Operating profit grows, but negative other income cuts ABSL AMC's net profit
Consolidated net profit fell -17.96% YoY and -30.58% QoQ, while the operating margin declined for a second straight quarter.
Filed 23 Apr 2026, 14:16 IST · Aditya Birla Sun Life AMC Ltd (ABSLAMC)
Key takeaways
- Consolidated operating profit rose +9.22% YoY as revenue grew +6.85% while expenses rose +3.73%, lifting operating margin by 1.26 percentage points.
- Net profit fell -17.96% YoY because other income represented -14.98% of pre-tax profit, despite a 10.51-percentage-point fall in the tax rate.
- Operating margin fell 2.46 percentage points QoQ as revenue declined -4.15% while expenses rose +1.82%.
Price around the results
Operating growth did not translate into reported profit
Aditya Birla Sun Life AMC reported consolidated revenue growth of +6.85% YoY to Rs 458.23 cr, with operating profit rising +9.22% to Rs 266.42 cr. Expenses grew more slowly than revenue, at +3.73%, which lifted operating margin by 1.26 percentage points. The sequential picture was weaker: revenue fell -4.15% and operating profit declined -8.04%.
Other income turned into a drag on earnings
Other income was negative at Rs 32.86 cr in Q4FY26, compared with Rs 71.96 cr a year earlier and Rs 81.50 cr in the previous quarter. It represented -14.98% of pre-tax profit, pulling pre-tax profit down -28.08% YoY and -38.76% QoQ. The lower tax rate, down 10.51 percentage points YoY and 10.05 percentage points QoQ, cushioned the decline but did not prevent net profit from falling.
Margin remains below reported-sector median
Operating margin declined from 61.25% in Q2FY26 to 60.60% in Q3FY26 and 58.14% in Q4FY26, marking two consecutive quarterly declines. Among 52 Financial Services peers that had reported the same quarter, ABSL AMC's margin was 1.27 percentage points below the 59.41% median. Its margin ranked 24th from the bottom.
Management points to distribution and newer product areas
Management said it is targeting accelerated growth in passive and alternative investments and plans to continue expanding its distributor base. The company told analysts that it added more than 10,400 new MFDs in FY26 and is taking its distribution network into deeper markets. It also reported around 617,000 new SIPs, including STP, during the quarter and 11.0 million serviced folios as of March 31, 2026.
The market reaction was unusual in direction, not size
The stock rose +2.70% on the filing day and was up +4.68% on the next trading day, with filing-day volume at 4.29 times normal. The initial +2.70% move was close to the stock's 2.79% median absolute move after its past eight results. However, the historical pattern was negative in six of eight instances, so the early rise differed from its usual direction.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹458 cr | ₹478 cr | -4.15% | +6.85% |
| Other income | ₹-33 cr | ₹82 cr | — | — |
| Expenses | ₹192 cr | ₹188 cr | +1.82% | +3.73% |
| Operating profit | ₹266 cr | ₹290 cr | -8.04% | +9.22% |
| Operating margin (%) | 58.14% | 60.60% | — | — |
| Interest | ₹1 cr | ₹1 cr | -4.84% | +7.27% |
| Depreciation | ₹13 cr | ₹12 cr | +11.04% | +33.13% |
| Profit before tax | ₹219 cr | ₹358 cr | -38.76% | -28.08% |
| Tax | ₹32 cr | ₹89 cr | -63.62% | -58.04% |
| Net profit | ₹187 cr | ₹270 cr | -30.58% | -17.96% |
| EPS (₹) | ₹6.48 | ₹9.33 | -30.55% | -18.08% |
Operating margin of 58.14% compares with a Financial Services sector median of 59.41% across 52 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.70% | +3.54% |
| Next session | +4.68% | — |
| 5 sessions | -0.47% | +1.10% |
| 15 sessions | +1.02% | — |
| 30 sessions | +2.38% | — |
Volume on the results session was 4.29× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company registered around 617,000 new SIPs, including STP, during the quarter.
- The company serviced 11.0 million folios as of March 31, 2026.
Guidance & outlook
- The company is targeting accelerated growth in passive and alternative investments.
- The company plans to continue expanding its distributor base.
Expansion
- The company is expanding its distribution network into deeper markets.
- The company empaneled more than 10,400 new MFDs in FY26.
New products
- The company lists ABSL India Special Opportunities Fund Series II in its launched or pipeline funds.
- The company lists ABSL Structured Opportunities Fund II in its launched or pipeline funds.
New initiatives
- The company is using Gen AI as part of its business transformation training.
- The company incorporated ABSL Sun Life AMC International (IFSC) as a wholly owned subsidiary.
What to watch
- Whether operating margin recovers from 58.14% after two consecutive quarterly declines.
- Whether other income moves back above the -14.98% share of pre-tax profit recorded this quarter.
- Whether quarterly new SIP registrations build on the 617,000 recorded in Q4FY26.