Detailed Narrative
Industry Performance and Market Share
The mutual fund industry's quarterly average AUM grew by 21.1% year-on-year and 0.7% sequentially in Q4 FY26, reaching INR81.62 trillion. Equity and equity-oriented AUM, the largest segment, increased by 20.7% YoY but degrew by 0.4% QoQ to INR43.80 trillion due to challenging market conditions. ICICIAMC maintained its position as the second-largest AMC with a 13.5% market share, with its total mutual fund quarterly average AUM reaching INR11.05 trillion, up 25.6% YoY and 2.6% QoQ.
Company AUM and Segment Performance
ICICIAMC holds the largest market share in active schemes (13.7%) with INR9.21 trillion AUM, growing 21.9% YoY. In equity and equity-oriented schemes, the company has a 14.2% market share with INR6.2 trillion AUM, up 27.2% YoY and 2% QoQ, contrasting with the industry's decline. Equity-oriented hybrid schemes AUM reached INR2.18 trillion, reflecting a 31.8% YoY and 4.5% QoQ increase. The debt segment AUM stood at INR1.99 trillion, growing 15.6% YoY but degrowing 2.7% QoQ, in line with industry trends. Passive AUM grew significantly by 48.3% YoY and 10% QoQ to INR1.84 trillion.
Financial Performance Overview
Operating revenue for Q4 FY26 was INR15.17 billion, a 19.5% YoY and 0.2% QoQ increase. The operating net revenue mix was 90.65% from mutual funds, 7.58% from alternates, and 1.77% from advisory business. Operating expenses decreased by 3.5% YoY and 3.9% QoQ to INR3.89 billion. Operating profit before tax reached INR11.28 billion, up 30.2% YoY and 1.6% QoQ. However, profit after tax decreased by 16.8% QoQ to INR7.63 billion, primarily due to a negative other income of INR0.89 billion from mark-to-market impact.
Margins and Yields
For FY26, the company's operating margin stood at 37.6 basis points, up from 35.9 basis points in FY25. Segment-wise margins for FY26 were 67 basis points for equity, 32 basis points for debt, 12 basis points for liquid, 10 basis points for passive, and 30 basis points for arbitrage. In the alternates business, the gross yield on PMS and AIF was 2.0%, and the net yield (after fees and commissions) was 0.98%. Yields on assets under advisory were 0.33% for FY26.
Alternates Business and Strategic Initiatives
The alternates business, comprising PMS, offshore advisory, and AIFs, saw its quarterly average AUM reach INR729.95 billion. PMS AUM degrew 1.7% QoQ but grew 26.7% YoY to INR268.27 billion, while AIF AUM grew 7.1% QoQ and 47.3% YoY to INR170.33 billion. The company completed the transfer of investment management rights for certain AIFs from ICICI Venture Funds, effective April 1st, 2026, adding INR46.28 billion in committed funds. New initiatives include a retail FME branch in GIFT City and an office in DIFC Dubai, along with the launch of two specialized investment funds (iSIF Equity X Ex-Top 100 Long Short Fund and iSIF Hybrid Long Short Fund) in January 2026, with total iSIF AUM of INR18.96 billion.
Customer Base and SIP Trends
The industry saw an increase in unique customers to 61.4 million, a 13.2% YoY and 4.2% QoQ increase. ICICIAMC's unique customer base reached 17 million. Systematic transactions (SIPs and STPs) increased by 1.3% QoQ to INR51.04 billion in March 2026, marking a 30.6% rise from March 2025. Management noted that despite market volatility🌐, SIP inflows remain robust, with investors increasing SIPs during market dips, indicating a long-term investment approach.