Nippon Life India Asset Management Q2 FY27 results: net profit down 5.9% to ₹324.37 crore, revenue up 20.9%

How did Nippon Life India Asset Management perform in Q2 FY27?

Nippon Life India Asset Management reported consolidated revenue of ₹795.75 crore in Q2 FY27, the July–September 2026 quarter, against ₹658.12 crore in Q2 FY26, a rise of ₹137.63 crore or 20.9%. Against Q1 FY27, revenue was up ₹28.88 crore or 3.8% from ₹766.87 crore. Total income was ₹818.89 crore, higher by ₹124.18 crore than the year-ago quarter but lower by ₹118.19 crore than the previous quarter.

EBITDA for the quarter was ₹537.47 crore against ₹429.54 crore in Q2 FY26, a rise of ₹107.93 crore or 25.1%, and up ₹29.66 crore from ₹507.81 crore in Q1 FY27. The EBITDA margin was 67.5%, up 2.2 percentage points from 65.3% a year earlier and 1.3 percentage points from 66.2% in the previous quarter.

Profit before tax was ₹449.80 crore, down ₹5.71 crore or 1.3% from ₹455.51 crore in Q2 FY26 and down ₹214.69 crore or 32.3% from ₹664.49 crore in Q1 FY27. Net profit was ₹324.37 crore, down ₹20.27 crore or 5.9% from ₹344.64 crore a year earlier and down ₹179.33 crore or 35.6% from ₹503.70 crore in the previous quarter. Basic EPS was ₹5.07, against ₹5.42 in Q2 FY26 and ₹7.89 in Q1 FY27.

On a standalone basis, revenue for the quarter was ₹746.80 crore, up 22.1%, and profit after tax was ₹316.70 crore, against ₹338.42 crore in Q2 FY26. The company's filing also showed standalone profit before exceptional items and tax of ₹537.77 crore in Q2 FY27.

What changed in Nippon Life India Asset Management's costs and profit?

The main change in profit came from an exceptional charge of ₹96.76 crore in Q2 FY27, against no exceptional item in Q2 FY26 and in Q1 FY27. The filing said this comprised Rs. 89.08 crores, including interest, on account of reversal of management fee earned, and Rs. 7.68 crores towards settlement amount in respect of the Company and certain officials, paid during the quarter under the Yes Bank AT-1 settlement proceedings.

Total expenses rose ₹33.13 crore or 13.9% to ₹272.33 crore from ₹239.20 crore in Q2 FY26. Employee cost was up ₹15.55 crore or 12.6% at ₹138.83 crore, other expenses were up ₹11.92 crore or 13.9% at ₹97.43 crore, and depreciation was up ₹3.59 crore or 40.7% at ₹12.41 crore. Finance costs fell ₹0.16 crore or 8.9% to ₹1.64 crore.

Other income fell ₹13.45 crore or 36.8% to ₹23.14 crore from ₹36.59 crore in Q2 FY26, and was down ₹147.07 crore or 86.4% from ₹170.21 crore in Q1 FY27. Tax expense was ₹125.66 crore, up ₹14.40 crore or 12.9% from ₹111.26 crore a year earlier and down ₹35.74 crore or 22.1% from ₹161.40 crore in the previous quarter.

Profit margin fell to 40.8% from 52.4% a year earlier, a decline of 11.6 percentage points, and from 65.7% in Q1 FY27, a decline of 24.9 percentage points. Against the previous quarter, total expenses were lower by ₹0.26 crore or 0.1%, with employee cost up ₹0.02 crore, finance costs up ₹0.07 crore, depreciation up ₹0.45 crore and other expenses down ₹2.49 crore.

How did the first half of FY27 go?

For the first half of FY27, consolidated revenue was ₹1,562.62 crore against ₹1,264.73 crore in H1 FY26, a rise of ₹297.89 crore or 23.6%. Total income was ₹1,755.97 crore, up ₹308.65 crore or 21.3% from ₹1,447.32 crore.

Profit before tax for the half year was ₹1,114.29 crore, up ₹134.89 crore or 13.8% from ₹979.4 crore in H1 FY26. Net profit was ₹828.07 crore, up ₹87.31 crore or 11.8% from ₹740.76 crore, and basic EPS was ₹12.93 against ₹11.66.

On a standalone basis, revenue for the half year was ₹1,467.52 crore against ₹1,175.24 crore a year earlier, and profit before exceptional items and tax was ₹1,182.07 crore against ₹958.54 crore. Standalone profit after tax was ₹803.12 crore against ₹723.71 crore, with basic EPS of ₹12.55 against ₹11.39.

What do the balance sheet and cash flow show?

