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Informist, Wednesday, Jan. 28, 2026

By Udita S. Jaiswal

MUMBAI – Nippon Life India Asset Management Co. is expected to report moderate growth in revenue for the December quarter as the average yield on assets under management is likely to soften due to the telescopic structure of the total expense ratio, according to brokerages tracking the company. This is expected to be partly offset by healthy inflows and mark-to-market gains, which should support the overall growth in assets under management.

The asset management company is expected to post a consolidated net profit of INR 3.87 billion for the December quarter, up 31% on year and over 12% sequentially, according to the average of estimates from eight broking firms. The highest estimate for the company's net profit is INR 4.09 billion from Prabhudas Lilladher Pvt. Ltd. and the lowest estimate is INR 3.70 billion from Kotak Securities Ltd. and Elara Securities (India) Pvt Ltd.

The company's top line for the December quarter is expected to be INR 6.94 billion, up over 18% on year and nearly 6% on quarter, according to the average of estimates. The highest estimate for the net sales is INR 7.10 billion from Nuvama Wealth Management Ltd., and the lowest estimate is INR 6.84 billion from Elara Securities. 

The asset management company's net profit in the September quarter was INR 3.45 billion, down 4.3%, and its net sales were INR 6.58 billion, up 15.2% on year. The company will report its earnings for the December quarter Thursday.

The company's other income is likely to increase slightly due to positive market movements during the quarter, according to Motilal Oswal Financial Services Ltd. Other income is expected to surge 289% on year and 64% on quarter due to strong equity marked-to-market movement, Nuvama Wealth Management said.    

The company's core income, which is mainly the portfolio management fees it charges its customers, is "expected to be up 13% yoy, led by 25% yoy revenue growth and similar expense growth," Kotak Securities said.

Nippon Life AMC is likely to see a 7% on-quarter growth in its assets under management on the back of healthy growth in its systematic investment plans and other inflows, according to Mirae Asset Sharekhan Ltd. However, yields on assets under management are expected to fall under fees charged by asset management companies are set to sharply fall due to the new rules of the Securities and Exchange Board of India. Under these new rules, the total expense ratio slabs for fees that mutual funds can charge have been cut to a range of 2.10% to 0.95% of assets under management from the earlier fee of 2.25% to 1.05% for most equity open-ended schemes except index funds, exchange traded funds, and fund of funds.

Under the current regime, mutual fund houses in India charge a total expense ratio that follows a telescopic structure, under which permissible fees decline as assets under management rise, leading to lower effective yields on incremental assets under management. The Securities and Exchange Board of India has proposed a revised fee framework that would introduce a base expense ratio and unbundle taxes from the core management fee, a move aimed at improving transparency and reducing costs for investors. The new rules will come into effect from Apr. 1.

The company's earnings before interest, tax, depreciation, and amortisation margin are expected to decline by 1.5 basis points to 63.8% due to elevated costs, according to Motilal Oswal. Total operating expenses are expected to rise 21% on year to INR 9.57 billion in the reporting quarter due to the impact of new labour laws and higher employee costs, according to Motilal Oswal.

All seven research reports on the stock available with Informist have a "buy" recommendation. The average target price for the "buy" recommendation is INR 1,002, which is nearly 22% higher from Tuesday's closing price.

At 1314 IST, shares of Nippon Life India Asset Management Co. were trading 3.3% higher at 825.70 on the National Stock Exchange. The shares have fallen over 5% since the September quarter earnings on Oct. 30.

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

End

US$1 = INR 91.69

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

Edited by Deepshikha Bhardwaj

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