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Informist, Monday, Jul. 20, 2026

 

By J. Navya Sruthi

 

MUMBAI – Slow growth in revenues amid operating deleverage is expected to pull down the net profit of Aditya Birla Sun Life AMC Ltd. in the June quarter, according to the brokerages which track the company. Analysts also expect the company's assets under management to fall sequentially due to flat growth in assets under management of the equity-oriented funds.

 

The company is expected to report a net profit of INR 2.59 billion for the June quarter, down nearly 7% on year but up nearly 35% on quarter, according to the average of estimates from seven brokerages. The highest estimate for net profit is INR 2.73 billion from YES Securities (India) Ltd. and the lowest is INR 2.52 billion from Emkay Global Financial Services Ltd. The rise in the net profit is mainly due to significant growth in other income, Emkay Global said. 

 

"We expect 5% yoy (year-on-year) decline in core PBT (profit before tax) due to operating deleverage," Kotak Securities said in its pre-earnings report. Operating deleverage refers to a situation where a fall in sales results in a far higher drop in profit due to high fixed costs.

 

The company's net sales for the June quarter are expected at INR 4.76 billion, up nearly 8% on year and 5% on quarter, according to the average of seven estimates. The highest estimate for net sales is INR 5.49 billion from Kotak Securities Ltd. and the lowest is INR 4.52 billion from Bank of America Global Research. 

 

Analysts expect the mutual fund industry's assets under management to grow 3% on quarter due to sustained systematic investment flows and mark-to-market gains as Nifty 50 index rose 7% during the June quarter. However, it is not the same for Aditya Birla Sun Life AMC and analysts expect the company's assets under management to continue to de-grow in June as seen in May.

 

"Overall AUM de-grew (-) 2.3% as of May 2026 compared with June 2025...we believe that trends as of June 2026 would be dependent on the trends seen till May," YES Securities said in a note. The brokerage firm expects the overall assets under management to fall by 1.8% in the June quarter due to negative returns seen in the equity markets.

 

Emkay Global expects the company's quarterly average assets under management at INR 4.34 billion, which is up 8% on year but flat sequentially. Yields on investments are likely to be flat sequentially at 42.6 basis points in the June quarter. However, yields on investments are seen down in the June quarter from 44.5 bps a year ago.   

 

This negative growth of assets under management along with slower revenue growth is expected to pull down the company's earnings before interest, taxes, depreciation, and amortisation margin to 56.6% in the June quarter from 58.1% a quarter ago and 59.5% a year ago, Emkay Global said. 

 

Aditya Birla Sun Life AMC will detail its June quarter financial results Tuesday. Monday, its shares were down nearly 3% at INR 1,118.60 apiece on the National Stock Exchange. Shares of the company have risen nearly 7% since Apr. 23, when it detailed the March quarter earnings.

 

Of the seven research reports on the company available with Informist, six have a "buy" recommendation on the stock with an average target price of INR 1,102 per share. The buy recommendations for the stock ranged from INR 950 to INR 1,230. One brokerage has a "hold" call on the stock.

 

Following are earnings estimates for the June quarter, in INR billion, for Aditya Birla Sun Life AMC, in descending order of net profit estimates:

 

Broking Firm	Net Sales	Net Profit
YES Securities (India) Ltd.	4.80	2.73
360 ONE Capital Market Pvt Ltd.	4.69	2.67
Motilal Oswal Financial Services Ltd.	4.60	2.56
Kotak Securities Ltd.	5.49	2.54
Nuvama Wealth Management Ltd.	4.59	2.54
Bank of America Global Research	4.52	2.54
Emkay Global Financial Services Ltd.	4.61	2.52
Average	4.76	2.59

 

End

 

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

 

Edited by Himanshi Gupta

 

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