IPICICI Prudential Asset Management Company544658Earnings call transcript

Q2 FY27 call: average AUM INR11.61 lakh crores, PAT INR889 crores, interim dividend INR30 per share

Transcript of the media and earnings call for the quarter ended September 30, 2026.

By ScoutQuest · Fri 16 Oct 2026, 6:39 PM IST · 3 min read

Quarterly Average AUM

INR11.61 lakh crores, up 14.4% year-on-year

Operating Revenue

INR1,674 crores, up 16.3% year-on-year

Profit After Tax

INR889 crores, up 6.1% year-on-year and down 7.8% quarter-on-quarter

Quarter at a glance

For the quarter ended September 30, 2026, the company reported a total mutual fund quarterly average AUM of INR11.61 lakh crores, up 14.4% year-on-year, and said it maintained its position as the second largest AMC with a market share of 13.3%.

• Active schemes: highest market share of 13.3%, quarterly average AUM INR9.59 lakh crores
• Equity and equity-oriented schemes: market share 13.7%, quarterly average AUM INR6.59 lakh crores, up 16.3% year-on-year, which management said outperformed the industry growth rate
• Equity-oriented hybrid schemes: quarterly average AUM INR2.29 lakh crores, the largest market share of 26.4%
• Unique customer base: 1.78 crores
• Systematic transactions, including SIPs and systematic transfer plans: INR4,672 crores

Margins for H1 FY 2027, on an annualised basis, stood at 67 basis points for equity, 32 basis points for debt, 12 basis points for liquid, 12 basis points for passives and 29 basis points for arbitrage.

Distribution mix of mutual fund equity quarterly average AUM: MFDs 36.1%, National Distributors 15.9%, ICICI Bank 7.5%, other bank 10.6% and direct 29.9%.

Financial performance

• Operating revenue INR1,674 crores, up 16.3% year-on-year and 7% sequentially
• Operating net revenue mix: mutual fund 89.91%, alternates 8.68%, advisory business 1.42%
• Other income INR16.9 crores, reduced when compared to the previous quarter, primarily due to mark-to-market
• Operating expenses INR493 crores, up 17.9% year-on-year and 6.2% quarter-on-quarter
• Operating profit before tax INR1,181 crores, up 15.7% year-on-year and 7.4% quarter-on-quarter
• Profit after tax INR889 crores, up 6.1% year-on-year and a degrowth of 7.8% quarter-on-quarter, which the CFO attributed primarily to other income
• Interim dividend declared by the Board of Directors: INR30 per share

For H1 FY 2027, gross yield and net yield on an annualised basis stood at 53 basis point and 48.8 basis point respectively. Operating margins on an annualised basis stood at 37.3 basis point as compared to 36.6 basis point for H1 of FY26.

Alternates and new products

• Alternates quarterly average AUM: INR80,965 crores
• PMS quarterly average AUM: INR30,791 crores, up 21.4% year-on-year
• AIF quarterly average AUM: INR24,260 crores
• SIF quarterly average AUM: INR4,948 crores in Q2 FY 2027 versus INR2,678 crores in Q1 FY 2027
• PMS and AIF business, H1 FY27 annualised: gross yield 1.92%, net yield 0.96%
• Yields on assets under advisory: 0.32%

New fund offers launched during the quarter: Balanced Hybrid Funds, Multi Asset Active Fund of Fund, Dynamic Asset Allocation Passive Fund of Fund, BSE Insurance ETF, and three Life Cycle Funds with maturity of 5, 10 and 15 years.

Acquisition update

The board of the company approved the acquisition of the PMS business from ICICI Securities Limited. Integrating this PMS business will enable the company to engage with incremental new clients, and certain product offerings proposed to be acquired as part of this transaction are complementary to the company's current PMS offerings. The company said it is in the process of obtaining requisite approvals and completion of necessary documents.

Industry backdrop

• Industry quarterly average AUM: INR87.49 lakh crores, up 13.4% year-on-year and 5.1% sequentially
• Equity and equity-oriented quarterly average AUM: INR48.19 lakh crores, up 15.3% year-on-year
• Equity category net flows in the quarter: INR1.06 lakh crores, an approximate 7% reduction as compared to the previous quarter
• September 2026 SIP contribution: INR32,490 crores, with monthly SIP inflows largely stable through Q2 FY 2027
• Debt segment quarterly average AUM: INR11.60 lakh crores
• Passive quarterly average AUM: INR15.19 lakh crores, up 23% year-on-year and 3.1% sequentially
• Industry new customer additions: 6.3 crores, up 11.1% year-on-year
• H1 FY 2027 index returns: NIFTY 50 1.3%, Midcap 12.5%, Smallcap 24.6%

The company said its comparative data has been restated by considering the effect of the acquired business of specific funds from ICICI Venture.

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