Nippon Life AMC Q1 net profit jumps 27% on record operating profit, higher AUM growth

Nippon Life India Asset Management Ltd on Wednesday (July 22) reported a 27.2% year-on-year increase in net profit to ₹504 crore for the first quarter of FY27, compared with ₹396 crore in the corresponding period last year.

Profit after tax (PAT) also touched a record quarterly high at ₹504 crore, up 27% year-on-year. Revenue increased 26.4% year-on-year to ₹767 crore from ₹607 crore a year ago. The company's operating profit reached its highest-ever quarterly level at ₹494 crore, rising 31% year-on-year.

Nippon India Mutual Fund's quarterly average assets under management (QAAUM) increased 23% year-on-year to ₹7.52 lakh crore, making it the fastest-growing asset management company (AMC) among the top 10 players during Q1 FY27, according to the company.

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The mutual fund business increased its market share by 54 basis points year-on-year to 9.04%. Systematic flows during the quarter rose 13% year-on-year to ₹11,030 crore, resulting in an annualised systematic book of around ₹44,600 crore.

The company's closing assets under management (AUM) grew 16% year-on-year to ₹8.62 lakh crore. Equity mutual fund QAAUM increased 22% year-on-year to ₹3.51 lakh crore, with market share rising by 34 basis points.

Exchange-traded fund (ETF) QAAUM grew 40% year-on-year to ₹2.43 lakh crore, while market share increased by 159 basis points. Retail monthly average assets under management (MAAUM) rose 16% year-on-year to ₹2.18 lakh crore, with market share increasing by 34 basis points.

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High Networth Individual (HNI) MAAUM grew 33% year-on-year to ₹2.53 lakh crore, with market share expanding by 135 basis points. Corporate AUM increased 11% year-on-year to ₹2.90 lakh crore.

Assets under management from beyond the top 30 cities (B-30) rose 24% year-on-year to ₹1.56 lakh crore. B-30 assets accounted for 20.5% of Nippon India Mutual Fund's AUM, compared with 18.5% for the industry. Nippon India Mutual Fund reported a unique investor base of 2.41 crore, with a market share of 39%.

Nippon India Alternative Investment Funds (AIFs), offering Category II and Category III funds, had total commitments of ₹9,580 crore across various schemes, up 18% year-on-year. The company has a pan-India presence across 271 locations.

Digital purchase transactions increased to 44.9 lakh in Q1 FY27, up 26% year-on-year. Digital channels contributed 78% of new purchase transactions during the quarter.

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Sundeep Sikka, Managing Director and Chief Executive Officer of NAM India, said, "We continued our strong growth, with the highest market share increase in the Industry in Q1 FY27. Net Sales market share improved QoQ, while SIP market share was steady - importantly, both remain well above Equity AUM market share. We remain humbled to have the trust of over 1 in every 3 mutual fund investors."

Shares of Nippon Life India Asset Management Ltd ended at ₹1,140.00, down by ₹27.50, or 2.36%, on the BSE.