Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Aditya Birla Sun Life Amc Ltd (NSE: ABSLAMC) Q3 2026 Earnings Call dated Jan. 22, 2026
Corporate Participants:
A. Balasubramanian — Managing Director and Chief Executive Officer
Pradeep Sharma — Chief Financial Officer
Analysts:
Meghna Luthra — Analyst
Mohit Mangal — Analyst
Unidentified Participant
Dipanjan Ghosh — Analyst
Abhijeet Sakhare — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Aditya Birla Sun Life AMC Limited Q3 and 9M F526 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now want the conference over to Ms.
Meghna Luthra from Incred Equities. Thank you. And over to you Ms. Luthra.
Meghna Luthra — Analyst
Thank you, Kendra. Good evening everyone. On behalf of Immigrate Equities, I welcome all towards your builder Sun Life EMC’s third quarter nine months and FY26. And the conference call we have along with us Mr. A. Balasubramanyam, M.D. CEO and Mr. Par Sharma, CFO. We are thankful to the management for allowing us this opportunity to host him. I would now like to hand it over to Balasar for his opening remarks. Over to you sir.
A. Balasubramanian — Managing Director and Chief Executive Officer
Yeah. Thank you Magna. And good evening everyone and thank you for joining us today. Let me begin by extending my warm wishes for a happy and prosperous new year to everyone. I hope you all had the opportunity to review our earnings presentation which is accessible on both the stock exchanges and our company website. Let me start by outlining the current economic outlook and providing an update on developments within the mutual industry. As is known, the global economy has entered a phase of recalibration and despite persistent tariff tensions and policy volatility, growth is stabilizing towards trend levels of approximately 3.2% as estimated.
Nations are the fundamentally reassessing supply chains and trade partnership and response to these the disruption and continuing and meanwhile inflation continues its moderating trajectory allowing central bank to pivot their focus towards supporting growth. This conversion signals a shift from crisis management to a strategic adaptation. India continues to outpace global peers with remarkable consistency of real GDP is on track to expand by a robust 1.4% in FY26 while CPA inflation has moderated a favorable 2.2%.
The gold lag movement of strong growth paired with low inflation continues and we maintain a positive outlook for FY27 projecting nominal GDP growth of 9.73%. This optimism is underpinned by several factors. The transmission of monetary and fiscal stimulus, expectation of easing of tariff pressures, robust rural demand supported by strong agriculture output and continued fiscal support for rural India. We anticipate inflation to normalize around 3.75% well within the RBI comfort zone and preserving space for growth.
Supportive market conditions appear favorable for a capital expenditure cycle with the capacity utilizations at elevated levels and healthy corporate balance sheets. While global uncertainty remains the key risk, India’s fundamental position is strongly for sustained growth. Momentum and hopefully in the budget should also drive the future growth more aggressively. Indian equity markets hold a tale of two forces in this quarter. External pressures testing resilience and domestic growth. Domestic strengths behind their cushions there was intermittent volatility with the global uncertainty, FP outflows and profit booking pressures.
These downward movements were largely offshoot by robust domestic institutional participation. Overall equities concluded the quarter on a firm growth. The structural strength of India’s equity ecosystem despite short term market fluctuation as we have witnessed in the last few days as well. Continuing with the midship Industry update, the MITCHIP industry quarterly average AEM stood at 81 lakh crore as of 31st December 2025 compared to 68 lakh crore as of 31st December 2024. This is year on year growth of about 18%.
The industry has acquired SAP inflows of approximately 31,000 crores for December 2025 reflecting quarter growth of about 6%. The total number of mutual fund folios stood at approximately 26.97 crores as of December 2025. During the Q3 FY26 the industry saw of approximately about 30,300 crores across the equity and debt funds with equity collection predominantly driven by sector and thematic and flexicap funds. Individual average aim for December 25 stood at 49.28 lakh crore contributing was 60.1% of the total AEM and B3 cities.