Total assets stood at ₹5,404.54 crore as on 30 September 2026, against ₹5,192.28 crore as on 31 March 2026. Total equity was ₹4,770.1 crore, higher than ₹4,659.14 crore at the previous balance sheet date. No borrowings figure was given for either date. Cash and cash equivalents were ₹8.87 crore against ₹16.58 crore, and there were no inventories at either date.

For the first half of FY27, net cash from operating activities was ₹637.59 crore against ₹583.85 crore in H1 FY26. Cash from investing activities was ₹106.93 crore against a negative ₹1.4 crore, and cash used in financing activities was ₹752.23 crore against a negative ₹596.76 crore. Capital expenditure was ₹18.38 crore against ₹6.54 crore.

How has Nippon Life India Asset Management done over the last 8 quarters?

Revenue has risen year on year in each of the last eight quarters. It reached a quarterly high of ₹795.75 crore in Q2 FY27, up from ₹738.73 crore in Q4 FY26 and ₹766.87 crore in Q1 FY27, while the lowest in the series was ₹566.54 crore in Q4 FY25.

Net profit peaked at ₹503.7 crore in Q1 FY27 and was lowest at ₹295.36 crore in Q3 FY25, before falling to ₹324.37 crore in Q2 FY27. The EBITDA margin reached its high of 68.6% in Q4 FY26 and its low of 64.0% in Q1 FY26, and stood at 67.5% in Q2 FY27.

What else did the company announce?

At its meeting on 22 October 2026, the Board approved the unaudited financial results, both consolidated and standalone, for the quarter and half year ended 30 September 2026, along with the limited review reports of the statutory auditors. The Board also declared an interim dividend of Rs. 9.50 per equity share of face value Rs. 10 each, fixed the record date as 28 October 2026 and said payment would be made on and from 5 November 2026.

The Board noted that Rs. 96.76 Crores had been paid during the quarter under the settlement proceedings relating to SEBI's show cause notice on certain past investments by NIMF schemes in the Yes Bank AT-1 Bonds, and that the Settlement Order from SEBI was awaited. The company also filed an investor presentation for the quarter on 22 October 2026.

What did Nippon Life India Asset Management's management say?

Management said the company was the fastest-growing top-10 asset manager in the first half of FY27 on both overall and equity AUM, with total AUM of INR 8.68 trillion and mutual fund QAAUM of INR 7.87 trillion, up 19.9% year on year. It said ETF AUM reached INR 2.49 trillion with a 21.12% share, and digital supplied 78% of new purchases.

Management maintained overall cost-growth guidance at 18%-20% over the next 6-8 quarters. It said employee costs should remain broadly in a similar range, with possible increases for new hires and training, while AIF subsidiary employee costs would rise over the next 3-6 quarters as senior and other professionals were added. FY27 ESOP expense was expected at about INR 58 crore, and two SIF strategies were planned for launch after SEBI clearance, with timing not specified.

On the settlement, Chief Financial Officer Mr Parag Joglekar said: "the Board had decided to pursue the Settlement process in the best interest of the Company since it brings the matter to a quietus, which in-turn allows the management to remain focused on the core business." President and Deputy CEO Mr Saugata Chatterjee said: "We are, of course, awaiting for the SIF clearance to come in from SEBI. Once we get that, of course, we'll be in the market to launch our ideas."

Mr Chatterjee also said: "From our perspective, we have a very strong SIP book, which actually protects us in these circumstances, as we know that we have almost close to INR 3,200 crores of inflows coming in every month, which is more structural in nature, more fragmented, coming from deeper parts of India." Management listed risks including further SEBI communication on the in-principle AT-1 settlement, sharper market declines triggering redemptions in small-cap and sector funds, SIF commercialisation depending on SEBI clearance, offshore fundraising depending on global macro conditions and rupee recovery, and slowing investor additions and SIP growth amid volatility.

How did Nippon Life India Asset Management shares react?

The stock moved lower after the filing. From the price when the results appeared, it was down 2.9% after five minutes, down 2.7% after 15 minutes and down 0.6% after 30 minutes. On the reaction day, it closed 2.4% below the previous close of ₹1,000.0, at a base price of ₹990.9.

By the next day's close, the stock was down 7.7% from its pre-results close, and by the fifth session it was down 7.6%. The industry median for other asset managers moved down 1.7% on the reaction day, down 4.1% by the next day and down 3.0% over five sessions, so the stock's move was 0.7 percentage points below the industry median on the reaction day, 3.7 percentage points below by the next day and 4.6 percentage points below over five sessions.

Earlier results-day reactions were mixed. The stock fell 2.8% on 22 July 2026 and rose 0.5% on 27 April 2026, 1.6% on 29 January 2026 and 0.3% on 30 October 2025. It fell 2.8% on 28 July 2025, 5.0% on 23 January 2025 and 0.4% on 24 October 2024, and rose 0.4% on 19 July 2024.