Aditya Birla Sun Life AMC reported a net profit of ₹2,210 million for Q2FY27, marking an 8% year-on-year decline from ₹2,413 million in the corresponding quarter last year. While revenue from operations grew 5% to ₹4,838 million, a sharp rise in employee benefits expenses pressured operating profitability.

Financial performance overview

The company’s total revenue, including other income, stood at ₹5.3 billion in Q2FY27 compared to ₹5.1 billion in Q2FY26. Profit before tax decreased by 6% YoY to ₹3.0 billion, primarily due to a 33% YoY increase in employee benefit expenses and lower other income compared to the previous year’s high base.

The half-yearly results reflect similar trends, with H1FY27 net income at ₹5,305 million, up 2% YoY from ₹5,184 million. Total revenue for the first half grew 4% to ₹9,468 million, while total expenses rose 17% to ₹4,493 million, driven largely by a 29% increase in employee costs.

Asset under management growth

Despite the dip in quarterly profits, ABSLAMC witnessed robust growth in its assets under management (AUM). The overall average AUM, including alternate assets, surged 140% YoY to ₹11,056 billion. This significant jump is attributed to the inclusion of large mandate QAAUMs in the alternate assets category, which grew to ₹6,576 billion from ₹303 billion in Q2FY26.

Excluding mandates, the overall average AUM stood at ₹4,528 billion. The mutual fund AUM grew 4% YoY to ₹4,418 billion, with equity MF AUM rising 9% YoY to ₹2,092 billion. The equity mix within mutual fund AUM improved to 47.4%.

Key AUM metrics

• Mutual Fund QAAUM: ₹4,418 billion (+4% YoY)
• Equity MF QAAUM: ₹2,092 billion (+9% YoY)
• Individual MAAUM: ₹2,177 billion (+5% YoY)
• Passive QAAUM: ₹399 billion (+10% YoY)
• SIP Contribution: ₹10.94 billion for September 2026

Distribution and customer base

The company continues to expand its retail franchise, servicing 11.4 million folios as of September 30, 2026. The distribution network comprises over 96,000 KYD-compliant MFDs, 360+ national distributors, and 90+ banks across 310+ locations, with over 80% of locations in B-30 cities.

New SIP registrations reached 705,000 in Q2FY27, up from 582,000 in Q2FY26. Contributing SIP accounts increased to 4.17 million, reflecting sustained retail participation despite market volatility.

What the numbers show

A divergence exists between top-line growth and bottom-line performance. While revenue from operations grew 5% YoY, operating profit before tax declined 6% due to a disproportionate 33% YoY rise in employee benefit expenses. This indicates that cost pressures, particularly in compensation, are currently outpacing revenue growth, compressing margins despite strong AUM expansion in the alternate assets segment.

Aditya Birla Sun Life AMC Ltd. has established a wholly owned subsidiary at the International Financial Services Centre (IFSC) in GIFT City, Gandhinagar, to launch two new retail fund of funds schemes.

The new entity, Aditya Birla Sun Life AMC International (IFSC) Limited, is regulated by the International Financial Services Centres Authority (IFSCA). Its primary objective is to build investment solutions that allow Indian and foreign investors to participate in global opportunities through the IFSC framework.

Initial product offerings

The subsidiary’s initial offerings target distinct investor segments with specific geographic exposures:

• ABSL Emerging Market Equity Fund (Outbound): An open-end thematic fund of funds designed for resident Indians and eligible Indian corporates. It seeks long-term capital appreciation by investing predominantly in units of the ARGA Emerging Market Equity Fund and other emerging market funds. The underlying strategy utilizes a value-oriented approach supported by quantitative screening and fundamental research. Resident Indians can invest via the Liberalised Remittance Scheme (LRS), while corporates can participate through the Overseas Portfolio Investment (OPI) route.
• ABSL India Growth Fund (Inbound): An open-end diversified fund of funds aimed at NRI and foreign investors. This actively managed scheme invests in equity-oriented schemes, including ETFs and Index Funds, of Aditya Birla Sun Life Mutual Fund. It dynamically allocates across sectors, market caps, and themes to capture opportunities within the Indian market.

Investment thresholds and strategic context

For eligible investors, the international investing option provides an initial investment amount of USD 500 and in multiples of USD 100. Subsequent investments start at USD 100 and in multiples of USD 100. This structure offers exposure beyond the limited representation available in domestic markets, facilitating portfolio diversification across geographies.

A. Balasubramanian, Managing Director & CEO of Aditya Birla Sun Life AMC Ltd., stated that establishing presence at GIFT IFSC is a strategic step towards building global investment capabilities from India. He noted that the initiative aims to create solutions enabling Indian investors to participate in global growth and NRI/foreign investors to participate in India's growth story, leveraging the capabilities of leading Indian and global investment managers.

What the numbers show

The dual-fund structure reveals a bidirectional capital flow strategy embedded in the product design. The ABSL Emerging Market Equity Fund facilitates outbound capital deployment from India to global emerging markets via LRS/OPI routes, while the ABSL India Growth Fund channels inbound foreign capital into domestic equity schemes. This symmetry allows the AMC to act as a bridge for cross-border asset allocation, capturing fees from both outward diversification needs of domestic investors and inward exposure demands of foreign entities, all under a single regulatory umbrella in GIFT City.