More Stories

Informist, Wednesday, Oct. 29, 2025

By Durva A. Shivalkar

MUMBAI – Nippon Life India Asset Management Co. is expected to report a decline in its net profit for the September quarter, weighed down by lower other income due to marked-to-market losses on equity investments and higher bond yields. However, revenue from operations is expected to rise by low teens on the back of a steady growth in assets under management and strong equity flows, according to brokerages tracking the company.

The asset management company is expected to post a consolidated net profit of INR 3.34 billion for the September quarter, down over 7% on year and nearly 16% sequentially, according to the average of estimates from six broking firms. The highest estimate for the company's net profit is INR 3.49 billion from JM Financial Institutional Securities Pvt. Ltd. and the lowest estimate is INR 3.13 billion from Kotak Securities Ltd.

The company's top line for the September quarter is expected to be INR 6.40 billion, up 12% on year and over 5% sequentially, according to the average of estimates from six brokerages. The highest estimate for the company's sales was INR 6.58 billion from YES Securities (India) Ltd. and the lowest estimate was INR 6.24 billion from Kotak Securities.

The company's other income is expected to remain weak due to the Nifty Midcap 150 and the Nifty Smallcap 250 indices, which were down 4.3% and 6.2%, respectively, during the September quarter. The Nifty 50 was down 4% in the quarter, leading to a weak September quarter but the fund house's quarterly average assets under management are expected rise slightly due to a sustained momentum in the systematic investment plan flows, according to JM Financial.

Assets under management under SIPs are expected to sustain their growth momentum for the next two years to tackle equity market volatility, Incred Equities cited Nippon's Chief Executive Officer Sundeep Sikka as saying. The company has cut down distribution payouts for its three large schemes namely Nippon India Large Cap Fund, Multi Asset Allocation Fund, and Medium Duration Fund, Incred Equities cited Sikka as saying. These schemes account for almost 45% of the company's equity AUM, "...despite the pressure on incremental yields, volume growth will compensate for the same," Incred Equities quoted Sikka as saying.  

The company's core income, which is mainly the portfolio management fees it charges its customers, is expected to grow 6% on year, Kotak Securities said. This income is expected to grow due to healthy equity inflows including new fund offers and lump sum investments in the first two months of the quarter as well as due to higher AUM.

However, the growth in income would be partially offset by lower other income due to higher mark-to-market losses which would bring down the treasury income, brokerages said.

The company's earnings before interest, tax, depreciation, and amortisation are expected to increase slightly on quarter, on the back of robust AUM growth and better operating leverage, according to brokerages.

Of the 10 brokerage reports on the stock available with Informist, all 10 have a 'buy' recommendation with an average target price of INR 913. The company will announce its September quarter earnings on Thursday.

The performance of the company's new asset class, Specialised Investment Fund, will be closely watched by investors. Management commentary on yield pressure under the telescopic pricing will also be important.

On Wednesday, shares of Nippon Life India Asset Management ended 5.2% lower at INR 857.90 on the National Stock Exchange. The shares have risen over 8% since the announcement of the June quarter earnings on Jul. 28.

The asset management company's consolidated net profit for the June quarter was INR 3.96 billion, up over 19% on year and its consolidated revenue grew over 20% on year at INR 6.07 billion.

The following are the Jul-Sept earnings estimates for Nippon Life India Asset Management from six brokerages in descending order of the estimate of net profit in INR million:

End

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.