An average AEM of 15.12 lakh crores accounting for 18.4% of the total AEM growing by 18% year on year. Our IPLUS analyzed AMC performance highlight our overall average assets under management including alternate assets now stand at 4.81 lakh crore highest ever AEM achievements growing at 20% year on year. Our mutual fund quarterly average AEM has reached 4.43 lakh crore representing 14% year on year increase and within this our equity mutual fund quarterly Average IEM stands at 2 lakhs crore growing by 11% year on year.
As an ANC we firmly believe that the SAP continues to remain a cornerstone of our long term investing in India. Our SAP contribution for December 2025280 crores supported by 40 lakh contribution coming from SAP accounts in alignment with these visions, we have launched a new SAP led initiative on the Wednesday education program Plan for Life. This campaign goes beyond wealth creation. It encourages the investors to think long term Plan for Life milestones and importantly prepare for retirement through systematic withdrawal plans.
Our total number of investors full year for December 2025 stood at 1.08 crores, witnessing 3% year on year growth. We are driving growth by building scale through increased market attraction. Our overall fund performance has improved quite significantly leading to better market perception and importantly stronger flows into our core product. Whereas the momentum uses the confidence building on these strong foundations, one of our key priorities continues to be strengthening our core equity offerings, particularly Flexicap Fund and Multi Ethereal Gains Fund and our Balance Outdoor Fund as well as some of the thematic funds that we have been seeing closed like Conga Bell Fund as well as the Consumption Fund.
These are some of the key product focus that reasonably improved flows coming on this segment. Our focus remains on scaling this flagship product through a combination of SAIP inflows, robust contribution across all distribution channels, improved on the improved fund performance and increased market engagement. Our drive to build scale through enhanced traction coupled with improved overall performance has led to better market perceptions and rising flows in core products creating momentum for continued growth.
Turning to the alternate business, the PMS and AIF segment have demonstrated robust momentum supported by steadily expanding suite of credit offerings. We continue to enhance and refine our solutions to address the evolving sophisticated requirements of HNIs and family offices and some of the institutional investors our PMS AI pathologist assessed experienced substantial growth expanding from 3,088. 53 crores year back to 32 crores in Q3 FY 26 represent 8 times increase in the size. Of course the winning of ESA is a mandate accounted for about 28,000 crores as of 12-31-2025 while our PMS and A excluding ESIC mandate registered a strong year on year growth of 70% reflecting robust organic momentum in our core alternate business and during the quarter we received EPF allocation letter appointing us as one of the manager for the Fixed Income mandate.
We are now progressing through the required regulatory formalities and expect to be on board of the assets before the current quarter ending. On the fixed Income credit side, we successfully completed the final closure of our ABSL India Special Operation Fund Series 1 commitment offer won 500 crores during the quarter and currently I have Fundraising underway for Series 2 ABL India Structured Opportunity Fund 2 and Money Manager. We are also preparing to launch ABSL India Select Sector Fund under the AIF category in equity.
Our real estate business has built significant momentum and gained considerable attractions driven by strong investors interest and robust deal pipeline and during the quarter we launched multiple real estate credit opportunities from phases 2 category 2 AA frugal lending to post approval non freelance across Tire 1 cities crores registering Iran year growth of approximately about 44% the offshore average AEM 204,847 crores. We have incorporated our newly owned subsidiary company Azubella Sun Life Ames International IFC limited in Gibbs City to expand our Gibbsity operations and are currently in the process of securing regulatory approvals and hopefully before the quarter ending will be up and running.
We continue to see flows through our current brand setup across our existing funds such as India Engagement Funds, ABL Flexigap Fund for inward remittance and Global Blue Chip Fund for outward remittance under the LARA scheme delivers globally competitive solution towards industries. Our passive business has continued to demonstrate good momentum with the quarterly average AEA touching 30,600 crores representing year on year growth of 28% and customer base expanding to 15.1 lakh 40 of them. Our ETF offerings have witnessed total tractions with the ETF quarterly average AEM growing by 40% year on year significant outcome in industry ETF growth rate of 25%.
