Nippon Life India Asset Management (NAM-INDIA) Q3 24/25 earnings summary

Executive summary

• Fastest-growing AMC among top peers, maintaining position as 4th largest in India with QAAUM of INR 5.70 trillion, up 51% YoY and 4% QoQ, and market share at 8.31% (+63 bps YoY).

• Achieved highest-ever quarterly operating profit of INR 3.76 billion in Q3 FY25, up 50% YoY, and profit after tax of INR 2.95 billion, up 4% YoY but down 18% QoQ.

• Systematic flows reached INR 99.1 billion in Q3 FY25, up 67% YoY and 9.7% QoQ; SIP AUM up 37% YoY.

• Largest unique investor base at 20 million, representing a 38% market share, with 31 million folios and 2.3 million added in Q3 FY25.

• Launched a branch in GIFT City and introduced the Nippon India Large Cap Fund - GIFT City in January 2025.

Financial highlights

• Q3 FY25 revenue at INR 5.88 billion, up 39% YoY and 3% QoQ; operating profit at INR 3.76 billion, up 50% YoY and 3% QoQ.

• Profit after tax at INR 2.95 billion, up 4% YoY but down 18% QoQ; 9M FY25 PAT at INR 9.88 billion, up 29% YoY.

• Operating expenses at INR 2.12 billion, up 23% YoY and 3% QoQ; excluding ESOP, up 17% YoY.

• Other income at INR 0.15 billion, down 86% YoY and 87% QoQ due to mark-to-market losses.

• Earnings per share (consolidated) at INR 11.5 for FY24; Q3 FY25 basic EPS at INR 4.66.

Outlook and guidance

• Focus on expanding high-yielding segments, retail AUM, and scaling non-mutual fund businesses.

• Continued product innovation, digital adoption, and geographic expansion, especially in B-30 and B-100 markets.

• Ongoing rationalization of distribution costs in large-cap and multi-cap schemes, with potential for further rationalizations.

• No plans for aggressive branch expansion; focus on efficiency and leveraging technology.

• Ongoing fund launches in GIFT City and alternative investment products.