ICICI Prudential Asset Management Co Ltd — Q4 FY26

ICICI Prudential Asset Management Co Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=sVBsdR2UQlc Published: 1 month ago

0:01 1 second Ladies and gentlemen, good day and welcome to the ICICI Potential Asset Management Company Limited's earnings conference call for the quarter and year ended March 31st, 2026. 0:13 13 seconds Joining us today on the call from the company are Mr. Nimsh Sha MD and CEO, Mr. Navi Nagaral, Chief Financial 0:21 21 seconds Officer, Mr. Abijit Sha, Chief Marketing and Digital Business Officer, Mr. Vipin Pandari, senior member from 0:30 30 seconds business team and Mr. Hershil Sanangi, lead investor relations who will be available to address your questions 0:37 37 seconds following our opening remarks. As a reminder, all participants line will be in the listenonly mode and there will be 0:44 44 seconds an opportunity for you to ask questions after the presentation concludes. 0:49 49 seconds Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchstone phone. I now hand the 0:58 58 seconds conference over to Mr. Navi Agarwal, CFO of ICI Pential Asset Management Company Limited. Thank you and over to you sir. 1:08 1 minute, 8 seconds Thank you. 1:10 1 minute, 10 seconds Good evening everyone. Welcome to ICA Pro Credential Asset Management Company Limited's uh earning conference call for the quarter and year ended March 31, 2026. 1:20 1 minute, 20 seconds I trust that you've had the opportunity to review our earnings presentation and the investor materials that have been shared on the stock exchange and our and 1:28 1 minute, 28 seconds on our website. I'll start with a brief industry overview. uh uh industry's 1:34 1 minute, 34 seconds quarterly annual uh average assets under management grew at 21.1% yearonear and 1:41 1 minute, 41 seconds 0.7% sequentially in Q4 FI26 reaching 81.62 trillion rupees 1:50 1 minute, 50 seconds equity and equity oriented quarterly average AUM which commands the largest PI of the overall mutual fund industry 1:56 1 minute, 56 seconds increased by 20.7% year-onear and deg grew by 0.4% 4% quarteron quarter to 43.80 2:05 2 minutes, 5 seconds trillion rupees. The decline can be attributed to challenging market conditions during the quarter as reflected in declines across benchmarks 2:14 2 minutes, 14 seconds and broad-based indexes. [clears throat] For instance, Nifty50 decreased by 14.5% from the levels of 26130 at the end of 2:22 2 minutes, 22 seconds December 2025 to 22331 at the end of March 2026. 2:29 2 minutes, 29 seconds During this quarter, equity category continued to be at the forefront attractive attracting the net inflows of 2:36 2 minutes, 36 seconds 1.24 trillion rupees. It is important to note that the industry level net flows in equity have seen a positive increase 2:43 2 minutes, 43 seconds quarteron quarter despite of declining markets. 2:48 2 minutes, 48 seconds The SIP contribution for the month of March 2026 amounted to 32087 crores as compared to 3102 2:56 2 minutes, 56 seconds crores and 25926 crores in the month of December 2025 and March 2025 respectively. 3:04 3 minutes, 4 seconds In the debt segment quarterly average AUM uh grew by 14.6% yearonear however it deg. 3:14 3 minutes, 14 seconds % quarteron quartarter dropping from 13.38 trillion rupees in December 2025 to 12.69 trillion rupees in March 2026. 3:25 3 minutes, 25 seconds Passive quarterly average AUM grew by 34.2% yearonear and 7.4% sequentially to 3:31 3 minutes, 31 seconds 14.52 trillion rupees. Growth is primarily driven by gold and silver category. 3:38 3 minutes, 38 seconds industry saw a saw an increase in unique customers which reached 61.4 million and this 3:46 3 minutes, 46 seconds represents an increase of 13.2% yearonear and 4.2% as compared to the previous quarter. I now hand over the 3:54 3 minutes, 54 seconds call to hers for covering the performance of our company. Thank you Navi. Good evening everyone. For the 4:00 4 minutes quarter ended March 2026, our total mutual fund quarterly average AUM reached to 11.05 05 trillion rupees 4:08 4 minutes, 8 seconds which is up by 2.6% sequentially and 25.6% yearonear thereby maintaining our position as the second largest AMC with a market share of 13.5%. 4:19 4 minutes, 19 seconds As of March 31st 2026 we continue to have the largest market share of 13.7% in active schemes with a quarterly 4:27 4 minutes, 27 seconds average AUM of 9.21 21 trillion rupees which reflects an increase of 1.3% as compared to previous quarter and 21.9% 4:35 4 minutes, 35 seconds yearonear as of March 31st 2026 we continue to have the largest market share in equity 4:42 4 minutes, 42 seconds and equity oriented schemes of 14.2% with a quarterly average AUM of 6.2 trillion rupees which reflects an 4:50 4 minutes, 50 seconds increase of 27.2% 2% yearon year and 2% quarter on quarter. The quarteron quarter growth stands in contrast to the 4:57 4 minutes, 57 seconds industry which has experienced a decline. 