We are building towards the better long term outcome by improving on tracking differences as a key focus while also improving a tracking error. Last year industry wide we witnessed good inflows in precious metals like gold and silver and our offering in this space make an exceptional case for divestations. As of today our passive product suite comprises of 52 distinct offerings across the Pension Commodities and Multi Ethical Giving Fund designed to address the diverse investment needs of our investors.
Moving to the financial performance Q3FY26 Revenue from operation 2478 gross up 77% a year Q3FY26 profit after tax was at 358 crores up by 19% year on year. FY26 profit after tax stood at 270 crores up by 20% year on year. Our nine months revenue from operation 200,387 crores up 10% year on year a nine month profit before tax 200,046 crores up by 11% Iran year and profit after tax for the nine months stood at 788 crores up by 12% year on year. With this I would like to open the floor for any questions that you may have and I’ll be joined by Pradeep Sharma to answer any question that you may have.
Questions and Answers:
Operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on a touch tone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question comes from the line of Mohit Mangal with Centrum. Please go ahead.
Mohit Mangal
Yeah. Am I audible?
Operator
Yes, you are. Please go ahead.
Mohit Mangal
Yeah. Thanks for the opportunity. So my first question is for the employee benefit expenses. So even if I remove that labor code extra cost, the employee benefit expenses were higher by around 20% yy. So what explains this increase in employee benefit expenses?
Pradeep Sharma
Yeah, so Mohit, actually employee benefit expenses have gone up yo y basically on two counts. That is one is the additional impact of the gratuity based on the new labor code. Right. Which counts to around 2.82 crores. That is one second is on the ESOP cost. This is actually the our parent company ABCL some ESOPs were given to our select employees. So there is a cost of ESOP of around 4.66 crores for this quarter. So these are the two which are actually increasing the cost for the quarters.
Mohit Mangal
Okay, so going forward we should expect this to to be recurring or is it one time?
Pradeep Sharma
No. So gratuity is a one time cost, it’s not recurring and the ESOP cost would be there for next four quarters. Three more quarters on this account
A. Balasubramanian
And. That is basically for this rolling out of option for employees. The recent. Yeah,
Mohit Mangal
Understood. And, and a second unit you can share segment wise.
Pradeep Sharma
Yeah. So. Equity, our yields are around 64, 64, 65 basis points and for that it is around 24 basis point and liquidity around 13 basis points.
Mohit Mangal
And in terms of this pms and eif can you give some revenue numbers for 9m and qc?
Pradeep Sharma
Yeah. So. The Alternates revenue for Q3 was around 34 crores which is, which is around 4 and a half percent of our total revenue.
Mohit Mangal
That is helpful. So lastly on yield, so how do you see eels actually going forward for the next day, four to five quarters. Do you see a meaningful decline? How do we see the yield? Basically?
A. Balasubramanian
Yeah, I think broadly Mohit, I think we at this point of time we estimate the impact of the circular would be minimal and to the extent very limited impact. We should see at the same time since we’re looking at building the size of the things momentum coming in in the Overall key portfolios in terms of traction. So to the extent that the size of the fund increases there is a corresponding increase in revenue but may come at the marginal reduction on the other thing. But again I don’t see it very significant at the same time since we’re also looking at building our other businesses especially the alternate as well as PMS and broader and overall this is from the AMC point of view we should see.
We should see an improved performance rather than any. Any significant reduction in the fees.
Mohit Mangal
Right. Yield is minimal impact because of the circular. Do you mean to say that we’ll be able to pass on to the distributors?
A. Balasubramanian
No, I think we’ll see it. I think as we come closer to the implementation then of course we will see how best it has to be optimally utilized for the benefit of everyone. Keeping in mind the investor center preliminary assessment is actually we’ll have to balance it out ensure it has a minimal impact.
