Nippon Life India Asset Management (NAM India) has reported its highest-ever quarterly operating profit of INR 4.19 billion for Q2, marking a significant 15% year-over-year and 11% quarter-over-quarter increase. The company's strong performance comes amid its position as the fastest-growing asset management company (AMC) among the top 10 in India during H1.

Financial Highlights

NAM India's Q2 financial results showcase robust growth across key metrics:

The company's total assets under management (AUM) reached INR 7.61 trillion, encompassing mutual funds, managed accounts, offshore funds, and GIFT City operations.

Market Share and Growth

NAM India has seen notable improvements in its market position:

• Overall market share increased to 8.51%, the highest since June 2019
• Equity market share rose to 7.13%, up 17 basis points year-over-year
• Mutual Fund Quarterly Average AUM (QAAUM) grew by 19.5% year-over-year to INR 6.57 trillion

Systematic Investment Plans (SIPs) and ETFs

The company reported strong performance in its systematic investment plans and exchange-traded funds (ETFs):

• Monthly systematic book increased by 16% year-over-year to INR 36.4 billion
• SIP market share stood at 10.02% for September
• ETF market share reached 19.77%, with a 160 basis points increase year-over-year
• NAM India maintains a 50% share in industry ETF folios

Dividend Declaration

The Board of Directors has declared an interim dividend of INR 9.00 per share along with the Q2 results, reflecting the company's strong financial position and commitment to shareholder returns.

Digital Initiatives and Future Outlook

NAM India continues to strengthen its digital capabilities:

• Digital purchase transactions and new SIP registrations rose to 4.2 million in Q2, up 18% year-over-year
• Digital business contributed 75% of total new purchase transactions in H1

The company remains focused on expanding its alternative investment fund (AIF) offerings and offshore presence, with plans to launch new products and enter new geographies.

Sundeep Sikka, Executive Director & CEO of Nippon Life India Asset Management, commented on the results during the earnings call, stating, "NAM India has achieved its highest ever quarterly Operating Profit at INR 4.19 bn. Further, NAM India was the fastest growing AMC in the Top-10 AMCs in H1."

As the Indian mutual fund industry continues to grow, NAM India's strong performance and strategic initiatives position it well for future growth in the dynamic asset management landscape.

Nippon Life India Asset Management Limited (NAM India), the asset manager of Nippon India Mutual Fund (NIMF), has announced robust financial results for the second quarter of fiscal year 2026, alongside significant corporate developments and the submission of its IPO proceeds monitoring report.

Financial Highlights

NAM India reported a strong financial performance for Q2 FY26:

The company's Board of Directors has approved an interim dividend of INR 9.00 per equity share.

Assets Under Management (AUM) Growth

NAM India continues to demonstrate significant growth in its asset management business:

• Total AUM stood at INR 7.61 trillion (US$ 85.7 billion) as of September 30, 2025.
• Mutual Fund Quarterly Average AUM (QAAUM) reached INR 6.57 trillion, up 20% year-over-year.
• Market share in QAAUM increased by 22 basis points year-over-year to 8.51%.
• Equity market share rose by 17 basis points year-over-year to 7.13%.

Business Performance Highlights

• Systematic flows for Q2 FY26 increased by 19% year-over-year to INR 107.2 billion.
• The company maintains a strong presence in B-30 (Beyond Top 30) cities, with AUM of INR 1.32 trillion, forming 19.8% of NIMF's AUM.
• NAM India remains a leader in the ETF space with AUM of INR 1.83 trillion and a market share of 19.77%.
• Digital channels contributed 75% to new purchase transactions in H1 FY26.

Corporate Developments

The Board of Directors has extended the term of Mr. Sundeep Sikka, appointing him as the Managing Director & Chief Executive Officer for a period of 5 years, effective from April 22, 2026, to April 21, 2031. This appointment is subject to shareholder approval.

Additionally, the company announced the shifting of its registered office within Mumbai to 30th Floor, One Lodha Place, Senapati Bapat Marg, Lower Parel, effective from November 10, 2025.

IPO Proceeds Monitoring Report

NAM India submitted its monitoring agency report for IPO proceeds utilization for the quarter ended September 30, 2025. Key points from the report include:

• The company's initial public offering raised INR 1,542.24 crores, comprising INR 616.90 crores fresh issue and INR 925.34 crores offer for sale.
• HDFC Bank Limited served as the monitoring agency.
• As of September 30, 2025, INR 190.02 crores of unutilized IPO proceeds remain.
• INR 170 crores are invested in HDFC Bank fixed deposits earning 6% returns, maturing March 30, 2026.
• The company has fully utilized funds for:
  • Advertising, marketing and brand building activities (INR 72.08 crores)
  • Continuing interest in new mutual fund schemes (INR 100 crores)
  • Inorganic growth initiatives (INR 165 crores)
• The monitoring agency confirmed no deviations from disclosed objects and declared no conflict of interest.

Management Commentary

Mr. Sundeep Sikka, ED & CEO of NAM India, expressed gratitude for the Board's confidence in extending his leadership term. He highlighted the company's continued market share gains, noting that NAM India was the fastest-growing AMC among the top-10 players in H1 FY26. Sikka also emphasized the robust performance in Equity Net Sales and SIP market share, both of which remain above the Equity AUM market share.

"We remain humbled to have the trust of 21.9 million unique investors, which means over 1 in every 3 mutual fund investors in India invests with us," Sikka stated.

The company's strong performance, strategic initiatives, and transparent reporting of IPO proceeds utilization position it well for continued growth in India's dynamic asset management industry. With its focus on digital channels, expanding presence in B-30 cities, and leadership in the ETF space, NAM India appears well-equipped to capitalize on the evolving investment landscape in India.