Nippon AMC Q2 FY27: consolidated PAT -6% YoY on SEBI one-off; underlying profit up ~22%

Nippon Life India AM's consolidated PAT fell 5.9% YoY to ₹324.4 Cr (and 35.6% QoQ off a record ₹503.7 Cr base), but the decline traces entirely to a ₹96.76 Cr exceptional charge tied to the SEBI AT-1/Yes Bank settlement. Adjusting for that one-off, underlying PAT rose ~22.2% YoY to roughly ₹421 Cr, tracking closely with 20.9% YoY revenue growth. Our pre-result preview had flagged PAT in the ₹450-480 Cr range; both the reported ₹324 Cr print and the adjusted ~₹421 Cr fall short of that street marker, making this a miss on the bottom line even after stripping the charge. Operationally the quarter was strong: revenue from operations grew 20.9% YoY to ₹795.75 Cr on 20% YoY QAAUM growth to ₹7.87 trillion (market share +51bps to 9.02%), and operating profit (revenue less total expenses) hit a record ₹523.4 Cr, +25% YoY, with operating margin expanding to 65.8% from 65.3% a year ago — management's own release calls it the "highest ever quarterly operating profit." Total expenses grew just 13.9% YoY to ₹272.33 Cr, below the 18-20% ex-ESOP opex growth management guided on the Q1 FY27 call — a beat on cost discipline. Net profit margin, in contrast, compressed to 39.6% from 49.6% a year ago, but that compression sits entirely below the operating line and reflects the exceptional charge, not the core business. On the SEBI matter, the company remitted ₹7.68 Cr in settlement plus ₹89.08 Cr of reversed management fees (with interest) this quarter under SEBI's in-principle acceptance of settlement terms; the formal Settlement Order remains awaited. Standalone PAT of ₹316.70 Cr tracked closely with the consolidated ₹324.37 Cr figure — no material standalone-consolidated divergence. The Board also declared an interim dividend of ₹9.50/share (record date October 28, 2026). CEO Sundeep Sikka's framing — "highest AUM growth and market share increase among the Top-10 AMCs in H1 FY27" — centers on the operating print, consistent with equity, ETF, HNI and B-30 AUM all gaining share this quarter. Systematic flows grew just 4% YoY to ₹11,150 Cr (INR 111.5 bn), trailing the 20%+ pace of AUM growth — worth watching if net-sales momentum keeps up with scale into Q3. The SIF launch and the 40% DWS JV stake remain pending regulatory approval, both flagged on the Q1 FY27 call as pipeline items not yet reflected in this quarter's numbers.