5:00 5 minutes The quarterly average volume of our equity oriented hybrid schemes amounts to 2.18 trillion rupees with the largest 5:08 5 minutes, 8 seconds market share of 26.7% as of March 31st 2026. 5:13 5 minutes, 13 seconds This reflects an increase of 4.5% quarteron quarter and 31.8% 8% yearonear. 5:20 5 minutes, 20 seconds In the debt segment, our quarterly average AUM stood at 1.99 trillion rupees, reflecting a growth of 15.6% 5:27 5 minutes, 27 seconds yearonear and a degrowth of 2.7% as compared to the previous quarter, which is in line with the industry trend. Our 5:34 5 minutes, 34 seconds passive quarterly average AUM reached 1.84 trillion rupees, representing a growth of 48.3% yearonear and 10% sequentially. 5:44 5 minutes, 44 seconds For FI 2026, our margins stands at 67 basis points for equity, 32 basis points 5:52 5 minutes, 52 seconds for debt, 12 basis points for liquid, 10 basis points for passive, and 30 basis points for arbitrage. As of March 31st, 6:01 6 minutes, 1 second 2026, we have a unique customer base of 17 million. In March 2026, our 6:08 6 minutes, 8 seconds systematic transaction which includes SIP and systematic transfer plans increased by 1.3% to 51.04 billion 6:17 6 minutes, 17 seconds rupees. This is up from 50.37 billion rupees in December 2025. 6:23 6 minutes, 23 seconds This also marks a 30.6% rise from 39.06 million rupees in the month of March 2025. 6:31 6 minutes, 31 seconds The distribution mix of our mutual fund equity quarterly average AUM is as follows where direct represents 28.9%. 6:40 6 minutes, 40 seconds MFDs accounts for 36.7% ICF bank share at 7.9%. 6:45 6 minutes, 45 seconds Other banks contribute at 11% and national distributors accounts for 15.5%. 6:52 6 minutes, 52 seconds Notably, our net flow market share in equity schemes exceeds our AUM market share. 7:00 7 minutes We have launched two specialized investment funds that is ISF equity X top 100 longshot fund and ISF hybrid longshot fund in January 2026. 7:11 7 minutes, 11 seconds The total ISF asset under management as on March 31st 2026 is 18.96 million rupees. 7:19 7 minutes, 19 seconds Now let's move to our alternates business which comprise equity focused PMS offshore advisory and alternative investment funds for the March quarter 7:27 7 minutes, 27 seconds end. Our alternates quarterly average AUM stood at 729.95 billion rupees. Within alternates, our 7:34 7 minutes, 34 seconds BMS quarterly average AUM deg sequentially due to marktomarket and 7:41 7 minutes, 41 seconds grew 26.7% year-on-year to 268.27 billion rupees. Our AF quarterly average 7:48 7 minutes, 48 seconds AUM of 170.33 billion rupees reflects a sequential growth of 7.1% and 47.3% 7:57 7 minutes, 57 seconds yearonear for the year ended March 2026. The growth yield on our PMS and AF business 8:05 8 minutes, 5 seconds was 2% and the net yield that is after reducing the fees and commission expenses attributable to PMS and AF business was 98%. 8:15 8 minutes, 15 seconds yields on ADI uh yields on assets under advisory was.33% for FI 2026. 8:23 8 minutes, 23 seconds Referring to our earlier disclosures with respect to ICS venture funds, we would like to update that post the receipt of all the requisite approvals, 8:31 8 minutes, 31 seconds the transfer of investment management rights for certain AFS has been completed and the requisite document in this regard have been executed by the 8:39 8 minutes, 39 seconds company and ICICICI Venture Funds Management Company Limited. 8:44 8 minutes, 44 seconds Accordingly, the company will be providing investment management services for such AIS with effect from April 1st, 2026. 8:52 8 minutes, 52 seconds These funds are anticipated to enhance our presence in alternate market and complement our existing alternate product offering such as private credit 9:00 9 minutes and real estate funds. We have established retail FME branch presence in Gift City. In February 2026, we 9:07 9 minutes, 7 seconds launched an open-ended category 3 AIF ICA credential smart navigator fund which is an inbound fund. This is our 9:14 9 minutes, 14 seconds first offering in IFSC city on DISC. In the last quarter, we have established our office in Dubai with a dedicated 9:22 9 minutes, 22 seconds team in place. I now hand over the call to Naven for covering the financial performance of the company. 9:30 9 minutes, 30 seconds Thanks. 9:31 9 minutes, 31 seconds Uh let's cover the financial performance for the quarter. Our operating revenues to debt 15.17 billion rupees 9:39 9 minutes, 39 seconds representing a growth of 19.5% yearon-year and 0.2% sequentially. 9:46 9 minutes, 46 seconds Our operating net revenue mix uh please note this is net revenue mix from mutual fund was 90.65% 9:54 9 minutes, 54 seconds alternate 7.58% and advisory was 1.77%. 