Mohit Mangal
So my last question is on sis. Your thoughts and you know when would we able to launch it?
A. Balasubramanian
Yeah, we have already filed applications and approval also as is of course awaited. We. We thought that this month and since we have asked for the revised structure in the portfolio it’s likely to. Their approval is likely to come this month. I think open month of February will launch it by the time budget would also be out and we’ll be the first one to Our first fund will be launched in month of February. We’ll also of course plan to launch the equity long chart fund making applications once we are confident that we can we have the talent pool to manage their fund once the person has come on board only one fund will launch which is a hybrid fund which is the equity taxation sometime in February.
Mohit Mangal
This is very helpful to thank and wish you all the best. Yeah.
Operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes to the line of praise chain with Motilal OSWAL Financial Services Ltd. Please go ahead.
Unidentified Participant
Hi, good evening sir. Firstly you know like our fund performance has been improving and you know quite a few schemes are appearing in the top quartile on one year return basis and they contribute to a large portion of our equity AUM as well. But. But in spite of that we kind of continue to lose market share on the equity side as well as if I look at the SIP data that you provided that also keeps coming down now generally it does take a lag effect I understand from a fund performance improvement to market share improvement but still it’s been some time that Our fund performance has improved but we still not seeing any.
You know even market share not being stable. We keep seeing decline month on month in terms of market share. So where do you. When do you see the effect of this fund performance, you know, translating into market share gains both on SIP as well as normal market shares?
A. Balasubramanian
Yeah, thanks Vaish. I think the way I look at is. I think if I look at the whole of last one of years the market share loss has been coming down in terms of as a basis points. That’s something I think now we almost come to stabilizing kind of thing. I mean we are now almost come to a stage where is now getting stabilized. That’s one second is on the fund performance moving from one to two and three and that’s something we are seeing it start reflecting Most of our funds while we have done very well on one and a half years is now start operating on the three year.
Normally what happens is as the short term performance start up running the long term performance it comes as part of the recommendation list. We already seen that happening the last two quarters. The number of approvals that is coming from the R1 a channel partner that is something should be taken as a signal of product coming as part of the recommendation list basis which is coming in. And second some of the online platform where we also saw significant flows on funds which were top performing funds already started seeing some of our funds appearing in the segment as well that it takes some time for all these things to come in the so called public domain.
So I think these are some of the things while we’re seeing it reflecting on net inflows coming in funds like SunLife Equity which is Lexica Fundamental Fund. We are seeing improvement in terms of flows balance outstanding good flows and multi ethical fund. I’ve got good flows. So I think that the. Of course the category in which where we even see an industry wide. The ELSL scheme. If I knock that off other schemes they are getting the flows already beginning. The SAP is drive. If I look at SAP number minus the SAP.
SDP is something which comes from logical investors. They of course dynamically manage that and therefore minus SCP if you have to take it. I think we are seeing that SAP numbers on equity getting better. Of course there is no question that it has to gain further momentum given the fact that industry coming in the segment. I think the lastly approach from a sales team point of view the high focus that we have been have put in place in terms of improving the productivity of every item across the country with improved fund Performance and reasonably high level of engagement.
And because of activities in the retail segment which our retail team is doing it I think should start operating in terms of improved performance coming on the numbers as we move forward. That I’m reasonably confident the way things are shaping up I think remains improve these numbers on a quarter basis. As for the market share concerns of course if any look at top 10 players vs rest of the players. You must also remember that overall market is expanding and more players are coming in. I think we also have to keep a close watch on our absolute performance improvement.
In fact when I look at this year whole of this year 9 month numbers, I’m close to about 6 months growth of net sales that I got on a sum of equity as a product and overall as a fund house we got almost about 40% growth of net sales. But these are all the numbers. There’s actually a reflection of the confidence which the team admits the team is driving the whole thing. I think improved performance will only further boost the confidence the entire team across the country and distributing partners to bring the numbers up.
