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) Q4 2026 Earnings Call dated Apr. 23, 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
Harshit Toshniwal — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q4FY26 earnings conference call of Aditya Birla Sun Life AMS Limited hosted by incred Equities. 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 need assistance during the conference call, please signal an operator by pressing start and zero on your touchstone phone. I now hand the conference over to Ms. Meghna Latra from Incred Equities.
Thank you. And over to you.
Meghna Luthra — Analyst
Thank you, Rutuja. Good evening everyone. On behalf of Incred Equities, I welcome you all to Aditya pillar Sun Life AMC’s fourth quarter and full year FY26 ended earnings conference call. We have along with us Mr. A. Balasubramanyan, MD, CEO and Mr. Pradeep Sharma, CFO. We are thankful to the management for allowing us the opportunity to host them. I would now like to hand it over to Bala sir for his opening remarks. Over to you sir.
A. Balasubramanian — Managing Director and Chief Executive Officer
Yeah. Thank you Meghna and good evening to everyone and thank you for joining our Q4F806 nurses call. And I hope you all had the opportunity to read through the earnings presentation which is available both the stock exchanges and our company website. Let me begin by sharing our perspective on the current macroeconomic environment followed by update on the quarter ending FY26 for our mutual business. The ongoing conflict as is known in West Asia and the view of global uncertainty are fundamentally changed.
The world order and surging energy prices have changed the global macro perspective and are posing challenges for global economic growth. For India, there is disruptions in the Asian market due to the geopolitical risk driven energy cost higher and depreciated to the Indian rupee versus US dollar which continues to remain a risk in the very short term. The risk of sentiment has prompted FIA’s outflow and broad based equity market corrections across emerging market. As a result of that, the IMF now projects global growth to moderate to 3.1% in 2026 down from 3.4% in 2025.
With the headline inflation expected to rise modestly. The peak of tariff related uncertainty is behind us and potential productivity gains from AI provide a meaningful structural tailwind over the medium term. India has demonstrated commendable baselines through this period. Domestic growth momentum remains fundamentally healthy and expect the GDP growth to be about 6 point percent for the year preserving India’s position as the fastest growing major economy. Inflation expected to rise modestly however, it remained at a comfortable position within RBA tolerance band with subdued core inflation and healthy food stocks providing additional buffers and India growth outlook continues to be underpinned by strong domestic demand improving investment activity, a supportive monetary policy stands and healthy bank and corporate balance sheet and turning to equity market, the last quarter witnessed a sharp transition from optimism to caution with market correcting from near record highs driven by persistent FII outflows and global risk of sentimental rising crude prices.
Increasingly sustained participation from domestic mutual funds and retail investors question the decline underscoring the growing maturity of domestic liquidity and reinforcing that disciplined long term investing and trusted guidance have never been more valuable. Coming to an update on the mutual industry the quarterly average AEM for the industry as a whole stood at 81.5 lakh crore as of March 2026 compared to 67.4 lakh crore as of 31 March 2025. Registering year on year growth of 21%, the industry recorded its highest ever SIP contribution approximately 30,000 crores for March 26 representing year on year growth of 24%.
Total mutual fund folio stood at approximately 29 crores as of March 2026. During Q4FY26 the industry saw a total in NFO collection approximately 11,200 crores across the equity and debt funds with the equity collection driven by predominantly Flexicap fund, multi astronomical fund and small and mid cap fund. And despite equity market volatility, industry witnessed the continuous flows into various schemes highlighting sustained investors confidence. The long term growth potential of Indian Equities Individual average AEM for March 2026 stood at 47.4 lakh crore contributing to about 60% of the total Industry size and beached cities with an average AAM of 14.4000 crore accounted for 18% of the total AEM growing by 19% year on year.
Coming to the ABS Lianc Performance Highlights at the ABS lianc, our overall average AEF including alternate assets now stands at 4.74 lakh crore growing with 17% year on year. Our mutual fund quarterly average AEM stood at 4.36 lakh crore representing 14% year on year increase. With this our equity mutual fund quarterly average AEM stands at approximately 1.97 lakh crore growing by 17% year on year. Our SAP contribution for March 26 has seen reasonably good pickup to 10,204 crores growing by 11% quarter on quarter where we closed about 1,080 crores 1204 crores supported by 40 lakh contribution coming from SAP account.
