Aditya Birla Sun Life AMC Ltd (ABSLAMC) Q2 FY27 Results Analysis: Operating Margin Compresses 617 bps, PAT Falls 8%
Aditya Birla Sun Life AMC Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 483.81 Cr (+4.88% YoY) and PAT growth of -8.43% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 21, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 483.81 Cr (+4.88% YoY) |
| PAT (Q2) | Rs. 220.98 Cr (-8.43% YoY) |
| EBITDA margin | 52.46% (-617 bps YoY) |
| EPS (Q2) | Rs. 7.64 (-8.61% YoY) |
| Market cap | Rs. 27,584.82 Cr |
| CMP | Rs. 954.10 |
Quarter Snapshot
Q2 FY27 revenue grew 4.88% YoY to Rs.483.81 cr, but total expenses rose 20.5% YoY — employee costs up 32.78% against management's 10-12% guidance — compressing operating margin 617 bps YoY to 52.46%, the fifth straight quarterly decline. PAT fell 8.43% YoY to Rs.220.98 cr with no one-off items, while H1 free cash flow of Rs.389.99 cr and a debt-free balance sheet remain offsets. Margin stabilization hinges on employee-cost growth converging toward revenue growth.
Key Investment Insights
Key Positives
- Revenue from operations grew 4.88% YoY to Rs.483.81 cr, up from Q1 FY27's 3.48% YoY pace, aided by the full-quarter benefit of the EPFO mandate
- Operating Profit rose 4.16% QoQ to Rs.253.81 cr; the sequential margin decline paused (52.64% to 52.46%)
- H1 FY27 PAT of Rs.530.47 cr was up 2.32% over H1 FY26's Rs.518.43 cr on 4.19% revenue growth
- H1 free cash flow of Rs.389.99 cr (CFO Rs.401.86 cr less capex Rs.11.87 cr); company remains debt-free with Rs.3,812.01 cr of investments
- Trade receivables fell Rs.19.21 cr to Rs.35.41 cr, releasing Rs.21.06 cr of working capital in H1 FY27
- Other income normalized to Rs.42.38 cr from Q1's Rs.162.39 cr MTM spike, in line with management's Q1 guidance; no exceptional items in the quarter
Risk Factors
- Employee benefit expense rose 32.78% YoY to Rs.126.26 cr (+8.53% QoQ), three times the 10-12% growth guided on the Q2 FY26 call and above the 'broadly similar to Q1' guide
- Operating margin compressed 617 bps YoY to 52.46% — the fifth consecutive quarter of decline — as total expenses grew 20.5% YoY against 4.88% revenue growth
- PAT fell 8.43% YoY to Rs.220.98 cr (−28.6% QoQ) with no one-time items, making the compression structural
- Other income fell 73.9% QoQ to Rs.42.38 cr as Q1's MTM gains reversed; the treasury book remains exposed to equity-market moves
- Net worth declined Rs.160.06 cr to Rs.3,881.60 cr, primarily on the Rs.737.62 cr dividend payout funded partly by a Rs.134.14 cr investment-book drawdown
- Subsidiaries (Mauritius, Singapore, DIFC Dubai, GIFT City) remain PAT-negative with a Rs.3.23 cr drag in Q2
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.