ABSLAMC

Aditya Birla Sun Life AMC’s (ABSLAMC) 4QFY25 operating revenue grew 17% YoY to ~INR4.3b (in line), leading to a ~0.9bp YoY improvement in yield on management fees to 44.9bp (vs. our est. of 45.4bp). For FY25, revenue grew 25% YoY to INR16.8b. Total opex grew 15% YoY to INR1.8b (in line), with a cost-to-income ratio of 43.1% (vs. 44% in 4QFY24). EBITDA came in at INR2.4b (in line), up 19% YoY, with margins at 56.9% (vs 56% in 4QFY24 and our est. 57.6%). The better-than-expected other income led to a 12% beat on PAT to INR2.3b, up 10% YoY/2% QoQ. For FY25, PAT grew 19% YoY to INR9.3b. Market volatility led to a temporary dip in SIP flows. However, management remains confident that SIP momentum will recover as fund performance continues to improve (85% of funds are meeting the benchmarks). Reiterate a BUY rating with a TP of INR780, based on 25x Mar’27E core EPS.