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.

Nippon Life India AMC has released its financial results for the second quarter, showcasing a mixed performance with revenue growth offset by a decline in net profit.

Financial Highlights

Key Takeaways

Revenue Growth

The company reported a significant increase in revenue, rising to ₹6.58 billion from ₹5.71 billion in the same quarter last year, marking a 15.24% year-over-year growth.

Profit Decline

Despite the revenue growth, net profit saw a slight decrease, falling to ₹3.45 billion from ₹3.60 billion in the corresponding period last year.

Improved Operational Efficiency

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed a substantial improvement, increasing to ₹3.18 billion from ₹2.48 billion in the previous year's quarter.

Enhanced Profitability

The EBITDA margin expanded by 4.97 percentage points, reaching 48.36% compared to 43.39% in the same quarter last year, indicating improved operational efficiency.

The mixed results present an interesting picture of Nippon Life India AMC's performance. While the company has successfully grown its revenue and improved its operational efficiency, as evidenced by the higher EBITDA and EBITDA margin, the slight decline in net profit suggests potential challenges or increased costs that may have impacted the bottom line.

Investors and market observers may want to keep an eye on how the company manages to translate its revenue growth and operational improvements into stronger net profit performance in the coming quarters.