Management Participants

The conference call featured:

  • Mr. Sundeep Sikka – Managing Director & CEO
  • Mr. Saugata Chatterjee – President & Deputy CEO
  • Mr. Parag Joglekar – Chief Financial Officer
  • Mr. Amol Bilagi – Deputy Chief Financial Officer
  • Mr. Arpanarghya Saha – Chief Digital Officer
  • Mr. Ashish Chhugani – Head of AIF
  • Mr. Aashwin Dugal – Deputy Head of AIF
  • Mr. Shin Matsui-san - Nominee of Nippon Life Insurance, Japan

Moderated by Mr. Kartikeya Mohata from Motilal Oswal Financial Services Limited.

Key Financial Performance Highlights

  • Highest ever Quarterly Profit After Tax: ₹5.04 billion, representing 27% YoY growth
  • Highest ever Quarterly Operating Profit: ₹4.94 billion, representing 31% YoY growth
  • Revenue: ₹7.67 billion, up 26% YoY and 4% QoQ
  • Other Income: ₹1.70 billion, higher both YoY and QoQ
  • Operating Expenses: ₹2.73 billion, up 19% YoY and 11% QoQ
  • ESOP Expense: Approximately ₹13-14 crores for the quarter, with expected annual ESOP expense of around ₹60 crores for FY27

AUM and Market Position

  • Total AUM: ₹8.62 trillion (includes Mutual Funds, Managed Accounts, Offshore Funds and GIFT City)
  • Mutual Fund QAAUM: ₹7.52 trillion, growing 22.7% YoY and 3.7% QoQ
  • Market Share: 9.04% (highest since June 2019), increased 54 bps YoY and 15 bps QoQ
  • Equity Market Share: 7.38%, increased 34 bps YoY and 22 bps QoQ
  • Fastest growing AMC in the Top-10 on overall and equity AUM, both YoY and QoQ
  • Largest investor base in Mutual Fund industry with 24.1 million unique investors (1 in 3 MF investors)

Business Segment Performance

Systematic Investment Plans (SIP):

  • Monthly systematic book: ₹37.2 billion for June 2026 (12% YoY growth)
  • Annualized systematic book: ₹446 billion
  • SIP market share: 9.84% for June 2026 (similar to March 2026)
  • Contributing SIP folios: 97.8 million (Industry-wide, up 13% YoY and 1% QoQ)

ETF Segment:

  • AUM: ₹2.43 trillion with market share of 21.35% (increased 159 bps YoY)
  • Share of industry's ETF folios and volumes: 45%+
  • Gold & Silver ETFs AUM: ~₹827 billion (down 2.5% QoQ)
  • Gold & Silver ETFs represent ~32% of ETF AUM and 12% of MF AUM

Digital Business:

  • Digital purchase transactions & new SIP registrations: 4.49 million in Q1 FY27 (up 26% YoY)
  • Digital contribution: 78% of total new purchase transactions
  • Focus on long-term investor behavior and SIP habit strengthening

Subsidiaries and GIFT City:

  • AIF Business: Cumulative commitments of ₹95.8 billion across various schemes (up 18% YoY)
  • Q1 FY27 commitments: ₹2.5 billion across various asset classes
  • Fundraising underway for Listed Equity Fund, Private Credit Fund, and Direct VC Fund
  • NIEO 10 achieved final close and fully drawn-down
  • NIEO 11 completed 2nd drawdown (50% drawn-down)
  • NICO 2 drawn-down to 40% after 2nd capital call
  • Offshore AUM: ₹147 billion (up from ₹139 billion previous quarter)
  • GIFT City: 2 feeder funds with AUM of USD 48 million
  • Nippon India ETF Nifty 50 BeES GIFT Fund
  • Nippon India Large Cap Fund GIFT

Yield Metrics

  • Equity yield: 54 bps (ex-arbitrage), 53 bps (with arbitrage) - flat QoQ
  • Debt yield: 25 bps
  • Liquid yield: 12 bps
  • ETF yield: 25 bps
  • Overall yield: 38 bps (constant QoQ)
  • Expected yield decline: 1-2 bps YoY on blended yield due to pricing and size growth

Expense Guidance

  • Operating expenses expected to grow 18-20% for next 6-8 quarters (ex-ESOP and one-offs)
  • Investments focused on technology, brand activities, and digital platform
  • Employee expenses increased due to Q1 increments and ESOP, expected to remain in similar range

Strategic Initiatives

  • SIF (Small Investment Funds): In state of readiness, awaiting approvals. Planning highly differentiated products rather than "me-too" mutual fund plus offerings.
  • International Expansion:
  • Japan market remains critical (home country)
  • JV with DWS for AIF business (DWS taking 40% stake in AIF subsidiary, awaiting regulatory approvals)
  • Focus on attracting European money to India through DWS partnership
  • Distribution Strategy: Well-diversified distribution portfolio with no single distributor >5%. Balanced flows between direct and regular plans.

Market and Industry Context

  • Equity markets rebounded: NIFTY up 7% QoQ, NIFTY Mid Cap up 17% QoQ, NIFTY Small Cap up 24% QoQ
  • Repo-rate flat at 5.25%, 10 Year G-Sec yield decreased 29 bps QoQ to 6.75%
  • Gold prices declined 3% QoQ, silver prices declined 1% QoQ
  • Industry QAAUM: ₹83.1 trillion (up 15% YoY and 2% QoQ)
  • Equity category share: 57.2% of overall AUM (up 0.8% QoQ)
  • Industry unique investors: 61.9 million (up 12% YoY)

Q&A Key Takeaways

  • Expense Increase: Due to investments in digital, brand, and technology (expected to continue for 6-8 quarters)
  • SIP Flows: Broad-based across multiple funds, supported by fintech platforms and B30 initiatives
  • Gold ETF Restrictions: Voluntary restrictions on inflows above ₹25 crores (gold fund above ₹10 lakh) due to national cost considerations. Retail flows continue uninterrupted.
  • Performance: 90-95% of AUM in quartile 1 and 2, focus on trust and processes rather than performance marketing
  • Non-MF Revenue Contribution: ~8% of gross revenue
  • AIF Profitability: AIF subsidiary is PAT positive