Nippon Life India Asset Management Limited — Q4 FY26 earnings call

Call held 30 Apr 2026

Management summary

Nippon Life India Asset Management reported a strong Q4 and FY26, achieving record annual profits and significant market share growth, positioning itself as the fastest-growing AMC in the Top-10. Despite market volatility impacting other income and causing a slight QoQ dip in PAT, the company saw robust AUM growth, strong SIP momentum, and progress in strategic areas like AIF and GIFT City. Management addressed the impact of new regulations and outlined plans for continued margin maintenance.

Highlights

  • NAM India was the fastest growing AMC in the Top-10 for both Q4 FY26 and FY26.

  • Achieved highest ever Annual Profit After Tax of INR 1529 crores, a growth of 19% YoY.

  • Achieved highest ever Annual Operating Profit of INR 1748 crores, a growth of 24% YoY.

  • Recorded highest ever quarterly Operating Profit at INR 493 crores.

  • Overall AUM market share increased to 8.89%, its highest since June 2019.

Concerns

  • Equity markets witnessed a correction in Q4 FY26, with NIFTY decreasing by 14.5% QoQ.

  • Other Income was negative INR 34 crores in Q4 FY26 due to market volatility.

  • Contributing SIP folios decreased by 0.7 million QoQ (1% lower) for March 2026.

  • Profit After Tax for Q4 FY26 decreased by 5% QoQ to INR 385 crores.

Key financials

3 periods

Headline

  • Revenue
    ₹739 Cr
    YoY +30% QoQ +5%

Q4

  • Operating Profit
    ₹493 Cr
    YoY +39% QoQ +8%
  • Profit After Tax
    ₹385 Cr
    YoY +29% QoQ -5%

FY26

  • Operating Profit
    ₹1,748 Cr
    YoY +24%
  • Profit After Tax
    ₹1,529 Cr
    YoY +19%
  • Dividend Payout per share
    ₹21.5

What they filed

Q1 FY27: revenue up 26.4%, net profit up 27.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue571 588 567 607 658 +15%705 +20%739 +30%767 +26%
EBITDA374 386 365 388 430 +15%470 +22%507 +39%508 +31%
Net profit360 295 299 396 345 −4%404 +37%385 +29%504 +27%
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 QAAUM
    ₹7.25L Cr AUM
  • ETF AUM
    ₹2.42L Cr AUM21.4% Market Share
  • Gold & Silver ETFs AUM
    ₹84,800 Cr AUM
  • AIF Cumulative Commitments
    ₹9,330 Cr Commitments
  • Offshore AUM
    ₹13,900 Cr AUM
  • GIFT City AUM
    38 Mn AUM

Capital allocation

high confidence
  • Dividend ₹12.5/share (final) Payout ratio 91.5%
    For FY26, the Board of Directors have declared a Dividend Payout of INR 21.50 per share i.e., ~91.5% of net profit – this includes proposed Final Dividend of INR 12.50 per share.

Guidance & targets

Operating Expenses

  • ESOP Cost (next year) Operating Expenses · next year · Medium confidence ~INR 35 crores
    And for the new plan, the next year ESOP cost will be in the range of around INR 35 odd crores.

    — Parag Joglekar

  • ESOP Cost (overall) Operating Expenses · next 4 years · Medium confidence ~INR 70-75 crores
    The overall cost on ESOP of the new plan will be in the range of around INR 70-75 crores over the next 4 years.

    — Parag Joglekar

  • Expense Growth (ex-ESOP) Operating Expenses · ongoing · Medium confidence 15%-16% YoY
    So Prayesh, the expense number I will take it and then Chatty will add on to the sales number thing. So, the expenses, yes, our guidance will still remain in the range of around 15%-16% YoY ex of ESOP.

    — Parag Joglekar

Profitability

  • EBITDA Margin Profitability · ongoing · High confidence maintain intact
    So, Divyansh, the basically the reason for us is that we are maintaining the EBITDA margin, that that is what we have been continuing even though there is a trajectory that the telescoping pricing will keep on dropping the overall TER, but we are we are continuing to keep the margin intact for so many years.

    — Parag Joglekar

What to watch in Q1 FY27

Impact of new regulation on P&L

next quarter
Current 3.5-4 bps impact on equity AUM, management aims to minimize by passing to distributors.
Target Minimal or no P&L impact from regulatory changes.

