Nippon Life India Asset Management Q2 FY27 Results Analysis: Operating Profit Jumps 25%, Margin Expands 213 bps (NAM-INDIA)
Nippon Life India Asset Management Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 795.75 Cr (+20.91% YoY) and PAT growth of -5.84% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 22, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 795.75 Cr (+20.91% YoY) |
| PAT (Q2) | Rs. 324.14 Cr (-5.84% YoY) |
| EBITDA margin | 65.78% (+213 bps YoY) |
| EPS (Q2) | Rs. 5.07 (-6.46% YoY) |
| Market cap | Rs. 62,468.10 Cr |
| CMP | Rs. 976.00 |
Quarter Snapshot
NAM-INDIA delivered its highest-ever quarterly Operating Profit of Rs.523.42 cr (+24.95% YoY) with margin expanding 213 bps YoY to 65.78%, while AUM market share rose 51 bps YoY to 9.02%. Reported PAT fell 5.84% YoY solely due to the one-time Rs.96.76 cr SEBI settlement charge; normalized PAT grew 14.41% YoY. Expense discipline within the guided ~15% band and record systematic flows support the underlying double-digit growth trajectory.
Key Investment Insights
Key Positives
- Revenue from operations grew 20.91% YoY to Rs.795.75 cr; H1 revenue grew 23.55% YoY
- Operating Profit of Rs.523.42 cr is the highest-ever quarterly figure, up 24.95% YoY and 5.89% QoQ, with margin expanding 213 bps YoY to 65.78%
- H1 FY27 Operating Profit of Rs.1,017.70 cr grew 27.72% YoY and is 58% of FY26 full-year OP of Rs.1,748 cr
- MF QAAUM at Rs.7.87 trillion (+20% YoY); overall AUM market share 9.02% (+51 bps YoY), claimed highest share gain among Top-10 AMCs in H1 FY27
- Normalized PAT (excluding the Rs.96.76 cr exceptional charge) grew 14.41% YoY to Rs.393.87 cr; H1 normalized PAT up 21.51% YoY
- Total expenses grew 13.85% YoY, within the guided ~15% band, and were flat QoQ; underlying employee cost growth ex-ESOP was ~5%
- Systematic flows at Rs.111.5 bn per quarter and unique investors at 24.3 mn, both at record levels
- H1 free cash flow of Rs.615.78 cr; interim dividend of Rs.9.50 per share declared
Risk Factors
- Reported PAT declined 5.84% YoY to Rs.324.14 cr due to the Rs.96.76 cr SEBI settlement charge (Rs.89.08 cr management fee reversal + Rs.7.68 cr settlement amount); settlement order still awaited
- Effective tax rate jumped to 27.94% in Q2 from 24.29% in Q1, partly because the exceptional charge is not tax-deductible
- Depreciation rose 40.70% YoY to Rs.12.41 cr on continued capex in PP&E and right-of-use assets
- Consolidated trade receivables rose to Rs.155.21 cr from Rs.79.28 cr in March 2026, outpacing revenue growth
- ESOP expense run-rate of Rs.15.93 cr in H1 implies ~Rs.22 cr/qtr needed in H2 to reach the ~Rs.60 cr FY27 guide, indicating back-loaded vesting or a guidance revision
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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.