Aditya Birla Sun Life AMC Limited (NSE: ABSLAMC) reported a 20% year-on-year increase in profit after tax for the third quarter of fiscal year 2026, reaching ₹2.7 billion. The asset management firm saw overall quarterly average assets under management rise to ₹4,814 billion, supported by an eightfold increase in alternate assets and steady gains in equity mutual funds.
Financial results for the period ending December 31, 2025, reflect expanded distribution reach and a 7% increase in operational revenue. The company’s overall quarterly average assets under management (QAAUM), including alternate assets, grew by 20% during the same period to ₹4,814 billion. Growth was supported by an 11% rise in equity mutual fund QAAUM and significant expansion in the passive and alternative investment segments.
Upswings
The primary driver of the reported growth was the expansion of the company’s total assets under management, which reached ₹4,814 billion for the quarter ended December 31, 2025. Mutual fund QAAUM witnessed a 15% year-on-year increase to ₹4,432 billion, while equity mutual fund assets rose to ₹1,994 billion. A notable development during the period was the eightfold increase in PMS/AIF QAAUM, which rose to ₹327 billion from ₹38 billion a year earlier, primarily driven by the ESIC mandate. Additionally, passive QAAUM grew 28% year-on-year to reach ₹387 billion.
Financial Highlights
Revenue from operations for the third quarter was ₹4.78 billion, representing a 7% increase over the previous year. Total revenue, including other income, stood at ₹5.6 billion. Profit before tax for the quarter rose 19% year-on-year to ₹3.58 billion. For the nine-month period ending December 31, 2025, revenue from operations reached ₹13.87 billion, up 10%, while profit after tax grew 12% to ₹7.88 billion.
Total expenses for the quarter increased by 11% to ₹2.04 billion. This rise was primarily attributed to a 23% increase in employee benefits expense and a 30% increase in fees and commission expenses. The company also recorded an exceptional charge of ₹28.2 million related to the implementation of new national labor codes.
Strategy & Outlook
Management’s stated strategy focuses on building a scalable business through the expansion of its retail franchise and the diversification of product offerings. Operational priorities include strengthening a multi-channel distribution network and leveraging digital platforms to enhance customer experience. To support these objectives, the company added more than 7,800 new mutual fund distributors during the first nine months of the fiscal year, bringing its total distributor base to over 93,000.
The company is also targeting growth in the alternative and passive sectors. This includes a product pipeline and ongoing fund-raising for various structured and real estate opportunity funds. Digital engagement remains a priority, with the company servicing 10.8 million investor folios and recording 6.27 million website views during the period.
Sector Trends
The broader asset management industry in India saw an 18% year-on-year increase in QAAUM during the third quarter of fiscal 2026. However, the industry experienced subdued overall net sales for the period. Monthly systematic investment plan (SIP) contributions across the industry reached ₹310 billion in December 2025, even as new SIP registrations saw a slight decrease to 17.79 million. Within this environment, ABSLAMC maintained a 6.12% market share in mutual fund QAAUM and recorded a monthly SIP contribution of ₹10.80 billion for December 2025.