Building on this momentum, we are at the forefront of driving our SAP adoption through our subsea important plan combined reinforcing the value of investing through the market cycles and systematically. Our ambition at AB9C is to reach every household in India making Hargar Me FAP as a reality. We’re working in that direction which will help us improving SAP number further. Total investors folio for March 2026 stood at 1.1 crore. The new SAP registration for the quarter approximately 6 lakhs growing by 16% on a quarter on quarter basis is another area where we have shown an improvement in the current quarter the SAP registration actually higher than the previous quarter reflecting on both the number of registration happening in the quarter over the last year we at ABS AMC have made meaningful investment in strengthening the investment team and people and sharpening our portfolio consuming processes and investment framework reinvented investment framework in order to deliver consistent investment performance.
This in fact resulted in a sustained improvement in our investment performance in equity directly translating to growing investors confidence and distributors conference and consistent flows across our core funds offering. In fact the current quarter we continue to see momentum coming in our flows in our Flexicap Fund, Balance Adornic Fund, Multi Hustle Gains Fund, Small and Mid Cap Funds, Gennex Fund and Multi Cap Funds. Market expansion has always been a key priority for us and continue to deepen our presence across our energy market and today we are present about 19,000 pin codes spanning across the country reflecting our commitment to bringing quality investment solutions to every corner of India.
Building on this foundation we plan to add Several new location FY27 further expanding our geography footprint. In fact during the current quarter we have seen our retail productivity improving across all markets is reflecting on number of distributors getting added to our fund and the number of distributors getting activated across different markets. In order to further drive our business we have enhanced our technology platform and digital capabilities with a clear focus on delivering a seamless experience.
Including the launch of our new investors app is reinforcing our commitment to simple, transparent and accessible investing. We also launched a new partner APP which enhanced capabilities and we remain focused on leveraging technology to drive smarter wealth creation and long term value to our investors. In fact in our digital platform we added some of the features which will actually bring in the number of customer additions and having customers multi folios and so on and so forth and also improve the service standards in our app which in fact help us in terms of adding more customer base as time to come.
Moving to our alternate business. The PMS and AIF category has maintained a strong momentum complemented by a comprehensive suite of trade offerings. Our PMS and AIF assets grew significantly from 11,300 crores to 30,000 crores which again growth over three times. It is also supported by ASIC Manager we won last year and as you all know Sameer Narayan who is our PMS head managing the investments as a head of investment now is taking additional responsibility of our offshore fund management along with building the business and expanding our global investment capability as head of offshore business both on money management as well as on building the business AS and pms.
With these deep commitment and passion, I’m sure these two asset classes will start building some more outcome as time to come. We’ll continue to raise funds in some of the funds that we launched last year, NDASG Fund Fund based out of Gibbsity AVSL Flexicap Fund for inward remittance and Gibbsity and Global Blue Chip Fund which again created which has given a huge experience for investors to provide globally competitive solution to investors. We Plan to launch ABSD Global Emerging Market Fund very soon through the Gibbsity.
Karan Daweb was part of our AB Capital Talent pool. We are now taking charge of debt AI platform in order to provide fixed income credit oriented performing credit oriented funds where he leads our credit strategy with a focus on scaling our offerings. In this space the ESIC mandate accounted for about 20,000 crores as of March 2026 while PMS and EIF excluding ESI mandate registered year on year growth of about 14% reflecting healthy underlying momentum backed by strong performance coming from our PMS as well.
On the EPFO mandate which last quarter I mentioned about, we won the equity mandate this quarter we signed the agreement, formal agreement we signed and now we are ready operationally to get the inflows after fulfilling few other formalities next few days. I’m sure in the current quarter we’ll get to an IC EPA for money in the Fixed income space as per the mandate given to us for the next five years. We are currently in the fundraising plan in the Special Opportunities Fund Series two and Structured Opportunities Fund in series two and Money Managers Fund in the AIF space along with ABL India Select Sector Fund in the Equity space.
On the real estate front our AAM group approximately about 140 crores based on 14% year on year growth. We currently have a fundraising underway for Iitopharlla Real Estate Credit Opportunities Fund Series 2 and focus on senior secured lending to post approval Brownfield Real Estate Projects Across Iron Cities in our passive business we continue to witness significant momentum with our quarterly average AEM crossing the 47 crores mark to stand at 41200 crores in Q4FY26 representing year on year growth of 25% and our customer base expanding about 16.91 lakh crore ETF quarterly average AEM grew by 68% year on year significantly outpaced industry ETF growth of about 40%.