10:00 10 minutes We have recorded a negative other income of 0.89 billion rupees for the quarter ended March 2026 due to the marktomarket 10:08 10 minutes, 8 seconds impact operating expenses amounted to 3.89 89 billion rupees which was a decrease by 3.5% yearon year and 3.9% 10:16 10 minutes, 16 seconds quarteron quarter. Our operating profit before tax which indicates the core profitability of the business increased 10:24 10 minutes, 24 seconds to 11.28 billion rupees. This represents a 30.2% increase yearonear and 1.6% rise 10:32 10 minutes, 32 seconds compared to the previous quarter. Profit after tax to 7.63 billion rupees which is up by 10.4% 4% yearonear and decreased by 16.8% quarteron quarter. 10:45 10 minutes, 45 seconds Return on equity for the year ended March 2026 is at 85.8%. 10:51 10 minutes, 51 seconds Additionally, the board of directors have declared a final dividend of 12.4 rupees per share which is subject to shareholders approval. 11:00 11 minutes uh for year ended March 2026 our gross yield uh stood at 52 basis point and net 11:08 11 minutes, 8 seconds yield uh stood at 48.3 basis point net yield as you know is arrived at after reducing fees and commission expenses on 11:17 11 minutes, 17 seconds PMS and AI business which is shown as an expense item in the P&L for the year ended March 2026 our operating margin 11:26 11 minutes, 26 seconds stood at 37.6 6 basis points as compared to 35.9 basis points for the year ended March 2025. 11:34 11 minutes, 34 seconds As of March 31, 2026, we had an employee strength of 3585. 11:41 11 minutes, 41 seconds Additionally, uh the NRC which met earlier today has approved uh the grant of ESOP and ESUS. 11:49 11 minutes, 49 seconds Uh the total non-cash estimated uh uh expenses using the black shoes model is 11:56 11 minutes, 56 seconds 1.2 2 to 1.3 billion rupees which will be amotized over vesting period. The approximate debit to the P&L for FI27 12:06 12 minutes, 6 seconds would be 640 to 680 million rupees. For FI28 it will be 360 to 400 million 12:12 12 minutes, 12 seconds rupees and for FI29 it will be 180 to 220 million rupees. The ESOP and ECUs will vest in the next 3 years on the 12:21 12 minutes, 21 seconds date of the grant with a predefined vesting ratio. 12:26 12 minutes, 26 seconds Thank you for your attention. I look forward to discussing our performance in more details and addressing any questions that you may have. 12:34 12 minutes, 34 seconds Thank you very much. We will now begin with the question and answer session. 12:39 12 minutes, 39 seconds Anyone who wishes to ask a question may press star and then one on their touchtone phone. If you wish to remove 12:46 12 minutes, 46 seconds yourself from the question queue, you may press star and two. 12:51 12 minutes, 51 seconds Participants are requested to use handsets while asking a question. 12:57 12 minutes, 57 seconds Ladies and gentlemen, we will wait for a moment while the question few ascends. 13:06 13 minutes, 6 seconds Our first question comes from the line of Pesh Jane from Motila Losal Financial Services. Please go ahead. 13:14 13 minutes, 14 seconds Uh yeah, hi good evening everyone. Uh firstly just you know like uh structurally how is the uh trend at the 13:23 13 minutes, 23 seconds ground level shaping up you know with respect to flows on lumpsam sips you know while March data came out pretty 13:30 13 minutes, 30 seconds strong but that also has some spillover effect of February because there were you know towards the end of the month of February there were some let's say 13:39 13 minutes, 39 seconds number of working days and that's kind of spilled over to to March as well. So what is the kind of ground level uh your 13:46 13 minutes, 46 seconds scenario in with respect to SIP as well as lumpsum inflows on the equity side if you can highlight that that would be great. 13:57 13 minutes, 57 seconds See our uh view on that is that now it is 18 months since uh equity returns 14:04 14 minutes, 4 seconds have been quite subdued and uh uh we also are looking uh every month with the kind of geopolitical 14:13 14 minutes, 13 seconds uncertaintity in India. uh people in the past have so seen so many V-shaped recoveries that uh as you know in the 14:22 14 minutes, 22 seconds month of March you know while I agree with you there is a spillover and you have done a lot of analysis on that uh people have been investing on the days 14:31 14 minutes, 31 seconds the markets have been falling so have there been inflows on those days yes the inflows have been in those days so till 14:38 14 minutes, 38 seconds now and I'm using my words carefully over here till now you don't see any uh the trends that were there in March and 14:47 14 minutes, 47 seconds April and let us and I agree with you with the spillover thing. So we should look at numbers on a quarterly basis. Uh 14:55 14 minutes, 55 seconds uh there is no much difference that we see between March and April. Right? The trends that we had seen in February, March, the same behavior is continuing. 