Aditya Birla Sun Life Asset Management Company (ABSL AMC) has reported a solid financial performance for the fourth quarter of FY26, marked by steady growth in assets under management (AUM) and improved profitability, though challenges around market share persist.
The company’s mutual fund quarterly average AUM (QAAUM) rose 14% year-on-year to Rs4.4 trillion, supported by stable equity assets and continued systematic investment plan (SIP) inflows. Equity AUM, accounting for 45% of total, grew 17% to Rs2.0 trillion. However, SIP AUM remained flat at Rs760 billion. Monthly systematic flows stood at Rs12 billion in March.
Despite growth, ABSL AMC saw a decline in market share. Its equity segment share fell to 4.06%, while overall mutual fund share dropped to 6.02%, though the pace of decline has slowed.
The firm’s non-mutual fund businesses—including portfolio management services (PMS), alternative investment funds (AIF), and offshore strategies—showed strong expansion, with AUM more than doubling to Rs381 billion. This segment is expected to continue growing rapidly.
On the earnings front, core profit after tax (PAT) rose 23% year-on-year, exceeding expectations. However, reported PAT declined 18% to Rs1.9 billion, largely due to negative other income. Total income fell 15% year-on-year. Operating costs increased modestly, driven by higher employee expenses.
Management said recent regulatory changes may impact yields slightly but are expected to be largely neutral to overall profitability, as adjustments in costs and commissions have been made.
Looking ahead, the company anticipates recovery in net inflows, supported by improving fund performance and stronger distribution through banking channels.
Analysts have raised the target price to Rs1,010, citing improved growth visibility. However, following a 35% rise in the stock over three months, the rating has been downgraded from “buy” to “neutral,” reflecting limited near-term upside.
