Nippon Life India Asset Management (NAM-INDIA) Q1 26/27 earnings summary

Executive summary

• Achieved highest ever quarterly profit after tax at INR 5.04 billion, up 27% year-on-year, and highest operating profit at INR 4.94 billion, up 31% year-on-year.

• Fastest growth among top 10 AMCs in overall and equity AUM, with QAAUM up 23% year-on-year to INR 7.52 trillion and market share rising to 9.04%.

• Maintained largest investor base in the mutual fund industry with 24.1 million unique investors and 40.2 million folios.

• Digital adoption strong, with 78% of new purchase transactions digital and digital SIP transactions up 26% year-on-year.

• Systematic flows and SIP AUM saw double-digit year-on-year growth, reflecting robust retail participation.

Financial highlights

• Revenue for Q1 FY27 was INR 7.67 billion, up 26% year-on-year; consolidated total income reached INR 9.37 billion, up 25% year-on-year.

• Operating profit reached INR 4.94 billion, up 31% year-on-year and flat sequentially.

• Profit after tax stood at INR 5.04 billion, up 27% year-on-year and 31% quarter-on-quarter.

• Dividend payout for FY26 was INR 21.50 per share, distributing ~91.5% of standalone earnings.

• Operating expenses increased to INR 2.73 billion, up 19% year-on-year, mainly due to investments in technology, brand, and digital platforms.

Outlook and guidance

• Continued investment in technology, brand, and digital expansion, with other expenses projected to grow 18%-20% over the next six to eight quarters.

• Employee expenses expected to remain stable, with ESOP expenses declining year-on-year.

• Committed to ESG integration, targeting 45% GHG reduction by 2030 and Net Zero by 2070.

• Guidance for overall yield to drop by 1-2 basis points year-on-year as AUM grows.

• Ongoing product innovation in ETFs, AIFs, and international offerings.