ICICIAMC

Outpaces Industry Growth

reported another strong quarter in Q4FY26, continuing to outpace industry growth despite a tougher environment for mutual funds. Quarterly average AUM (QAAUM) rose 25% YoY to ₹11.8 trillion, ahead of the industry’s 21% growth to ₹81.6 trillion. Operating revenue grew 20% YoY, though net profit rose only 10% to ₹763 crore, impacted by mark-to-market losses. The stock has gained 20% this month, reflecting investor confidence in its leadership position. Financial Performance QAAUM: ₹11.8 trillion (+25% YoY), vs. industry growth of 21%. Operating revenue: ₹1,517 crore (+20% YoY). Net profit: ₹763 crore (+10% YoY), down 17% sequentially. FY26 net profit: ₹3,298 crore (+24% YoY). Industry growth slowed to 0.7% in Q4FY26, with equity and debt declines offset by passive gold/silver fund gains. Industry Context Regulatory headwinds: new caps on expense ratios, tighter commissions, and stricter thematic fund rules effective 1 April. Market volatility threatens equity inflows; rising yields pressure debt AUM. SIP inflows remain resilient: ₹32,000 crore in March, up from ₹30,000 crore in February and ₹26,000 crore a year ago, reflecting retail investors’ “buy the dip” approach. Strategic Positioning Diversified distribution: 29% direct channel, 37% mutual fund distributors, 18% banks (including ICICI Bank), remainder via national distributors. Dynamic asset allocation strategies gaining traction amid volatile markets. Alternatives: currently <10% of AUM, but set to expand with transfer of assets from ICICI Venture (private equity, credit, real estate). Overseas push: Dubai office, Gift City AIFs, and specialized investment funds broaden growth runway. Valuation & Outlook Stock trades at ~40x FY27E earnings (Bloomberg consensus). Strong track record, diversified channels, and alternatives expansion provide resilience. Near-term profit growth may remain uneven, but long-term positioning remains robust.