Nippon India AMC Q2 Operating Profit Hits Record ₹523 Crore

NAM India was the fastest growing AMC in the Top-10 AMCs in H1 FY27 on overall and equity AUM
Highest increase in overall AUM market share and equity AUM market share among Top-10 AMCs in H1 FY27
Mutual Fund market share stood at 9.02%, relatively flat QoQ
Equity Net Sales market share and SIP market share remained well above Equity AUM market share, both in high-single digits

Achieved highest ever Quarterly Operating Profit at ₹523 crore (growth of 25% YoY)
Revenue stood at ₹796 crore, up 21% YoY and 4% QoQ
Other Income stood at ₹23 crore, lower both YoY & QoQ
Operating Expenses stood at ₹272 crore, up 14% YoY and flat QoQ
Profit After Tax stood at ₹324 crore, down both YoY & QoQ due to exceptional item
For H1 FY27, Operating Profit grew by 28% YoY, Profit After Tax grew by 12% YoY
Board declared an Interim Dividend of ₹9.50 per share

Total assets under management of ₹8.68 trillion (includes Mutual Funds, Managed Accounts, Offshore Funds and GIFT City)
Mutual Fund QAAUM grew 19.9% YoY and 4.7% QoQ to reach ₹7.87 trillion
Equity market share increased 27 bps YoY and 2 bps QoQ to 7.40%
Continue to have largest investor base in Mutual Fund industry with 24.3 million unique investors (over 1 in 3 MF investors)

Equity markets witnessed correction: NIFTY down 5% QoQ, NIFTY Mid Cap down 4% QoQ, NIFTY Small Cap relatively flat QoQ
Reporate flat at 5.25%, 10-Year G-Sec yield increased by 44 bps QoQ to 7.19%
Gold prices up 2.5%, silver prices down 1% QoQ

Industry QAAUM grew by 13% YoY and 5% QoQ to ₹87.2 trillion
Share of Equity in overall AUM increased by 1% QoQ to 58.2%
Equity category (ex-of Index Funds & Arbitrage) witnessed gross inflow of ₹2.69 trillion (up 9% QoQ) and net inflow of ₹1.08 trillion (down 5% QoQ)
Categories with highest inflows: Small Cap, Mid Cap and Flexi Cap funds
Fixed Income category (Debt + Liquid) witnessed net outflow of ₹59 crore after inflow in previous quarter
ETF category had net inflow of ₹367 crore, higher QoQ
Quarter-end unique investors increased 11% YoY to 63.1 million

Industry SIP flows for quarter stood at ₹9,670 crore, up 12% YoY and 3% QoQ
Monthly SIP flows in Sep-2026 stood at ₹3,250 crore (all-time high)
Contributing SIP folios for Sep-2026 increased 9% YoY and 3% QoQ to 100.6 million

Continue to be one of largest ETF players with AUM of ₹2.49 trillion and market share of 21.12% (increased 135 bps YoY)
Share of industry's ETF folios and volumes remain strong at ~45%
ETFs' average daily volumes across key funds remain far higher than rest of Industry
Gold & Silver ETFs combined closing AUM ~₹882 crore, up 6.6% QoQ
Gold & Silver ETFs represent ~32% of ETF AUM and 12% of MF AUM in QAAUM terms

Digital purchase transactions & new SIP registrations rose to 9 million in H1 FY27, up 15% YoY
Digital Business contributed 78% of total new purchase transactions in H1 FY27
Focus on long-term investor behavior, scaling business and deepening SIP adoption

Offer Category II and Category III AIFs
Cumulative commitments of ₹998 crore across various schemes, up 14% YoY
Q2 FY27 raised ₹40 crore of commitments across various asset classes
Fundraising underway for Listed Equity Fund, Private Credit Fund, and Direct VC Fund
Launched second SMID Strategy Fund: Undiscovered India Opportunity Fund - 2 (NIEO 12)
Nippon India Credit Opportunities Fund (NICO 2) with 3rd capital call in Q2 FY27, drawn-down to extent of 55%

SEBI accorded in-principal acceptance of settlement application(s) filed by Company and certain officials
Relates to ongoing regulatory matter regarding past investments made by certain NIMF Schemes in Yes Bank AT-1 bonds
Originates from show cause notice received from SEBI dated August 30, 2024
Board decided to pursue Settlement process considering time, cost and uncertainty of prolonged legal proceedings

Total settlement amount of ₹96.76 crore paid, comprising:
₹89.08 crore as reversal of management fee earned by Company over said investment (including interest)
₹7.68 crore as regulatory costs in respect of Company and certain company officials
Amount fully paid and recognised in financial results for quarter and half year ended September 30, 2026 as Exceptional Item
Further communication from SEBI awaited

Flows coming into traditional funds (multi-cap, large-cap, mid-cap, smallcap, hybrid funds)
Stopped taking lump sum flows in small-cap fund for last 3 years
Strong SIP book provides protection (~₹3,200 crore monthly inflows)
Focus on hybrid funds, multi-asset allocation products, and fixed-income strategies
Communicating with distributors to maintain SIPs during market volatility

Working on SIF (Sectoral Investment Fund) launch strategy, awaiting SEBI clearance
Andrew Holland and team have been working on SIF space for one year
MF-only PMS initiative seen as positive for industry and established mutual funds

Employee expenses expected to range similarly except for new hires
Overall cost guidance maintained at 18% to 20% growth over next 6 to 8 quarters
AIF subsidiary may see incremental costs due to expansion over next 3-6 quarters
ESOP expense for full year expected to be ~₹58 crore