15:04 15 minutes, 4 seconds At the ground level, uh while we keep on cautioning people that has happened in the last 10 years may or may not happen 15:12 15 minutes, 12 seconds in the future. At the ground level uh people are still quite looking at equity for the long term. That is what we feel 15:21 15 minutes, 21 seconds sometimes when we caution people people say but okay now we are coming for the long term. So we continuously guide people if you would have heard any of 15:30 15 minutes, 30 seconds our calls we guide people to take our dynamic asset allocation funds because there is so much uncertaintity in the 15:37 15 minutes, 37 seconds market but uh depending on the risk level people are selecting either dynamic asset allocation or straight 15:44 15 minutes, 44 seconds equity also that is you'll see it in the you've been seeing it in the numbers so there's no difference between what you have seen in March and what we see in 15:51 15 minutes, 51 seconds the early April got that Um and any comments on your uh inflow market share versus uh your 16:01 16 minutes, 1 second backbook market share does it continue to trend higher than what uh what the AUM market share? 16:08 16 minutes, 8 seconds Yeah, that I think Hershel mentioned in his uh talk that uh our net flows market share in equity schemes schemes exceeds our EUM market share. 16:18 16 minutes, 18 seconds Okay, great. Uh just couple of bookkeeping questions. Swam if I look at the employee cost that has declined sequentially quite sharply. What uh what the kind of driver there? 16:32 16 minutes, 32 seconds Yeah. Hi Naveen here. Uh yes that's true. There has been a drop uh in the employee expenses. As I mentioned uh you 16:40 16 minutes, 40 seconds know there is an ESOP and ESU grant which has happened. Uh there has been no debit in the P&L uh for the same. The debit would come in future years and 16:48 16 minutes, 48 seconds I've given that number. So that's the reason that you see a drop. 16:53 16 minutes, 53 seconds So basically until Q4 Q3 there was some use of expenses that were getting accounted that has not come in Q4 and Q1 17:01 17 minutes, 1 second onwards again it will start that's the right way to think right no so there was a certain component in 17:08 17 minutes, 8 seconds the employee compensation which is now replaced by ESOP and ESU. So in earlier 17:16 17 minutes, 16 seconds earlier in the P&L uh you know so from from FI27 onwards the numbers that I 17:23 17 minutes, 23 seconds gave that's what you would see on account of the ESOP and ESU debit. Got it. I told I'll take this offline. 17:30 17 minutes, 30 seconds Yeah. Can't answer it for myself. 17:35 17 minutes, 35 seconds Thank you. The next question comes from the line of Arun Kirwal from Kiwi Research and Investment Services. Please 17:42 17 minutes, 42 seconds go ahead. [clears throat] Uh hi uh good evening. Uh just wanted to understand March and a little bit of 17:50 17 minutes, 50 seconds April have been exceptional uh months for all of us globally. Uh any lessons 17:57 17 minutes, 57 seconds to learn from this kind of a turbulent period that would help us going forward. 18:08 18 minutes, 8 seconds As far as our business is concerned, right, we have been cautioning our every of any of the calls that we do with our 18:16 18 minutes, 16 seconds distributors, do with our investors. Uh we have we are no experts at geopolitics. 18:23 18 minutes, 23 seconds uh but when the markets have corrected significantly uh we have indicated to our distributors that slowly and the valuations in the 18:32 18 minutes, 32 seconds Indian markets correcting uh people are taking their call based on their risk appetite to invest in equities or not 18:40 18 minutes, 40 seconds invest in equities. So we have a range of products where people if people are not sure they are coming in dynamic 18:48 18 minutes, 48 seconds asset allocation products and where they want to take there are times when we have told people to come in dynamic asset allocation products but we are 18:55 18 minutes, 55 seconds saying no now we are comfortable we want to increase our equity allocation we are coming in equity funds so there are variety of people and as an EMC we need 19:04 19 minutes, 4 seconds to have funds which suit each of the customers preferences 19:12 19 minutes, 12 seconds Uh sir, one small followup on this. Any change in asset allocation that you see from the man on the street in this kind of period? 