Our passive product suite now comprise 54 distinct offerings across equity, fixed income, commodities and multi asset solutions designed to address the diverse investment needs of our investors. During the quarter we launched two new products in the passive segment. This is the ABSD MSA India ETF fund. This will be based out of Gibbsity feeding into our fund in India and hopefully we get about flows from FII is invested in this fund and for which we launch this fund. The same day we also launched BSE Top 10 Banks ETFs wherein we have started seeing some of the flow of investments especially for those who are dedicated investments they make in the I am happy to announce that we have incorporated our wholly owned subsidiary Aydabullah Tanlai BHM’s International IFC Limited Gift City and I have subsequently obtained the retail license to further strengthen our presence in the area.
Presence in Gibbsity was in the form of a branch as an external armor for Agilasal AMC. Now it has become 100% only owned subsidy company. With this we will be able to launch product for in road remittance and outdoor maintenance for as small as the ticket price about $3,000 as in as well as $2,000. We launched our SIF vertical under the Apex SIF brand with our first offering the Apex SAIF Hybrid Long shot Fund. With the evolving investor needs and the rapid expansion of India’s affiliate segment, this category represents significant growth lever for us.
Building on this momentum we plan to introduce a pipeline of new offerings as guided by Sabi new circular in the near term to further strengthen and scale this platform. In line with this we have further enhanced our investment capability with addition of two specialists bringing deep expertise in long shot as well as derivative based strategy using options and futures market stacks. Moving to the financial number Q4FY26. Revenue from operation is at 458 crores as compared to 429 crores in Q4FY25.
Our Q4FY20 operating profit was about 252 crores as compared to 233 crores. Our key 500 profit after tax was 187 crores as compared to 228 crores. This is actually on account of increase in reduction in other income due to the mark to market actions. For the quarter. Revenue from operations for the full year FY26 was 1845 crores as against 1683 crores. FY20 is operating profit was 1014 crores as compared to 941 crores. FY20C profit after tax is a 973 crores as compared to 913 crores FY25. We are pleased to announce the board has proposed a dividend of 25.5% per share is somewhat equivalent about 70% of profit distributions for the current quarter for the full year.
With this I would like to open the floor for any questions. I will be joined by Pradeep Sharma to take any other question that you may have.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone 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 will wait for a moment while the question queue assembles. The first question is from the line of Mohit Mangal from Centrum Broking. Please go ahead.
Mohit Mangal
Yeah, good evening everyone and thanks for the opportunity. So my first question is on the regulatory impact. So you know from the 1st of April we see that there will be a 5 basis impact on the equity AM. So how do you intend to mitigate the impact and what would be the net impact on our books?
A. Balasubramanian
Yeah, see I think this is the broad impact generally post the regulatory changes is in the range of about 3 to 4 basis points roughly. But otherwise given the fact that the way the industry has been operating, the way we have been operating, we will try and do the structures in such a manner that it does have least impact as far as the P and L concerns given the fact that the reduction is actually quite marginal and suitably making the structures that we have both on the commission structures and other expenses.
Keeping all those things in mind, we’ll try and make it neutral to everyone and win win for the overall business without having any kind of deep impact either for the distribution community or for our AMC business.
Mohit Mangal
Okay, so you intend to pass on to the distributors basically and there’ll be like one or two bases pointed by. That is what we intend to say.
A. Balasubramanian
Now we have not quantified any Kind of exact number. I think. I think we will of course roll it out the current quarter and as of now the assumption that you are making as far as the ANC impact concerns will very marginal. Yeah we would look at from all angles how do we maintain the overall profitability at the same time when we also look at passing on optimizing the entire thing will also of course since it goes across the entire distribution community we also feel even from a distributed point of view even if it is a marginally pass on impact will be the least
Mohit Mangal
Understood. So how has the flow market share versus the book market share this quarter.
A. Balasubramanian
In line with the. In line with the market only. So in terms of market share you are saying.
Mohit Mangal
Yeah yeah. Market share flow market share versus book market share
A. Balasubramanian
In line with the market share. Yeah.
Mohit Mangal
Okay. Okay.
A. Balasubramanian
We have seen improvement in terms of our flows. I think we have to give you some kind of colors one actually this quarter better than the previous quarter in terms of flow of funds coming into the funds that we have been promoting backed by reasonable acceptance. More and more approvals are also coming in from the banking channel that such thing is good news. Second is the way we looked at it as you we’ve been saying for last, only 1 and a half years we’ll continue to focus on reducing the fall in the market share that before we start rising.
That’s something again has happened in this quarter too. I think the overall reduction is a very very marginal very very narrow quite significantly with improved flows broadly I would say we would we would come it should come reasonably close to the market growth momentum very soon.