And that’s something I’m already seeing it as a the reflection coming from our. Raj. Are you there?
Unidentified Participant
Yeah, yeah, sorry, sorry. You know if I got your number right it you said 4,500 crores of flows in this year in this nine months.
A. Balasubramanian
No, no. Total is about 50,000 crores roughly the overall as a fundamentals including fixed income and equity will be close about 6,000 brother inflows next days across all of our equities can put together including arbitration.
Unidentified Participant
Okay. And so, so.
A. Balasubramanian
I’m just saying why I’m saying phrases. Number is not disclosed generally it is number which generally we keep track of how we are progressing on quarter on quarter basis. Those numbers are not generally disclosed anywhere. But I am just going by the trend that I am saying like Flexiga Fund I am seeing some inflows. Multi funds, we are seeing inflows. Maybe the rate of inflows could be lower. But I think what I see is actually the beginning of the reverse of the trend itself will gain momentum. Yeah
Unidentified Participant
Right sir. Anything on the distribution side where you would want to take action given that we are there in the top quartile performance. Any commission actions that you want to take wherein you kind of increase a bit of commissions and take some pressure on your yields and get the volume growth which can. Which can help you. Is there anything of that sort as a part of the strategy?
A. Balasubramanian
So that’s something we keep doing it as part of a strategy. Products which can Generate the volume at the same time if one has to consider for a brief period in terms of support retail activities that’s something we do it already the focus part that I’m talking about it the team do have some of the flexibility to push for the volume. That’s something we keep doing it. I think as we start seeing we keep in mind even for employees point of view in order to motivate employees to run around the market improve their productivity.
We do incentivize them live with that’s something we keep doing it. I’m sure this strategy will ever be always ever evolving and nothing is one time we have to do it this anyway the continuous project. We also run another segment wise distribution partners which we part of the privilege club something again we keep driving it in order to help them improve their overall ranking and what all we can do in terms of various activities that we undertake that remains as one of our focus areas.
Unidentified Participant
The last question. Is your flow market share coming closer to or is it very close to your back book market share? Probably in the month of December or currently in January. How is it kind of panning out? Is it very close to your back book market share?
A. Balasubramanian
Yes, somewhere we can see. I think the way I see is the moment we see the rate of falling comes down, somebody will these are equilibriums and start reflecting on the reverse trend.
Unidentified Participant
Got that? All the best. Thank you so much.
A. Balasubramanian
Yeah.
Operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Deepanjan Ghosh with City. Please go ahead.
Dipanjan Ghosh
Hi, good evening sir. So a few questions from my side on the expand side. If I look at your other expand and not looking at looking at quarterly volatility but looking at it more from a let’s say rolling 12 months sort of a thing, it seems that the run rate has meaningfully been controlled despite, you know, you’re kind of growing your alternate speeds. You’re also kind of probably scaling up your sales personnel on the Ms. Side given the traction inflows. So just wanted to get some sense of, you know, how should one think of the trajectory on the other expense side in case let’s say you had to kind of scale up initiatives given that your performance is now back on track.
The second question is on the flow share and you know I’m trying to triangulate this math. You know that your sib market share is like fully yet to stabilize but obviously your redemptions are probably kind of narrowed down resulting in improvement in net Flow trajectory. So just from a channel perspective, would it be fair to assume that when performance improves maybe the mfds or the more assisted channels are the fastest to pick up in terms of both net new money and maybe lower churn rate. I mean are you seeing that or is.
Or maybe I might. You know you can, I can stand corrected in case that’s not the trajectory. The third question is on the similar lines. I mean you mentioned some number on the flow part in in reply to the previous participants question but even you included arbitrage also it. I mean is it possible to give you some idea of the quantum excluding arbitrage and just two data shipping questions. If you can spell out the employee Number and SIP AUM number as of December 31st.
