A leading asset management company has reaffirmed its strategic focus on its core mutual fund (MF) business, even as mixed financial performance marked the latest fiscal year.
Core revenue rose 17% year-on-year in FY26, supported by average assets under management (AUM) growth of 13.9%. However, profitability showed some pressure, with EBITDA margins declining to 59.8% from 61.7% a year earlier. Core profit after tax (PAT) increased by 13% over the same period.
Quarterly performance was uneven. Core revenue for the fourth quarter stood at Rs 1,142 million, up 13% year-on-year but slightly below expectations. Growth was driven by a 14% rise in quarterly average AUM, though this represented a decline compared to the previous quarter. EBITDA rose 18% annually, aided by lower operating costs and improved efficiency, lifting margins to 62.2%.
Despite this, quarterly PAT declined due to mark-to-market losses. For the full year, PAT reached Rs 2,038 million, up 6.9%.
Growth in equity mutual funds slowed significantly to 13% from 33.8% in FY25, while debt AUM expansion also moderated. Overall AUM growth nearly halved compared to the previous year.
Looking ahead, management plans to deepen its focus on active fund management while expanding its branch network and digital platforms. It also intends to launch two new fund offerings annually, with the next expected within months.
Revenue yields improved to 39 basis points in the latest quarter, with gains across equity, debt and liquid segments. The company remains comfortable operating within a 32–40 basis point range.
Analysts maintain a “buy” rating on the stock, setting a target price of Rs 311, citing stable profitability and steady long-term growth prospects.
