Aditya AMC — Q3 FY26 earnings call

Call held 22 Jan 2026

Management summary

Aditya AMC reported a strong Q3 FY26, with overall AUM (including alternate assets) growing 20% YoY to ₹4.81 lakh crores and Profit After Tax increasing 20% YoY to ₹270 crores. The company saw significant growth in its PMS/AIF/Advisory and Passive segments. Management is focused on strengthening core equity offerings and expects to launch new funds, including SIF and a hybrid fund, in February, while managing the impact of new ESOP costs.

Highlights

  • Overall AUM (including alternate assets) reached a highest-ever ₹4.81 lakh crores, growing 20% year-on-year.

  • Q3 FY26 Profit After Tax stood at ₹270 crores, up 20% year-on-year.

  • PMS/AIF/Advisory assets experienced substantial growth, expanding 8 times to ₹32,663 crores in Q3 FY26.

  • Passive business Quarterly Average AUM touched ₹38,600 crores, representing a 28% year-on-year growth, with ETF QAAUM growing 40% year-on-year.

  • Equity mutual fund quarterly average AUM stands at ₹2 lakh crores, growing by 11% year-on-year.

Concerns

  • Employee benefit expenses increased due to a one-time gratuity cost of ₹2.82 crores and an ESOP cost of ₹4.66 crores from the parent company.

  • The new ESOP scheme rolled out in January will impact manpower costs for the next few quarters.

  • Global uncertainty remains a key risk, though India's fundamentals are strong.

Key financials

2 periods

Headline

  • Overall AUM (incl. alternate)
    ₹4.81L Cr
    YoY +20%
  • Mutual Fund AUM
    ₹4.43L Cr
    YoY +15%
  • Equity MF AUM
    ₹2.00L Cr
    YoY +11%
  • PMS/AIF/Advisory AUM
    ₹32,663 Cr
    YoY +747.6%

Q3

  • Revenue from Operations
    ₹478 Cr
    YoY +7%
  • Profit After Tax
    ₹270 Cr
    YoY +20%

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

  • PMS/AIF/Advisory
    ₹32,663 Cr AUM17% AUM (ex-ESIC) YoY Growth₹34 Cr Revenue (Q3 FY26)
  • Real Estate
    ₹700 Cr Portfolio44% Portfolio YoY Growth
  • Offshore
    ₹4,847 Cr Average AUM (Q3 FY26)
  • Passive
    ₹38,600 Cr Quarterly Average AUM28% QAAUM YoY Growth40% ETF QAAUM YoY Growth

Guidance & targets

Product Launch

  • SIF Fund Launch Product Launch · February 2026 · High confidence Launch in February
    I think hopefully in the month of February we should launch it. By the time the budget would also be out, and we will be the first ones to launch, our first fund will be launched in the month of February.

    — A. Balasubramanian

  • Equity Long-Short Fund Launch Product Launch · Future · Medium confidence Plan to launch
    We will also of course plan to launch the equity long-short fund.

    — A. Balasubramanian

  • Hybrid Fund with Equity Taxation Launch Product Launch · February 2026 · High confidence Launch sometime in February
    One fund we will launch, which is a hybrid fund, will have equity taxation sometime in February.

    — A. Balasubramanian

Expense Management

  • Expense Growth Expense Management · Next couple of years · High confidence In line with inflation
    So Abhijeet, the expense growth would be the normal expense growth, no shockers on that account, except which will be like in line with inflation and closer to that, except we may see the impact of the new ESOP scheme, which we have rolled out in the month of January.

    — Pradeep Sharma

Offshore Operations

  • GIFT City Operations Offshore Operations · Before quarter ending · High confidence Up and running
    We have incorporated our new wholly-owned subsidiary company, Aditya Birla Sun Life AMC International (IFSC) Limited in GIFT City, to expand our GIFT City operations and are currently in the process of securing regulatory approvals and hopefully, before the quarter ending, we will be up and running.

    — A. Balasubramanian

What to watch in Q4 FY26

SIF Fund Launch

February 2026
Current Applications filed, approval awaited
Target First fund launched

Why it matters

Successful launch of SIF is a key product strategy for growth and market traction.

I think hopefully in the month of February we should launch it. By the time the budget would also be out, and we will be the first ones to launch, our first fund will be launched in the month of February.

Risks & concerns

  • Global Uncertainty

    medium

    Global uncertainty remains a key risk, though India's fundamentals position it strongly for sustained growth momentum.

    Management acknowledged

  • ESOP Cost Impact on Manpower Costs

    medium

    The new ESOP scheme rolled out in January will have an impact on manpower costs for the next few quarters, with provisions spread over three years.

    Management acknowledged

  • Regulatory Framework Impact on Yields

    low

    Management expects a minimal and marginal impact from the circular and regulatory framework on yields, aiming to maintain overall yields.

    Management downplayed

Q&A highlights

7 direct
Employee Benefit Expenses Increase Direct
So, Mohit, actually employee benefit expenses have gone up Y-o-Y basically on two counts. One is the additional impact of gratuity based on the new labour code right, which accounts for around ₹2.82 crores that is one. Second is on the ESOP cost, this is actually our parent company, ABCL, some ESOPs were given to our select employees. So, there is an cost of ESOP of around ₹4.66 crores for this quarter.

Clarified the reasons for the 20% YoY increase in employee benefit expenses, attributing it to specific one-time and parent-company ESOP costs.

