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Informist, Wednesday, Jan. 21, 2026

By Divya Moolayattil

MUMBAI - Aditya Birla Sun Life Asset Management Co. Ltd. is expected to post a low double-digit growth in its December quarter net profit on the back of a sharp rise in other income, steady asset growth, and strong market performance. While revenue is expected to grow moderately, it is likely to lag industry growth due to yield pressure.

The asset management company is expected to report a net profit of INR 2.54 billion, up 14% on year and nearly 4% on quarter, according to the average of estimates from five brokerages. The highest estimate for the company's net profit for the December quarter is INR 2.68 billion by YES Securities (India) Ltd. and the lowest is INR 2.37 billion by Elara Securities (India) Pvt. Ltd.

The company's net sales are likely to be INR 4.72 billion, up nearly 8% on year and 3% sequentially, according to the average of estimates. Estimates for the company's net sales range from INR 4.69 billion by Kotak Securities Ltd. to INR 4.80 billion by YES Securities.

The asset manager's other income is likely to rise sharply by over 82% on year and 55% on quarter to INR 700 million for the December quarter. Favourable market performance is expected to boost the company's other income, according to Motilal Oswal Financial Services Ltd. The company's earnings before interest, tax, depreciation, and amortisation are expected to be INR 2.8 billion, up around 4% on year but marginally lower on quarter.

The company's revenue is expected to increase 5-8% on year and around 2% sequentially to INR 4.4 billion-INR 4.8 billion for the December quarter, according to estimates from four brokerages. This growth is slower than the industry's average revenue growth of 12.7% on year and 4% on quarter, largely due to a decline in the share of equity assets under management and lower yields, which is likely to be partly offset by growth in assets under management.

The company's overall assets under management grew 4% as of November end compared with September end. Equity assets under management rose 2.7% over the same period, leading to a marginal decline in the share of equity assets. Trends in assets under management for the December quarter are expected to broadly reflect trends seen in November, YES Securities said in a pre-earnings report.

The company's assets under management are likely to rise 8% on year and nearly 4% sequentially. The company's average assets under management for the September quarter were INR 4.61 trillion. Equity assets under management for the December quarter are expected to rise 8.9% on year and 1.6% sequentially. This growth is due to continued fund inflows and strong mark-to-market gains, brokerages said.

The asset manager's total expenses are expected to increase by 10% on year due to new labour codes, which will drive employee costs higher. The employee expense is likely to be INR 983 million, up 12% on year and over 3% sequentially.

Shares of Aditya Birla Sun Life Asset Management are down nearly 6% since its September quarter earnings were announced. Wednesday, shares of the asset manager ended at INR 781.95 on the National Stock Exchange, down 0.6% from the previous close. The company will announce its December quarter earnings Thursday.

Of the four brokerage reports on the company available with Informist, three have a 'buy' recommendation on the stock with an average target price of INR 990 per share. This is nearly 27% higher than the current market price. One brokerage has a 'hold' recommendation on the stock with a target price of INR 950.

The Following are the December quarter earnings estimates for Aditya Birla Sun Life Asset Management from five brokerages in descending order of the estimates of net profit in INR billion:

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Edited by Saji George Titus

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