Nippon Life India Asset Management (NAM-INDIA) Q4 24/25 earnings summary

Executive summary

• Achieved highest-ever annual profit after tax of INR 12.86 billion, up 16% year-over-year, and record operating profit of INR 14.04 billion, up 47% year-over-year for FY25.

• Maintained position as 4th largest AMC in India with QAAUM of INR 5,572 billion, up 29% YoY, and market share at 8.26% (+30 bps YoY).

• Highest investor base in the industry at 32.5 million folios, adding 1.5 million in Q4 FY25.

• SIP market share doubled in three years to 10.16% in March 2025, with strong growth in systematic flows and digital transactions, 74% of purchases via digital channels.

• Board declared a total dividend payout of INR 18 per share (91% of net profit), including a final dividend of INR 10 per share.

Financial highlights

• Q4 FY25 revenues at INR 5.67 billion, up 21% year-over-year; operating profit at INR 3.55 billion, up 26% year-over-year.

• Q4 profit after tax at INR 2.99 billion, down 13% year-over-year but up 1% sequentially; full-year profit after tax at INR 12.86 billion, up 16% year-over-year.

• FY25 consolidated revenue at INR 22.31 billion, up 36% YoY; other income for FY25 at INR 2.9 billion, down 26% YoY.

• Operating expenses for Q4 at INR 2.12 billion, up 14% YoY; excluding ESOP, expenses grew 8% YoY.

• Dividend payout ratio at 91% of net profit for FY25.

Outlook and guidance

• Expecting cost increase of around 15% ex-ESOP for FY26; ESOP cost guidance for FY26 is INR 48-49 crore, tapering down in FY27.

• Continued focus on retail and HNI segments, digital acquisition, systematic flows, and expanding product offerings.

• Offshore business to leverage Nippon Life’s global network, with Japan as the core market and expansion in Europe and Asia.

• Ongoing fundraising in alternative investments and international expansion, including GIFT City initiatives.

• Management continues to evaluate market conditions for optimal utilization of IPO proceeds.