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Aditya Birla Sun Life AMC Q4 FY26: AUM climbs, SIP momentum holds, but PAT dips on mark-to-market

Aditya Birla Sun Life AMC (ABSLAMC) closed Q4 FY26 with a steady operating performance, helped by growth in average assets under management and improving retail activity. But the quarter’s reported profit after tax fell year-on-year as other income swung negative due to mark-to-market impacts, a factor management explicitly called out in the earnings call.

For the quarter, revenue from operations was Rs 458.2 crore, up 7% year-on-year. Operating profit rose to Rs 252.3 crore from Rs 233.1 crore in Q4 FY25. However, profit after tax declined to Rs 187.1 crore compared with Rs 228.1 crore last year, largely because other income was negative in Q4 FY26.

On the business side, overall QAAUM including alternate assets rose 17% year-on-year to Rs 4.74 lakh crore. Mutual fund QAAUM was Rs 4.36 lakh crore, up 14%, while equity mutual fund QAAUM increased 17% to Rs 1.97 lakh crore. The equity mix in mutual funds stood at 45.3% in Q4 FY26.

AUM growth supported by retail reach and product diversification

ABSLAMC’s presentation highlights a strategy built around three pillars: expanding reach, scaling the retail franchise and diversifying products, and improving experience through digital platforms. The company reported servicing 11.0 million folios as of March 31, 2026, supported by a distribution network of 93,700 plus mutual fund distributors, 360 plus national distributors, 90 plus banks, and 130 plus digital partners across 310 plus locations. Over 80% of these locations are in B-30 cities, and the franchise spans 19,000 plus pin codes.

Retail indicators improved, though the mix shows room to grow versus the broader industry. Individual monthly average AUM was Rs 1.99 lakh crore for March 2026, with individual mix at 47.4% of mutual fund AUM. B-30 monthly average AUM increased 11% year-on-year to Rs 71,900 crore, and B-30 mix was 17.1%.

SIP trends remained a key focus area. The company reported SIP contribution (including STP) of Rs 1,204 crore for March 2026, supported by 4.05 million contributing SIP accounts. New SIP registrations for the quarter were around 6.17 lakh. Management also discussed higher SIP cancellations during periods of equity volatility, while emphasising that registrations remained strong.

Financial summary

For FY26, revenue from operations rose 10% to Rs 1,845.0 crore and operating profit increased 11% to Rs 1,051.1 crore. PAT for the year grew 5% to Rs 975.1 crore.

Alternates and passives: two growth engines, but offshore AUM remains a weak spot

The quarter reinforced ABSLAMC’s push to build a broader asset management platform beyond traditional active mutual funds.

In alternate assets, PMS and AIF QAAUM (including the ESIC mandate) rose sharply to Rs 32,600 crore in Q4 FY26, compared with Rs 11,300 crore in Q4 FY25. The ESIC mandate itself was Rs 28,500 crore as of March 2026. Management highlighted fundraising underway for ABSL India Special Opportunities Fund Series II, ABSL Structured Opportunities Fund II and ABSL Money Manager Fund, while indicating a product pipeline including ABSL India Select Sector Fund. Real estate AUM was reported at Rs 700 crore, with fundraising underway for Aditya Birla Real Estate Credit Opportunities Fund Series II.

In passives, the company reported passive QAAUM of Rs 41,100 crore as of March 31, 2026, and highlighted 54 passive products across equities, fixed income, commodities, and multi-asset solutions. In the call, management also stated ETF AUM of roughly Rs 11,500 crore within the passive book. The company launched two passive products during the quarter: an MSCI India ETF structure through GIFT City and a BSE Top 10 Banks ETF.

The offshore book, however, contracted. The presentation shows offshore AUM at Rs 4,800 crore in Q4 FY26 versus Rs 12,100 crore in Q4 FY25. Management’s commentary suggests the company is rebuilding the platform through GIFT City.

A significant structural step here is the incorporation of Aditya Birla Sun Life AMC International (IFSC) Limited as a wholly owned subsidiary on December 4, 2025, followed by a business transfer agreement dated March 23, 2026 to transfer the GIFT City branch business for a slump sale consideration of Rs 5.45 crore.

Management commentary: yields, regulatory changes, and cost outlook

Management discussed the impact of regulatory changes on equity TER, suggesting the industry impact could be a few basis points, while stating that the company aims to manage the outcome through adjustments across commission structures and internal cost optimisation.

In the call, ABSLAMC disclosed indicative yields by asset class: equity yields at about 62 to 63 basis points, debt at 24 to 25 bps, liquid at 12 to 13 bps, and ETF at about 6 bps. The company also shared that SIP AUM was around Rs 76,000 crore, noting that quarter-on-quarter movement was driven by mark-to-market.

On costs, the CFO highlighted that ESOP-related expenses may increase employee costs by around Rs 8 crore to Rs 10 crore per quarter in the next year. Management also indicated continued investments in digital platforms and distribution productivity, including the launch of new investor and partner apps.

Dividend and balance sheet

The board approved a final dividend of Rs 25.50 per share for FY26, subject to shareholder approval. The presentation shows a dividend payout ratio of 75% for FY25 and FY26 (proposed), and standalone EPS of Rs 34.13 for FY26.

The balance sheet remains investment-heavy, consistent with an AMC model. Total equity stood at Rs 4,041.6 crore as of March 31, 2026, with total assets at Rs 4,415.4 crore.

Takeaways from Q4 FY26

ABSLAMC’s Q4 FY26 results show a stable core operating profile, with growth in AUM, SIP contribution, and the scaling up of passives and alternates. The quarter’s PAT decline appears driven by mark-to-market impacts in other income rather than a deterioration in the operating engine.

For investors tracking the business, the key themes to watch are the durability of equity and retail momentum, the company’s ability to grow individual mix and B-30 share, and how quickly offshore and IFSC initiatives translate into sustained AUM. Regulatory changes around TER and distribution economics also remain an ongoing variable, though management indicated the intent is to keep profitability broadly neutral through internal levers. */