Nippon Life India Asset Management: Q2 FY26 Performance Highlights

Nippon Life India Asset Management Ltd. (NAM India) demonstrated a robust performance in the second quarter of fiscal year 2026, showcasing significant operational strength and strategic growth. The company reported its highest ever quarterly Operating Profit, underscoring its efficiency and market position. Despite a dynamic market environment, NAM India continued to expand its reach and solidify its leadership in key segments of the Indian asset management industry.

For Q2 FY26, NAM India's consolidated Revenue from Operations stood at INR 658.1 crore, marking a 15% year-on-year increase and an 8% quarter-on-quarter growth. The Core Operating Profit reached INR 418.9 crore, up 15% YoY and 11% QoQ, reflecting strong underlying business performance. However, Profit After Tax (PAT) for the quarter was INR 344.6 crore, a 4% decline YoY and a 13% QoQ decrease. This PAT decline was influenced by a substantial 70% YoY and 75% QoQ drop in Other Income, which stood at INR 36.6 crore. Operating Expenditure increased by 16% YoY and 5% QoQ to INR 239.2 crore, partly due to branding exercises and investments in technology and new offices.

Market Leadership and Strategic Initiatives

NAM India maintained its position as the 4th largest AMC by Total and Equity QAAUM and is recognized as the No.1 Non-Bank Sponsored and Foreign Owned AMC in India. The company's Mutual Fund Quarterly Average Assets Under Management (QAAUM) grew by 19.5% YoY and 7.1% QoQ, reaching INR 6.57 trillion. This growth translated into a market share of 8.51%, the highest since June 2019, with Equity market share increasing by 17 bps YoY and 9 bps QoQ to 7.13%. The company also boasts the largest investor base in the Mutual Fund industry, with 21.9 million unique investors, indicating that over one in three MF investors in India chooses NAM India.

Systematic Investment Plans (SIPs) continued to be a strong growth driver. Monthly SIP flows reached an all-time high of INR 294 billion in September 2025, contributing to an annualized systematic book of INR 437 billion. The company's SIP market share stood at 10.02% for September 2025. In the ETF segment, NAM India remains a dominant player with an AUM of INR 1.83 trillion and a market share of 19.77%, which increased by 160 bps YoY. The company's share in industry ETF folios is 50%, and it commands 49% of ETF volumes on the NSE and BSE.

NAM India is actively pursuing several strategic initiatives to drive future growth. In Q2 FY26, it launched three new products: Nippon India Nifty 1D Rate Liquid ETF, Nippon India Nifty India Manufacturing ETF, and Nippon India Nifty India Manufacturing Index Fund. The Alternative Investment Funds (AIF) segment is also expanding, with cumulative commitments of INR 87.2 billion and ongoing fundraising for Public Equity AIFs (Scheme 10 & 11) and a Venture Capital AIF (Scheme 2A). The company is also leveraging GIFT City to facilitate Japanese inflows into India, with AUM in these funds more than doubling QoQ to USD 31 million. Digital transformation remains a core focus, with digital purchase transactions and new SIP registrations rising to 4.2 million in Q2 FY26, contributing 75% to overall purchase and new SIP transactions in H1 FY26.

Outlook and Future Focus

NAM India's management expressed confidence in the potential of the Systematic Investment Fund (SIF) category, highlighting its significant growth prospects. The company is strategically investing in building a strong foundation for this segment before launching new products. While acknowledging a slight decline in offshore AUM due to geopolitical factors, management anticipates an increase in offshore AUM in the coming years, driven by ongoing initiatives. The company's commitment to ESG principles is evident, having become a UN PRI Signatory in 2021 and maintaining 100% compliance with SEBI ESG disclosure norms. The company's focus on expanding its physical distribution network, including refurbishing existing branches and opening new ones in smaller cities, further underscores its commitment to broad market penetration. Despite potential impacts from new regulatory papers, NAM India's diversified product offerings, strong market position, and strategic growth initiatives position it for sustained long-term growth in the evolving Indian asset management landscape.