Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Nippon Life India Asset Management Ltd (NSE: NAM-INDIA) Q4 2026 Earnings Call dated Apr. 27, 2026
Corporate Participants:
Parag Joglekar — Chief Financial Officer
Sundeep Sikka — Executive Director & Chief Executive Officer
Analysts:
Prayesh Jain — Analyst
Presentation:
Operator
Ladies and Gentlemen, good day and welcome to Nippon Life India Asset Management 4 QSY 26 Earnings Call hosted by Motilal Oswal Financial Services Ltd. 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 touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mskht Prayers Jain from Motilal OSWAL Financial Services Ltd.
Thank you and over to you sir.
Prayesh Jain — Analyst
Thank you Ikra and good evening to everyone. On behalf of Motilal Oswal, I welcome you all to Nippon Life India Asset Management’s fourth quarter FY26 earnings conference call. We have along with us Mr. Sandeep Sikka, Managing Director and CEO and the senior Management team.
Parag Joglekar — Chief Financial Officer
We are thankful to the management for allowing us this opportunity. I would now like to hand it over to Mr. Sandeep sir for his opening remarks. Over to you Sir.
Prayesh Jain — Analyst
Thanks. Good evening everyone and welcome to our Q4FY26 earnings conference call. We have with us a President and CDO of Savasa Strategy CFO Parag Deputy CFO Amol Chief Digital Officer Arpan Head AIF Ashish Deputy AIF Head Ashwin and Matsu Sen, Nominee of Nippon Life Insurance Japan. I would like to share key highlights of our performance and post that I will hand over to Parag to speak in greater detail on the recent industry trends as well as the performance post which we will move to qa. Coming to the key highlights, I would like to start by mentioning NAM India was the fastest growing AMC in the top 10AMCs both in Q4 as well as FY26.
This led to a continued increase in our overall Asian market share. We had the highest increase in Asian market share in the industry in FY26. Our market share is at 8.89 is the highest since June 2019. Importantly, both equity net sales market share and SIP market share remained above our equity area market share with both being in high single digit for the quarter. Moving to our financial performance, NAM India achieved its highest ever annual profit after tax at INR 15.29 billion. A growth of 19% year on year as well as the highest operating profit at INR 17.48 billion, a growth of 24% year on year.
Further, we also achieved our highest ever quarterly operating profit of INR 4.93 billion for FY26. The board of Directors have declared a dividend payout of INR 21.50 per share that is 91.5% of the net profits. This includes the proposed final dividend of INR 12.50 per share. Now I will hand over the call to Parag
Parag Joglekar — Chief Financial Officer
For further details on the industry and our performance.
Prayesh Jain — Analyst
Good evening. Thank you Jalip. Let me start off with markets. Equity Markets in Q4FY26 witnessed a correction from prior quarter levels. The nifty decreased by 14.5% quarter on quarter while the nifty Mid cap and small cap indices decreased by 12.8% quarter on quarter and 14.4% quarter on quarter respectively. The repo rate was flat quarter on quarter at 5.25% while the 10 year GSEC yield increased by 45 basis quarter on quarter to 7.04%. Coming to the data on the mutual fund industry industry quarterly average aum grew by 20.9% year on year and 0.7% quarter on quarter in Q4FY26 to INR 81.5 trillion.
The share of equity in the overall aum decreased by 0.6% quarter on quarter ending at 56.4% for Q4FY26. Now moving on to industry close. Even in these volatile markets the equity category witnessed gross inflows of INR 2.78 trillion and net inflows of INR 1.23 trillion. Both the gross and net inflows were higher quarter on quarter categories with the highest inflows were Flexicap, Multi Asset Allocation and Mid Cap funds. The fixed income category witnessed a net outflows of INR 1.78 kilian in the quarter the ETF category had a net inflows of INR 709 billion up 36% quarter on quarter.