Mohit Mangal
Understood. So my last question is on few bookkeeping questions. First is what is the skip a year. Secondly if you could quantify the ETF a year didn’t come include the ETF area. So if you can give me the ETF AUM and lastly the PMS and EIS revenue for financial 26 and Q4 financial 26
A. Balasubramanian
Sure. As well I’ll take the second question which is the ETF equity rather than out of 41 crores roughly about 500 crores is the ETF which includes gold and gold and silver roughly about 11,500 crores roughly 1135 crores
Mohit Mangal
And balance
A. Balasubramanian
Is actually fixed income target majority fund you can call it as far as the
Unidentified Participant
The
A. Balasubramanian
Other question SAP book is about
Mohit Mangal
76,076
A. Balasubramanian
Crores is SAP book with respect to revenue I mean overall in the one second. Yes.
Mohit Mangal
Yes.
A. Balasubramanian
As for the PMS and this revenue I’ll just tell you. Yeah
Pradeep Sharma
Revenue
A. Balasubramanian
Coming from PMS. Yeah. So
Pradeep Sharma
Revenue share from PMS and AIF alternate is around 6% on gross basis and on net cases it will be around three and a half percent.
A. Balasubramanian
Yeah.
Mohit Mangal
Okay, understood. So just one follow up. You said SIP AM is 76,000 odd crores. Last quarter it was around 87,000 crores. So that’s the employee moment, right?
Unidentified Participant
Yes, yes, yes, yes,
Mohit Mangal
Yes. Okay. Thank
Operator
You. Does that answer your question, Mr. Mohit?
Mohit Mangal
Yeah, yeah. Please. Thank you so much.
Operator
Thank you. Participants or wishes to ask a question, please press star and 1. The next question is from the line of Dipanjan Kosh from Citigroup. Please go ahead.
Dipanjan Ghosh
Hello. So good evening. Just few questions from my side. First you mentioned in your previous comment that your flows in the funds that you have been pushing or you know funds or performance is good. There has been improvement in flows quarter on quarter. But if I look at the overall active equities as a cohort for you and look at 4Q versus 3Q or 4Q versus last year, 4Q how the quarter on quarter and YoY look like for the entire active equity basket as a whole. My second question is on the expense side you mentioned in your commentary that you have, you kind of have expanded your team on the SIF side.
You also have ambitions to continue to scale up your alternates and PMS businesses, offshore businesses. So when I look at the employee expense growth, how should one think of let’s say for the next one or two years in terms of the growth? Finally I have a few data keeping questions. One is SIP flows for the quarter. The second is ESOP expense for the quarter and year and third is the number of employees outstanding as of March 31st.
A. Balasubramanian
As far as the flow is concerned, I think the last quarter also mentioned and this quarter also the. So the way I look at it, the what you’re trying to build in addition to arbitrage fund which also considers active equity. And we have seen good pick up in the first half of this year in terms of our arbitrage fund. And then we started seeing pickup coming in Flexicap fund, Multi asset allocation fund, Multi cap fund and the balance advantage fund. So that’s why I think we continue to see inflows and even we are also promoting these kind of 5, 6 focus product and the thematic side we continue to see flows in Gen X fund and now we are seeing good pickup in the small and mid cap fund.
We are now seeing flows in the small and mid cap fund. So that is the way we are pushing it. And third of course where we are also losing some assets in the early part of the year is ELSS schemes thanks to the significant improvement that you have seen in the performance in fact our outflows has come down quite though the asset of the category is not getting flows but we had a little bit of excess outflow initially for the performance of the schemes that got narrowed quite significant this year we have seen a significant pick in fact I must also share with you the number of funds that are delivered Q and Q to performance and equity now gone almost about 85% in fact current quarter we have almost insignificant portion of our funds is in the Q4 and that something is something it’s being accepted in fact during the current quarter we got our products approved part of the banking channel which is also another piece we are working on it now Wherever we got one product added now two product got added from the list of and that I just showed to you so I think each quarter on quarter basis we are improving it and hopefully this year we will see the momentum continuing as far as the flow is concerned that’s why we are pushing the team the productivity point of view Then other two questions I’ll ask Pradeep to just give you insight
Pradeep Sharma
Yeah so the other one was on the employee expenses you were talking about so basically see there we launched a new employee SOP scheme in Q4 which we had the impact in the current quarter and that will continue in the next year in coming quarters also. However that impact is not that really visible in the Q4 numbers. If you see there are. There’s not increase from Q3 to Q4 largely on account of there was some employee related reversal because of the performance variable pay performance that has been offset during Q4 however going forward there would be an impact of around.
Around 8 to 10 crores per quarter and in next year.
Mohit Mangal
Next year? Yeah,
Pradeep Sharma
In next year so this would be on account of ESOP and all as far as you said on the employee, the two new employees I think that there should not be much impact that is only running employee cost and normal interest the employee cost should be there.
