Summary
Aditya Birla Sun Life AMC Limited - Q3 FY26 Earnings Call Summary Thursday, January 22, 2026 5:00 PM
Event Participants
Executives 2 A. Balasubramanian (MD & CEO), Pradeep Sharma (CFO)
Analysts 4 Abhijeet Sakhare, Dipanjan Ghosh, Meghna Luthra, Mohit Mangal, Prayesh Jain
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Average AUM | ₹4.81 lakh crores | +20% YoY; Includes mutual fund and alternate assets. |
| Mutual Fund QAAUM | ₹4.43 lakh crores | +15% YoY; Driven by growth across equity and passive segments. |
| Equity QAAUM | ₹2.00 lakh crores | +11% YoY; Performance recovery starting to reflect in flagship funds. |
| Passive QAAUM | ₹38,600 crores | +28% YoY; Outperforming industry ETF growth significantly. |
| Alternates/PMS AUM | ₹32,663 crores | +8x YoY; Primarily driven by the ₹28,000 crore ESIC mandate. |
| SIP Contribution | ₹1,080 crores | December 2025 figure; Supported by 40 lakh active SIP accounts. |
| Revenue from Ops | ₹478 crores | +7% YoY; Growth driven by AUM expansion despite yield pressures. |
| Profit After Tax (PAT) | ₹270 crores | +20% YoY; Margin expansion supported by efficient cost management. |
| Equity Yield | 64-65 bps | Maintained stability; Minimal anticipated impact from new regulatory circulars. |
| Debt / Liquid Yield | 24 bps / 13 bps | Debt yields stable; Liquid yields remain competitive at 13 bps. |
Geographic & Segment Commentary
- Mutual Fund Operations: Quarterly average AUM grew 15% YoY to ₹4.43 lakh crores, with investor folios reaching 1.08 crores. Management highlighted a reversal in net flow trends, with approximately ₹16,000 crores in gross equity inflows (including arbitrage) during 9M FY26.
- Alternate Assets: The segment saw massive scaling due to the ESIC fixed income mandate (₹28,000 crores) and 17% organic growth in core PMS/AIF. Real estate AUM grew 44% YoY to ₹700 crores following the launch of the Real Estate Credit Opportunities Fund Series II.
- Passive Business: ETF QAAUM grew 40% YoY, outpacing the industry average of 24%. The company now offers 52 distinct passive products across equities, commodities (Gold/Silver), and fixed income.
Company-Specific & Strategic Commentary
- Fund Performance Recovery: Core equity offerings like Flexi Cap, Multi-Asset, and Balanced Advantage funds have moved into top-quartile performance, leading to increased approvals from organized banking and ND channels.
- Institutional Mandates: Secured an EPFO allocation letter for a fixed income mandate; assets are expected to be onboarded before the end of Q4 FY26.
- GIFT City Expansion: Incorporated Aditya Birla Sun Life AMC International (IFSC) Limited to scale global operations, focusing on both inward remittances (ESG/Flexi Cap) and outward remittance (Global Bluechip).
- Strategic Investment Funds (SIF): Plans to launch the first SIF (Hybrid fund with equity taxation) in February 2026, followed by an equity long-short fund once the specialized talent pool is onboarded.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| GDP & Economics | 7.4% GDP Growth (FY26) | Management expects a “Goldilocks” environment of strong growth and low inflation (3.75% in 2026). |
| SIF Launch | February 2026 | Applications filed; awaiting final regulatory approval for the first hybrid-structured fund. |
| EPFO Mandate | Onboarding by Q4 FY26 | Regulatory formalities are in progress to begin managing the new fixed income allocation. |
| Operating Margins | Broadly Stable | Intent to offset regulatory fee pressures through scale and higher-margin alternate products. |
Risks & Constraints
| Risk | Context |
|---|---|
| Regulatory Impact | New SEBI circulars regarding TER and telescopic pricing may cause marginal yield compression, though management expects minimal net impact through pass-throughs. |
| Market Share | While performance has improved, the company is still in the process of stabilizing its equity and SIP market share against aggressive competition. |
| Employee Costs | Anticipated increase in manpower costs in coming quarters due to the rollout of a new ABSL AMC ESOP scheme in January 2026. |
Q&A Highlights
Fund Performance vs. Market Share
- Question: When will top-quartile performance translate into market share gains, as SIP share continues to decline? (Prayesh Jain)
- Answer: Performance recovery is now reflecting in 3-year cycles, leading to more recommendations in banking and ND channels. Net flow trends are reversing, with ₹16,000 crores in equity/arbitrage inflows for 9M FY26 (A. Balasubramanian).
Cost Drivers
- Question: What caused the 20% YoY increase in employee benefit expenses? (Mohit Mangal)
- Answer: Costs were driven by a one-time gratuity impact of ₹2.82 crores from the new labour code and a ₹4.66 crore ESOP charge from the parent company (Pradeep Sharma).
Yield Trajectory
- Question: How do you view yields for the next 4-5 quarters given regulatory changes? (Mohit Mangal)
- Answer: Assessment of the new circular suggests minimal impact. The focus is on building size to grow absolute revenue, even if marginal yield reductions occur (A. Balasubramanian).
New Product Pipelines
- Question: What is the status of SIF and new AIF launches? (Mohit Mangal)
- Answer: SIF launch is planned for February 2026. We are also preparing a Select Sector AIF and an equity long-short fund pending talent onboarding (A. Balasubramanian).
Key Takeaway
Aditya Birla Sun Life AMC delivered a resilient Q3 FY26, reaching its highest-ever total AUM of ₹4.81 lakh crores, a 20% YoY increase. While mutual fund AUM grew 15%, the alternate business saw explosive 8x growth, largely due to the ₹28,000 crore ESIC mandate and growing traction in real estate credit. Profit After Tax rose 20% YoY to ₹270 crores, supported by stable equity yields of 65 bps and effective cost controls. Management emphasized that core equity fund performance has moved into the top quartile, which is beginning to reverse previous market share attrition through higher channel recommendations and improved SIP momentum. Looking ahead, the company is poised to diversify its revenue through the upcoming launch of Strategic Investment Funds (SIF) in February 2026 and the onboarding of the new EPFO mandate, maintaining a positive outlook on stabilizing margins through scale.
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