Moving on to SIP industry SIP contribution for the quarter was INR 929 billion up 19% year on year and 3% quarter on quarter. Monthly SIP flows in March 2026 stood at INR 321 billion at an all time high. Contributing SIP folios decreased by 0.7 million. That is 1% lower to 97.2 million for March 2026 over December 2025. However on year on year basis contributing SRP polios increased by 16.1 million. That is 20% year on year growth. At the end of the quarter unique investor in the mutual fund industry increased to 61.4 million.
That is an increase of 13% year on year. Now moving to our business performance we closed the quarter with the total asset under management of INR 7.73 trillion. This includes mutual fund manage accounts, offshore funds and Gift City. Our mutual fund quarterly application grew 30.1% year on year and 3.4% quarter on quarter to reach INR 7.25 trillion. We were the fastest growing AMC in the top 10 in Q4 FY26 and annually in FY26 and had the highest increase in quarterly average AUM market share among all agencies in FY26.
I would now like to share a few highlights for the public starting with the market share. Our market share increased 63 basis year on year and 24 basis quarter on quarter to 8.89%. Our equity market share increased 24 basis year on year and was 3 basis for non quarter to 7.16%. We achieved a high single digit market share in net sales in equity and hybrid segment in Q4FY26. However, excluding NFOs our market share would be in double digits. We continue to have the largest investor base in the mutual fund industry with 23.8 million unit investors.
We are humbled to have over one in three mutual fund investors invest with us. I would also like to touch upon some of the important aspect of our systematic move. I am happy to share that there has been continued momentum in our systematic loans. Our monthly systematic book rose by 17% year on year to INR 37.2 billion for March 2026. This resulted in an annualized systematic book of INR 447 billion. SIP market share stood at 9.84% for March 2026, marginally higher than 9.82% as of December 2025.
Moving on briefly to ETF segment, we continue to be one of the largest ETF players with AUM of INR 2.42 trillion and a market share of 21.4% which increased by 234 basis year on year and 109 basis for ton per day. Our share in the industry ETF folio is 45%. We also have 52% share of ETF volume on the NSE and the BOC. Our ETF average daily volumes across refund remain far higher than the rest of the industry. The industry continued to witness a surge in gold and silver ETF volumes in the quarter.
Combined aum in these two ETFs for NIMS was INR 848 billion as of 3-31-2026 up 23% quarter on quarter in quarterly average AUM terms. Our gold and Silver ETM represent 36% of ETF and 12% of the MSA. During the quarter we completed two debt index fund NFOs raising INR 8.6 billion. Cumulatively these were Nepal India Crystal IBX Financial Services three to six month debt index fund and upon India Trisil IBX Financial Services 9 to 12 months debt index fund. Moving on to the Digital franchises, digital purchase production and new SIP Registration rose to 5.4 5.04 million in Q4 FY26 up 44% year on year.
We had our highest ever monthly transaction in January 2026 at 1.79 million. Digital business contributed 77% of the total new purchase transaction in Q4 FY26. During the quarter NIM Digital Business intensified its focus on long term investor behavior through multiple initiatives aimed at strengthening SIP habits and re engaging terminated SIP investors amid market volatility, helping rebuild confidence in disciplined long term investing despite short term noise. Now I would like to briefly update on our subsidiaries and Gift Cities.
Starting off with EIS under Nepal India AIF, we offer category 2 and category 3 AIs and have raised cumulative commitment of INR 93.3 billion across various teams up 26% year on year. In Q4FY26 we raised INR 4 billion of commitment across various asset classes. Fundraising is currently underway for two of our listed equity AIS1 Private Credit Fund and Direct VC Fund. Based on the success of Nippon India credit opportunity fund Nicco 1, we launched the second series Nicco 2 and successfully conducted first close in Q4 FY26 with the first capital poor.
The fund is brought down to the extent of 25%. On the offshore front our AU stood at INR139 billion. We continue to expand our footprint in new geographies across Europe, Asia and Latin America. Moving to Gift City as stated previously, we currently have two bidder funds namely Nippon India ETF Nifty 50B Gift and Nepal India Large Cap Fund Gift. The yield in these Funds stood at USD 38 million. Now on to our financial performance for Q4FY26. Revenue stood at INR 7.39 billion up 30% year on year and 5% quarter on quarter.
