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Informist, Thursday, Oct. 23, 2025

By Eshitva Prakash

MUMBAI – Aditya Birla Sun Life Asset Management Co. Ltd. is expected to report a flat year-on-year net profit growth for the September quarter, according to brokerages tracking the company. The company's net profit is likely to be affected by weak market returns and lower yields, but its core revenue is expected to rise on the back of stable equity inflows.

The asset management company is expected to report a net profit of INR 2.41 billion for the September quarter, nearly unchanged from the year-ago quarter and down almost 13% from the June quarter, according to the average of estimates from four brokerages. Kotak Securities Ltd. has the lowest estimate for net profit at INR 2.34 billion while the highest estimate of INR 2.56 billion is from Nuvama Wealth Management Ltd.

The company's net sales are expected to be INR 4.64 billion, up 11% on year and up almost 5% on quarter. The lowest estimate for net sales is INR 4.58 billion from Nuvama and the highest estimate of INR 4.79 billion net sales is from YES Securities (India) Ltd.

The company's other income is expected to fall sequentially due to weak market returns on equity investments and lower yields on fixed income investments. The asset management industry is likely to report healthy equity inflows, which are expected to be partly offset by adverse equity mark-to-market as the Nifty 50 has fallen 3.6% in the reporting quarter, which will likely result in slightly subdued equity AUM growth, a report by Nuvama said. "We note that the trend as of September would have a 0.9% Nifty return and 1.5% Nifty Midcap 100 return overlay over August 2025," YES Securities said.

Aditya Birla Sun Life AMC had reported assets under management across various investment vehicles of INR 4.3 trillion as on Jun. 30, and it managed 10.6 million investor portfolios, according to data on the company's website.

The company's assets under management are expected to grow around 5.5% on quarter at the end of the September quarter, according to estimates from two brokerage firms. The assets under management had grown a little over 5% at the end of August over June and its equity AUM had grown nearly 4% over the same period, leading to a stable share of pure equity AUMs, according to YES Securities. Motilal Oswal expects healthy quarterly average assets under management growth driven by strong equity inflows. Kotak also expects the company's domestic mutual fund business to grow 5% on quarter.

The company's core profit, which is earnings generated from the fee for managing its clients' financial assets, is expected to grow on the back of stable equity inflows. Kotak Securities expects a 7% on-year growth in its core profit despite a 10% on-year increase in its expenses. Motilal Oswal expects the core profit of Aditya Birla Sun Life AMC to grow nearly 14% on year, however, a fall in the company's other income is likely to drag its net profit for the September quarter down.

Nuvama expects the company's earnings before interest, tax, depreciation, and amortisation to be INR 2.68 billion in Jul-Sept. YES Securities expects it to be INR 2.89 billion and sees EBITDA margin rising slightly on quarter. Better operating leverage is expected to support the company's core net operating profit less adjusted taxes growth, according to Nuvama.

According to brokerages, investors will look for guidance on net inflows and AUM's market share. The trend of operating expenses will also be closely watched when the company announces its earnings for the September quarter.

Of the seven brokerage reports on the company available with Informist, six brokerages have a 'buy' recommendation with an average target price of INR 858. One brokerage has a 'hold' recommendation on the stock.

At 1037 IST, shares of the asset management company, which will release its quarterly financial results Friday, traded slightly lower at INR 865.85 on the National Stock Exchange. The company's shares are more than 1% down since it detailed its earnings for the June quarter on Jul. 24.

Following are the September quarter earnings estimates for Aditya Birla Sun Life AMC from six brokerages in descending order of the estimate of net profit:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Tanima Banerjee

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