Nippon Life India AMC Q2 PAT at ₹3.24B, Declares ₹9.50 Dividend

Board Meeting Outcomes

The Board of Directors meeting was held on October 22, 2026, from 12:40 p.m. to 1:55 p.m. The Board approved:

1. The Unaudited Financial Results (Consolidated and Standalone) for the quarter and half year ended September 30, 2026.

2. Declaration of an interim dividend of ₹9.50 per equity share of face value ₹10 each.

3. Fixed the record date for the interim dividend as October 28, 2026.

4. The payment date for the dividend will be on and from November 5, 2026.

Financial Results - Standalone (₹ in crores)

Quarter Ended September 30, 2026 (Reviewed):

• Total Income: ₹765.63
• Revenue from Operations: ₹746.80
• Other Income: ₹18.83
• Total Expenses: ₹227.86
• Profit Before Exceptional Items and Tax: ₹537.77
• Exceptional Items: ₹96.76 (Refer Note 6)
• Profit Before Tax: ₹441.01
• Total Tax Expense: ₹124.31
• Profit After Tax: ₹316.70
• Total Comprehensive Income: ₹314.62
• Basic EPS: ₹4.95 (not annualized)
• Diluted EPS: ₹4.86 (not annualized)

Half Year Ended September 30, 2026 (Reviewed):

• Total Income: ₹1,641.17
• Revenue from Operations: ₹1,467.52
• Other Income: ₹173.65
• Total Expenses: ₹459.10
• Profit Before Exceptional Items and Tax: ₹1,182.07
• Exceptional Items: ₹96.76
• Profit Before Tax: ₹1,085.31
• Total Tax Expense: ₹282.19
• Profit After Tax: ₹803.12
• Total Comprehensive Income: ₹800.09
• Basic EPS: ₹12.55 (not annualized)
• Diluted EPS: ₹12.32 (not annualized)

Comparative Figures (Quarter Ended):

• September 30, 2025: PAT ₹338.42 crore; June 30, 2026: PAT ₹486.42 crore
• March 31, 2026 (Audited): PAT ₹1,497.75 crore for full year

Financial Results - Consolidated (₹ in crores)

Quarter Ended September 30, 2026 (Reviewed):

• Total Income: ₹818.89
• Revenue from Operations: ₹795.75
• Other Income: ₹23.14
• Total Expenses: ₹272.33
• Profit Before Exceptional Items and Tax: ₹546.56
• Exceptional Items: ₹96.76 (Refer Note 5)
• Profit Before Tax: ₹449.80
• Total Tax Expense: ₹125.66
• Profit After Tax: ₹324.14
• Share of Profit in Associate: ₹0.23
• Net Profit After Tax and Share of Profit in Associate: ₹324.37
• Total Comprehensive Income: ₹322.27
• Basic EPS: ₹5.07 (not annualized)
• Diluted EPS: ₹4.98 (not annualized)

Half Year Ended September 30, 2026 (Reviewed):

• Total Income: ₹1,755.97
• Revenue from Operations: ₹1,562.62
• Other Income: ₹193.35
• Total Expenses: ₹544.92
• Profit Before Exceptional Items and Tax: ₹1,211.05
• Exceptional Items: ₹96.76
• Profit Before Tax: ₹1,114.29
• Total Tax Expense: ₹287.06
• Profit After Tax: ₹827.23
• Share of Profit in Associate: ₹0.84
• Net Profit After Tax and Share of Profit in Associate: ₹828.07
• Total Comprehensive Income: ₹824.96
• Basic EPS: ₹12.93 (not annualized)
• Diluted EPS: ₹12.71 (not annualized)

Comparative Figures (Quarter Ended):

• September 30, 2025: PAT ₹344.25 crore; June 30, 2026: PAT ₹503.09 crore
• March 31, 2026 (Audited): PAT ₹1,528.13 crore for full year

Dividend Declaration

• Interim dividend: ₹9.50 per equity share of face value ₹10 each.
• Record date: October 28, 2026.
• Payment date: On and from November 5, 2026.

SEBI Settlement Proceedings (Note 6 Standalone / Note 5 Consolidated)

• During FY 2024-25, the company received a SEBI show cause notice dated August 30, 2024, alleging non-compliance with certain provisions of securities laws regarding investments made by certain Nippon India Mutual Fund (NIMF) schemes in Yes Bank AT-1 bonds.
• The company and certain officials filed settlement applications under SEBI (Settlement Proceedings) Regulations, 2018.
• During Q2 FY27, SEBI communicated its in-principle acceptance of the settlement terms.
• The company paid an aggregate amount of ₹96.76 crore during the quarter, comprising:
• ₹89.08 crore (including interest) for reversal of management fee earned.
• ₹7.68 crore towards settlement amount in respect of the company and its certain officials.
• This amount has been recognized as an exceptional item in the financial results for the quarter and half year ended September 30, 2026.
• The settlement order from SEBI is awaited. Based on current assessment, no further provision is considered necessary.

