ABSLAMCNSEOctober 30, 2025

Aditya Birla Sun Life AMC Limited

6,401words
63turns
6analyst exchanges
3executives
Management on call
A Balasubramanian
MANAGING DIRECTOR AND CHIEF
Pradeep Sharma
CHIEF FINANCIAL OFFICER – ADITYA BIRLA SUN LIFE AMC LIMITED
A. Balasubramanian
MD and CEO,
Key numbers — 40 extracted
3%
ience despite trade tensions and policy uncertainties. And global growth remains stable at around 3%, with the trade expanding significantly in the first half of 2025. However, tariff-related volati
6.5%
wth to becoming a pivotal force in shaping the world's economic future. The economy grew by about 6.5% in FY25, with growth accelerating to 7.8% in Q2 FY26, the highest in five quarters. For FY26, the
7.8%
the world's economic future. The economy grew by about 6.5% in FY25, with growth accelerating to 7.8% in Q2 FY26, the highest in five quarters. For FY26, the RBI projects GDP growth at 6.5%, maintain
1.5%
test-growing major economies globally. Inflation has moderated significantly, with CPI falling by 1.5% in September 2025, the lowest in the last 99 months. The CPI inflation forecast for FY26 has been
2.6%
5, the lowest in the last 99 months. The CPI inflation forecast for FY26 has been revised down to 2.6%, with inflation expected to remain below the RBI’s target for most of the year. Aditya Bi
6.25%
ey policy initiatives, including GST 2.0 and the RBI’s accommodative stance with the repo rate at 6.25% underscore the focus on stability-led growth, while India's fiscal position remains solid and on
6.75%
scal position remains solid and on track to meet the deficit targets. Merchandise exports grew by 6.75% year-on- year in September 2025, while services exports surged 14% in Q4 FY25, driven by IT and
14%
. Merchandise exports grew by 6.75% year-on- year in September 2025, while services exports surged 14% in Q4 FY25, driven by IT and business services, reinforcing India's strengthening global competit
12%
to their long-term averages, with earnings growth in the medium term estimated in the range of 12% - 15%. Strong domestic flows continue to support the markets, making up for outflows from interna
15%
their long-term averages, with earnings growth in the medium term estimated in the range of 12% - 15%. Strong domestic flows continue to support the markets, making up for outflows from international
rs,
domestic flows continue to support the markets, making up for outflows from international investors, with the domestic mutual funds’ ownership share reaching new highs. India's long-term structural t
Rs. 77.13 lakh crore
pdate: The quarterly average AUM of the mutual fund industry as of 30th September 2025 stood at Rs. 77.13 lakh crores as compared to Rs. 66.21 lakh crores as of 30th September 2024, growing by 16% year-on-year. The
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Guidance — 20 items
Richa Singh
opening
“I welcome you all to Aditya Birla Sun Life Asset Management Company Limited for their Q2 and H1 FY26 Earnings Conference Call.”
A. Balasubramanian
opening
“The economy grew by about 6.5% in FY25, with growth accelerating to 7.8% in Q2 FY26, the highest in five quarters.”
A. Balasubramanian
opening
“For FY26, the RBI projects GDP growth at 6.5%, maintaining India's position as one of the fastest-growing major economies globally.”
A. Balasubramanian
opening
“The CPI inflation forecast for FY26 has been revised down to 2.6%, with inflation expected to remain below the RBI’s target for most of the year.”
A. Balasubramanian
opening
“Aditya Birla Sun Life AMC Limited Friday, 24th October 2025 Key policy initiatives, including GST 2.0 and the RBI’s accommodative stance with the repo rate at 6.25% underscore the focus on stability-led growth, while India's fiscal position remains solid and on track to meet the deficit targets.”
A. Balasubramanian
opening
“Merchandise exports grew by 6.75% year-on- year in September 2025, while services exports surged 14% in Q4 FY25, driven by IT and business services, reinforcing India's strengthening global competitiveness and emergence as a service hub.”
A. Balasubramanian
opening
“Indian equity markets are positioned for sustained momentum over the medium term.”
A. Balasubramanian
opening
“With recent corrections, valuation of large-cap stocks and the broader markets are now closer to their long-term averages, with earnings growth in the medium term estimated in the range of 12% - 15%.”
Coming to the mutual fund industry update
opening
“The industry saw a total NFO collection in Q2 FY26 of around Rs.”
Coming to the ABSLAMC performance highlights
opening
“30,250 crores in Q2 FY26, representing an increase of about 8 times.”
Risks & concerns — 7 flagged
And secondly, if I were to dissect this SIP market share decline, let’s say, over the last 12 to 18 months across channels, which channel has been the biggest drag out there?