Other income stood at negative INR 0.34 billion lower both year on year and quarter on quarter due to the market volatility. Operating expenses growth at INR 2.45 billion up 16% year on year and down 1% quarter on quarter. Operating profit stood at INR 4.93 billion up 39% year on year and 8% quarter on quarter. Profit after tax stood at INR 3.85 billion up 29% year on year and down 5% quarter on quarter. For FY26, operating profit grew by 24% year on year. Profit after tax grew by 19% year on year.
As Sandeep mentioned earlier for FY26 the board of directors have declared a dividend payout of 21.5 per share. That is approximately 91.5% of the net profit. This includes proposed final dividend of INR 12.5% per share. Lastly, the Board of Directors in their meeting today have approved the following ESOP based on the recommendation of NRC grant of 3 87,448 stock units under Nippon Life India Asset Management Limited Performance Link Stock Unit Scheme 2023 at INR 10 rupees for stock unit grant of 15 96,475 stock options under the Nippon Lies India Asset Management Limited Employee Stock Option Scheme 2023 at INR 898.04 per stock option.
With this I would like to conclude my remarks and open the floor for questions.
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 n1 on their touch tone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use handsets while asking the question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Swarnab Mukherjee from 361 capital. Please go ahead.
Prayesh Jain
Hi sir, thank you for the opportunity and congrats on a great set of numbers. Three questions sir. First of all on the yield movement this particular quarter, just wanted to understand whether this is primarily a product mixed towards the EPS or is there anything else to read into that in terms of how the expansion has happened, in terms of the margin and also if you could call out the category including the EPF category, also how it has played out this quarter. So these are the last quarter. That’s my first question.
Secondly sir, in terms of the SIP flow numbers that you have reported, the numbers have been broadly in that 3,600 to 3,700 crore kind of reading of the last 56 months. So I just wanted to understand what is, you know, how should we think about this trend going forwards and in terms of the flow in the various fields that we have, has there been any change or movement and if you could give some color on, you know, new SAP is created vis a vis the redemptions etc. That would be very helpful. And in conjunction we could also discuss about the net inflows in equity and the active active equity category how they are looking visa.
And lastly sir. Yeah. Just one last question on the ESOP cost. How
Parag Joglekar
To think about next.
Prayesh Jain
I’ll request Taraj to take the question on yields and the ESOP cost and then we’ll have
Parag Joglekar
Strategy talking about the flows.
Prayesh Jain
Yeah. So the yield movement is mainly due to the change in the asset mix as you mentioned that has resulted a slight increase marginally higher yield. In the current quarter the Yield on equity is 53 basis. 55x of arbitrage. On debt it’s 25 basis. On liquid it remains in the range of around 1112 basis. On ETF it’s slightly higher than 25 basis overall. So blended yield is marginally up 15 basis. And on the ESOP cost, the next year ESOP or the current year ESOP for Quarterlysop is 11 crore. The overall ESOP for the current year is 43 odd crore.
And for the new plan the next year ESOP cost will be in the range of around 35 crore. The overall cost on ESOP of the new plan will be in the range of around 70 to 75 crore. For the next four years.
Sundeep Sikka
Okay. For the next four years. And we can take a staggered approach in the numbers.
Prayesh Jain
Yeah. So generally first year, generally five, you, you. Because it’s important to start above numbers.
Sundeep Sikka
Right sir. Understood.
Parag Joglekar
Yeah. Hi. So coming to the SIP trends. So like you mentioned we have a. The SIP flows are in the range of about 3,600, 3,700 stores. So you would have seen last quarter also in our call we had mentioned that you know the SIP net inflow which is coming in the industry has sort of flattened. So we are also sort of seeing a similar trend in our case. But along with that what we have seen in the last say six odd months. We have started now building SIP book across few other categories mostly in the hybrids and in the commodities fund.
