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AMC profits rise as equity rebound lifts AUM and treasury income
In India’s June quarter, the Nifty 50 gained 6.9%, while Nifty Midcap 150 and Nifty Smallcap 250 rose 17% and 24%, supporting asset values.
LiveMint Markets reported that asset management companies saw double digit profit growth in the June quarter, driven by core asset growth and a recovery in income from their own treasury investments.
Profit after tax rose 12% to 27% year on year in Q1FY27, according to the report, with mark to market gains helping lift assets under management even without fresh inflows.
The article tied the improvement to a rebound in Indian equities, noting the Nifty 50 gained 6.9% during the quarter, while the Nifty Midcap 150 and Nifty Smallcap 250 climbed 17% and 24%. It said the increased value of AUM raises fee income because AMCs earn fees based on AUM.
On company results, ICICI Prudential AMC net profit rose 23% to ₹ 964 crore, HDFC AMC profit grew 12% to ₹ 838 crore, and Nippon Life India AMC logged the fastest growth, up 27% to ₹ 503 crore. The report added that treasury income had been weak in the March quarter for many AMCs, but recovered as markets rebounded.