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Slight miss on core income due to higher other opex: Overall and equity QAAuM were in-line at INR 7,515bn/3,377bn. Revenue was 0.8% higher at INR7.67bn (PLe INR 7.61bn); revenue yields were 40.8bps (PLe 40.5bps). Opex was a miss and was 4.9% higher at INR 2.73bn (PLe INR 2.6bn). Employee cost was INR 1.39bn (PLe INR 1.41bn) with ESOP cost at INR 130mn; other opex was higher at INR 1.22bn (PLe INR 1.06bn). Core income was 1.3% less at INR 4.94bn (PLe INR 5.01bn) resulting in operating yields at 26.3bps (PLe 26.7bps). Other income was higher at INR 1.7bn (PLe INR 1.4bn). Tax rate was stable at 24% (in-line). Core PAT was 1.3% miss at INR 3.76bn while yield came in at 20bps. PAT was more at INR 5.03bn due to higher other income.

Equity AuM growth remains best-in-class: Led by strong performance, equity QAAuM increased by a healthy 6.3% QoQ which was best-in-class that resulted in overall AuM growth of 3.6%. Equity share (incl. bal) was up to 44.9% (43.8% in Q4’26) while that of debt/liquid was 11.5%/6.3% (-102/+81bps QoQ). ETF share fell by 100bps QoQ to 32.4% as net flows and MTM in gold/silver moderated QoQ. Blended yields were stable QoQ at 40.8bps suggesting that impact of TER change was passed on to distributors. SIP & net equity flow market share at 11% each remain above stock, which is driving market share gains in equity that was up 24bps QoQ to 7.48%.

Opex was up by 11% QoQ: Other opex was up 17% QoQ to INR 999mn due to investment in technology, brand activities and digital platform; while NAM intends to continue investing in the business we expect the run-rate to moderate in upcoming quarters. ESOP cost for FY27/28E could come in at INR 623/345mn. Company maintained overall cost growth guidance (ex-ESOP) at 15%+ YoY.

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