ICICI Prudential Asset Management Company Limited — Q4 FY26 earnings call

Call held 13 Apr 2026

Management summary

ICICIAMC reported a strong Q4 FY26 with significant year-on-year growth in AUM, operating revenue, and operating profit, despite challenging market conditions leading to sequential declines in equity and debt AUM and profit after tax. The company maintained its leading market share in active and equity-oriented schemes and declared a final dividend of INR12.4 per share. Strategic initiatives in the alternates business and digital customer acquisition are progressing.

Highlights

  • Total mutual fund quarterly average AUM reached INR11.05 trillion, up 2.6% sequentially and 25.6% year-on-year.

  • Operating revenue stood at INR15.17 billion, representing a growth of 19.5% year-on-year and 0.2% sequentially.

  • Operating profit before tax reached INR11.28 billion, a 30.2% increase year-on-year and 1.6% rise compared to the previous quarter.

  • Largest market share in active schemes (13.7%) with AUM of INR9.21 trillion, reflecting an increase of 1.3% QoQ and 21.9% YoY.

  • Largest market share in equity and equity-oriented schemes (14.2%) with AUM of INR6.2 trillion, reflecting an increase of 2% QoQ and 27.2% YoY.

Concerns

  • Equity and equity-oriented quarterly average AUM degrew by 0.4% quarter-on-quarter.

  • Debt segment quarterly average AUM degrew by 5.2% quarter-on-quarter.

  • Recorded a negative other income of INR0.89 billion for the quarter ended March 2026 due to mark-to-market impact.

  • Profit after tax decreased by 16.8% quarter-on-quarter to INR7.63 billion.

Key financials

2 periods

Headline

  • Operating Revenue
    15.17 Bn
    YoY +19.5% QoQ +0.2%
  • Operating Profit Before Tax
    11.28 Bn
    YoY +30.2% QoQ +1.6%
  • Profit After Tax
    7.63 Bn
    YoY +10.4% QoQ -16.8%
  • Total Mutual Fund Quarterly Avg AUM
    11.05 Tn
    YoY +25.6% QoQ +2.6%
  • Equity & Equity-Oriented Avg AUM
    6.2 Tn
    YoY +27.2% QoQ +2%

FY26

  • Operating Margin
    37.6 bps
  • PMS & AIF Net Yield
    0.98%
  • Return on Equity
    85.8%

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.

Capital allocation

high confidence
  • Dividend ₹12.4/share (final)
    Additionally, the Board of Directors have declared a final dividend of INR12.4 per share, which is obviously subject to shareholders' approval.
  • M&A ICICI Venture Funds Acquisition · Closed · AUM ₹46.28 Bn

    To enhance presence in alternates market and complement existing alternate product offerings such as private credit and real estate funds.

    Company will be providing investment management services for such AIFs with effect from April 1st, 2026.

    Referring to our earlier disclosures with respect to ICICI Venture Funds we would like to update that post the receipt of all the requisite approvals, the transfer of investment management rights for certain AlFs has been completed, and the requisite documents in this regard have been executed by the company and ICICI Venture Funds Management Company Limited. Accordingly, the company will be providing investment management services for such AlFs with effect from April 1st, 2026. These funds are anticipated to enhance our presence in alternates market and complement our existing alternate product offerings such as private credit and real estate funds.

Guidance & targets

Expenses

  • ESOP and ESU debit to P&L Expenses · FY27 · High confidence INR640 million to INR680 million
    The approximate debit to the P&L for FY27 will be INR640 million to INR680 million.

    — Naveen Agarwal

  • ESOP and ESU debit to P&L Expenses · FY28 · High confidence INR360 million to INR400 million
    For FY28 will be INR360 million to INR400 million.

    — Naveen Agarwal

  • ESOP and ESU debit to P&L Expenses · FY29 · High confidence INR180 million to INR220 million
    and for FY29 it will be INR180 million to INR220 million.

    — Naveen Agarwal

Product Launches

  • New Fund Offerings (NFOs) Product Launches · next month · Medium confidence 1-2 NFOs
    Yes. So, hi. We are working with regulators on four to five ideas. Next month, we may launch one or two, depending upon approval from the regulator.

    — Vipin Bhandari

Margins

  • Impact of TER regulatory change Margins · post April 1st · High confidence 3 to 4 basis point impact
    So if we look at on a gross basis before any pay out there is an impact of 3 to 4 basis point.