Asked by Mohit Mangal

Future Yields Trajectory Partial
Broadly, Mohit I think, at this point in time, we estimate the impact of the circular would be minimal, and to that extent, a very limited impact we should see. At the same time, since we are looking at building the size, we are already seeing some kind of momentum coming in overall key portfolios in terms of traction. So, as the size of the funds increases, there will be a corresponding increase in revenue, but it may come with a marginal reduction on the other side.

Management indicated minimal impact from regulatory circulars on yields and expects overall performance to improve despite potential marginal reductions as AUM grows.

Asked by Mohit Mangal

SIF Launch Timeline Direct
Yes. So, in the case of SIF, we have already filed the applications, and the approval is awaited. We had thought it would launch this month. And since we have asked for a revised structure in the portfolio, the approval is likely to come this month. I think hopefully in the month of February we should launch it.

Provided a specific timeline for the launch of the first SIF fund, expecting it in February after regulatory approval for a revised structure.

Asked by Mohit Mangal

Fund Performance vs. Market Share Gains Direct
See I think the way I look at it is if I look at the whole of last one-and-a-half years, the market share loss has been coming down in terms of annual basis points. That is something we are seeing now, and we have almost come to a stage where it is getting stabilized.

Addressed concerns about market share despite improved fund performance, stating that market share loss is stabilizing and performance is now reflecting in longer-term numbers, leading to increased recommendations.

Asked by Prayesh Jain

Distribution Commission Strategy Direct
So that is something we keep doing it, Prayesh, as part of our strategy, focusing on products that can generate volume. At the same time, if we have to consider for a brief period in terms of supporting sales activities that is something we do it.

Management confirmed using temporary incentives and flexibility in commissions for focus products to drive volumes, balancing growth with profitability.

Asked by Prayesh Jain

Equity Flows Excluding Arbitrage Direct
overall equity category, just give number as a broadly, we can take about a 60:40 kind of ratio, 60 for arbitrage and 40 for other funds. So, we don't give individual numbers. But broadly, that's the kind of similar number we can take as a breakup.

Provided a breakdown of equity flows, indicating a 60:40 ratio for arbitrage versus other funds, and total 9M FY26 equity net sales of ₹16,000 crores.

Asked by Dipanjan Ghosh

Future Expense Growth Outlook Direct
So Abhijeet, the expense growth would be the normal expense growth, no shockers on that account, except which will be like in line with inflation and closer to that, except we may see the impact of the new ESOP scheme, which we have rolled out in the month of January. So next few quarters, we will have an impact on the manpower cost on account of this new ESOP scheme.

Management clarified that future expense growth would align with inflation, with the primary additional impact coming from the new ESOP scheme over the next few quarters.

Asked by Abhijeet Sakhare

ESOP Cost Impact and Duration Direct
It will be spread over three years, for which provisions will be made.

Management confirmed that the impact of the new ESOP scheme, which will affect manpower costs, will be spread over three years.

Asked by Abhijeet Sakhare

2 min read 6 chapters

Detailed narrative

Economic and Industry Overview

India's real GDP is projected to expand by a robust 7.4% in FY26, with CPI inflation moderating to a favorable 2.2%. The mutual fund industry's Quarterly Average AUM reached 81 lakh crores as of December 31, 2025, marking an 18% year-on-year growth. SIP inflows for December 2025 were approximately ₹31,000 crores, reflecting a 6% quarter-on-quarter growth, and total mutual fund folios stood at 26.97 crores.

ABSLAMC Performance Highlights

Aditya Birla Sun Life AMC's overall Average Assets under Management, including alternate assets, reached a highest-ever ₹4.81 lakh crores, growing 20% year-on-year. The Mutual Fund quarterly average AUM increased 15% year-on-year to ₹4.43 lakh crores, with Equity mutual fund quarterly average AUM at ₹2 lakh crores, up 11% year-on-year. The company's SIP contribution for December 2025 was ₹1,080 crores, supported by 40 lakh contributions.

Alternate and Passive Business Growth

The PMS/AIF/Advisory assets experienced substantial growth, expanding 8 times from ₹3,853 crores in Q3 FY25 to ₹32,663 crores in Q3 FY26. The real estate portfolio grew 44% year-on-year to ₹700 crores. The Passive business's Quarterly Average AUM touched ₹38,600 crores, representing a 28% year-on-year growth, and ETF Quarterly Average AUM grew 40% year-on-year.

Financial Performance Overview

For Q3 FY26, revenue from operations stood at ₹478 crores, an increase of 7% year-on-year. Profit Before Tax was ₹358 crores, up 19% year-on-year, and Profit After Tax reached ₹270 crores, growing 20% year-on-year. For the nine months ended December 31, 2025, revenue from operations was ₹1,387 crores (up 10% YoY), and Profit After Tax was ₹788 crores (up 12% YoY).

Product and Distribution Strategy

ABSLAMC is focusing on strengthening core equity offerings, particularly Flexi Cap, Multi Asset Allocation, and Balanced Advantage Funds, as well as thematic funds. The company is seeing improved flows and is using a combination of consistent SIP inflows, robust contributions across distribution channels, and improved fund performance. They plan to launch new funds, including a SIF and a hybrid fund with equity taxation, in February.

Expense Management and ESOP Impact

Employee benefit expenses increased due to a one-time gratuity cost of ₹2.82 crores and an ESOP cost of ₹4.66 crores from the parent company. A new ESOP scheme rolled out in January will impact manpower costs for the next few quarters, with provisions for this impact spread over three years. Overall expense growth is expected to be in line with inflation, excluding the ESOP impact.

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