One or two categories like I mentioned in the last quarter call flexi cap and sector funds are these. These are two categories where we really need to build our SIP book. We are working on that very closely. Hopefully that will keep giving us slightly better net sales growth as we go ahead from here on. But the good part is the SIP book market share is more than our equity, net sales market share and equity market share which is definitely the reason why our Equity market share is growing. So that should be the parameter which one needs to track and we are tracking that very closely and hopefully that should keep helping us have a stable growth in market share.
Prayesh Jain
Okay, understood. Just to clarify, the equity next health market share you had mentioned in your opening remarks is.
Parag Joglekar
Yeah. If we exclude the NFOs, it is in double digit. If you include NFOs, we don’t do NFOs, so it is still closer to a double digit.
Prayesh Jain
Very helpful, sir. Thank you so much and all the best.
Operator
Thank you. The next question is from the line of Mohit Mangal from Centrum. Please go ahead.
Prayesh Jain
Yeah, yeah, thanks for the opportunity and congratulations and a good set of numbers. My first question is on the regulation. So regulation that came with effect from the 1st of April, which has a potential impact of 5 basis point on equity AUM, now that we are towards the end of April, just wanted to know what steps
Parag Joglekar
We have taken to mitigate the impact and maybe how should we see that impact going forward?
Prayesh Jain
The impact will be in the range of around three and a half four basis which we will try to minimize even though it’s the first month, but it is over the period we’ll try to minimize from the tenants.
Parag Joglekar
Okay, so
Prayesh Jain
Will that be through a distribution cut or how that should be?
Parag Joglekar
Yes. Yeah, we are going to pass on the entire thing to the, to the distributors. It’s a pass through.
Prayesh Jain
Understood. That’s very helpful. Second is that the tax rate was very low in Q4. So what was the reason for that? So there was some release the assessment which we have taken reversal in the current quarter. Plus there are some due to the mark to market losses. Also there is some lower taxation because the rates are slightly lower on that. So that is why there is a slightly lower taxation on that side. Understood. My last question is towards the share of in the ETF space, you know, that has come down from 53% in Q4, 25, you know, to 45% in the current quarter.
So are we facing a lot of competition within this space or how should we look at it?
Parag Joglekar
So you know, if you see the ETF, the color of the ETFs, lows which are coming in various categories in the industry, the commodity ETFs. I have seen some higher inflows in the last six months and typically in the last three months barring say March. So it’s not competition, it is something related to, you know, it’s more related to how the market looks at multiple options when they are trying to diversify their product Bouquet I think we still remain highest on volumes. Our volumes are the highest.
Our inflows from a net inflow point of view is still higher. So we continue to build on that perspective in the market. So ETF is more about volume. It is more about how many new investors are trading on the exchange and what is the impact cost we are able to deliver in the funds.
Prayesh Jain
Also I think it is important to note that the overall volumes continue to grow
Parag Joglekar
Right now. This is very helpful. Thank and wish you all the best.
Operator
Thank you. The next question is from the line of players chain from Motilal Oswal. Please go ahead.
Prayesh Jain
Yeah, hi. Thanks for the opportunity. Just a few questions from my side. Firstly, you know the as you mentioned right that the SIP momentum in the industry itself has kind of stabilized and post had also we’ve seen markets not doing great. Right. So do you see any further slowdown or how should we kind of read into this from industry trends perspective and especially if you could highlight how are the trends different between say a do it yourself model versus a distributed model? That’s my question number one.
Question number two is last couple of quarters we’ve seen a very strong traction on silver and gold ETFs in terms of flows and because of which we have kind of benefited on the ease. How do you see the traction at least in the near term on these categories? And my last question will be on the expenses front. Overall expenses, you’ve been guiding about 15% growth in overall expenses. Should we kind of of stick to that? And you know as basis points of AUM we are still higher than a few of our peers.
So do you think that you know we can be structurally over the next couple of years we should start tending
Parag Joglekar
Towards that kind of a number or how should we look at expenses? Yeah, those would be my question. Thanks.