— Dipanjan Ghosh
On a like-to-like basis, if I look at the equity yields, then probably I think we would assume that, around at least, back calculations suggest around 2 to 3 basis points yield decline.
— Harshit Toshniwal
Or it is very difficult to predict that way.
— Harshit Toshniwal
We could see some impact of that in P&L, right?
— Mohit Mangal
Can you just maybe share the yield on that and also the reason for the decline?
— Divij Punjabi
But however, the impact of that is about 0.2%, which is roughly about 0.4 basis point roughly, is the impact on the contribution coming from the offshore asset.
— A. Balasubramanian
And in the last two weeks, when the market turned volatile, even we also had to close the fund for subscription for some days.
— A. Balasubramanian
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Q&A — 6 exchanges
Q
Good evening, Sir. A few questions from my side. First, if we were to see your SIP flow trajectory, despite the improvement that we are seeing in some of your schemes, the SIP market share has been kind of declining. Just two questions on this front. One is, if you can give colour on your overall flow trajectory, that will give us some understanding of your redemption and lump sum trends on the equity side of things. And secondly, if I were to dissect this SIP market share decline, let’s say, over the last 12 to 18 months across channels, which channel has been the biggest drag out there? Adit
A. Balasubramanian
Coming to your first question on SIPs, of course we have been seeing while we have been adding new registrations; that month-on-month our new registrations have been rising. That is one area of focus that we have. Of course, given the fact that SIP growth for the whole industry has been quite very, very strong, and also given the fact that we have always been one of the large players in the SIP book, and overall share look slow, but otherwise we have been maintaining close to about 1,180 crores. And a clear focus has been brought in to drive the SIPs across our channel partners. In fact, one o
Q
Thank you Sir. Happy Diwali. I have two questions. One is on the SIP piece itself. So, I got some part of your explanation, but if I look at the SIP just in terms of the market share, then we see a sharp dip versus last quarter. It has moved from 4.1% - 4.2% to 3.6% - 3.7%. Now, it's probably the older, the redemptions might be lower, but do you think that it in the newer SIPs getting created, our market share is negligible compared to the 3.5% we have on the overall flow? What can that be done to address that? Because despite the performance has started to improve, but that reflection in the
A. Balasubramanian
As far as the SIP is concerned, we did have some maturities of SIPs which have come in the form of STP form, largely on account of that. Otherwise, SIPs coming from retail continue to show a strength. And again, SIP new registration, something which we keep track of. Wherever incremental market share is coming from SIP registration has also have been on the rise. But sometimes when we get SIPs by way of an STP, which largely come into fixed income, and then they do an equity STP, we have seen that something is getting expired. But this thing, in any way, is quite common. And that's something t
Q
Thanks for the opportunity. My first question is on the employee expenses. If I look, employee expenses grew 6% YoY in Q2. And if I look at Q1, the YoY growth rate was around 4%. And you said that the ESOP won't ideally come this year. Do you think it will remain in single digits at around 6% - 7% or will it grow in higher double digits for the entire year?
Pradeep Sharma
So Mohit, in this quarter, we had some reversals of around Rs. 6 crores on our payroll provision of last year after we disbursed all the amounts based on the employee's performance. So, if you see on a normalized basis, it should be higher by around 12% instead of 6%. Understood. So, for the entire year, basically 10%-12% is something that we can expect, right? Yes. My next question is in terms of the new pipeline of schemes that can be expected in H2. We have one product approval already in place for us. And that's something we've been debating when to launch it, given the fact that too many
Q
Congratulations Sir. And thank you for giving me the opportunity. My question is on the growth of the Arbitrage Fund. Last quarter, you mentioned that it was behind the industry. So, how has this segment performed in this quarter, and what are the changes in your strategy to improve this performance?
A. Balasubramanian
Of course, this is one of the funds where we felt that we can grow a little faster than the industry. In fact, we had reasonably good AUM growth, going above about 20% rate of growth compared to the industry. In order to improve the performance, of course, we have done a good mix of generating a little higher return by increasing the focus on one on the fixed income space between the selection of securities in the fixed income space for the respective maturities adding about 700 basis points total return and also the efficiency that we have brought in terms of the identifying opportunities whe
Q
My question was around the offshore AUM. That has declined sequentially. Can you just maybe share the yield on that and also the reason for the decline?
A. Balasubramanian
The offshore, largely, of course, we have been managing a few mandates from some of the large funds that invest in India. As you know that India exposure by most of the FIIs has been on the reduction side. And having managed the money for almost 14-15 years, very successfully generating more than 2% alpha over the MSCI index. But due to the allocation chain that we had, that has moved out. But however, the impact of that is about 0.2%, which is roughly about 0.4 basis point roughly, is the impact on the contribution coming from the offshore asset. Nothing significant, but definitely because of
Q
Thank you, everyone, for joining the call. And with this, we conclude our Q2 FY26 earnings call. Thank you.
