ICICI Prudential Asset Management Company Limited — Q3 FY26 earnings call

Call held 14 Jan 2026

Management summary

ICICI Prudential Asset Management Company Limited reported a strong Q3 FY26, marked by robust growth in total mutual fund AUM and significant increases in operating and net profits. The company maintained its market position and saw strong contributions from its alternates business and systematic transactions. Management highlighted strategic expansions into GIFT City and Dubai, along with new product launches, while acknowledging upcoming regulatory changes.

Highlights

  • Total mutual fund quarterly average AUM reached INR10.8 trillion, up 23.2% YoY and 6.1% sequentially, maintaining a 13.3% market share.

  • Profit after tax stood at INR9.17 billion, up 45.1% YoY and 9.8% QoQ, driven by strong operating profit growth.

  • Operating profit before tax reached INR11.10 billion, increasing 30.0% YoY and 9.1% QoQ.

  • Systematic transactions (SIP and STP) increased to INR50.37 billion in December 2025, up 18.6% YoY, reflecting continued retail growth focus.

  • Alternates business AUM grew significantly, with PMS AUM up 22.6% YoY to INR272.81 billion and AIF AUM up 40% YoY to INR159.09 billion.

Key financials

  1. Operating Revenues 15.15 Bn +23.5%YoY
  2. Other Income 1.09 Bn
  3. Operating Expenses 4.05 Bn +8.5%YoY
  4. Operating Profit Before Tax 11.1 Bn +30%YoY
  5. Profit After Tax 9.17 Bn +45.1%YoY
  6. Total Mutual Fund Quarterly Average AUM 10.8 Tn +23.2%YoY
  7. Alternates Quarterly Average AUM 752.8 Bn
  8. Return on Equity (Annualized) 87.9%
  9. Operating Margin (Annualized) 37 bps

What they filed

₹ Cr · quarterly
Line itemQ2 FY25Q2 FY26
Revenue2,458 2,949
EBITDA1,838 2,210
Net profit1,327 1,618
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
    92.7% Net Revenue Share10.8 Tn Quarterly Average AUM9.1 Tn Active Schemes AUM6.1 Tn Equity & Equity-Oriented Schemes AUM2.1 Tn Equity-Oriented Hybrid Schemes AUM2 Tn Debt Segment AUM1.7 Tn Passive Quarterly Average AUM
  • Alternates
    7% Net Revenue Share752.8 Bn Quarterly Average AUM272.81 Bn PMS Quarterly Average AUM159.09 Bn AIF Quarterly Average AUM2% Gross Yield (9M FY26 annualized)97 bps Net Yield (9M FY26 annualized)
  • Advisory
    1% Net Revenue Share32 bps Yield (9M FY26 annualized)
  • Mutual Fund Margins (9M FY26 annualized)
    67 bps Equity32 bps Debt12 bps Liquid9 bps Passives30 bps Arbitrage

Capital allocation

high confidence
  • Dividend ₹14.85/share (interim)
    Additionally, the Board of Directors have declared a dividend of INR14.85 per share.

Guidance & targets

Strategy

  • Investment Performance Strategy · Long-term · High confidence Maintain focus with risk-calibrated approach
    Maintain focus on investment performance with a risk-calibrated approach.

    — Harshil Sanghavi

Growth

  • Retail Growth Growth · Long-term · High confidence Continue focus through systematic transactions
    We would continue to focus on retail growth specifically through systematic transactions.

    — Harshil Sanghavi

Customer Base

  • Customer Base Expansion Customer Base · Long-term · High confidence Expand through distinct initiatives, increase penetration, strengthen distributor relationships
    Expand our customer base through distinct initiatives, increase penetration in existing and new markets and strengthen relationships with our distributors.

    — Harshil Sanghavi

Technology

  • Digital Capabilities Technology · Long-term · High confidence Leverage technology and scale digital capabilities to drive customer acquisition and enhance customer experience
    Leverage our technology and scale digital capabilities to drive customer acquisition and enhance customer experience.

    — Harshil Sanghavi

Market Share

  • Net Sales Flow Share Market Share · Ongoing · High confidence Higher than AUM market share
    So Yash, our endeavor is that our net flow, net sales flow share should be higher than our AUM market share.

    — Naveen Agarwal

What to watch in Q4 FY26

SIF Business Performance

Next quarter / next 2-3 years
Current Newly launched, no AUM reported yet
Target Initial AUM and early performance indicators

Why it matters

Indicates success of new product innovation and differentiation strategy in a specialized segment.

So, the two products which we will be launching on SIF, the NFO will happen in 2 days' time. We are not putting any number out as to what is the number that we are going to raise from it. Let us see what is the response to those products from the market.

Q&A highlights

6 direct
SIF business expectations and timeline for results Partial
We are not putting any number out as to what is the number that we are going to raise from it. Let us see what is the response to those products from the market. ... I am not looking at it as a short-term 1 or 2 years. Let us show performance for 2, 3 years first, and then we will see how the whole category spans out.

Management is cautious about providing specific targets for new product categories, indicating a long-term strategic view rather than immediate AUM goals.

Asked by Prashant Mahesh

Opportunity from new Dubai branch office Partial
It's effectively, you must see this as another outlet from which we can serve customers. There's a large Indian diaspora NRI community. Dubai also acts as a hub for a larger Middle East. ... It's very difficult to quantify.

The company is expanding internationally to tap into the NRI market, but the financial impact is not yet quantifiable, suggesting a long-term strategic play.

