Summary
ICICI Prudential Asset Management Company Limited - Q3 FY 2026 Earnings Call Summary Wednesday, January 14, 2026
Event Participants
Executives 5 Abhijit Shah (Chief Marketing and Digital Officer), Amar Shah (Chief Business Officer), Harshil Sanghavi (Head of Investor Relations), Naveen Agarwal (CFO), Nimesh Shah (MD & CEO)
Analysts 11 Anishaa Kumar, Ansh Mehta, Ansuman Deb, Ashish Sharma, Bhavya Sanghvi, Devyani, Gaurav Jani, Kundan Kishore, Lalit Mohan Deo, Mohit Mangal, Mohit Motwani, Prashant Mahesh, Pratik Ghosh, Sucrit D Patil, Yash Mehta
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Mutual Fund QAAUM | ₹10.8 trillion | +23.2% YoY, +6.1% QoQ; maintains 13.3% market share as 2nd largest AMC |
| Active Schemes QAAUM | ₹9.1 trillion | +20.6% YoY; largest market share in active schemes at 13.5% |
| Equity & Equity-Oriented QAAUM | ₹6.1 trillion | +23.6% YoY, +7.3% QoQ; largest market share in category at 13.8% |
| Equity-Oriented Hybrid QAAUM | ₹2.1 trillion | +26.8% YoY; dominant market share of 26.3% in this category |
| Passive QAAUM | ₹1.7 trillion | +39.4% YoY, +10.8% QoQ; high growth driven by market adoption |
| Alternates QAAUM | ₹752.8 billion | Includes PMS (₹272.81 billion) and AIF (₹159.09 billion) |
| Systematic Transactions (SIP/STP) | ₹50.37 billion | +18.6% YoY; monthly flow run-rate up from ₹42.47 billion in Dec '24 |
| Operating Revenue | ₹15.15 billion | +23.5% YoY, +6.7% QoQ; core revenue driven primarily by MF (92%) |
| Profit After Tax | ₹9.17 billion | +45.1% YoY, +9.8% QoQ; strong bottom-line growth on operating leverage |
| Operating Margin (Annualized) | 37 bps | +2 bps YoY from 35 bps in 9M FY25; reflects scale-based efficiency |
| Equity Yield (Net) | 67 bps | Annualized for 9M FY26; remains a high-margin anchor segment |
| Return on Equity (Annualized) | 87.9% | For 9M FY26; reflects capital-light nature of the AMC model |
Geographic & Segment Commentary
- Alternates & PMS: Alternates QAAUM reached ₹752.8 billion, with PMS growing 22.6% YoY and AIF growing 40% YoY. The net yield (post-commissions) for this segment stands at 97 bps, significantly higher than the mutual fund average.
- International Operations: Established a branch office in DIFC Dubai to serve the NRI diaspora and international investors in the Middle East. Management also noted a retail FME branch presence in GIFT City for inbound and outbound investment funds.
- Advisory Business: Contributes approximately 1% of total revenue with an annualized yield of 32 bps. Business has been flattish recently, following a jump in prior periods, depending on international asset allocation to India.
Company-Specific & Strategic Commentary
- Specialized Investment Funds (iSIF): Launching two new SIF products (X100 Mid-Cap/Small-Cap and Hybrid Long-Short) utilizing derivatives for hedging and directional calls.
- Digital Leadership: 95.7% of total purchase transactions were executed via digital platforms in 9M FY26.
- Distribution Dynamics: Direct plans account for 28% of equity QAAUM, while ICICI Bank contributes 8.1%. Management uses a marginal TER-based pricing model for distributors rather than correcting the back-book.
- Talent Strategy: Employee count stands at 3,522; management intentionally over-invests in internal fund manager creation to support doubling AUM every 3-3.5 years.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Market Share | Outperform AUM growth | Management aims for net sales flow share to exceed AUM market share. |
| SEBI TER Impact | Implementation April 1, 2026 | Management is assessing rationalization strategies to mitigate impact on large schemes. |
| SIF Performance | 2–3 Year Track Record | Focus is on long-term performance first rather than immediate short-term fund raising. |
Risks & Constraints
| Risk | Context |
|---|---|
| Regulatory Changes | SEBI’s new circular on TER slabs, brokerage limits, and GST allowances may impact margins, particularly in larger schemes. |
| Competitive Intensity | Pressure from digital platforms and low-cost passive players; ICICI Pru is leveraging scale and “pull” brand power to maintain yields. |
| Market Volatility | Alternate and Advisory segments are sensitive to international investor sentiment and local equity market performance. |
Q&A Highlights
TER Regulations & Margin Impact
- Question: What is the estimated impact of the latest SEBI circular on TER and expense rationalization? (Anishaa Kumar)
- Answer: Impact involves three components: exit loads, expense cuts, and brokerage limits. While larger schemes face bigger impacts, the 5 bps GST allowance provides some offset. Clarity on “pass-through” to distributors will emerge closer to April 2026 (Naveen Agarwal).
Alternate Business Yields
- Question: Is the 97 bps net yield in Alternates sustainable? (Ashish Sharma)
- Answer: Unlike mutual funds, Alternates do not have formula-based pricing. Yields have remained stable historically; growth depends on product mix across private credit, real estate, and equity (Naveen Agarwal).
Cost Structure & Employee Count
- Question: Why is the employee count nearly double that of listed competitors? (Ansh Mehta)
- Answer: ICICI Pru maintains internal teams for real estate, private credit, and PMS. The company “over-invests” in internal fund manager creation to build capacity for AUM that doubles every few years (Nimesh Shah).
Systematic Flows (SIP/STP)
- Question: What is the current run-rate of systematic flows? (Bhavya Sanghvi)
- Answer: As of December 31, 2025, the monthly systematic trigger (SIP + STP) stands at ₹5,037 crores (Amar Shah).
Key Takeaway
ICICI Prudential AMC delivered a robust Q3 FY 2026 with PAT growing 45.1% YoY to ₹9.17 billion, supported by a 23.2% rise in total QAAUM to ₹10.8 trillion. The company maintained its leadership in active equity (13.8% market share) and hybrid schemes (26.3% market share) while expanding its high-margin Alternates business, which now yields 97 bps on a net basis. Strategically, the firm is diversifying into Specialized Investment Funds (iSIF) and strengthening its international footprint via DIFC Dubai and GIFT City. Despite looming regulatory changes to TER slabs in April 2026, management remains confident in its scale-driven operating leverage and its ability to create internal capacity for growth. The focus continues to be on maintaining risk-adjusted performance to drive “pull” demand, with an outlook aimed at ensuring net flow market share exceeds existing AUM share.
Want more insights like this?
Subscribe to get deep dives delivered to your inbox.
More Earnings Summaries
Explore more Q3 FY26 earnings call analyses: