ABSLAMC - Aditya Birla Sun Life AMC Limited Share Price

Management's outlook for Aditya Birla Sun Life AMC (ABSLAMC) indicates a bullish stance on both the global and Indian economies. They asserted that the global economy remains resilient with growth stabilizing around 3%. In India, the economy is projected to grow at 6.5% for FY26, bolstered by a significant increase in GDP to 7.8% in Q2 FY26, the highest growth in five quarters. Critically, the CPI inflation has moderated to 2.6% for FY26, expected to stay below the RBI's target for much of the year.

Key forward-looking points include:

1. Market Performance: Indian equity markets are forecasted to experience sustained momentum, with medium-term earnings growth estimated between 12-15%. The domestic mutual funds' share in ownership is at new highs, which offers a favorable environment for investment.

2. AUM Growth: ABSLAMC reported an average AUM of Rs. 4.25 lakh crores, which marks an 11% year-on-year increase. The mutual fund segment grew to Rs. 4.25 lakh crores, while the overall AUM reached Rs. 4.61 lakh crores, a 15% rise YOY.

3. SIP Contributions: The company recorded a SIP contribution of Rs. 1,100 crores in September 2025, reflecting robust growth with SIP AUM at Rs. 82,000 crores, contributing about 44% of total equity AUM.

4. Alternative Investments: The growth of the PMS and AIF assets surged significantly from Rs. 3,852 crores in Q2 FY25 to Rs. 30,250 crores in Q2 FY26, representing an increase of about eight times, driven by strong organic momentum.

5. Strategic Partnerships: Engagement with distribution partners through Growth Summits aims to strengthen market positions and drive sustained growth, aligned with the focus on improving performance and customer engagement.

6. Future Product Launches: Plans include launching ABSL India Equity Innovation Fund and other structured products aimed at capitalizing on new investment trends, enhancing the alternatives platform.

Management's outlook outlines an optimistic future, supported by macroeconomic conditions, internal growth strategies, and market engagement initiatives, positioning ABSLAMC well for continued success.

Major Questions and Answers from the Q&A Section:

1. Question: "If you can give colour on your overall flow trajectory, that will give us some understanding of your redemption and lump sum trends on the equity side of things?"

Answer: We are still adding new SIP registrations month-on-month, reaching about Rs. 1,180 crores in SIPs. While our overall market share appears to decline, we maintain a solid position in the SIP market. Performance improvements are showing positive signs, especially in our Focused Equity products, which should help reduce redemptions going forward.

2. Question: "On the ESOP expense, if you can quantify the number for the first half?"

Answer: There was no major ESOP expense in the current quarter, as the previous scheme ended last year. A new ESOP scheme was approved today, pending shareholder approval. We will provide details on costs after approval, which should clarify future impacts.

3. Question: "Is there any one-off out there on the other expenses that have been controlled?"

Answer: The expenses this quarter reflect various engagement activities. While some quarter-to-quarter variability exists, this is a normal run rate. There are no one-off effects, and we are maintaining a steady course in our expenditure control strategy.

4. Question: "How has the SIP market share moved from 4.1%-4.2% to 3.6%-3.7%, and what can be done to address that?"

Answer: The drop reflects SIP expirations and redemptions, particularly on digital platforms. New registrations continue to grow. As we improve performance and strengthen partnerships, our market share should stabilize, supported by initiatives to engage existing SIP investors and expand ticket sizes.

5. Question: "Regarding yields, is there a decline related to distributor commissions or slabs?"

Answer: Yes, we've seen equity yields drop by around 1-2 basis points to 64-65 basis points due to increased competition and changing distributor dynamics. The growth in AUM also played a part, but we expect yields to remain stable in the long term.

6. Question: "What is your expectation on the EPFO debt money management?"

Answer: We see this as a cost-neutral mandate. While it won't be profit-making or loss-making, this prestigious mandate will enhance our long-term credentials. Our established team will effectively manage this portfolio across different segments.

7. Question: "What strategies are being implemented to improve the performance of the Arbitrage Fund?"

Answer: We have enhanced returns by adjusting our fixed-income security selections, focusing on duration and efficiency. In fact, we achieved a growth rate over 20% compared to the industry, demonstrating our strategy's effectiveness in this fund segment.

These responses provide a concise overview of key questions and strategic insights from the earnings conference call.