Asked by Devyani

Impact of mutual fund regulation overhaul (TER changes) Direct
There are three main components to that circular. One is with respect to the exit load, the 5 basis point. The second one is with respect to the cut in the expenses. And the third are the rationalization of the brokerage limit that has happened. ... Frankly, this is expected to be applicable from 1st of April. If we simply see from math's perspective, there would be implications, impact on some of the larger schemes. But closer to the date, we will assess it and we will update you as and when we have more information on this from our side.

Management provided a clear breakdown of the regulatory changes and indicated that they are actively assessing the financial implications, which could affect future profitability and distribution strategies.

Asked by Anishaa Kumar

Higher employee count compared to competitors Direct
We have real estate; we have private credit. And all these means that we would have investment team across all these business lines. We would have support functions, operations, sales. So, hence, our count increases because of this incremental business that we have. ... it is better to be over invested as far as creating capabilities and capacities is concerned.

Management justified the higher employee count by highlighting the diverse and growing alternates business, emphasizing a strategic 'over-investment' in capabilities for long-term growth rather than cost-cutting.

Asked by Ansh Mehta

Higher distribution expense in P&L Direct
If you read our P&L, you would see under expenses ahead called fee and commission expenses, which is on account of the commission expenses for the alternate business, which by regulation has to be paid not from the fund, but from the AMC. So, we earn gross fees and then we pay that commission.

Clarified that the higher distribution expense is a structural accounting treatment for the alternates business, not an indicator of inefficiency or higher payout ratios in the mutual fund segment.

Asked by Ansh Mehta

Advisory business yield and growth outlook Direct
Yield for the 9 months on the advisory business is about 32 basis points. ... This is effectively the money which we advise. This is the funds which have been raised outside India where we are advising. ... it's a factor of how the market does, but it is also a factor of how does these international investors allocate their money across geographies and asset classes.

Provided specific yield for the advisory business and explained its growth drivers are tied to international market conditions and investor allocation, indicating external dependencies.

Asked by Lalit Mohan Deo

Outstanding SIP and STP book size Direct
So, the current SIP plus STP book that we have as of December 31, 2025 is INR5,000 crores. That's the outstanding number. ... It's actually INR5,037 crores to be exact.

Provided a precise figure for the monthly systematic inflow, a key metric for retail participation and stable AUM growth.

Asked by Bhavya Sanghvi

ICICI Bank's share in distribution and efforts to increase it Direct
Yes, you rightly said ICICI Bank is at AUM wise 8.1% of our mix. ... The effort is to increase the total pie with every possible distributor, ICICI being one of them. We will be very happy if the share goes up, but as I said, the effort is across distribution to keep on increasing the business.

Acknowledged the relatively lower share of ICICI Bank in their distribution mix and stated a clear intent to grow business across all distributors, including the parent bank.

Asked by Mohit Mangal

2 min read 6 chapters

Detailed narrative

Robust AUM Growth Across Segments

ICICI Prudential AMC reported a strong quarter with total mutual fund quarterly average AUM reaching INR10.8 trillion, marking a 23.2% year-on-year and 6.1% sequential growth. The company maintained its position as the second largest AMC with a 13.3% market share. Equity and equity-oriented AUM grew to INR6.1 trillion, up 23.6% YoY, while equity-oriented hybrid schemes AUM reached INR2.1 trillion, reflecting a 26.8% YoY increase. The debt segment also saw AUM grow by 18.9% YoY to INR2.0 trillion.

Strong Profitability and Shareholder Returns

The company delivered robust financial performance, with operating revenues at INR15.15 billion, up 23.5% YoY, and profit after tax at INR9.17 billion, a significant 45.1% YoY increase. Operating profit before tax grew 30.0% YoY to INR11.10 billion. The annualized Return on Equity for the nine months ended December 2025 stood at an impressive 87.9%, and an interim dividend of INR14.85 per share was declared, underscoring strong shareholder value creation.

Expanding Alternates Business and Digital Adoption

The alternates business showed strong momentum, with quarterly average AUM reaching INR752.8 billion. Within this, PMS AUM grew 22.6% YoY to INR272.81 billion, and AIF AUM increased 40% YoY to INR159.09 billion. The gross yield on alternates for the nine months ended December 2025 was 1.99%, with a net yield of 97 bps. The company also highlighted its strong digital adoption, with 95.7% of mutual fund purchase transactions executed across digital platforms for the nine months ended December 2025.

Strategic Expansion and Product Innovation

ICICIAMC is expanding its global footprint with a new retail FME branch presence in GIFT City, aimed at serving NRIs and facilitating outward investments. Additionally, the company has received approvals to commence operations in DIFC Dubai, targeting the Middle East market. The company is also launching two Specialized Investment Funds (SIFs), including an X100 mid/small cap strategy and a hybrid long-short fund, which will utilize derivatives for differentiated offerings.

Industry Outlook and Regulatory Landscape

Management noted the mutual fund industry's robust growth, with industry AUM reaching INR81.0 trillion and net inflows of INR1.8 trillion during the quarter. SIP contributions for December 2025 amounted to INR310.02 billion, reflecting continued retail investor interest. The company acknowledged the upcoming SEBI regulations on TER changes, expected to be effective April 1st, 2026, and is actively assessing the implications and working to rationalize their impact, with more clarity anticipated closer to the implementation date.

Distribution Mix and Systematic Flows

The distribution mix for equity schemes saw mutual fund distributors contributing 37.3%, direct channels 28.0%, ICICI Bank 8.1%, other banks 11.1%, and national distributors 15.5%. Systematic transactions, including SIP and STP, continued to be a key focus, increasing to INR50.37 billion in December 2025, an 18.6% rise compared to December 2024. The company's net flows market share in equity schemes currently exceeds its AUM market share, and the endeavor is to maintain this trend.

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