Prayesh Jain
So where is the expense number? I will take it and then Jackie will add on to the sale thing. So the expenses. Yeah, our guidance is still remain in the range of around 15, 15% year on year. But that is what our guidance remains the best basis. The idea is always that we should have a operating leverage and as the Indian grows the operating leverage should kick in and should help us to reduce the basis over longer. That will be our thought process.
Parag Joglekar
Yes, I think on the sips it’s a good question. What we are seeing is that the fintech platforms are definitely aiding growth of the sipbook in the industry. The client behavior might be slightly different than what comes in from a distributor LED situation. The cycles are a bit shorter when it comes to fintech investors. But the good part is they are ready to commit more and hence the average ticket size is also now moving up. So that’s a good trend. The other side is when it comes to distributor led SIPs we are finding that these volatile conditions are leading them to educate the investor and show better retention Challenges will always remain.
But as we progress from here on and more sips moving towards hybrid category and large cap oriented funds will lead to better retention times to come. That’s our purposes and view.
Prayesh Jain
And just on that question on the silver and gold gold ETFs, what is the kind of traction
Parag Joglekar
That we’re seeing in the near term on this, on these products?
Prayesh Jain
See I think as you would have seen, I think gold silver and by only gold silver I think most of the flagship ETFs I think because of our volumes liquidity, I think we normally get a higher share last 2, 3 years because ML and gold and silver, the increase in prices we definitely saw the new investors, a lot of investors coming in last two months ever since the volumes have been, the price has come down. We have also seen, we have also seen a little bit of decrease. But interestingly I think this Akshay which was there recently, I think out of the total traded volume on the stock Exchange that day, 63% of the volume was of Nippon Commodities.
So I think we continue building a strong foundation. I think it’s very. We don’t want to look at the numbers on a monthly or a weekly basis. But I think the core, the key fundamental thing which is basically the tracking error, the liquidity. I think these are the two things we continue focusing on is a natural pull for the products and we feel commodities, you know, depending on the cycle, the way they move. I think investors, whenever they come, I think we remain one of the, one of the first protocols
Parag Joglekar
Also to add we are also seeing a lot of shifts coming in this category. You know that will really give stability to this category in times to come, which is to happen about five years, 10 years back. I think that’s a good trend. I hope we have answered your question.
Prayesh Jain
Yes sir,
Operator
Thank you. The next question is from the line of Shiraji Thaplian. Yes, security, Please go ahead.
Sundeep Sikka
Am I audible? Yeah. Thank you for the opportunity. Just a couple of questions surrounding the SIF business. One is that when is the SIF business actually starting on the ground? Is there any specific timeline for that and is there anything holding it up? That’s number one. Number two, what is the outlook for this Business, you know, from a medium term, maybe couple of years perspective and also long term, you know, five year perspective from an AUM standpoint and also perhaps profitability. Thank you.
Prayesh Jain
I think, let me, you know, I’ve been taking the second question first. You know, we are, this is a new business line. We somehow are convinced. I think this is something very, very can become very big. This is something what ETFs were about 10 years back. Very difficult to put a number to it. Ten years back if somebody would have asked about the ETF business, they would not have been able to say how big it can become. But I think we are very, very. We are seeing this business very see it as an important pillar in times to come.
Point number one, that is one of the reasons we built up a very strong team under the leadership of industry veteran Andrew. And so I think what will be the numbers? What will the aem? We do not know, but I think we clearly feel this is a product and a category. There is a demand for that. There’s a separate market for that. There’s a separate, separate niche and it requires specialist skill set for that. And we are getting ready. So this is an important opportunity. To your question of when do we hit the ground.
I think we are already, you know, I think while yes, we have not formally launched our product, definitely there’s a lot of work happening at the back end to decide and work on back testing of certain products and all that which we want to launch because no idea trying to launch SIF, which is a mutual fund plus 10, 20% variation of the mutual fund. I think you really want to differentiate it and add value to investors. So to your question. I think we are very serious about this business because we feel it satisfies.
It takes care of a separate need which some investors have. And I think Andrew and team are already working on it.