A. Balasubramanian
Yeah as far as the employee cost in addition to being mentioned I think from a team point of view we are more or less there except you’ll add we have an ETF passive gentleman left so we’ll be adding one or two member team to build our passive business. Of course you have an existing team no doubt but to head the business we have some serious plan in order to bring bring in higher focus on passive growth as well that’s something which you’ll do. And second of course some people have left and therefore some people are coming in.
So largely if I look at it from employee cost point of view there will be marginal increase not big time increase. Looking at optimizing the existing resources what additional smaller they can take and therefore this will remain somewhat under control. As far as the ESAAB concerned. While he mentioned about next year’s impact will come in fact I must mention we rolled out our ESA plan this year well on time at close about 845 rupees price. In fact this also boosted the confidence and motivation of people almost about 110 employees recovered.
Therefore I would probably say that with the improvement of performance and pre team also got motivated post issuance of our resource and this also should add to the overall positivity for the fund.
Dipanjan Ghosh
Got it. If I can get the data points that I asked for SIP flows for the quarter number of employees and yes, Those were the two questions.
Unidentified Participant
Yeah, yeah sure.
Pradeep Sharma
So sip flows are the 1204 crores.
Dipanjan Ghosh
Sorry I
Unidentified Participant
Once again just give a second.
Pradeep Sharma
So 1,208 crores is for the for the march and if you see for quarter it is 3600 and employees are 1615 employees as of March 1615
Dipanjan Ghosh
You said right?
Pradeep Sharma
50. Yeah 1650. 1650.
Dipanjan Ghosh
Just one follow up maybe. I mean if I look at your this year I mean you started with around 1630 employees, you went up to around 1700 plus and now you’re back to 1650 despite the business momentum you know picking up. So what should we what is really getting captured in this employee count number?
Pradeep Sharma
So we always see this is always there are there will be always some ongoing vacancies at RM level etc at the bottom of the pyramid as well as we always keep on optimizing our employee strength and also keep on improving the productivity levels by way of implementing the new tech solution etc. Etc. So I think to 50 employees plus minus will keep on happening always depending on the optimization.
A. Balasubramanian
Also we also onboard certain segment of the business people then they come and on board roughly about 80 to 100.
Dipanjan Ghosh
Got it. Thank you and all the best.
Operator
Thank you. Participants who wishes to ask a question please press star and one next question is from the line of Sarnab Burkherji from 361 Capital. Please go ahead.
Unidentified Participant
Hi sir. Good afternoon and thank you for the opportunity. Three questions from my side. First one sir on this regulatory impact so I just wanted to will we be getting some clarity on you know what is the Full extent of the impact because we are already in the third week of April and I mean I think so would it be like that we will have an idea as we close April or it feel like that, you know optimization will continue for few months as we move in here. So if you could give some clarity on that. Secondly, customers, how has other movement been during the quarter?
The reason why I asked is that in the SIP slide both that we are seeing in terms of those as well as new SIP registration that is not reflecting so much in terms of the contributing SAP account. So I just wanted to understand the dynamics there that are our existing customers opening, you know incremental SIPs or you know, how is it playing out in terms of onboarding the new to ABSL AMC customers? And also if you could help us understand that in terms of this incremental sic flow growth that has happened during this quarter which channels are providing that is this coming from online channel or any other kind of distribution partner we have added.
If you could give some color on that. And lastly sir, also if you could share the yields by asset class that would be very.
A. Balasubramanian
Yeah. So as far as the. As far as question concerned with respect to the optimization running this is after a multiple round of discussion. When the first circular came and the final circular came all of you would have known and as an industry we worked with SEBI and brought it to a scenario where it will have least impact including the broking form with one deal with on the equity side. In fact I was personally involved in ensuring that rather not ensuring working with the other team members of the industry to see to you that it has least impact.
So that’s the broader approach in which we did. And whatever the panel that has come the way we have worked out this kind of time is from ANC profitability point of view we will try and make it neutral if not positive as far as the distribution concerns. And we are any case in a scenario where we have always been ensuring that the distributed partner should work very closely. Therefore we kept the commission structure in a manner it remains somewhat attractive for them in order to grow our business the will be some marginal reductions could come.
So that’s a broadly I will see it without having too much impact as far as them concern. So the way we are currently working out is from our profitability point of view somewhat neutral kind of model that we are working on it. That way we are looking at building the whole plan. And as far as the. As far as the SAP is concerned of course we have seen some bit of Cancellations this quarter maybe I would say increased cancellation during the period of volatility. It used to be somewhere around 40 or 50% for the industry I’m talking about it went up dollars about 92% for industry.
