higher industry-wide cancellation rates.

  • Fixed income assets experienced volatility in May, impacting average AUM, though money returned in June/July.

  • The ESIC mandate provides very marginal revenue, primarily serving as a gateway for other privately managed EPFO flows rather than direct revenue contribution.

Key financials

2 periods

Headline

  • Overall Average AUM
    ₹6.28L Cr
    YoY +42%
  • SIP Contribution (June 2026)
    ₹1,085 Cr
  • Equity Yield
    63.5 bps
  • Employee Count
    1,638 headcount

Q1 FY27

  • Total Revenue
    ₹625 Cr
    YoY +11%
  • PAT
    ₹309 Cr
    YoY +12%

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
    ₹4.28L Cr Quarterly Average AUM₹1.99L Cr Equity Mutual Fund Quarterly Average AUM46.5% Equity Mix
  • Alternate Business (PMS & AIF)
    ₹2.00L Cr Assets7% Contribution to Gross Revenue4% Contribution to Net Revenue
  • Real Estate Business
    ₹700 Cr AUM
  • Passive Business
    ₹40,000 Cr Quarterly Average AUM47% ETF Quarterly Average AUM Growth

Guidance & targets

AUM

  • PMS Long Only Equity AUM AUM · next 3 years · High confidence ₹20,000-21,000 crore
    Definitely, we have a target to take it to anywhere between 20,000 crore, ₹21,000 crore over a period of next three years.

    — A. Balasubramanian, MD & CEO

  • AIF Performing Credit & Real Estate Credit Fund AUM AUM · near term · High confidence ₹5,000-7,000 crore each
    I think each one of them will gun for about anywhere between ₹5,000 crores to ₹7,000 crore kind of size to start with.

    — A. Balasubramanian, MD & CEO

Profitability

  • Yield Levels Profitability · going forward · Medium confidence similar range, barring 1-2 bps here and there, plus telescoping pricing
    So, we feel that, going forward, the yield should be in the similar range, barring one or two basis points here and there, plus the telescoping pricing.

    — A. Balasubramanian, MD & CEO

Costs

  • Employee Cost (ESOP impact) Costs · coming quarters · High confidence continue in the same range (~₹10 crores additional per quarter)
    And roughly, the employee cost, which is there in Q1, should continue in the same range for coming quarters.

    — Pradeep Sharma, CFO

  • OPEX Growth Costs · for the year · Medium confidence within inflationary guidelines
    OPEX, I think, remain within the inflationary guidelines.

    — Pradeep Sharma, CFO

Revenue

  • Alternate Business Revenue Contribution Revenue · coming quarters · Medium confidence similar range (except 1-2% variation)
    I think largely we feel that because all our verticals, LOBs are largely we feel in coming quarters, I think the revenue or contribution for Alternate should be in the similar range except 1% or 2% here and there, I think should be there.

    — Pradeep Sharma, CFO

What to watch in Q2 FY27

SIP book growth momentum

next quarter
Current Marginal reduction this quarter
Target Improved growth momentum

Why it matters

SIPs are a cornerstone of long-term wealth creation and a key growth driver for AMCs.

Though we have seen this quarter a marginal reduction in the SIP book, something we continue to remain a big focus area to drive to the next level of growth momentum.

Risks & concerns

  • Monsoon impact due to El Niño

    medium

    IMD expecting below-normal rainfall, though comfortable foodgrain stocks and supply management should soften food price impact.

    The key risk is the monsoon, with the IMD expecting below-normal rainfall due to El Niño. Though comfortable foodgrain stocks, healthy reservoirs, and better supply management should soften any food prices impact compared to the past years.

    Management acknowledged

  • Global macroeconomic uncertainty and inflation

    medium

    Global economy shows resilience but inflation may rise modestly, keeping Central Banks cautious. Geopolitics, commodities, and trade fragmentation remain risks.