Sundeep Sikka
Thank you.
Operator
Thank you. The next question is from the line of Praveen from hsbc. Please go ahead.
Prayesh Jain
Thank you. Good evening. Congratulations on a good set of numbers. Two questions from my friends. Firstly, about Gift City wanted to understand your strategy and if you have any more products planned. Second is just about the little hand. So
Parag Joglekar
If there is any time going on resolution.
Prayesh Jain
So I think. Let me take the second one first. I think at this point of time we do not have anything new to disclose other than that has been disclosed to the stock exchanges. I think as and when we hear from Sebi, I think we’ll inform, you know, to the stock exchanges. So that is I think point number one. Point Number two on the Gibbsity, I think again Gibbs, we feel, I think Gibbsity is again becoming an important gateway into India. So I think while there is a lot of discussion happening on money moving out of India, launching products which is under lrs, but we see a bigger opportunity of money coming into India.
I think all our road shows that we’ve been doing in Japan and certain of the markets, I think we feel the acceptability of group cities increasing and more foreign flow will come into India through Grip City. So we have our operations, operations in place, we have a complete clear team and we have some more details on slide number 25. Great. Thank you very much and all the best.
Operator
Thank you. The next question is from the line of meHK from MK Global. Please go ahead.
Prayesh Jain
Hi. Thank you for the opportunity and congrats on a good set of numbers. So I have this one question on SIP folios. So we have seen the SIP folios have been declining on a sequential basis. So any read through out there and if you could just help us understand what are the SIP trends in terms of flows with respect to the month of April. And secondly, I just wanted to know your thoughts on the stickiness of SAP flows in the commodity ETF segment. Yeah, these are my two questions.
Parag Joglekar
The SIP inflows, if you take Q3 and Q4, of course there is a jump in the Q4 numbers. We have the Q3 like I mentioned, you know, November, December, January was a bit of a tough phase for the industry as well as inflows were lesser. But I think March we have seen a slightly better month. So the trends continue to be better as we go ahead. So that helps us in net fit growth every month which probably will start now. Reflecting further in the SIP book we have seen in March, our SIP book has improved.
So which is a clear indication that, you know, the investors are coming in with slightly better understanding of the volatility. So that’s the first part. When it comes to SIPs. In the commodity side, most of the SIPs are coming in gold and silver, of course. And there are assets which flow into other categories which have got a commodity tilt like hybrids like fund of fund. So, so we are, we keep getting flows which are coming through the fund of fund also into our hybrid into our commodity fund.
Prayesh Jain
Got it, sir. Thank you so much.
Parag Joglekar
Okay,
Operator
Thank you. Before we take the next question, a reminder to all the participants, if you wish to ask a question, please press star N1. The next question is from the line of Abhijit Sakhre from Kotak securities, please go ahead.
Prayesh Jain
Hi, good evening everyone. My first question is for Sarikar. And first of all, congratulations on the new role as well. Sir, on the sip. Again, like what we’ve seen in the last few months, like you mentioned, there was a little bit of a slowdown in net SIP inflows. Just wanted to check here whether you’ve seen people take money out and kind of take it out of the mutual funds itself or compared to the past, you’ve seen people kind of staying on within the mutual fund ecosystem and moving that money into some of the safety products or let’s say at least more exciting products like the commodity etf.
Just, you know, some qualitative sense on that. And secondly, in terms of the fintech versus traditional channel, you mentioned that the fintech channel ticket sizes have gone up. So if you could just give some sense of what is the relative difference in terms of the fintech SIP book versus the traditional sip book. That’s the first question.
Parag Joglekar
Okay, so. So SIPs, you know, when it comes to SIPs which are coming through the fintech platform, like I mentioned, they are a bit of a short cycle because they, they come with a past track record in perspective. And if there is a volatility, which is what is the fact in the market today, they tend to stop and restart. So the good part is they don’t exit the aum, they restart a new journey. And that’s the reason why the SIP discontinuation number in the industry looks to be on the higher side. But when it comes to net SIP accretion every month, there is a positive attrition which is happening when it comes to the average ats as an ATS is sequentially moving up on the digital side, maybe they are in the range of 60 to 70% of the regular SIP which comes in from the distribution channel.
