Detailed Narrative
Record AUM Driven by Alternate and Passive Segments
ABSLAMC reached its highest-ever total AAUM of ₹4.81 lakh crores, a 20% YoY increase. This growth was significantly bolstered by the Alternate business, where assets surged 8x to ₹32,663 crores, primarily due to the onboarding of the ₹28,000 crore ESIC mandate. The Passive segment also showed strong momentum, with AAUM growing 28% YoY to ₹38,600 crores, outperforming the industry ETF growth rate of 24%.
Profitability and Cost Dynamics
Q3 PAT grew 20% YoY to ₹270 crores, outstripping revenue growth of 7%. However, employee benefit expenses saw a notable spike due to a one-time📎 ₹2.82 crore gratuity charge related to the new labor code and a ₹4.66 crore ESOP cost. Management clarified that while the gratuity is one-time📎, the ESOP costs will continue to impact the P&L for the next three quarters, though they will be spread over a three-year provision period.
Yield Resilience Amid Regulatory Headwinds
Management reported stable yields with Equity at 64-65 bps, Debt at 24 bps, and Liquid at 13 bps. Despite concerns over new SEBI regulations, CEO A. Balasubramanian expects the impact to be minimal. He emphasized that the company intends to maintain margins through a mix of high-margin products and momentum in key portfolios, even if it requires temporary adjustments to pricing to drive volume.
Market Share and Performance Turnaround
A key theme of the call was the lag between improved fund performance and market share recovery. Management noted that several schemes are now in the top quartile on a one-year basis, which is beginning to reflect in recommendation lists from organized channel partners. Internal data showed ₹16,000 crores of equity inflows over the last nine months, suggesting a potential reversal of the recent market share decline trend.
Strategic Expansion: IFSC and SIF
The company is aggressively expanding its product suite and geographic footprint. It has incorporated a subsidiary in GIFT City (IFSC) and expects it to be operational by the end of Q4 FY26. Additionally, the launch of the Special Investment Fund (SIF) is slated for February 2026, following a slight delay for structural revisions. These initiatives are expected to drive future growth in the HNI and institutional segments.