19:27 19 minutes, 27 seconds No, in our in fact uh our valuation we release a valuation metrics for the 19:34 19 minutes, 34 seconds since last so many years in that the allocation towards equity has increased because of the current fall in the 19:41 19 minutes, 41 seconds markets and uh it it depends on there are too many factors to give a general reply on that. I based on the person how 19:50 19 minutes, 50 seconds much equity allocation he has got today he will decide no whether he wants to go for complete equity products or dynamic 19:59 19 minutes, 59 seconds asset allocation products that depends on the customer current asset allocation that he has as well as his views on the 20:07 20 minutes, 7 seconds market right sir thanks thanks a lot for that uh appreciate your answers thank you 20:17 20 minutes, 17 seconds thank Thank you. Our next question comes from the line of Mana Sagraal from Bernstein. Please go ahead. 20:25 20 minutes, 25 seconds Hi, can you guys hear me? Yes sir, we can hear. 20:30 20 minutes, 30 seconds Yeah. So, couple of questions. One, I was just looking at March MC industry data. See a large redemption in 20:39 20 minutes, 39 seconds arbitrage funds. Is that a part like behaviorally? Are you seeing people withdraw from arbitrage and put it in 20:46 20 minutes, 46 seconds equity or that's just to do with ST coming and people have been advised to move money away from arbitrage. So that 20:52 20 minutes, 52 seconds is a uh b is on the agreement with I think ICA ventures. Uh how does that 20:59 20 minutes, 59 seconds work? You're getting aum are you going to give some consideration or is just transfer of the service contract? How 21:07 21 minutes, 7 seconds does that work? So that is B. Those were my questions. 21:12 21 minutes, 12 seconds Yeah. Hi. Hi. Mar the first part I think you know March is also closing for most corporates. So a lot of these arbitrage 21:20 21 minutes, 20 seconds money which is parked is is is then deployed. Uh and that's that's the data 21:28 21 minutes, 28 seconds and if you track March on March you will you will find that on the second part N will so on the second part man as we had uh 21:35 21 minutes, 35 seconds disclosed earlier also it's a business transfer that we are doing. We are taking over the investment management rights of specific funds of ICICI 21:44 21 minutes, 44 seconds ventures along with the teams. Uh there has been a consideration which we have paid which is not material. Uh and as 21:52 21 minutes, 52 seconds you rightly said there is an AUM which will move over to us. Uh and those strategies and also the future uh launches that we do under those 22:00 22 minutes strategies would be done under ICF potential AMC umbrella. 22:05 22 minutes, 5 seconds Understood. So this AUM gets effective from what date or is it already there? 22:13 22 minutes, 13 seconds So they already have an AUM. U we start uh uh playing the role of investment manager on that AUM from 1st April 2026. 22:24 22 minutes, 24 seconds Underscore. Thank you. Thank you. 22:31 22 minutes, 31 seconds Your next question comes from the line of Mohit Mangal from Centrum. Please go ahead. 22:37 22 minutes, 37 seconds Yeah. Uh thanks for the opportunity. Am I audible? Yes sir, you're able. 22:43 22 minutes, 43 seconds Uh yeah. So my first question is that you know there have been a few changes from 1st of April. Uh so just wanted to know your views that you know I mean uh 22:52 22 minutes, 52 seconds fieldwide do you see it basically being incremental or neutral? uh any any uh thing on the floors if you can tell me you know uh that would be very helpful. 23:05 23 minutes, 5 seconds I think on the flows generally in the industry we just answered uh are you referring to the changes uh from 1 April with respect to the TER? 23:15 23 minutes, 15 seconds Yes. Yes. 23:20 23 minutes, 20 seconds Yeah. So you and I think we mentioned it earlier also if you look at it from the regulatory change yes this is effective per April. So if you look at the if you 23:29 23 minutes, 29 seconds look at on a gross basis before uh any payouts there is an impact of three to four basis points. Uh we have already 23:36 23 minutes, 36 seconds identified certain steps and we are doing necessary discussions. Uh we will have crystallized impact if any over the 23:44 23 minutes, 44 seconds next uh two months and at that point of time we would be able to share it. 23:49 23 minutes, 49 seconds All right. Uh other question is in terms of the AIS and PMS. Uh so you said that 23:56 23 minutes, 56 seconds it is 0.98% on net basis and if I look at previous quarter it was 0.91%. So that is basically an increase of seven 24:03 24 minutes, 3 seconds basis points. Uh so you can help me understand why there was an increase on a net basis. 24:10 24 minutes, 10 seconds It is also a factor of mix. uh uh and also sometimes uh you know there are some other benefits for example exit 24:18 24 minutes, 18 seconds charges or anything that you might get but predominantly it will also be a factor of mixed that's helpful my last question is in 24:26 24 minutes, 26 seconds terms of the market share in the unique investor so I think you know we have grown up higher than the industry and that is kind of quite commendable uh 24:35 24 minutes, 35 seconds just wanted to know that say if you assume that it has come mostly from tier 2 and tier three cities is it our strategy to focus on newer customers in the industry. 