NAM-INDIA - NIPPON LIFE INDIA ASSET MANAGEMENT LIMITED Share Price

During the Q3 FY26 earnings conference call for Nippon Life India Asset Management Limited, management provided a positive outlook and highlighted several key points:

1. The company achieved significant milestones, crossing INR 8 trillion in total AUM and INR 7 trillion in Mutual Fund AUM.
2. The quarterly operating profit reached a record high of INR 4.58 billion, with a profit after tax of INR 4.04 billion, reflecting a year-on-year growth of 22% in operating profit and 37% in profit after tax.
3. NAM India emerged as the fastest growing Asset Management Company (AMC) among the top 10 AMCs in both Q3 FY26 and for the first nine months of FY26, contributing to an increase in overall AUM market share, which rose to 8.65%, the highest since June 2019.
4. The strong inflow trend continued with the equity category reporting gross inflows of INR 2.54 trillion and net inflows of INR 1.11 trillion.
5. Monthly Systematic Investment Plan (SIP) flows hit an all-time high of INR 310 billion in December 2025, leading to a total SIP contribution of INR 900 billion for the quarter, marking a 17% year-on-year increase.
6. Significant developments include a strategic collaboration with DWS Group, which plans to acquire a 40% stake in Nippon Life India AIF Management Limited.
7. Looking ahead, management expects operational expenses to grow by around 15% in the upcoming fiscal year, aligning with ongoing strategic investments.

Overall, the management remains optimistic about continued growth and market share expansion, driven by strong performance across various asset classes, especially in equity and SIP segments.

1. Question: "Could you also give us a share in terms of the topline, like how much of the revenues do come from these two segments (gold and silver ETFs)? And also, a bookkeeping question, could you spell out the segment-wise yields in equity, debt, liquid, and ETFs?"

Answer: "For segment-wise yields, equity stands at around 53 basis points, debt at 25 basis points, ETFs at 20 basis points, and our overall yield is at 37 basis points. While we don't disclose specific revenue contributions from gold and silver ETFs, their rising AUM has positively impacted our overall revenues."

2. Question: "What is the kind of driving force behind the moderation in other expenses on a sequential basis in this quarter?"

Answer: "The minor dip in our overall expenses this quarter doesn't indicate a significant one-off event from the previous quarter. Our spending aligns with overall planning practices and market conditions, so it should be viewed as a small adjustment rather than a trend."

3. Question: "Do you think that over the medium term, we will have decent yields on these businesses (SIF), or do you think it will be a little on the lower side?"

Answer: "We aim for higher yields in SIF, as our strategy focuses on value addition for investors rather than just AUM growth. This specialized product is not aimed at running like a liquid fund, allowing us to charge appropriately if we deliver value."

4. Question: "Can you help us understand the trends on the net flows on your small-cap funds?"

Answer: "We maintain a stance of not accepting lump-sum investments in our small-cap fund to mitigate risks. While net sales remain positive, the overall inflows are decreasing as we focus on SIPs, which exhibit stability and protect investor interests in that segment amid market volatility."

5. Question: "When there is a higher liquidity, does it add value to the investor by low tracking error, low impact cost, and allow you to charge higher?"

Answer: "Higher liquidity indeed benefits investors by enabling lower tracking errors and impact costs, which can give us more flexibility in pricing. However, while we could potentially charge more, the decision to do so will depend on market conditions and our business strategy."

6. Question: "On the ESOP expense, what it was this quarter and how do we look at it going forward?"

Answer: "For this quarter, the ESOP expense was around INR 11 crores. For the next financial year, we anticipate this expense will rise to about INR 26 crores based on our current ESOP scheme."

7. Question: "Can you indicate or give some sense of what would be your flow market share in gold and silver ETFs?"

Answer: "Our estimated market share in the gold and silver ETFs is approximately 30%. This positions us as a significant player within that segment of the ETF market."

8. Question: "With respect to the SEBI changes, what is the expected impact?"

Answer: "The removal of the 5 basis points exit load will impact our overall equity-oriented AUM, while the revision in the TER slab could benefit smaller schemes. However, any impact from these regulations will be measured and manageable."

9. Question: "What is the impact from the new Labour Code?"

Answer: "The one-time changes related to gratuity have been accounted for in the financials. As of now, we do not foresee a significant incremental impact from the Labour Code changes on our operations."

Feel free to ask if you have any other queries!