Why it matters

To assess the effectiveness of management's strategy to pass on regulatory costs and protect profitability.

So, Mohit, the impact will be in the range of around 3.5-4 basis, which we will try to minimize even though it's the first month, but it is over the period we'll try to minimize for P&L impact.

Risks & concerns

  • Regulatory impact on equity AUM

    medium

    A new regulation effective April 1, 2026, could impact equity AUM by 3.5-4 bps, which management intends to pass on to distributors to minimize P&L impact.

    Analyst acknowledged

  • Market volatility impacting other income and SIP flows

    medium

    Market volatility led to negative other income in Q4 FY26 and affected SIP flows, with Fintech investors showing shorter investment cycles.

    Management acknowledged

  • ETF folio market share decline

    low

    ETF folio market share decreased from 53% to 45%, which management attributes to broader market trends and product diversification rather than direct competition.

    Analyst downplayed

Q&A highlights

7 direct
Yield movement and product mix Direct
Yes. So Swarnabha, the yield movement is mainly due to the change in the asset mix as you mentioned, that has resulted in a slight increase, marginally higher yield in the current quarter. The yield on equity is 53 basis points, 55 ex-of arbitrage. On debt, it's 25 basis. On liquid, it remains in the range of around 11-12 basis points. On ETF, it's slightly higher than 25 basis points overall.

Clarifies the drivers of yield changes, attributing it to asset mix and providing specific yield bps for different categories (equity, debt, liquid, ETF).

Asked by Swarnabha Mukherjee

Impact of new regulation on equity AUM Direct
So, Mohit, the impact will be in the range of around 3.5-4 basis, which we will try to minimize even though it's the first month, but it is over the period we'll try to minimize for P&L impact. ... Yes. Yes, we are going to pass on the entire thing to the to the distributors. So, it's pass-through.

Addresses a new regulatory change (5 bps on equity AUM) and its potential financial impact, with management's strategy to mitigate it by passing costs to distributors.

Asked by Mohit Mangal

ETF folios market share decline Partial
So, you know, if you see the ETF, the colour of the ETF flows which are coming in various categories in the industry, the commodity ETFs have seen some higher inflows in the last six months and typically in the last three months barring say March. So, it's not competition, it is something related to you know, it's more related to how the market looks at multiple options when they are trying to diversify their product bouquet.

Explains the reason for the decline in ETF folio market share, attributing it to broader market trends and product diversification rather than direct competition.

Asked by Mohit Mangal

SIP momentum and Fintech vs. distributed model Direct
See, what we are seeing is that the Fintech platforms are definitely aiding growth of the SIP book in the industry. The client behaviour might be slightly different than what comes in from a distributor-led SIP inflow. The cycles are a bit shorter when it comes to a Fintech investors, but the good part is they are ready to commit more and hence the average ticket size is also now moving up. So that's a good trend.

Provides insight into the evolving dynamics of SIP inflows, highlighting the role of Fintech platforms and differences in investor behavior (shorter cycles but higher ticket sizes).

Asked by Prayesh Jain

SIF business launch and outlook Direct
Let me, take this second question first, you know. This is a new business line. We somehow are convinced this can become very big. This is something what ETFs were about 10 years back. Very difficult to put a number to it 10 years back if somebody would have asked about the ETF business, they would not have been able to say how big it can become.

Introduces a new strategic business line (SIF) with high growth potential, comparing it to the early days of ETFs and emphasizing its differentiated value proposition.

Asked by Shivaji Thapliyal

GIFT City strategy and foreign flows Direct
Point number two on the GIFT City, we feel GIFT City is again becoming an important gateway into India. So, while there is a lot of discussion happening on money moving out of India launching products which is under LRS, but we see a bigger opportunity of money coming into India.

Details the company's strategic view on GIFT City as a channel for attracting foreign investment into India, focusing on inbound capital rather than outbound.

Asked by Praveen

EBITDA margin comparison with peers Direct
So, Divyansh, the basically the reason for us is that we are maintaining the EBITDA margin, that that is what we have been continuing even though there is a trajectory that the telescoping pricing will keep on dropping the overall TER, but we are we are continuing to keep the margin intact for so many years. The question or the reason is mainly the mix in AUM. We have 33% AUM mix of ETF and we are significantly higher on ETF in our overall AUM and that's why our margins are lower.

