Aditya Birla Sun Life AMC climbs on decent Q3 performance, broker upgrades

Aditya Birla Sun Life AMC gained 1.38% to Rs 784.95 after the company reported steady earnings growth in Q3 FY26.

On a consolidated basis, net profit rose 20% YoY to Rs 269.5 crore in Q3 FY26, compared with Rs 224.5 crore in Q3 FY25. On a sequential basis, profit after tax increased 12% from Rs 241.3 crore in Q2 FY26.

Revenue from operations stood at Rs 478.1 crore in Q3 FY26, up 7% YoY from Rs 445.1 crore in Q3 FY25. Sequentially, revenue increased 4% from Rs 461.3 crore in Q2 FY26.

Other income surged sharply to Rs 84.3 crore in Q3 FY26, up 119% YoY and 87% sequentially, aiding profitability during the quarter.

 

Operating profit came in at Rs 274 crore in Q3 FY26, up 5% YoY and 1% QoQ. Profit before tax stood at Rs 358.3 crore in Q3 FY26, up 19% YoY from Rs 299.9 crore and 14% higher sequentially compared with Rs 315.6 crore in Q2 FY26.

Total expenses increased 11% YoY to Rs 204.1 crore in Q3 FY26 and were up 7% QoQ. Employee benefits expense rose 23% YoY to Rs 107.7 crore, while fees and commission expense increased 30% YoY to Rs 16.1 crore. Depreciation and amortisation stood at Rs 11.7 crore, up 5% YoY. Other expenses declined 5% YoY to Rs 68.6 crore.

On the operational front, overall Quarterly Average Assets Under Management (QAAUM) including alternate assets grew 20% YoY to Rs 4,814 billion as of 31 December 2025. Mutual fund QAAUM increased 15% YoY to Rs 4,432 billion. Equity mutual fund QAAUM rose 11% YoY to Rs 1,994 billion, with equity-oriented schemes accounting for 45% of the mix.

Individual monthly AAUM stood at Rs 2,119 billion, representing 48% of mutual fund AUM, while B-30 monthly AAUM grew 12% YoY to Rs 770 billion, accounting for 17.3% of AUM. PMS and AIF QAAUM including the ESIC mandate expanded eight-fold YoY to Rs 327 billion, with the ESIC mandate at Rs 282 billion. Passive QAAUM increased 28% YoY to Rs 387 billion.

Monthly SIP contributions stood at Rs 10.8 billion in December 2025, supported by 4.04 million contributing SIP accounts. During the quarter, around 5.31 lakh new SIPs were registered. The company serviced 10.8 million folios as of 31 December 2025, through over 93,000 KYD-compliant distributors, 360+ national distributors and 90+ banks across more than 310 locations.

A foreign broker double-upgraded Aditya Birla Sun Life AMC to 'Buy' with a target price of Rs 900, citing early signs of stabilisation in market share after years of muted performance. The brokerage said improving returns in key equity schemes and easing redemption pressures should help revive gross flows, support AAUM growth and potentially trigger a re-rating, despite lingering execution risks.

Separately, a domestic brokerage upgraded the stock to 'Buy' from Hold and raised its target price to Rs 950, noting an earnings beat driven by higher other income. While it flagged weak operating metrics and continued market-share losses, it raised FY26-FY28 Net Operating Profit Less Adjusted Taxes (NOPLAT) estimates by up to 5.5% on better earnings visibility.

Aditya Birla Sun Life AMC was incorporated in 1994 and is promoted by Aditya Birla Capital and Sun Life (India) AMC Investments Inc. The company is the investment manager to Aditya Birla Sun Life Mutual Fund and also operates across portfolio management services, alternative investment funds, offshore strategies and real estate investments. One of Indias leading asset managers, ABSLAMC services about 10.8 million investor folios through a pan-India network of over 310 locations, with total assets under management of Rs 4,814 billion as of the quarter ended 31 December 2025.

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