24:46 24 minutes, 46 seconds Uh you're you're right. Our uh our share uh of unique customer of the industry 24:52 24 minutes, 52 seconds has grown. Uh uh as you know generally a lot of new customers are coming through digital mode. They are coming from 25:00 25 minutes across India. Uh they are coming from uh B30 as well. Uh and we as one of the largest player obviously you know get 25:09 25 minutes, 9 seconds advantage of it. many of these customers migrate to us as well and uh yeah so hi 25:16 25 minutes, 16 seconds uh like Narin said you know the trend is secular in terms of rather than looking at T3 B3 I think you know one should 25:23 25 minutes, 23 seconds focus on the cohort of India from a demographic point of view so the young Indians uh are looking at mutual fund uh 25:32 25 minutes, 32 seconds as the main uh main investment vehicle and not as a alternate investment vehicle. So a lot of people uh in that 25:40 25 minutes, 40 seconds cohort, the young first jobers uh wanting to take care of their finances, looking at equity, direct equity 25:48 25 minutes, 48 seconds digitally uh and these are digital natives largely. So uh uh uh that that 25:56 25 minutes, 56 seconds really uh that really is the focus area and you know since uh AV being 26:03 26 minutes, 3 seconds one of the large oldest and largest mutual fund uh houses in the country and also our investment on digital uh gives 26:11 26 minutes, 11 seconds us gives us that edge in terms of getting a large share of digital customers. 26:17 26 minutes, 17 seconds Okay. So fair to conclude that you know that basically the fintech have a large place to play have a have a large role to play in your unique customers right? 26:26 26 minutes, 26 seconds Yes across the industry that is the trend uh fintech new age distribution uh you know people who are growing the 26:36 26 minutes, 36 seconds growing the pie or going uh are responsible to get a lot of customers. 26:42 26 minutes, 42 seconds Just one last question. Any NFOS in the near future? 26:48 26 minutes, 48 seconds Yeah. So, hi. Uh we are working with regulators on uh four to five ideas. Uh 26:56 26 minutes, 56 seconds next month we may launch one or two uh depending upon approvals from the regulator. But but those are in the or the ATF. 27:05 27 minutes, 5 seconds It would be across SIF and uh MF. All right. kindly show the best. 27:14 27 minutes, 14 seconds Thank you. Your next question comes from the line of Gorovjani from Taputas. Please go ahead. 27:22 27 minutes, 22 seconds [clears throat] 27:23 27 minutes, 23 seconds Thank you. Uh three questions. Uh the first is there is a dip in the revenue right that will be entirely explained by 27:31 27 minutes, 31 seconds the mix change right towards GPS. Is that the correct assumption? 27:38 27 minutes, 38 seconds Sorry, which uh which number are you referring to? 27:41 27 minutes, 41 seconds Uh the NFCs there's a drop of you know about a bit and a half right and the MF needed so I 27:50 27 minutes, 50 seconds was trying kind of trying to reconcile that. 27:57 27 minutes, 57 seconds No on so if you see on the on uh on the operating yield from the MF business itself that has that has been pretty 28:06 28 minutes, 6 seconds much the same and in the equity I'm sorry between 28:12 28 minutes, 12 seconds within mutual fund if you see the equity uh that is where you've seen a very marginal drop. 28:19 28 minutes, 19 seconds No I was talking about the blended year right that's come up from 47 and a half to 46.1 so decline of 1.4 4 bit. I was just trying to reconcile that. So that 28:27 28 minutes, 27 seconds that would have been driven by the increase [clears throat] in the ETF mix right in the quarterly average area. 28:34 28 minutes, 34 seconds Correct. Correct. Correct. Correct. Okay. 28:38 28 minutes, 38 seconds Uh sure. So sure. Uh the second is the staff cost you know just an extension to the question on the staff cost. So this 28:46 28 minutes, 46 seconds is the new run rate of the normalized task cost right and prior to that there will be the ESOP cost that will come through the 128 230 cr 28:57 28 minutes, 57 seconds yeah as I gave the schedule of how the ESOP cost would reflect in our P&L you're right uh you know you need to see 29:05 29 minutes, 5 seconds both of them together and that is the total sense of the employee cost no so the just to clarify to you know 29:13 29 minutes, 13 seconds the X of ESOP the staff First, this is the run date that we look at, [clears throat] right? And you may have increments on on this number. 29:21 29 minutes, 21 seconds Correct. Correct. 29:23 29 minutes, 23 seconds Sure. Uh lastly, uh you know, the tax rate has gone up sequentially. Uh can you just elaborate as to why has that happened? 