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Informist, Thursday, Apr. 23, 2026

By Shweta

NEW DELHI – Nippon Life India Asset Management Ltd.'s consolidated net profit for the March quarter is expected to grow moderately on-year but may fall sequentially, according to analysts. The on-year growth is attributed to a rise in revenue on the back of healthy assets under management and a favourable base. However, the on-quarter decline in net profit is mainly due to a sharp equity market correction in the March quarter, according to analysts.

The asset management company is likely to post a consolidated net profit of INR 3.41 billion for the March quarter, up over 14% on year but down nearly 17% on quarter, according to the average of estimates from eight broking firms. The highest net profit estimate is INR 3.70 billion from Elara Securities (India) Pvt. Ltd. and Nuvama Wealth Management Ltd., and the lowest estimate is INR 3.12 billion from YES Securities (India) Ltd.

Equirus Securities Pvt. Ltd. expects the company's earnings to decrease around 18% on quarter "due to mark-to-market losses in treasury book."

The company's top line for the March quarter is expected to be INR 7.02 billion, up nearly 24% on year and flat on quarter, according to the average of estimates. The highest estimate is INR 7.30 billion from JM Financial Institutional Securities Pvt. Ltd., and the lowest estimate is INR 6.64 billion from Kotak Securities Ltd.

The asset manager is likely to see a sharp sequential fall in its other income due to equity market correction and increase in bond yields, Prabhudas Lilladher Pvt. Ltd. said in a report. The benchmark index Nifty 50 has fallen around 7% since the December quarter amid geopolitical developments in West Asia that started in late February.

Sequential growth in the company's quarterly average assets under management is likely to remain largely flat, primarily due to the mark-to-market impact, Motilal Oswal Financial Services Ltd. said in a report. However, Prabhudas Lilladher estimates the overall quarterly average assets under management to grow 30% on year and over 3% on quarter.

The mutual fund quarterly average assets under management jumped 23% on year to INR 7.01 trillion in the December quarter. The company had said it was the fastest growing asset management company among the top 10 players in the last quarter and the nine-month period ended December.

The brokerage expects the company's yield to fall 1.2 basis points on year and 0.7 bps on quarter amid a shift in its portfolio's asset mix. The overall industry is likely to see lower yields in the March quarter due to a lower equity mix and higher allocation to passive or commodity-linked products, Elara Securities said in a report.

Kotak Securities expects the company to maintain a high-single digit market share in net sales. "We expect strong core earnings growth (33% yoy; 3% qoq), led by strong revenue growth (27% yoy; 2% qoq). Revenue yields are expected to be flat, supported by higher realisations in gold/silver ETFs (exchange-traded funds)," the broking firm said in a report.

The company's mutual fund quarterly average assets under management market share was 8.65% in the December quarter. Last quarter, the company's equity fund market share grew 11 bps to 7.13% and exchange-traded fund market share jumped 217 bps on year to 20.31%. The systematic flows also rose 11% on year to INR 109.8 billion in the December quarter.

The asset management company's consolidated net profit for the December quarter was INR 4.04 billion, up nearly 37% on year, and its net sales were INR 7.05 billion, up nearly 20% on year. The company will report its earnings for the March quarter on Monday.

The company's earnings before interest, tax, depreciation, and amortisation margins are expected to be flat compared to the trailing quarter, according to brokerage Motilal Oswal. Operating expenses are estimated to fall 1.5 bps on year to 0.14%, Prabhudas Lilladher said.

Management commentary on the impact of the Securities and Exchange Board of India's categorisation and rationalisation of mutual fund schemes will be closely tracked. Analysts will also watch for comments on total expense ratio regulation and the outlook for 2026-27 (Apr-Mar).

All 11 brokerage reports on the stock available with Informist have a ‘buy' recommendation, with an average target price of INR 1,030. This is marginally lower than Thursday's closing price.

Thursday, the company's shares closed at INR 1,035 on the National Stock Exchange, down 2.7% from the previous close. The shares have risen over 20% since the company announced its December quarter earnings on Jan. 29.

The following are the Jan-Mar earnings estimates for Nippon Life India Asset Management Co. from eight brokerages in descending order of the estimate of net profit in INR billion:

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Edited by Tanima Banerjee

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