💰 Financial Performance

Revenue Growth by Segment

Revenue from Operations for Q2 FY26 reached INR 461.3 Cr, representing a 9% YoY growth compared to INR 424.2 Cr in Q2 FY25. For the half-year (H1 FY26), revenue was INR 908.7 Cr, up 12% YoY from INR 810.8 Cr, driven by an 11% YoY increase in Mutual Fund QAAUM.

Geographic Revenue Split

B-30 (Beyond Top 30 cities) monthly AAUM contributed 17.5% of total Mutual Fund AUM, reaching INR 74,900 Cr as of September 2025, a 5% YoY increase. The company operates through 300+ locations, with over 80% situated in B-30 cities to capture semi-urban growth.

Profitability Margins

Operating Profit Margin for Q2 FY26 stood at 58.6%, improving from 56.4% in Q2 FY25 as operating profit grew 13% YoY to INR 270.4 Cr. However, Net Profit Margin (PAT) for Q2 FY26 was 52.3%, down from 65.3% YoY, primarily due to a 53% decline in Other Income to INR 45.2 Cr.

EBITDA Margin

Operating Profit grew 13% YoY to INR 270.4 Cr in Q2 FY26. Core profitability remains strong with H1 FY26 operating profit at INR 524.9 Cr, up 17% YoY, reflecting better scale and cost control as total expenses only rose 6% YoY.

Capital Expenditure

Not disclosed in available documents. As an asset-light AMC, capital expenditure is primarily focused on technology and digital infrastructure, reflected in Depreciation and Amortization of INR 10.8 Cr for Q2 FY26 (up 11% YoY).

Credit Rating & Borrowing

ABSLAMC is co-owned by Aditya Birla Capital Limited (44.94% stake) and Sun Life (India) AMC Investments Inc. (29.96%). The company maintains a strong credit profile backed by these promoters; specific borrowing costs are not disclosed as the firm operates with minimal debt.

⚙️ Operational Drivers

Raw Materials

Not applicable for asset management; however, Human Capital is the primary driver, with Employee Benefits Expense accounting for INR 95.1 Cr in Q2 FY26, representing 49.8% of total expenses.

Import Sources

Not applicable for service-based asset management operations.

Key Suppliers

Not applicable; the company relies on a distribution network of 92,000+ KYD-compliant Mutual Fund Distributors (MFDs), 360 National Distributors, and 90+ Banks.

Capacity Expansion

Total Quarterly Average Assets Under Management (QAAUM) reached INR 4,60,800 Cr in Q2 FY26, a 15% YoY growth. Mutual Fund QAAUM stood at INR 4,25,200 Cr, while PMS/AIF QAAUM grew 8x YoY to INR 30,300 Cr following the ESIC mandate.

Raw Material Costs

Employee costs (the primary 'input' cost) rose 6% YoY to INR 95.1 Cr in Q2 FY26. Fees and Commission expenses increased 20% YoY to INR 14.5 Cr, reflecting higher payouts for asset sourcing.

Manufacturing Efficiency

Folio productivity is a key metric; the company serviced 10.7 million folios as of Sep 30, 2025, a 5% YoY increase. Monthly SIP contributions stood at INR 1,100 Cr with 3.90 million active accounts.

Logistics & Distribution

Distribution costs are reflected in Fees and Commission Expense, which stood at 3.1% of total revenue in Q2 FY26, up from 2.8% YoY due to increased focus on sourcing equity assets.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth will be driven by the new EPFO debt portfolio mandate (5-year term), expansion of the Alternates business (PMS/AIF grew 8x YoY), and a focus on B-30 cities which currently comprise 17.5% of AUM. The company is also launching new products like the ABSL India Equity Innovation Fund and Structured Opportunities Fund II.

Products & Services

Mutual fund schemes (Equity, Debt, Liquid, ETF), Portfolio Management Services (PMS), Alternative Investment Funds (AIF), and Real Estate Investment offerings.

Brand Portfolio

Aditya Birla Sun Life Mutual Fund, ABSLAMC, Aditya Birla Capital.

New Products/Services

Launched ABSL Structured Opportunities Fund II and preparing for ABSL India Equity Innovation Fund; new SIP registrations reached 5.82 lakh in Q2 FY26 to bolster long-term sticky capital.

Market Expansion

Targeting 'Emerging Markets' through 100+ dedicated locations and a Virtual Relationship Manager (VRM) channel to increase penetration beyond the current 300+ locations.

Market Share & Ranking

Mutual Fund QAAUM market share stood at 5.7% as of March 2025; the company is one of the leading asset managers in India with INR 4,60,800 Cr in total AUM.

Strategic Alliances

Joint venture between Aditya Birla Capital Limited and Sun Life (India) AMC Investments Inc.; recently selected by EPFO to manage its debt portfolio.

🌍 External Factors

Industry Trends

The industry is shifting toward Systematic Investment Plans (SIPs), with industry flows reaching INR 29,361 Cr in Sep 2025. ABSLAMC is positioning itself with a monthly SIP book of INR 1,100 Cr.

Competitive Landscape

Competes with other large AMCs; industry Individual AUM mix is 60.7% vs ABSLAMC's 48%, indicating room for growth in the retail segment.

Competitive Moat

Moat is derived from the 'Aditya Birla' brand trust, a massive distribution network of 92,000+ MFDs, and a strong presence in B-30 cities (80% of locations), which are harder for newer players to penetrate.

Macro Economic Sensitivity

Highly sensitive to capital market performance and interest rate cycles; Industry QAAUM grew 16% YoY to INR 77.13 lakh Cr, setting a high benchmark for competitive growth.

Consumer Behavior

Increasing preference for passive funds (ABSLAMC Passive QAAUM grew 20% YoY to INR 36,100 Cr) and tech-savvy investing among younger demographics.

Geopolitical Risks

Global market volatility can trigger FII outflows, impacting the domestic equity AUM (INR 1,92,400 Cr) and subsequent management fees.

⚖️ Regulatory & Governance

Industry Regulations

Subject to SEBI (Mutual Funds) Regulations, 1996 and SEBI SBEB & SE Regulations for employee stock schemes. The company achieved the Minimum Public Shareholding (MPS) requirement of 25% in May 2024.

Environmental Compliance

Not disclosed in available documents; ESG focus is primarily through responsible investment frameworks in fund management.

Taxation Policy Impact

Tax expense for Q2 FY26 was INR 74.3 Cr, representing an effective tax rate of 23.5% on PBT of INR 315.6 Cr.

Legal Contingencies

Not disclosed in available documents; the company maintains a compliance function to monitor regulatory requirements across MF, PMS, and AIF activities.

⚠️ Risk Analysis

Key Uncertainties

Market risk remains the primary uncertainty; a significant downturn in equity markets would impact 45.3% of the AUM base. Regulatory changes to expense ratios could also compress margins.

Geographic Concentration Risk

17.5% of AUM is from B-30 cities; while diversified, the company remains heavily reliant on top metropolitan hubs for 82.5% of its assets.

Third Party Dependencies

High dependency on 90+ bank partners and 360 National Distributors for asset sourcing; loss of a major banking partner could significantly impact inflows.

Technology Obsolescence Risk

Risk of being disrupted by fintech-only AMCs; mitigated by 115+ digital partnerships and investment in Virtual Relationship Managers.

Credit & Counterparty Risk

The company manages INR 4,60,800 Cr of third-party capital; investment risk is managed through an Investment Governance framework approved by the Board.