Solid growth masked by mark-to-market; retail strength real but fragile

June ₹4,872 Cr (down 4.5% from March ₹5,104 Cr); Q1 inflows only +1% QoQ industry-wide

Equity net flows ₹1.14 lakh crore; added 7 of 10 new customers industry-wide; market share up to 19.8% YoY

₹181 Cr mark-to-market gain inflated PAT growth; excluding MTM, underlying growth 11-12%

36.9 bps vs 36.1 bps prior year Q1 — flat, not expanding

All passed to distributors; confirmed in call

4 strategies launched (Equity Ex-Top 100, Hybrid Long-Short, Active Asset Allocator, Equity Long-Short); ₹2,678 Cr AUM; sector rotation SIF approved; long-term potential acknowledged but early stage.

Smart Navigator Fund gaining investor interest; early wins signal international expansion opportunity. Prior: no offshore business.

5M+ website search queries processed; 60% email customer queries AI-replied; SIP renewal calls transitioning to AI-driven. No prior disclosure this detailed.

SEBI approval received; 2031/2036/2041 funds in pipeline. Target date/de-risking portfolio product, first for India AMC market.

Prior call implied confidence in growth + retail momentum. This call explicitly avoided quantifying FY27 revenue/margin targets ('we don't give guidance for future').

Resilient. June rebounded 26% MoM. Industry-level SIP +1% QoQ Q1 due to May dip. Quality of sales (long-term outlook) more important than volume. Structural support remains.

~50% seed capital, SEBI-driven, reflects underlying asset MTM. Will come back to you on AIF/REIT split separately. Ballpark 50% seed, 50% non-seed.

Stoppages > new SIPs net-down. New SIPs still coming in. Don't count by volume; focus on net inflow. Market volatility caused churn.

Corporate liquidity pressure; war-driven working capital needs. Not seasonality. Institutional redemptions amid tight liquidity. Structural, not quarterly.

Gold/silver inflows at industry level major driver. Index fund base small. Institutional parking on ETF side. Ex-gold/silver, in-line with industry.

Mix of flows + MTM. PMS has higher mid/small cap concentration, so higher MTM. Also draw-down model (clients call capital later). Segmented focus on HNI/concentration risk vs MF mass market.

Quality matters. Responsible distribution (advised, long-term outlook) retains; self-selected (past performance chasing) does not. Portfolio performance after 2 years drives continuation, not SIP size.

Management declined forward guidance ('we don't give guidance'). Implied view: confidence in retail SIPs + net inflows + market recovery, but cautious on near-term macro/geopolitical.

36.9 bps Q1 vs 36.1 bps prior Q1; flat. SEBI TER regulation passed to distributors, no impact. No expansion guide; yield compression from scale a structural risk.

No capex guidance. Investments noted in AI capability, distribution tech, product infrastructure. Expected to scale without margin dilution per management.

June SIPs ₹4,872 Cr down 4.5% from March. Self-selected SIPs (based on past performance) more prone to stoppage after volatility. Q1 showed net SIP compression despite industry rebound in June. If 2-year returns turn negative, mass redemptions possible.

Debt AUM -6% QoQ to ₹11.93 Lakh Cr. Management attributes to corporates withdrawing for working capital due to geopolitical tensions (war-driven capex spike). Risk: if corporates reallocate to debt permanently or liquidity stays tight, debt AUM growth stalled.

₹181 Cr other income (18.8% of reported PAT) due to portfolio MTM on June 30 market rebound vs March 31 dip. If equity markets correct, next quarter's MTM could reverse, wiping out gains. Underlying operating growth only ~5-7%, not the reported 23.1%.

Passive +25.3% YoY; SEBI TER regulation ongoing. Equity yield 66 bps at risk. Mutual fund becoming 'pull product' (per Nimesh) due to low cost, not differentiation. Pricing power limited.

Advisory AUM moderated due to FII selling in India (geopolitical crisis). Advisory is 1.44% of revenue, but international base volatile. No disclosed mitigation or hedging.