Nippon Life India Asset Management (NAM IN) – Q2FY26 Result Update – Strong quarter due to favorable asset mix – BUY
Published on 31 Oct 2025
NAM saw a strong quarter as core income was 4.8% ahead since revenue was 3.9% higher to PLe. Despite strong QAAuM growth of 7.1% QoQ, blended yields were more by 1.5bps on account of (1) increase in equity share by 69bps QoQ to 45.9% (2) commission rationalization covering almost 60% of equity AUM as of Sep’25 (3) fall in liquid/ETF share by 108/48bps QoQ and (4) increase in ETF yields due to rise in share of gold/silver ETF by 290bps QoQ to 19%. NAM continues to gain equity market share that enhanced by 5bps QoQ and 18bps YoY to 7.2% as of Sept’25 due to healthy net flow market share (~10% in H1FY26) led by consistent fund performance in 3/5-yr buckets. Over FY25-28E we expect core PAT CAGR of 14.6%. We tweak multiple on Sep’27 core EPS to 35x from 34x and raise TP to Rs930 from Rs900. Retain ‘BUY’.
