Aditya Birla Sun Life Q4 Results Review: Motilal Oswal Maintains 'Buy' Rating; Sees 21% Upside — Here's Why

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Motilal Oswal Report

Aditya Birla Sun Life AMC Ltd.’s Q4 FY25 operating revenue grew 17% YoY to ~Rs 4.3 billion (in line), leading to a ~0.9bp YoY improvement in yield on management fees to 44.9bp (versus our estimate of 45.4 bp). For FY25, revenue grew 25% YoY to Rs 16.8 billion.

Total opex grew 15% YoY to Rs 1.8 billion (in line), with a cost-to-income ratio of 43.1% (versus 44% in Q4 FY24). Ebitda came in at Rs 2.4 billion (in line), up 19% YoY, with margins at 56.9% (vs 56% in Q4 FY24 and our estimate 57.6%).

The better-than-expected other income led to a 12% beat on PAT to Rs 2.3 billion, up 10% YoY/2% QoQ. For FY25, PAT grew 19% YoY to Rs 9.3 billion.

Market volatility led to a temporary dip in SIP flows. However, management remains confident that SIP momentum will recover as fund performance continues to improve (85% of funds are meeting the benchmarks).

We have kept our estimates largely unchanged. Reiterate a Buy rating with a target price of Rs 780, based on 25x Mar’27E core EPS.

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