A. Balasubramanian
On the expense side.
Pradeep Sharma
So Deepanjan, actually the expense in our initial two quarters we had our vantage summit and gross summit across the country. And actually for this increasing the engagement of our distributors and investors. Q3 those activities have been low. And that is why you see that there was no increase on quarter on quarter bas. In fact it is flat. But if you see on to date basis I think that average I think would continue to be in coming quarters. So these all activities of our field engagement with our distributors and investors will keep on happening.
However there would be some quarter on quarter fluctuation when some few quarters will have those events. Few quarters may not have. But I think the right way to look at is the two date average.
Abhijeet Sakhare
Yeah. Okay.
Pradeep Sharma
And the employee number is currently it is around 1680 people. 83 to be precise. And sip AUM is around 87,000 approx. 86984 around 87,000 crores.
A. Balasubramanian
Just to answer the other question, the Panjan as far as the channel concerns, definitely the organized channel which is a banking channel, North Dakota channel and MFD channel which contributes roughly about 80% of the AEM. And we do have very strong relationship historically. The performance improvement definitely improves the confidence of our partners and go aggressively push it. And MFD is one channel which we already seen some traction. Organized channels of course goes by the recommendation of the product which I mentioned earlier.
Some of the organized channel which sell say 3, 4 products of each of the category we are already seeing is coming as part of the recommendation list barring one or two where we are in the bottom line case for the product to become part of the list. And as far as ND is concerned again some of the products are now coming as part of the company as it comes as part of the recommendation list. Then naturally There is a higher responsibility, ownership and incentive to sell the product. From those channel partners that I see the trend is reversing.
As for the online, which is a digital platform concerned. While we do have presence with each of these partners, which built over a period of time, strong partner for all of them. The fact they go by criteria, they apply in selection of the funds. And some of us funds again coming as part of their the recommendation list and therefore build a strategy around it. How do we get higher volume? We have seen this kind of volume coming in few quarters back on some other funds. This is their understanding and evolving situation that something will push.
I think largely if I look at it, it’ll be a mix of all the channels. Because we can’t say this one channel, he has a fund house. I’ve got separate channel responsibility for each of the channel partners with the people around it. And therefore that with respect to the flows, I just give you a broader trend in terms of. Though we don’t give the individual fund wise or category wise flow, but you get the number broadly we can take it about 60 to 60, 40 kind of ratio. 60 for advertising, 40 for other fines.
Though we don’t give individual numbers. But broadly that’s the kind of automotive you can take as a breakup.
Dipanjan Ghosh
So just to clarify, this was for 3Q or 9M this data that you mentioned, the last data point.
A. Balasubramanian
Nine months? Yeah, correct. For the full year? Yeah, nine months. Yeah, correct.
Dipanjan Ghosh
If I could just squeeze in one small question and thanks for the answers to the previous question. You know, your performance is improving after some time, right. And what you’ve seen, you know, over the last few years for some of your peers, where we saw a turnaround in performance, while AUM market share picks up, it never really recovers to the previous peaks. And maybe that’s the function of market fragmentation or maybe changing industry dynamic in terms of distribution. Difficult to kind of pinpoint.
Having said that, in this environment, you know, given that your performance improvement somehow coincides with the time frame when there’s a regulatory change. Also,
Mohit Mangal
Would
Dipanjan Ghosh
It be fair to assume that you would want to kind of maybe take a differentiated stance with respect to payoffs to your distributors, such that, you know, maybe there’s motivation to kind of aggressively push your products a little higher. Would you kind of follow suit in terms of passing on the head to the distributors?
A. Balasubramanian
No. As far as these going, the business concerns that commitment. Because if you have to grow a little faster, you know, apply multiple strategies, which includes temporary incentive that need to be provided for pushing the Sales normally we do that on a select basis. It is nothing new to us. At the end of the day again we start up those as part of profitability target that we generally keep. We have to do the finest balance between profitability versus overall growth in AEM versus the revenue. That’s something we will we keep doing it.
