ICICI Prudential Asset Management Company Ltd (ICICIAMC) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to ICICI Prudential Asset Management Company Limited's earnings conference call for the quarter ended September 30, 2026. Joining us today on the call are Mr. Nimesh Shah, MD & CEO, Mr. Navneet Agarwal, Chief Financial Officer, Mr. Vipin Bhandari, Head of Business and Mr. Darshan Sanghvi, Lead Investor Relations, who will be available to address your questions following our opening remarks. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Navneet Agarwal, CFO of ICICI Prudential AMC Limited. Thank you, and over to you, sir.
Navneet Agarwal (ICICI Prudential Asset Management Company Ltd): Good evening, everyone. Welcome to ICICI Prudential Asset Management Company Limited's earning conference call for the quarter ended September 30, 2026. I trust you all had an opportunity to review our earnings presentation and the investor material that have been shared on the Stock Exchange and on the website. I will start with a overview of the industry. The industry quarterly average AUM has grown by 13.4% year-on-year and 5.1% sequentially in Q2 FY '27, reaching to 87.49 lakh crore rupees. Out of this, equity and equity-oriented quarterly average AUM stood at 48.19 lakh crore rupees, reflecting a year-on-year growth of 15.3%. This growth reflects the continued broader trend of financialization, financialization of household savings despite periods of volatility driven by global rate movements
Navneet Agarwal (ICICI Prudential Asset Management Company Ltd): crude oil price, geopolitical tensions and even subdued market performance in last two years. In first half of this fiscal, Nifty 50 has delivered 1.3% return compared to midcap at 12.5% and small cap at 24.6%. During this quarter, net flows for the equity category was 1.06 lakh crore rupees which marked approximately 7% reduction as compared to previous quarter. Investor preferred categories like mid and small cap which received highest amongst of equity net flows. Their combined net share, share has increased to 36% in H1 FY '27 from 22% in FY '26. Hybrid category saw a reduction in net sale in Q2 FY '27 as compared to the previous quarter. September 2026 recorded SIP contribution of 32,490 crore rupees. Monthly SIP inflows have largely remained stable throughout Q2 FY '27. Similar to the net flows, the industry saw increased proportion of SIPs being directed towards small and mid-cap strategies. Debt segment continued to face marginal reduction with quarterly average AUM at 11.60 lakh crore rupees. Passive quarterly average AUM grew by 23% year-on-year and 3.1% sequentially to 15.19 lakh crore rupees. Industry continues to have positive new customer addition, and it has now reached a count of 6.3 crore customers which represent an increase of 11.1% year-on-year. I now hand over the call to Harshal for covering the performance of our company.
Navneet Agarwal (ICICI Prudential Asset Management Company Ltd): Thank you. Let's cover the financial performance for the quarter and yields which are presented on annualized basis. Also, to clarify comparative data has been restated by considering the effects of the specific funds that we have acquired from ICICI Ventures in April. Our operating revenue stood at 1,674 crore rupees, representing a growth of 16.3% year-on-year and 7% sequentially. For quarter ended, our operating net revenue mix from mutual fund was 89.91%, alternate 8.68% and advisory business 1.42%. Other income of 16.9 crore rupees reduced when compared to previous quarter, primarily due to mark-to-market. Operating expenses amounted to 493 crore rupees, which was an increase by 17.9% year-on-year and 6.2% quarter-on-quarter. Our operating profit before tax, which indicates the core profitability of the business reached 1,181 crore rupees. This represents a 15.7% increase year-on-year and a growth of 7.4% compared to the previous quarter. Profit after tax stood at 889 crore rupees, which is up by 6.1% year-on-year and has a de-growth of 7.8% quarter-on-quarter, which is primarily on account of the other income which was affected due to mark-to-market, as I mentioned earlier. Additionally, the Board of Directors has declared an interim dividend of 30 rupees per share. For H1 FY27, our gross yield and net yield on an annualized basis at the company level stood at 53 basis point and 48.8 basis point respectively. Net yield is arrived at after reducing fees and commission expenses on PMS and AIF business which is shown as an expense item in the P&L. For H1 FY27, our operating margins on an annualized basis stood at 37.3 basis point as compared to 36.6 basis point for H1 FY26. Thank you for your attention. I look forward to discussing our performance in more details and addressing any questions you may have.
Moderator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use headsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Supratim Datta from Jefferies India. Please go ahead. Supratim, may I request to unmute your line and proceed with your question? Supratim Datta, may I request to unmute your line and proceed with your question?
Nimesh Shah (ICICI Prudential Asset Management Company Ltd): Nirav, maybe we can move to the next person in the queue and we can come back to Supratim.
Moderator: Thank you. Next question is from the line of Rahil Shah from HSBC. Please go ahead.
Rahil Shah (HSBC): Hello, am I audible?
Moderator: Yes, go ahead.
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