In fact our SAP cancellations were actually lower than the industry. I would say at the same time this normally happens any sich volatile period we do see SAP cancellation increasing but that in my view is not from a generally an ore part Registrations have not come down quite significantly. Registration remains somewhat strong when our number for the quarter base is about 6.71 lakh as again 5.4 on the previous quarter is the trend that we see. So therefore this is something one good big achievement I would say as industry all have done including ourselves making SAP is agnostic to the market volatility.
In fact I myself was during the volatile period keep harping on the importance of not cancelling SIPs. In fact I came with a mantra which called if you have an sip, continue sip. If you cancelled SAP start your SAP. Whenever invest in SAP start SAP actually came out to the campaign during that period it was being appreciated by people because during the walt dis giving guidance to the investors is extremely important. In fact we are the one house all around the place in reemphasizing importance of sip.
In fact that has been appreciated by a lot of our partners and investors that Birla is actually batting the front foot in promoting SIP which hopefully should help us in building our SAP. That’s one as far as the channel concerns, in fact we have seen digital of course remains a dominant component. No doubt mfds have seen improvement during the current quarter due to the high engagement coming from our sales team because improvement on performance the narrative gives them more confidence for them to actually go out in the market not having a fear of reaching out that something is helping our sales team actually go out in the market.
Talk about with a lot of crowd that yes we are doing well so that is helping us in improving our contribution coming mfds after a long way to go no doubt. Second is product coming as part of approved list of banking channels also is improving the contribution both the flows and SAP. And third of course is the ND channel before ND channel a direct team channels also we are seeing an improvement of the directing channels, both the HNI space as well as the PF&Trust. We also have channels coming in the institutional space.
That space is also we are seeing STPs now contribution is coming. In fact last quarter some of the even institutional customers who Preferably invest in equity as well had equity when the market fell. So that’s broadly I see it.
Pradeep Sharma
As
A. Balasubramanian
For the yield concern, I’ll just give it to Pradeep to give you insight. So
Pradeep Sharma
Yields in equity category are around 60 to 63 basis points and that side it is around 24 to 25 basis points. Points Liquid is around 12 to 13 basis points. ETF is around 6 basis points.
Unidentified Participant
Okay sir, understood. Thank you for the detailed answer and yes sir, I think really you know, great set of numbers on the SIP side. So, so just one follow up if I may in terms of the month of April. So just wanted to understand that you know, how are we seeing the month of April now that you know the volatility has kind of reduced a bit and the markets have also started to show some encouraging signs. So just wanted to understand, you know how you are seeing incremental offtake in the month of April.
A. Balasubramanian
Sure. So I think March quarter I think there was also pressure on fixed income side due to the rupee volatility as well as interest rates. Banks are under tremendous pressure to raise deposits. That did have an impact as far as the fixed income flow is concerned. In fact post RBI giving more liquidity and the borrowing calendar is most key towards the shorter end rather than the longer end. As again bond markets have come back to normal, liquidity has come back to normal, flows also come back normal.
In fact as I speak our number and I’ll come back more close to about 445 in terms of running number. So that’s something with an overall business I would say as far as equity is concerned we did have a conference normally we have in the beginning of every year we ran a conference taking all our distribution partners to one location. We lock ourselves to talk about what we have done last year and what we intend to do next year. In fact we got a reasonably good response coming from distributors from across the representation of India and that’s something got a feeling that everyone wants to actually add and accumulate during the fall period rather than reducing the expo.
That’s one feeling I got. So therefore this is my view. Assuming these about 400 distributors participate in our conference, assuming I take that as a voice of representation of the whole community, probably we should see the flows not getting impacted given the fact market has come back quite nicely from our side. We are seeing improved contribution though I don’t want this too early for me to give the number but I’m seeing an improved traction. In fact I must mention post our conference in Hyderabad that We had last week enter my sales force have become extremely confident in order to improve their own productivity in every market.
So that’s the way I put it.
Unidentified Participant
Understood sir. This is all very helpful. Thank you so much sir. And all the best for FY27.
Operator
Thank you. The next question is from the line of HD from Premji Invest. Please go ahead.
Harshit Toshniwal
Am I audible?
Operator
Yes, you are. Yes,
Mohit Mangal
You’re audible. Yeah. Hi
Harshit Toshniwal
Sir. Harshit here. Sir, just wanted to. I joined a bit late. Maybe you got covered it. But what was the equity yields which you mentioned sir? Equity segment yields.
Pradeep Sharma
Yeah.