Management
Speaking time
A. Balasubramanian
20
Harshit Toshniwal
9
Moderator
8
Pradeep Sharma
7
Mohit Mangal
7
Dipanjan Ghosh
3
Divij Punjabi
3
Amit Singh
2
Richa Singh
1
Coming to the mutual fund industry update
1
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Opening remarks
Richa Singh
Thank you. Good evening, everyone. I welcome you all to Aditya Birla Sun Life Asset Management Company Limited for their Q2 and H1 FY26 Earnings Conference Call. Along with us, from the management, we have Mr. A. Balasubramanian – MD and CEO, Mr. Pradeep Sharma – CFO. We are thankful to the Management for allowing us this opportunity. I would now like to hand over the call to Mr. Balasubramanian for his opening remarks. Thank you, and over to you, sir.
A. Balasubramanian
Thank you, Richa. Let me begin by extending my Diwali greetings and a prosperous New Year to everyone. And good evening to everyone, and thank you for joining us in the call today. I am sure all of you would have had a chance to review our earnings presentation, which is accessible on both the stock exchanges and on our company website. Let me begin with a quick commentary on the economic outlook and an update on the mutual fund industry. The global economy, as you all know, continues to show resilience despite trade tensions and policy uncertainties. And global growth remains stable at around 3%, with the trade expanding significantly in the first half of 2025. However, tariff-related volatility has prompted countries to reassess supply chains and trade alliances. India, of course, stands at a pivotal moment, transitioning from merely participating in the global growth to becoming a pivotal force in shaping the world's economic future. The economy grew by about 6.5% in FY25, with grow
Coming to the mutual fund industry update
The quarterly average AUM of the mutual fund industry as of 30th September 2025 stood at Rs. 77.13 lakh crores as compared to Rs. 66.21 lakh crores as of 30th September 2024, growing by 16% year-on-year. The industry SIP flows for September 2025 stood at Rs. 29,361 crores, growing by 8% quarter-on-quarter. The total number of mutual fund folios stood at 25.7 crores as of 30th September 2025. The industry saw a total NFO collection in Q2 FY26 of around Rs. 35,200 crores, coming from both equity and some debt fund launches, with the equity side primarily driven by sectoral/thematic and multi-allocation funds. Individual average AUM for September 2025 grew by 12% year-on-year, from Rs. 42.11 lakh crores to Rs. 47.21 lakh crores, contributing around 60.7% of the total AUM. B30 cities, with an average AUM of Rs. 14.5 lakh crores, accounted for 18.6% of the total AUM.
Coming to the ABSLAMC performance highlights
At ABSLAMC, I am pleased to announce that we have sustained and crossed the remarkable milestone of Rs. 4.25 lakh crores in average AUM. This achievement is a testament to our team's dedication and commitment to growth. Our overall average assets under management, including alternate assets, stood at Rs. 4.61 lakh crores, growing by 15% on a year-on-year. Our mutual fund quarterly average AUM reached Rs. 4.25 lakh crores, growing by 11% year- on-year. The quarterly equity average AUM crossed Rs. 2 lakh crores, including alternate assets. Our SIP contribution for September 2025 is about Rs. 1,100 crores, with 39 lakh folios contributing to SIP accounts. Our SIP AUM contributed around 44% of our total equity AUM, reflecting the stickiness of our assets. The total number of investor folios for September 2025 stood at 1.07 crore, witnessing 5% year-on-year growth. Our consistent investment performance and improvements are driving robust momentum across our Focused funds, along Aditya Birla
Coming to the financial performance
Q2 FY26 revenue from operations stood at Rs. 461 crores, up 9% year-on-year. Q2 FY26 operating profit stood at Rs. 270 crores, up 13% year-on-year. Profit Before Tax for Q2 FY26 is at Rs. 316 crores, and Profit After Tax stood at Rs. 241 crores. Our H1 FY26 revenue from operations stood at Rs. 909 crores, up by 12% year-on-year. And H1 FY26 Operating Profit stood at Rs. 525 crores, up by 17% year-on-year. H1 FY26 Profit After Tax stood at Rs. 518 crores, up by 8% year-on-year. At ABSLAMC, we will remain committed to leading this transformation by building innovative products, robust platforms, and strategic partnerships. Backed by a dynamic team, we continue to drive momentum that democratises wealth creation and empowers investors to achieve their financial goals. With this, I would like to open the floor for any questions. I will be joined by Pradeep Sharma, who is our CFO, to take some of the questions as we feel appropriate. Thank you.
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