    The global economy as is known has shown real resilience this quarter navigating the uncertainty from the West Asia conflict with the limited impact on activity so far. We continue to have uneasy kind of calm. ...Inflation may rise modestly keeping Central Banks cautious on easing. Risk from geopolitics, commodities and trade fragmentation remains but outlook is more balanced with the resilient demand and technology-led productivity gains.

    Management acknowledged

  • Marginal reduction in SIP book

    medium

    Attributed to ELSS outflows and higher industry-wide cancellation rates, but core schemes are seeing improvement.

    Though we have seen this quarter a marginal reduction in the SIP book, something we continue to remain a big focus area to drive to the next level of growth momentum.

    Management acknowledged

  • Equity market volatility impacting flows

    medium

    Industry witnessed continuous flows despite volatility, but May/June were muted for ABSL AMC due to market conditions.

    Despite equity market volatility, industry witnessed continuous flows into various schemes, highlighting sustained investor confidence in the long-term growth potential of Indian equities, though we witnessed marginal slowdown in the overall SIP flows.

    Management acknowledged

  • Higher import costs pressuring external account and domestic prices

    low

    Higher import costs have pressured the external account, leading to some pass-through into domestic prices and RBI announcing FCNR deposit.

    That said, the higher import costs have pressured the external account with some pass-through into domestic prices. That is why we are seeing the FCNR deposit also being announced by RBI.

    Management acknowledged

Q&A highlights

5 direct
Impact of TER regulation and yield trajectory Direct
So, Swarnabha, this BER actually, now, this was effective from 1st April, 2026. So, that has been rolled out completely. And we have optimized the commission structure along with the management of cost. And this is win-win for both, as an AMC for us, as well as for our partners. So, that has been rolled out. And the yield, what is there in Q1, reflects the true picture and will be maintained going forward in these levels.

Clarifies that the new TER regulations are fully implemented and the reported yields are sustainable, addressing a key industry concern.

Asked by Swarnabha Mukherjee

SIP market share and reasons for marginal reduction Partial
I think largely our SIP, especially in the ELSS schemes we are seeing, generally outflow in the industry and we did have impact on some of the ELSS schemes. Even industry this time the cancellation rates are higher than the previous quarter. So, to some extent I would say that has added to the, of course sometimes some of the, we have seen some cancellation in that.

Explains the specific reasons for the marginal SIP book reduction, attributing it to ELSS outflows and higher industry cancellation rates, rather than core scheme weakness.

Asked by Mohit Mangal

Revenue contribution from ESIC mandate Direct
ESIC mandate, of course, in terms of the revenue, very marginal. We don't earn any much on this. Of course, we do have a team of people, who actually have a separate team of people for managing both the EPFO and ESIC mandate. That's what the requirement is. Otherwise, in terms of revenue, it doesn't add much revenue to us.

Clarifies that the ESIC mandate's primary value is strategic (opening doors for EPFO flows) rather than direct revenue generation, managing investor expectations on its financial impact.

Asked by Abhijit Sakhare

Outlook on OPEX growth for the year Direct
OPEX, I think, remain within the inflationary guidelines. Employee cost, as we discussed in the first call, should remain largely in the similar range as we have already factored in the ESOP cost, etc., which based on the new ESOP plan, which was rolled out for the employees. Other than employee cost, it should largely remain as per the normal inflation. There are no cost shocks, I think, as of now.

Provides clear guidance on cost management, indicating stability in employee costs post-ESOP impact and overall OPEX within inflationary trends, which is positive for profitability.

Asked by Abhijit Sakhare

Growth strategy for Alternate business (ex-mandates) Direct
If you look at our Alternate business, we divide them into three categories, one is the PMS long only equity, which is in the listed space, where we have roughly about ₹5,000 crore kind of size. While we have grown with the last--, that's an asset class we want to build size. In fact, we are already part of this. Some of these leading wealth management teams approved list. Definitely, we have a target to take it to anywhere between 20,000 crore, ₹21,000 crore over a period of next three years.

Details the multi-pronged strategy and specific AUM targets for the Alternate business, highlighting clear growth ambitions beyond large institutional mandates.

