Motilal Oswal has broadly kept its estimates intact on Aditya Birla Sun Life AMC considering the in-line operating performance in Q2 FY27, and reiterates its rating on the stock with a potential uspide of 22%, based on a valuation of 38 times FY28E core price/earnings. Improving flagship fund performance, stronger distribution traction, and an improving retention rate provide confidence in sustained assets under management growth while disciplined cost management should support operating leverage.
NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Motilal Oswal has broadly kept its estimates intact on Aditya Birla Sun Life AMC Ltd. considering the in-line operating performance in Q2 FY27, and reiterates its Buy rating on the stock with a target price of Rs 1,160, based on a valuation of 38 times FY28E core price/earnings.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
Improving flagship fund performance, stronger distribution traction, and an improving retention rate provide confidence in sustained assets under management growth while disciplined cost management should support operating leverage.
Continued improvement in flows and market share recovery remain key earnings drivers. The expanding alternatives, PMS, passive, SIF and GIFT City businesses provide meaningful long-term optionality beyond the core mutual fund franchise.
As these businesses scale, they are expected to diversify revenue streams and support profitability, although execution and fundraising momentum remain the key monitorables.
ALSO READ | Hindalco Share Price: Motilal Oswal Stays Bullish On Multiple Growth Levers; Check Target Price
Aditya Birla Sun Life AMC Q2 Results Highlights
Aditya Birla Sun Life AMC's operating revenue grew 5% YoY/ 4% QoQ to ~Rs 480 crore (in-line). For H1 FY27, revenue grew 4% YoY. The yield for the quarter stood at 43.8 basis points vs 43.4bp in Q2 FY26 and 43.3 bp in Q1 FY27.
Total opex grew 21% YoY to Rs 220 crore (in-line) reflecting a cost-to-income ratio of 44.6% vs 38.7% in Q2 FY26 (vs estimate of 44.5%).
Ebitda dipped 5% YoY to Rs 270 crore (in line), reflecting an Ebitda margin of 55.4% (vs 61.3% in Q2 FY26 and MOFSLe of 55.5%).
Ebitda stood at Rs 530 crore in H1 FY27.
The beat on other income resulted in a 15% beat on PAT, which stood at Rs 220 crore, declining 8% YoY and 29% QoQ. H1 FY27 PAT stood at Rs 530 crore. Core PAT for Q2 came in at Rs 190 crore (-8% YoY; in line).
Employee expenses are likely to remain around Q2 FY27 levels going forward. The newly launched ESOP scheme is expected to have an annual impact of Rs 14-15 crore, while earlier schemes could entail an annual impact of Rs 5.5–6.0 crore over the next two years.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