Supreme Court Update on Yes Bank AT-1 Bonds (Note 7 Standalone / Note 6 Consolidated)

• The Hon'ble Supreme Court, on October 15, 2026, dismissed appeals filed against the judgment of the Hon'ble Bombay High Court dated January 20, 2023.
• The Bombay High Court judgment had set aside the write-off of the Additional Tier-1 (AT-1) bonds of Yes Bank Limited undertaken in March 2020.
• The interests of the bondholders, including the relevant schemes of NIMF, were represented by Axis Trusteeship Services Limited, the debenture trustee.
• Any recovery pursuant to the judgment will accrue to the unitholders of the relevant schemes and will not impact the financial results of the company.

Other Key Notes to Financial Results

1. IPO Proceeds Utilization (as of September 30, 2026):

• Total IPO Proceeds (net of expenses): ₹588.85 crore.
• Utilized: ₹401.36 crore.
• Unutilized: ₹187.49 crore.
• Breakdown of utilization:
• New branches/relocation: ₹15.82 crore utilized (₹22.49 crore unutilized).
• IT system upgrade: ₹40.65 crore utilized (fully utilized).
• Advertising/marketing: ₹72.09 crore utilized (fully utilized).
• Lending to subsidiary (Nippon Life India AIF Management Co. Ltd.): ₹125.00 crore utilized (fully utilized).
• Investment in new mutual fund schemes: ₹100.00 crore utilized (fully utilized).
• Inorganic growth/strategic initiatives: ₹0.00 utilized (₹165.00 crore unutilized).
• General corporate purpose: ₹47.80 crore utilized (fully utilized).

2. Employee Stock Options:

• The Nomination and Remuneration Committee (NRC) on April 28, 2025, approved grants under ESOP 2023 and PSU 2023.
• Non-cash Employee Benefits Expenses for these grants: ₹8.34 crore for Q2 FY27 and ₹14.28 crore for H1 FY27 (Standalone).
• During Q2 FY27, the company allotted 746,085 equity shares pursuant to exercise of stock options.

3. Segment Information:

• The company is primarily in the asset management services business.
• No separate reportable segments as per Ind AS 108.

4. Subsidiaries and Associate:

• The consolidated results include:
• Nippon Life India AIF Management Limited (Wholly Owned Subsidiary)
• Nippon Life India Asset Management (Singapore) Pte. Limited (Wholly Owned Subsidiary)
• Reliance Capital Pension Fund Limited (Associate)
• The subsidiary's results are unaudited and not reviewed by their auditor.
• The associate's results include the group's share of net profit of ₹0.23 crore for Q2 FY27 and ₹0.84 crore for H1 FY27.

Media Release Business Highlights

• MF Quarterly Average AUM (QAAUM) at ₹7.87 trillion, up 20% YoY.
• MF QAAUM market share at 9.02%, up 51 basis points YoY.
• Q2 FY27 systematic flows at ₹111.5 billion, up 4% YoY.
• Unique investor base: 24.3 million, with a market share of 38.4%.
• Closing AUM grew 14% YoY to ₹8.68 trillion.
• Equity MF QAAUM grew 20% YoY to ₹3.76 trillion.
• ETF QAAUM grew 36% YoY to ₹2.49 trillion.
• Retail Monthly Average AUM (MAAUM) grew 18% YoY to ₹2.27 trillion.
• HNI MAAUM grew 28% YoY to ₹2.61 trillion.
• Corporate AUM grew 12% YoY to ₹3.01 trillion.
• B-30 AUM grew 23% YoY to ₹1.63 trillion.
• Nippon India AIF total commitment: ₹99.8 billion.
• Pan-India presence at 271 locations.
• Digital purchase transactions: 9.00 million in H1 FY27, up 15% YoY.

Media Release Financial Highlights

• Q2 FY27 Total Income: ₹8.19 billion (US$85 million), up 18% YoY.
• Q2 FY27 Operating Profit: ₹5.23 billion (US$55 million), up 25% YoY.
• Q2 FY27 Profit After Tax: ₹3.24 billion (US$34 million), down 6% YoY.

Auditor's Review

• The financial results were reviewed by S.R. Batliboi & Co. LLP, Chartered Accountants.
• The review report states that nothing has come to their attention that causes them to believe the financial results are not free from material misstatement.
• The auditors drew attention to the note on SEBI settlement proceedings but did not modify their conclusion.