29:33 29 minutes, 33 seconds That's also because of uh you know as you know uh while at the business level our tax is pretty much the same but uh 29:42 29 minutes, 42 seconds sometimes in the previous quarter because of the other income on which we pay capital gains lended rate could be lesser uh but in this quarter if there 29:51 29 minutes, 51 seconds is no uh you know other income the overall rate looks a little higher. 29:58 29 minutes, 58 seconds Understood. Understood. Sure. Thanks. That's it. 30:03 30 minutes, 3 seconds Thank you. The next question comes from the line of Madukar Lada from JP Morgan. 30:08 30 minutes, 8 seconds Please go ahead. Uh hi, good evening sir. Uh thank you for taking my question. So um can you give like the 30:17 30 minutes, 17 seconds asset class wise uh yields uh for the different uh segments? Uh I'm not sure whether you gave that. 30:27 30 minutes, 27 seconds So uh for FI26 uh on uh mutual fund equity our margins are 67 basis point 30:36 30 minutes, 36 seconds for debt it is 32 basis point for liquid it is 12 basis point for passive it is 10 basis point and for arbitrage it is 30:44 30 minutes, 44 seconds 30 basis point in addition on the alternate side uh as you know there are two numbers there so on the gross yield 30:52 30 minutes, 52 seconds for our PMS and AF business was 2% If you see the net yield which is after reducing the fee and commission expenses 31:00 31 minutes attributable to PMS and AS it is 0.98%. 31:06 31 minutes, 6 seconds And then we have the under advisory for which for FI26 our was 33. 31:16 31 minutes, 16 seconds Got it sir. Uh that's uh and one more sorry on uh follow up uh your other 31:24 31 minutes, 24 seconds expenses have actually uh gone up uh significantly in this quarter any particular reason and uh what should be 31:33 31 minutes, 33 seconds the sort of runway that we should be looking at? 31:39 31 minutes, 39 seconds uh see other expenses includes a lot of heads uh and it also includes some of the uh payments that we need to do on 31:46 31 minutes, 46 seconds account of CSR and royalty. So uh I think it is in line uh with with the the 31:54 31 minutes, 54 seconds profit for the last year uh on an yearly basis. You should see the number on a yearly basis rather than seeing it on a quarter to quarter. 32:04 32 minutes, 4 seconds Got it. And um understood. But uh that's it from my side. Thank you. 32:12 32 minutes, 12 seconds Thank you. Your next question comes from the line of Abiji Sakar from KC Securities. Please go ahead. 32:20 32 minutes, 20 seconds Yeah. Hi, good evening everyone. Uh my first question is uh on the ventures business if you could quantify the 32:27 32 minutes, 27 seconds amount of PUM that is now uh fee generating from next quarter onwards. 32:35 32 minutes, 35 seconds So uh I think we mentioned uh there are there are three strategies that we are getting from them. One is the you know 32:43 32 minutes, 43 seconds typical private equity that we that we understand. The second one is an early stage private equity and the third one 32:51 32 minutes, 51 seconds is on the uh affordable real estate. Uh they already have funds uh which have been raised in all the three categories 32:59 32 minutes, 59 seconds and which are in the deployment mode at various uh stages. 33:03 33 minutes, 3 seconds uh across the three strategies the fee paying committed funds which are moving to us uh as of 1st April 2026 that 33:12 33 minutes, 12 seconds number is 46.28 28 billion rupees and any rough sense of what is the uh revenue yield on the book? 33:26 33 minutes, 26 seconds It's pretty much in line with the industry. I uh there's nothing specific that we can share on this. 33:34 33 minutes, 34 seconds Okay. And uh Navin also one more point given that there are some u movements in the OPEX line for next year how should 33:43 33 minutes, 43 seconds we think about the overall OPEX growth for next year? 33:52 33 minutes, 52 seconds So uh I think you know while we do not give any guidance for the next year that uh typically in any business you would 34:00 34 minutes see an opex growth which is on a normalized basis. We expect in the normal course the effect uh the the 34:07 34 minutes, 7 seconds offex growth to be in the usual uh line of business. 34:13 34 minutes, 13 seconds Okay. Um and lastly um sorry uh on the on the 34:20 34 minutes, 20 seconds mutual fund uh revenue side if you could just actually you know just quantify the mutual fund revenue numbers uh for this 34:28 34 minutes, 28 seconds quarter and uh same quarter previous year. 34:35 34 minutes, 35 seconds Uh so for this quarter for mutual fund our revenue is uh uh 48414 million 34:42 34 minutes, 42 seconds rupees for the year. 34:45 34 minutes, 45 seconds This is this is for the year. Sorry this is for the year. Yeah. 34:51 34 minutes, 51 seconds And number for last year for last year it was 39635 rupees million rupees. 