Asked by Dipanjan Ghosh

Fee and commission expense increase and its link to new launches/PMS Direct
Fee and commission expense is actually directly linked to the business of Alternate business because this is a commission which is paid to the distributor community. I think that is directly linked to the business which we will be garnering on the Alternate side. I think this should have the similar growth rate of our revenue for Alternate side.

Explains that the increase in fee and commission expense is a direct function of growth in the Alternate business, implying it's a variable cost tied to revenue generation rather than a fixed overhead increase.

Asked by Dipanjan Ghosh

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Detailed narrative

Macroeconomic Environment and Market Outlook

The global economy demonstrated resilience in Q1 FY27, with the IMF projecting global growth to moderate to 3% in 2026 before improving to 3.4% in FY27. India remains a fast-growing major economy, handling crises better than most energy-importing economies. Equity markets were volatile but resilient, with large caps range-bound while Nifty Midcap 150 and Nifty Smallcap 250 posted gains, supported by domestic institutional flows despite FII outflows. The key risk identified is the monsoon, with below-normal rainfall expected due to El Niño, though foodgrain stocks are comfortable.

Mutual Fund Industry Performance

The mutual fund industry's quarterly average AUM reached ₹83.14 lakh crore as of June 30, 2026, marking a 15% YoY growth. SIP contributions for June 2026 stood at ₹31,780 crores, a 17% YoY increase, with total folios growing 19% YoY to 29.1 crores. Q1 FY27 saw NFO collections of approximately ₹4,759 crores, driven by index, aggressive hybrid, and value funds. Individual average AUM contributed 61% of the total, while B-30 cities accounted for 18.5% of total AUM, growing 13% YoY.

ABSL AMC Q1 FY27 Performance Highlights

Aditya Birla Sun Life AMC's overall average AUM, including Alternate assets, surpassed ₹6 lakh crores, reaching ₹6.28 lakh crore, reflecting a robust 42% YoY growth. This includes a significant EPFO mandate of approximately ₹6.08 lakh crore, pushing the closing total AUM to over ₹10 lakh crore. The mutual fund quarterly average AUM stood at ₹4.28 lakh crore (6% YoY growth), with equity mutual fund AUM at ₹1.99 lakh crores (10% YoY growth). SIP contribution for June 2026 was ₹1,085 crores, supported by 40 lakh folios and 5.5 lakh new SIP registrations.

Strategic Initiatives and Product Development

The company continues to strengthen its investment capability, with performance improving across equity and hybrid portfolios. Distribution network expansion is a key priority, with products being added to banking channel recommendation lists, including FlexiCap with HDFC Bank. Digital transformation efforts include new apps, a WhatsApp-enabled servicing platform, and a Gen AI-powered chatbot to enhance investor experience. The company also launched new SIFs and is preparing for additional launches after establishing a 6-month performance track record for its first Hybrid Long Short Fund.

Alternate and Passive Business Growth

The Alternate business saw PMS and AIF assets reach approximately ₹2 lakh crore, with a target to grow PMS long-only equity AUM to ₹20,000-21,000 crore over the next three years. Real Estate Business AUM grew 25% YoY to ₹700 crore. The company obtained a retail license for GIFT City, planning to launch retail products, emerging market equity funds, and global index funds. The passive business recorded a quarterly average AUM of ₹40,000 crore (14% YoY growth), with ETF AUM growing 47% YoY, significantly outpacing the industry average of 29%.

Financial Performance and Cost Management

For Q1 FY27, total revenue increased 11% YoY to ₹625 crore, while Profit Before Tax (PBT) grew 9% YoY to ₹406 crore, and Profit After Tax (PAT) rose 12% YoY to ₹309 crore. Equity yields were maintained at 63-64 basis points, with debt at 24-25 bps, liquid at 12-13 bps, and ETF at 8 bps. The company expects overall yields to remain in a similar range, accounting for telescoping pricing. Employee costs increased by approximately ₹10 crores per quarter due to ESOP implementation, which is expected to remain stable, and overall OPEX is projected to stay within inflationary guidelines.

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