Aditya AMC

Aditya AMC reported a 42% YoY increase in operating profit to ₹262 crores, outstripping revenue growth of 30%. This was partly aided by a temporary spike in equity yields to 70-71 bps, up from the historical 67-68 bps range. Management clarified this improvement stems from the realignment of marketing and distribution expenses and TER increases in certain debt schemes. However, they cautioned that these yields are likely to revert to the 67-68 bps level within the next 1-2 quarters as regulatory-driven expense adjustments normalize.

The company is aggressively scaling its non-mutual fund offerings to capture higher-margin HNI and family office segments. Alternate assets, including PMS and AIF equity, grew 44% YoY to ₹3,853 crores. Management has set ambitious long-term targets, including reaching ₹20,000 crores in PMS/AIF equity and ₹5,000 crores each in AIF credit and real estate funds. Currently, the alternate business contributes 7-8% of total revenue, with a target to return to historical levels of 14-15% as these platforms scale.

The passive investment vertical is a key growth pillar, with assets currently at ₹31,600 crores and a customer base exceeding 10 lakh folios. Management aims to grow this segment to ₹1 lakh crore over the next few years, focusing on index funds, ETFs, and target maturity funds. In Q3, the company launched the industry's first 3-6 months index fund, garnering ₹715 crores, signaling a strategy to innovate in low-cost, high-volume products.

While the monthly SIP book grew 38% YoY to ₹1,382 crores, the quarter faced headwinds from market volatility^🌐. SIP cancellation rates rose from a typical 50-55% to 60-65% in December, particularly among high-ticket lumpsum SIPs. Despite this, the company added 6.7 lakh new SIPs in the quarter and crossed the 1 crore total folio mark. Management remains committed to the SIP model, viewing it as 'market agnostic' and essential for long-term retail participation.

To combat sliding equity market share, Aditya AMC is intensifying its focus on B30 cities and emerging markets. The company has identified 25 key locations that contribute 80% of industry sales volume for targeted engagement. The 'Virtual Relationship Manager' (VRM) model is being scaled to activate independent financial advisors (IFAs) across the country. Management noted that while overall market share has been under pressure, net inflows in focused categories like multi-asset and thematic funds are showing signs of improvement.