Nippon Life Ind.

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.

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.

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.

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.

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.

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.