ICICI Prudential AMC Q2 FY27 Earnings Call: Board Clears Rs. 3,000 Cr PMS Acquisition, SIF AUM Nearly Doubles (ICICIAMC)

Solid Revenue Growth; PAT Softens QoQ on Lower Other Income

• Operating revenue of Rs.1,674 Cr in Q2 FY 2026-2027 — up 16.3% YoY and 7% QoQ; revenue mix was Mutual Fund 89.91%, Alternate 8.68%, Advisory 1.42%.
• Operating PBT of Rs.1,181 Cr — up 15.7% YoY and 7.4% QoQ; operating expenses of Rs.493 Cr rose 17.9% YoY and 6.2% QoQ, growing faster than revenue YoY.
• PAT of Rs.889 Cr — up 6.1% YoY but down 7.8% QoQ, driven by lower other income; other income declined QoQ to Rs.16.9 Cr due to mark-to-market (MTM) impact.
• Interim dividend of Rs.30 per share — declared by the Board for the quarter.
• Operating margin improved to 37.3 bps in H1 FY 2026-2027 — from 36.6 bps in H1 FY 2025-2026.

Industry AUM Grows 13.4% YoY; Equity Flows Dip QoQ

• Industry quarterly average AUM of Rs.87.49 lakh crore in Q2 FY 2026-2027 — up 13.4% YoY and 5.1% QoQ; equity-oriented AUM grew 15.3% YoY to Rs.48.19 lakh crore.
• Net equity flows of Rs.1.06 lakh crore in Q2 FY 2026-2027 — down approximately 7% from the previous quarter.
• SIP contribution of Rs.32,490 Cr in September 2026 — monthly SIP inflows remained stable through Q2 FY 2026-2027.
• Passive AUM grew 23% YoY to Rs.15.19 lakh crore — up 3.1% QoQ; debt segment AUM declined marginally to Rs.11.60 lakh crore.
• Industry customer count reached 6.3 crores — up 11.1% YoY.
• H1 FY 2026-2027 market returns were mixed — Nifty 50 returned 1.3%, mid-cap 12.5%, and small-cap 24.6%.

Company AUM Outpaces Industry; Equity Share Gains

• MF quarterly average AUM of Rs.11.61 lakh crore in Q2 FY 2026-2027 — up 14.4% YoY, ahead of the industry's 13.4%, with market share at 13.3%.
• Equity/equity-oriented AUM grew 16.3% YoY to Rs.6.59 lakh crore — outperforming the industry's 15.3% growth, with market share at 13.7%.
• One of the highest net flows in H1 FY 2026-2027 — highlighted by management; unique customer base stood at 1.78 crores.
• Alternates quarterly average AUM of Rs.80,965 Cr in Q2 FY 2026-2027 — PMS AUM grew 21.4% YoY to Rs.30,791 Cr; AIF AUM stood at Rs.24,260 Cr.
• Systematic transactions (SIPs/STPs) of Rs.4,672 Cr in Q2 FY 2026-2027 — equity AUM distribution: MFDs 36.1%, Direct 29.9%, National Distributors 15.9%, ICICI Bank 7.5%, other banks 10.6%.

Stable Yields; TER-to-BER Transition Fully Absorbed

• Gross and net yield of 53 bps and 48.8 bps in Q2 FY 2026-2027 — for mutual fund and alternatives combined, as reported by CFO Naveen Agarwal.
• H1 FY 2026-2027 annualized gross yield of 53 bps and net yield of 48.8 bps — segment-level annualized margins: equity 67 bps, debt 32 bps, liquid/passives 12 bps, arbitrage 29 bps.
• PMS/AIF gross yield of 1.92% and net yield of 0.96% — annualized for H1 FY 2026-2027; yield on assets under advisory was 0.32%.
• TER-to-BER transition completed in Q1 FY 2026-2027 — no incremental impact reported for Q2 FY 2026-2027; CEO Nimesh Shah confirmed the transition "has already been implemented across the industry with the various distribution partners, not just by us, but by all the large mutual fund players," resulting in no further on-ground impact in the quarter.

SIP Book Flat; Retail Assets Retained Despite Volatility

• SIP balances showed no growth from March 2026 to September 2026 — remaining stable through H1 FY 2026-2027.
• Industry monthly net sales in H1 FY 2026-2027 were similar to H1 FY 2025-2026 — per management's observation on industry-level flows.
• Increasing online customer acquisition from smaller towns — beyond the top 30 towns, cited by management as a key trend for ICICI Prudential.
• Customers retaining assets and maintaining purchase levels — management stated equity markets and mutual funds are long-term investments, noting customers are holding steady despite recent volatility.

PMS Acquisition, SIF Scale-Up and Life Cycle Fund Build-Out

• Board approved acquisition of the PMS business from ICICI Securities Ltd in Q2 FY 2026-2027 — representing an AUM of approx. Rs.3,000 crores (discretionary, non-discretionary, non-binding advisory), subject to necessary regulatory approvals; completion period unspecified.
• SIF AUM grew to Rs.4,948 Cr in Q2 FY 2026-2027 — from Rs.2,678 Cr in Q1 FY 2026-2027; NFOs launched included balanced hybrid funds and life cycle funds.
• Strong long-term commitment to the SEBI-introduced Life Cycle Fund category — currently in the initial education phase in Q2 FY 2026-2027, with three vintages launched targeting 2036 and 2041; management expects asset build-up based on track record.
• 4 of 7 regulator-permitted PMS strategies currently operated — equity long/short, hybrid, asset allocator, and ex-top 100; management continues to explore the debt category with no specific launch timeline committed.