Aditya AMC — Q4 FY26 earnings call

I think the broad impact generally post the regulatory changes is in the range of about 3 to 4 basis points, roughly. But however, given the fact that the way the industry has been operating, the way we also have been operating, we will planned, do the structures in such a manner that it does have the least impact as far as the P&L concerns... we'll try and make it neutral to everyone and win-win for the overall business without having any kind of deep impact either for the distribution community or for our AMC business.

Analyst inquired about the 5bps regulatory impact on equity AUM, and management clarified their strategy to mitigate it to be neutral for both distributors and the AMC.

Asked by Mohit Mangal

As far as I'll take the second question, which is the ETF equity rather than out of ₹41,200 crores, in the ETF, which includes gold and silver, roughly about ₹11,500 crores. And balance is actually a fixed income target maturity fund... As far as the other question, the SIP book is about ₹76,000 crores. Yes, so revenue share from PMS and AIF alternate is around 6% on gross basis, Mohit, and on net basis, it will be around 3.5%.

Analyst sought specific financial breakdowns for key business segments (SIP, ETF, PMS/AIF), which management provided, offering clarity on asset composition and revenue contribution.

Asked by Mohit Mangal

Yes, it's purely MTM movement.

Analyst noted a decline in SIP AUM from the previous quarter and management confirmed it was solely due to mark-to-market movements, not underlying operational issues.

Asked by Mohit Mangal

So, the other one was on the employee expenses you were talking about. So basically, see, we launched a new employee ESOP scheme in Q4, which we had an impact in the current quarter and that will continue in the next year in coming quarters also. However, that impact is not that really visible in the Q4 numbers. If you see, there's no increase from Q3 to Q4, largely on account of there was some employee-related reversals because of the performance variable pay performance, that has been offset during Q4.

Analyst questioned the outlook for employee expense growth given team expansion, and management explained the impact of a new ESOP scheme and offsetting reversals, providing context for future expenses.

Asked by Dipanjan Ghosh

So, we always see this, as there would always be some ongoing vacancies at RM level, etc., at the bottom of the pyramid, as well as we always keep on optimizing our employee strength and also keep on improving the productivity levels by way of implementing the new tech solutions, etc. So, I think 50 employees plus or minus will keep on happening always, depending on the optimization.

Analyst observed fluctuations in employee count despite business momentum, and management clarified it's due to ongoing vacancies, optimization, and productivity improvements, indicating a dynamic workforce strategy.

Asked by Dipanjan Ghosh

I think see this is after multiple rounds of discussion, when the first circular came, and the final circular came. All of you would have known, and as an industry we worked with SEBI and brought it to a scenario where it would have the least impact, including the broking firm with whom we deal with on the equity side. So, in fact, I was personally involved in working with the other team members of the industry to see to it that it has least impact. So that's a broader approach in which we did. And then whatever the final that has come, the way we have worked out at this point of time is from the AMC profitability point of view, we will try and make it neutral if not positive.

Analyst sought clarity on the full extent and timeline of the regulatory impact, and management confirmed efforts to minimize the impact and aim for profitability neutrality.

Asked by Swarnabh Mukherjee

So, I would say materially different from the past. Our flows had come down quite significantly from this channel, because products were not part of the recommendation list. So now with the engagement being there, that product coming in as part of the recommendation would lead to actually increased flows. Of course, even pushing the sales team to take full advantage of high engagement with the team, which I think the team is also doing it.

Analyst inquired about the banking channel strategy and its impact on flows, and management indicated an expectation of materially increased flows due to product approvals and enhanced engagement, signaling a turnaround in this channel.

Asked by Meghna Luthra