    — Naveen Agarwal

What to watch in Q1 FY27

ICICI Venture AIFs AUM contribution

next quarter
Current INR46.28 billion committed funds as of April 1, 2026
Target Contribution to alternates business AUM and revenue

Why it matters

The integration of ICICI Venture AIFs is expected to enhance the alternates business and its financial impact will be visible from Q1 FY27.

Accordingly, the company will be providing investment management services for such AlFs with effect from April 1st, 2026.

Risks & concerns

  • Challenging market conditions and geopolitical uncertainty

    medium

    Industry-level equity AUM degrew due to challenging market conditions and Nifty 50 decreased by 14.5% QoQ. Management acknowledges persistent geopolitical uncertainty but focuses on defensive products.

    Management acknowledged

  • Mark-to-market impact on other income

    low

    A negative other income of INR0.89 billion was recorded due to mark-to-market impact, contributing to sequential PAT decline.

    Management acknowledged

Q&A highlights

7 direct
Margin numbers for various asset classes Direct
So for FY 2026, our margins for each of the asset class is 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. Also, on the alternates front, our gross yield on the PMS and AIF business is about 2%, and the net yield, that is after reducing the fees and commission expenses attributable to such PMS and AIF business, is about 98 basis points. On the advisory front, our yield is about 33 basis points.

Provides specific margin data for different product categories, crucial for financial modeling and understanding profitability drivers.

Asked by Suresh Iyengar

Value and contribution of ICICI Ventures asset transfer Partial
So as we had disclosed, this transfer is effective post the necessary approvals which were received, and the condition precedents. It's effective 1st April. So over the period, we will talk about it as it develops. But as we had articulated earlier, it is it will add to our entire product bouquet on the alternate side, because the product bouquet that we get from Venture is totally complementary to what we already have in the alternate.

Clarifies the effective date and strategic rationale for the ICICI Ventures transfer, indicating future AUM and product diversification, though specific financial contribution is deferred.

Asked by Suresh Iyengar

Sequential decline in revenues and profits Direct
Yes, it's predominantly, if you see on the other income, we had a loss due to mark-to-market. But if you see on our core revenue, there has been a small -- its effectively the same, it's a small growth on that.

Explains the sequential dip in profitability as primarily due to mark-to-market impact on other income, rather than core business performance.

Asked by Suresh Iyengar

Outlook on flows given geopolitical uncertainty and market conditions Direct
Because we are into relatively, if you see the complexion of ICICI's assets, our market share in dynamic asset allocation category is relatively higher. So when the markets become uncertain, in the past we have seen that sales of this segment can increase. Because more the uncertainty, more people will go for relatively defensive products. And our AMC has been always positioned as a relatively defensive AMC.

Management outlines its strategy to navigate uncertain markets by leveraging its strength in dynamic asset allocation and defensive product positioning.

Asked by Kabir Sharma

Increase in SIP ticket size in March despite market decline Direct
Well, one thing can be buy the dip, but since people understand that SIPs are for long term, the right SIP quantity in terms of value also defines future financial goals. Hence, a lot of people increase their SIP books.

Provides insight into retail investor behavior, suggesting that investors are using market dips as an opportunity to increase SIPs for long-term goals, indicating maturity in the market.

Asked by Ashoka Mitran

Decline in employee cost sequentially Direct
Yes, that's true. There has been a drop in the employee expenses. As I mentioned, you know, there is an ESOP and ESU grant which has happened. There has been no debit in the P &L for the same. The debit would come in future years and I've given that number. So that's the reason that you see a drop.

Clarifies that the sequential drop in employee costs is due to the timing of ESOP/ESU accounting, with debits expected in future years, providing clarity on P&L trends.

Asked by Prayesh Jain

Upcoming New Fund Offerings (NFOs) Direct
Yes. So, hi. We are working with regulators on four to five ideas. Next month, we may launch one or two, depending upon approval from the regulator. It would be across SIF and MF.

Indicates future product pipeline and growth opportunities, with specific mention of SIF and MF categories, suggesting diversification.

Asked by Mohit Mangal

Sequential dip in mutual fund revenue yields Direct
No, I was talking about the blended yield, right? That's come up from 47.5 to 46.1. So, a decline of 1.4 bps. I was just trying to reconcile that. So that would have been driven by the increase in the ETF mix, right, in the quarterly average year? Correct.

Explains the slight decline in blended mutual fund yield as being driven by an increased mix of ETFs, which typically have lower yields, providing context for margin analysis.

Asked by Gaurav Jani

3 min read 6 chapters

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.

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