Aditya Birla Sun Life AMC gains 7% on steady Q4 numbers

Aditya Birla Sun Life AMC share price today: Shares of Aditya Birla Sun Life AMC gained 7 per cent to ₹685.80 on the BSE in Tuesday’s intra-day trade after it reported a steady set of March 2025 quarter (Q4FY25) results. At 02:52 PM, the stock was trading 5 per cent higher at ₹673, as compared to a 0.14 per cent rise in the BSE Sensex.

 

Steady Q4 financial performance

 

Aditya Birla Sun Life AMC on Monday reported a 9 per cent increase in net profit to ₹228.1 crore for Q4FY25. The company had posted a net profit of ₹208.4 crore in the same quarter preceding fiscal. On a quarter-on-quarter (Q-o-Q) basis, net profit was up 2 per cent from ₹224.5 crore in Q3FY25. Other income recovered from ₹38 crore to ₹72 crore Q-o-Q, aided by gains in debt funds owing to a fall in yields.

 

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Revenue from operations surged by 17 per cent to ₹429 crore during the quarter under review from ₹365.6 crore in the year-ago period. Revenue was down 4 per cent Q-o-Q from ₹445.1 crore in the previous quarter.

 

Revenue yield was down 2 bps Q-o-Q at 42 bps, mainly owing to a decline in equity mix proportion in asset under management (AUM). Earnings before interest, taxes, depreciation and amortisation (Ebitda) margin declined 475 bps Q-o-Q to 56.9 per cent as topline witnessed de-growth while expenses were on the higher side. 

 

Market volatility led to a temporary dip in SIP flows. However, management remains confident that SIP momentum will recover as fund performance continues to improve (85 per cent of funds are meeting the benchmarks).

 

Brokerage view – ICICI Securities

 

The pace of the fall in market share trend that has been seen for quite a few quarters looks to have been arrested. The company is making efforts to improve on the equity side by changing internal processes, leadership and more active distributor engagement. The stock tends to get a relatively lower valuation vs peers owing to its historical subdued performance. Going ahead, its market share performance, especially on the equity side, remains a key factor to watch out. 

 

Brokerage view – Motilal Oswal Financial Services

 

The company’s inflows into equity funds strengthened, driven by improved investment performance and a focused on-ground sales push. During the quarter, the company also organised an exclusive event to deepen relationships with key distribution partners.

 

Market share across segments is expected to improve with an improving fund performance (~85 per cent of funds are beating benchmarks). The expansion of the alternate and offshore business, strong fund performance, market share improvement, and rebound in SIP flows will be beneficial for the company’s profitability. 

 

About Aditya Birla Sun Life AMC

 

Aditya Birla Sun Life AMC Limited (ABSLAMC) was incorporated in the year 1994. Aditya Birla Capital Limited and Sun Life (India) AMC Investments Inc. are the promoters and major shareholders of the Company.

 

ABSLAMC is primarily the investment manager of Aditya Birla Sun Life Mutual Fund, a registered trust under the Indian Trusts Act, 1882. ABSLAMC also operates multiple alternate strategies, including Portfolio Management Services, Real Estate Investments and Alternative Investment Funds. 

 

ABSLAMC is one of the leading asset managers in India, servicing around 10.6 million investor folios with a pan India presence across 300+ locations and overall AUM of ₹4.05 trillion for the quarter ending March 31, 2025 under its suite of Mutual Fund (excluding domestic FoFs), Portfolio Management Services, Alternative Investment Funds, Offshore and Real Estate offerings.