Mohit Mangal
Yeah. As a.
Pradeep Sharma
So equity yields were 60 to 6063 basis points and that it was 2425 basis points liquid 12 to 13 basis.
Harshit Toshniwal
Okay sir, when I look at the equity yield at least if I back calculate broadly so there is a good around 23 basis point yield reduction which which would have happened this quarter. So I think if I take every other thing Constant then probably a 3 basis point yield decline in the equity segment. Is it. Should I. Is it anything particular to do here?
Pradeep Sharma
No. So there’s no specific reason. I think this is the function of telescoping pricing as well as mix of products. So both these things will have impact on this versus if you see for last year we had also actually in the earlier calls we have said last year we had some reversal because of the regulatory changes. So if you see from last year to this year there is a marginal drop of 2 to 3 basis points.
Harshit Toshniwal
I think otherwise.
Pradeep Sharma
So
Harshit Toshniwal
Just. Just on the sequential part itself and wanted to check that probably it looked like the product declined. Okay. You are saying. Yeah. Within equity you are saying there could be more passive. So basically index funds etc would have increased. That would have led to that.
Pradeep Sharma
Yes. Yes. So product mix here.
A. Balasubramanian
Yeah. Other than the core product there is no. There is no. There is no fall. Of course as you mentioned some of the funds are a bit growing in size to the extent the telescoping price impact that I would say there is one component of it. But otherwise even growing our passive also get added to that segment.
Harshit Toshniwal
Got it. Got it. So just the other point you mentioned that the impact of the TR revisions you would want to keep the distributor also that you would want the distributor commission not being impacted. But. And then you said that we also want to ensure that our. Our business is neutral in terms of the economics. But how can that billing. Do you expect that we should take. We will be have to taking some hit. Just
A. Balasubramanian
To clarify that Ashe, we did some kind of math just back at the normal math we just did. Let us assuming scenario that they’re able to make it somewhat neutral negative say. Let us assuming for the distribution partners what impact will come given our current the brokerage structure we have. We have current executive distribution structure that we have. So I would say we would be in the. I would not say too high, I will not say not too low as well. I think we are little above say median I can say compared to industry people.
Therefore we felt that what the impact will come assuming that 23 basis points is actually comes at the cost of to the distribution side then we felt the impact is very marginal right from the people who get a larger AEM versus smaller AEM. And for us also given the fact this has come we also re looked at some of our cost structures how we can improvise this. Therefore we looked at across the board how we can actually ensure that impact is less. It is also coming from the fact that as I mentioned earlier in the call that what was written then the initial fear which was there when the first circular came as the final circular came in that call also I mentioned it will be more more or less neutral if not highly positive that we continue to maintain that this has to get evolved in my view Therefore we can’t say this is exactly work because anyway once this is done implemented will come back to a normal distribution structure which Normally we keep or 60 or 70% is the distribution structure.
We’ll come back to the model Therefore we cannot get confused in terms of who will get the impact and who is benefiting. We have ultimately come back to the distribution model.
Harshit Toshniwal
Understood sir, one last question. If I look at our my net equity flows across all the active funds basically I think last year if I assume that in the interim we had some higher redemptions from the older schemes then we had some higher redemptions in the online basically so just so are we because of the performance now being much more stable and larger track record of stable performance Is it. Is it fair to assume that right now we are at a stage that on a monthly basis we are getting 250300 crore of net inflows as a bare minimum right now?
Just trying to understand that have we reached a point that net of redemptions we are now right now at a point that 250300 crore monthly inflows are more predictable inflows which we can get every month?
A. Balasubramanian
Yes, I think that trend is Ashit. I think clearly I think you articulated nicely in terms of how we are shaping up in fact so I don’t normally say last year of flows actually is two times higher than the previous year flow in terms of flows. So that’s again nothing but an effort that we are doing it. As I mentioned in my opening remark whatever steps we have to take in order to bring in the talent side where we have to improvise it and responsibilities changing and so on so forth. Each of the areas the focus that we brought in all of them started paying even it takes some time for people to get adjusted and start delivering.
In fact when I mentioned about 80% of the funds today in Q1 Q2 I think the outcome of what we see when the product is coming part of the approved list is also the function of how now is coming in the radar with the rest of the competition. So on the 4th I think we are going the right direction. I would say
Harshit Toshniwal
So it’s 200, 300 crore number which we have already now at a stage there now that is the base minimum monthly flows we are there at. Or do you think that still we are not at 250300 crore it’s still maybe few months. We get it but it’s not that number which we have reached on a more steady state basis as of now.