But the catch up has been very good and very fast. So the education drive which is happening digitally through the fintech platforms and through the asset management companies is really helping the investors to commit a slightly larger SIP amount on a monthly basis. I hope I have answered your question.
Prayesh Jain
And secondly, you know, question for Parakh sir would be that, you know, what would be the MF revenues in the year 2026. Percentage? It will be much. It’s higher than 90%.
Parag Joglekar
92% of the overall revenues is mutual funds. Okay,
Sundeep Sikka
Understood. Those are my questions. Thank you.
Operator
Thank you. The next question is from the line of Viziansh Gupta from Layton pms. Please go ahead.
Prayesh Jain
One simple question. If I look at the Industry leader and the recent one that also IPO’d and looking at their operating margin versus our operating margin, is there a clear pathway in our head wherein we also can reach those EBITDA margins? Or given the product mix we are likely to remain at a lower EBITDA margin business compared to the other two companies. So vivant basically the reason for us is that we are maintaining the EBITDA margin. That is what we have been continuing even though there is a trajectory that the telescoping pricing will keep on dropping the overall tertiary but we are continuing to keep the margin intact for so many years.
Or the reason is mainly the mix in AUM we almost contribute to 33% of the ETF and we have significantly ETF higher ETF in our overall EM and that’s why our margins are low. But the idea is to grow the overall profitability year on year and grew as a percentage group which is in line or higher than the industry player. So that is what the number we are looking at rather than the only bips which is a derived number from that. So absolute profit will be more critical for us to monitor and grow as a business.
Parag Joglekar
Understood? Understood. The second question, if you can share any update on the
Prayesh Jain
Recent JV that we formed. So I think broadly I think that’s for AI business, you know, as we have signed up a non binding agreement, you know and I think it’s the idea is I think we will be I think launching products in aif. I think the idea is I think we clearly see an opportunity to get a lot of overseas money and especially the alternate, the alternate and the infrastructure side also as far as the JV is concerned it will also helps in collaboration not only in the AIF where it will be a JV but also within a mutual fund business to whether from a capability of international fund ETF and also offshore money.
So I think it will play out as the idea is to keep getting ready as India keeps getting stronger. I think more foreign money will come into India and and I think building capabilities,
Parag Joglekar
Access. I think we were always very strong in Japan. So now this JV gives us an access to Europe.
Prayesh Jain
Got it. And just one last question. Like in India we have feeder funds going into us, right? So let’s say there will be a Vanguard Fund or a JP Morgan fund and not specifically related to Nippon but generally as an industry level is there anything moving towards making a fund of fund kind of structure being made available in India so that actually the retail money can come in? Because I understand TKCITY but the ticket size for City will also be higher. But the feeder fund can actually drive much more retail anywhere.
So is there any work at an industry level to create feeder funds coming into India?
Parag Joglekar
I think I will not be able to comment on behalf of the industry.
Prayesh Jain
I
Parag Joglekar
Think as a company our
Prayesh Jain
Focus is always keeping investor in mind, I think. And as and when we feel there is an appetite and there’s a need, I think we will be open to launch it. And to your earlier question, having DWS with us, you know this is one of the largest international players, both also in ETF space in our ETF and passive, you know, so there could be, I wouldn’t want to say it will happen, but depending as and when there’s a need from the investors and the demand from the investors,
Parag Joglekar
We feel we are in a strong position to launch products like these.
Prayesh Jain
Thank you.
Operator
Thank you. That was the last question for today. I now hand the conference over to the management for Cuban Commons.
Prayesh Jain
Thank you all for taking our time to join us on the call today. If you have any other further queries, we will be happy to address the same. Post the call. Thank you.
Operator
Thank you very much on behalf of Motila Losbal Financial Services Ltd. That concludes this conference. Thank you all for joining us today. And you may not disconnect your lines.