I cannot say this will not do that. Nothing in our industry is so dynamic. It’s very difficult take a single stand and basically push it. Now that performance improvement is coming, performance pull comes, recognition comes. If the volume start coming in, therefore we have to give it a higher push. That means temporary adjustment on the pricing which occur normally we are open but again we try to do the balancing between growing the size and maintaining the overall profitability expectations. That’s something we’ll continue to keep.
Dipanjan Ghosh
Thank you sir. All the best.
A. Balasubramanian
Yeah.
Operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Abhijit Sarkare with Kotak Securities. Please go ahead.
Abhijeet Sakhare
Hi, good evening everyone. My first question was if you could indicate how have been the yields on the fresh info that have come up in the last couple of months compared to the overall book yields. And the context is just to kind of check this, you know, with reference to your earlier comment that the idea will be to keep the yields intact. Right. I mean not just because of the telescopic decline but also the new regulations that will set in from next year onwards.
A. Balasubramanian
Yeah. On the incremental price model is the same. There’s nothing different. We’re not done any force per se in this quarter. Therefore more or less the yield remains the same as what Pradeep mentioned earlier. The intent of maintaining overall yield. I was just mentioning given the fact of course the regulatory framework might have marginal impact broadly the intention is to keep the trend on the margins margin or same so that the attempt will make through a mix of product, through a mix of momentum that you are bringing certain high margin asset classes.
Abhijeet Sakhare
Got it, sir. And how should we think about the expense growth for next couple of years?
Pradeep Sharma
Yeah. So Abhijit expense growth would be the normal expense growth. No shockers on that account. Except. Which would be like in. In line with inflation and closer to that except we may see impact of the new ski ESOP scheme which we have rolled out in the month of January.
Mohit Mangal
Yeah.
Pradeep Sharma
So next few quarters we will have impact on the manpower cost on account of this new skip. New ESOP scheme. Yeah.
Abhijeet Sakhare
And the base third quarter rate. Sir, sorry to interrupt.
Pradeep Sharma
Sorry, sorry. So otherwise other expenses would be in line with the normal inflationary except in employee cost on account of ESOP cost
Abhijeet Sakhare
And that’s. That’s already kind of showing up in the third quarter employee cost rate at the impact of these.
Pradeep Sharma
Third quarter is not completely showing because the new esop scheme of ABSD EMC has been rolled out in January 3rd quarter actually is having the impact of the parent company esops able to select employees. Yeah.
Abhijeet Sakhare
Okay. And.
A. Balasubramanian
Over three years which you have to make a provision.
Abhijeet Sakhare
Okay. And so last question I missed the data on equity flows that you mentioned the previous question with with respect to the nine month flow. Sir if you could please repeat that.
A. Balasubramanian
I said overall the flows have been improving in the equity and broadly I said as a fund house close to about 50,000 crores of inflows which includes fixed income equity and arbitrage. And within the equity I mentioned close to about 600 crores of kind of inflows rough cut number. That’s why I just mentioned and within that the focal product that we are which is the Flexicap Fund Multi ethical fund. In fact we also getting started getting close on the small and mid cap fund. But though may not be the same order as what industry is getting it.
But these are some of the trend towards being on at least about seven or eight product in terms of flows improvement.
Abhijeet Sakhare
Got it sir, very useful. Thank you so much.
Operator
Thank you ladies and gentlemen. As there are no further questions we have come to the end of question and answer session. I would now like to hand the conference over to the management for closing comments.
A. Balasubramanian
Yeah. Thank you and thank you everyone for joining. And with this we conclude our Q3FY26 earnings call. If you have any query of course there is a call or write back to Pradeep Sharma and Shivani. Thank you.
Operator
Thank you. On behalf of Aditya Birla, Sun Life AMC Ltd. That concludes this conference. Thank you for joining us. You may now disconnect your lines.