A. Balasubramanian
Yeah, I would probably say number of much higher than what you’re indicating.
Harshit Toshniwal
So I don’t think right
A. Balasubramanian
Now but I would. We would probably push for higher than these numbers. Yeah,
Operator
Thank you. Next. Sorry, the next question is from the line of Meghna Lutra from Incrediquities. Please go ahead.
Meghna Luthra
Yeah, thank you. Sir, just one question is. So you mentioned on the banking front we are. We’ve got some approval from some products so can you get some more color on that and how do we see the strategy in the banking channel changing? I understand it’s a small proportion of the event channel.
A. Balasubramanian
Sure, sure. See the way we look at our banking channel is there was a large key partner for Atula Mitchell Finance. It’s basically starting from HDFC Bank Kotak Bank, Axis bank and ICC Bank StanChat bank and others smaller bank we can say IDFC bank and others bank of Baroda is large distributors while we used to always presence But I think each one have to generate and absorb volume coming in and that we are seeing it across each of the channels. Second is. Second is like HDFC bank they are tightened their product recommendation after the.
After the 2019 financial market crisis so they don’t promote more than three or four products in part of the list. In fact I’m happy to say two of Our products is part of the recommendation list. That’s something is also helping us because our engagement is good, connectivity is good and product coming on recommendations it lead to increase inflows. That’s something we are saying and we have seen. Kotak bank is also part of wealth management team and retail team of Kotak bank new convo for us. In fact two, three or four, two of our products are part of the recommendation list.
As I understand their constraints, they cannot give more than two products per fund houses on the base of the performance selection. I’m happy to say these are some of the product coming as part of that recommendation list. We learn the ways of performance improvement engagement. That own conviction and understanding of what you’re doing would deliver the much desired outcome. So that’s the way we are pushing it. And this is something would help us in keeping that momentum continuing.
Meghna Luthra
Got it. On the flows part, would the banking contribution be materially different than the specifically on the equity assets?
A. Balasubramanian
I would say materially different from the past. There was flows that come down quite significantly from this channel because the product was not part of the recommendation list. So now with the engagement being there, that product coming part of the recommendation would lead to actually increased flows. Of course, even I’m pushing the sales team to take full advantage of high engagement with the team which I think the team is also doing it on mfds. They have the regular flows. We have deep connections even mfd.
When we connect, we don’t look at them only as our distribution alone. We actually add a lot of value addition we give by providing guidance and we run program called Legacy Leap. We run a program called Fulcrum in order to encourage the next generation of the distribution partners who have long association with distribution partners for 30 years and old generation wants to develop the next generation. In fact we as a funder take a lot of leaps in they’re helping the next generation to build the business all such things.
We are doing it in order to ensure our traditional channel MFD channel improves while the organic channel continues to get better. And direct is something we have made an investment last one one and a half years. We’re making investment on direct team but also we’re bringing more sharpness in terms of improving the number. And then the last piece actually is the digital channel. Last year I still remember we got close to about 15 lakhmi customers added to the online channels in some of our funds like PSE Equity Fund and few others that segment Also we are pushing ourselves as to how we can increase the Contribution from the digital channel as well so all around this kind of sharper focus I’m sure each of the channel is start contributing better than the previous year that should help in terms of keep building the momentum
Meghna Luthra
Great, great sir. And lastly on the product pipeline what would be on the equity side?
A. Balasubramanian
Yeah, one of those we have already filed that’s something which will. Which will launch very soon and second under the new category we have looked at some of the merit for having life cycle kind of funds we are looking at we are also looking at some of the reason in VIP fund it is Sebi gives approval that’s something we are looking at it and that is a part of the part of our regular excise in fact we are also looking at our Gib City Gibbsity product I must mention that we were the launch in Gibbsity product invest in emerging market without knowing whether how the emerging market is going to do in fact that fund has done exceedingly well giving good experience to investors giving about 30% $35 return on year basis that’s something it was a close run fund we are now looking at launching the Open end fund in the Gift City we have this plan all these in place as for the domestic concern in addition to Life Cycle Fund what I mentioned about I think funda fund well but we’ve not seen much growth deserving growth I would say that’s something again we are pushing it.
Meghna Luthra
Got it, Got it. Thank you. That’s all from my end
A. Balasubramanian
Yeah.
Operator
Thank you ladies and gentlemen. That was the last question for today. I now hand over the conference over to management for closing comments.
A. Balasubramanian
Thank you. Thank you everyone for joining for this call and with this we conclude our Q4FY26 thank you.
Operator
Thank you ladies and gentlemen on behalf of Aditya Birla Sun Life EMC limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.