Explains the company's EBITDA margin strategy and why it might differ from peers, attributing it to AUM mix with a higher ETF component, which inherently has lower margins.

Asked by Divyansh Gupta

JV for AIF business Direct
So, broadly that's for the AIF business, you know, as we have signed up a non-binding agreement, you know, and the idea is we will be launching products in AIF. The idea is we clearly see an opportunity to get a lot of overseas money and especially the alternate and the infrastructure side.

Provides an update on a new strategic joint venture aimed at attracting overseas capital into the AIF and alternative investment space, leveraging global partnerships.

Asked by Divyansh Gupta

3 min read 6 chapters

Detailed narrative

Strong Financial Performance and Market Share Growth

Nippon Life India Asset Management (NAM India) reported its highest ever Annual Profit After Tax of INR 1529 crores for FY26, marking a 19% YoY growth. Annual Operating Profit also reached a record high of INR 1748 crores, up 24% YoY. For Q4 FY26, Revenue stood at INR 739 crores, growing 30% YoY and 5% QoQ, with Operating Profit at INR 493 crores, up 39% YoY and 8% QoQ. The company was recognized as the fastest-growing AMC in the Top-10 for both Q4 FY26 and the full FY26, leading to an increase in its overall AUM market share to 8.89%, the highest since June 2019.

AUM Growth and Segment Performance

The company's total assets under management (AUM) reached INR 7.73 trillion. Mutual Fund QAAUM grew 30.1% YoY and 3.4% QoQ to INR 7.25 trillion. NAM India maintained its position as a leading ETF player with an AUM of INR 2.42 trillion, capturing a market share of 21.40%, which increased by 234 bps YoY and 109 bps QoQ. Gold & Silver ETFs specifically saw their combined AUM grow to ~INR 84800 crores, up 23% QoQ. AIF cumulative commitments reached INR 9330 crores, a 26% YoY increase, with INR 400 crores raised in Q4 FY26. Offshore AUM stood at INR 13900 crores, and GIFT City AUM at USD 38 million.

SIP and Digital Business Momentum

The company's monthly systematic book demonstrated strong growth, rising 17% YoY to INR 3720 crores for March 2026, translating into an annualized systematic book of INR 44700 crores. SIP market share stood at 9.84% for March 2026. Digital purchase transactions and new SIP registrations surged to 5.04 million in Q4 FY26, representing a 44% YoY increase, with digital business contributing 77% of total new purchase transactions. Fintech platforms are significantly aiding SIP growth, and while Fintech investors may have shorter cycles, their average ticket sizes are increasing.

Strategic Initiatives: SIF, AIF, and GIFT City

NAM India is actively developing a new business line, Structured Investment Funds (SIF), which management believes holds significant potential, drawing parallels to the early growth of ETFs. The company continues to expand its AIF offerings, raising INR 400 crores in Q4 FY26 and achieving INR 9330 crores in cumulative commitments. A non-binding agreement for an AIF joint venture has been signed, with plans to launch products aimed at attracting overseas capital, particularly for alternative and infrastructure investments. GIFT City is viewed as an important gateway for foreign investment into India, with current AUM at USD 38 million.

Capital Allocation and Regulatory Impact

For FY26, the Board of Directors declared a total Dividend Payout of INR 21.50 per share, representing approximately 91.5% of net profit, which includes a proposed Final Dividend of INR 12.50 per share. The company also approved the grant of 3,87,448 stock units and 15,96,475 stock options under new employee schemes. A new regulation effective April 1, 2026, is expected to impact equity AUM by 3.5-4 basis points, which management plans to pass on to distributors to mitigate any adverse impact on the P&L.

Expense Management and Margin Outlook

Operating Expenses for Q4 FY26 were INR 245 crores, showing a 16% YoY increase but a 1% QoQ decrease. Management provided guidance for expense growth to remain within the 15%-16% YoY range, excluding ESOP costs. Despite the industry trend of telescoping Total Expense Ratios (TER), the company aims to maintain its EBITDA margin. Management clarified that its EBITDA margins might appear lower compared to some peers due to its significant 33% AUM mix in ETFs, which typically have lower margins.

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