Key Financial Figures

AUM Metrics (Quarter Ended June 2026)

  • Quarterly Average AUM (QAAUM): INR9.35 trillion, up 13% YoY
  • Market Share: 11.2% overall, 12.4% excluding ETFs
  • Actively Managed Equity-oriented QAAUM: INR5.74 trillion, up 16% YoY
  • Equity Orientation: 65.7% of QAAUM vs industry average of 56.6%
  • Fixed Income QAAUM: INR1.66 trillion with 12.9% market share
  • Liquid QAAUM: INR851 billion with 10.7% market share
  • Alternatives AUM: INR148 billion (includes AIF commitments, PMS, advisory mandates), up from INR60 billion a year ago

Financial Performance (Q1 FY27)

  • Revenue from Operations: INR11 billion, up 14% YoY
  • Other Income: INR2.6 billion
  • Total Cost: INR2.7 billion vs INR2.1 billion in Q1 FY26
  • Operating Profit: Growth of 10% YoY with operating margin of 35 basis points of AUM
  • Profit After Tax: INR8.4 billion, growth of 12% YoY

Yield Metrics

  • Equity Yields: 58 basis points (blended), 61 basis points (active equity)
  • Debt Yields: 28 basis points
  • Liquid Yields: 13 basis points

Investor Metrics

  • Unique Investors: 17.1 million, with 28% penetration in mutual fund industry
  • Investor Addition: Approximately 0.46 million added during quarter
  • Systematic Transactions (SIP + STP): INR48.1 billion in June 2026 vs INR40.1 billion in June 2025 (20% YoY growth)

Industry Context

Mutual Fund Industry Data (June 2026)

  • Quarterly Average AUM: INR83.1 trillion, up 15% YoY
  • Equity-oriented AUM: Crossed INR47 trillion, up 16% YoY
  • Equity Fund Net Inflows: INR1,272 billion vs INR911 billion same quarter last year (40% increase)
  • Liquid Funds: Added INR984 billion
  • Debt Funds: Lost INR757 billion
  • SIP Contributions: INR318 billion in June 2026 vs INR273 billion in June 2025 (17% YoY growth)
  • Total Folios: 279 million from 241 million a year earlier
  • Unique Investors: 61.9 million vs 55.3 million a year ago

Strategic Updates

Alternatives Platform Expansion

  • Private credit fund to close this quarter
  • Approval received to launch second venture capital/private equity fund
  • Marquee global investor proposed to seed new fund with $50 million commitment
  • First SIF offering approved: H-SIF equity ex top 100 long-short fund
  • Building full suite of SIF products over time

Product Development

  • Significant expansion of product bouquet across active funds, passive side (index and ETFs)
  • Launched sector and thematic funds
  • PMS: Hired senior resources, launched Category 3 product
  • SIF: Hired senior resource for SIF efforts

Distribution Channels

  • Fintech channels showing exponential growth with 8.6 million SIP registrations in quarter
  • Bank share declined from 10.4% in Q1 FY26 to 9.6% in Q1 FY27
  • Focus on optimizing across all channels including digital, B30 markets

Regulatory Impact Discussion

TER to BER Transition

  • Removal of 5 basis points additional TER permitted in lieu of exit load
  • Shift from TER (including levies) to BER plus statutory levies
  • Rationalization of brokerage limits on cash market transactions
  • Management stated approach is to offset impact through optimization of commission structures and prudent cost management
  • Accounting change noted, with advice not to read too much into quarter-on-quarter movements

Operational Details

Cost Structure

  • Employee cost increase attributed to year-end increments and employee benefit valuations
  • ESOP expense guidance provided: FY27 INR79-80 crores, FY28 INR63 crores, FY29 INR41 crores, FY30 INR11 crores
  • CSR expenditure higher this quarter due to partner funding requirements (not evenly spread through year)
  • Operating margin target maintained at 33-35 basis points of AUM

Investment Team Capabilities

  • 37 investment professionals on mutual fund side
  • 6 professionals on private equity/VC side
  • 6 professionals on private credit side
  • 8 professionals on PMS across debt and equity
  • Most fund managers have 20-25+ years experience

Management Commentary Highlights

SIP Trends and Investor Behavior

  • SIP flows remain healthy at ~INR30,000 crores monthly for industry
  • Described as "India's 401(k) movement" with changing investor behavior
  • Becoming habitual investment rather than market-timing
  • Watchful of behavior in extended market downturn scenarios

Debt Fund Challenges

  • Significant outflows in debt funds for two consecutive quarters
  • Attributed to volatility in interest rates, crude oil prices, currency, geopolitics
  • Need to make debt funds more attractive for retail investors, retirees
  • Opportunities through lifecycle funds per recent SEBI circular

Growth Strategy

  • Aspiration to be trusted investment partner across all investor segments
  • Building full-scale platform across active/passive, SIF, PMS, private equity, private credit
  • Focus on scale, quality, and profitability balance
  • Not shying away from investing in people and capabilities

Performance Track Record

Management highlighted long-term performance track record across funds:

  • Balance Advantage Fund: Q1 over 3, 5, 10 years (~INR1,00,000+ crores)
  • Flexicap Fund: Q2 in 1 year, Q1 over 2, 3, 5, 10 years (~INR1,00,000+ crores)
  • Large Cap Fund: Q2 in 1 year, Q1 over 5 years
  • Focus Fund: Q2 in 2 years, Q1 over 3, 5, 10 years
  • Value Fund: Q2 in 1, 3, 5, 10 years (~INR7,000 crores)

Capital Allocation

  • Question on buybacks vs dividends addressed
  • Board prerogative to decide capital return policies
  • Chairman addressed this at Annual General Meeting