35:00 35 minutes Got it. 35:02 35 minutes, 2 seconds All right, that's all I have. Thank you so much. 35:06 35 minutes, 6 seconds Thank you. Your next question comes from the line of Deepen Goo from City. Please go ahead. 35:13 35 minutes, 13 seconds Hi. Uh good evening sir. Few questions from my side. Uh first you know in terms of industry or for uh uh your company 35:21 35 minutes, 21 seconds specific. Uh if you could shed some color on the behavior of of the SIP customer in the traditional distributed 35:28 35 minutes, 28 seconds channels versus the new channels. uh during this current market downturn uh both in terms of new additions and also in terms of uh churn or pauses or 35:37 35 minutes, 37 seconds cancellations. Uh second uh uh on new SIP book is it possible to uh on at least on the equity part break it down 35:44 35 minutes, 44 seconds into the top two or three schemes we should be uh kind of getting uh money. 35:50 35 minutes, 50 seconds Uh third question uh would be on SIF in terms you know in your presentation you have mentioned that you have closed the uh year with around 19 billion of AUM. 35:59 35 minutes, 59 seconds Uh so in terms of the new money that you have raised in the SIS uh have you done some work in terms of whether uh existing customers from the PMS 36:07 36 minutes, 7 seconds portfolio uh have transitioned towards some of the SIS or is it just fresh to uh prove sort of customers out there. Uh 36:15 36 minutes, 15 seconds and lastly uh you know now that ventures is integrated into your company uh for the next two years in terms of uh new uh 36:24 36 minutes, 24 seconds uh segments that you would want to kind of expand your product bouquet uh on the alternate side uh if you can kind of uh give some direction on that. 36:34 36 minutes, 34 seconds Yeah. So you have totally four questions. I think the fourth question Navin will take and I will go uh on the three questions that you first asked on the mutual for and SI side. Coming to 36:42 36 minutes, 42 seconds the uh third question first uh the customers on the SIF are largely fresh. 36:50 36 minutes, 50 seconds There is no migration/transition from the PMS because as you know the ticket size for SIF is 10 lakhs and uh 36:57 36 minutes, 57 seconds the entry ticket size for PMS is about 50 lakhs. uh to your second question on 37:03 37 minutes, 3 seconds flows uh on top for for for SIP uh it is in line with the trend that we have a 37:10 37 minutes, 10 seconds lot a lot of customers look at sectoral thematic funds uh our experience is and and from our point of view and we've 37:18 37 minutes, 18 seconds always been the proponents of asset allocation dynamic asset allocation as a fundhouse and which really helps customers so we get a lot of uh uh flows 37:28 37 minutes, 28 seconds on the multiasset uh funds uh from a customer from a customer point of view. 37:34 37 minutes, 34 seconds uh to your first question on texture and color uh if I get it right on SIP customers and new customers uh it is in 37:43 37 minutes, 43 seconds line and uh that like I mentioned earlier customers who are young customers who are first jobers customers 37:52 37 minutes, 52 seconds who are looking to enter uh equity markets through the root of SIP are the 37:58 37 minutes, 58 seconds ones uh coming through digital platforms which are largely digital natives on on your specific question on how market 38:08 38 minutes, 8 seconds behavior uh how market behavior plays out on the customer texture and color. We see that 38:15 38 minutes, 15 seconds ticket sizes largely increase when the markets are down. People try to increase their SIPs. People try to look at it as 38:23 38 minutes, 23 seconds an opportunity and that's across the industry. So I hope I've answered the three questions that you had on ICIC ventures. Uh Naven. 38:32 38 minutes, 32 seconds Yeah. So on ICC ventures uh you know if you see our product bouquet on the alternate side we already have a very 38:40 38 minutes, 40 seconds healthy practice on the listed equity where we have uh both the PMS and the closedended AIS. uh apart from that as 38:48 38 minutes, 48 seconds you know we already have uh we already had from before in I in ICA through MC uh private credit uh where uh you know 38:57 38 minutes, 57 seconds we've had uh series of funds we also have real estate uh and within real estate also we have multiple strategies 39:05 39 minutes, 5 seconds uh both one is on the office field side and second is on the residential redevelopment side and then in addition now with venture uh what we are what we 39:14 39 minutes, 14 seconds are getting is uh one is as I mentioned the private equity uh plus we are also getting an early stage private equity 39:22 39 minutes, 22 seconds fund both of them have been raised and are in deployment mode and then on the real estate we would further beef up with an affordable housing fund that 39:29 39 minutes, 29 seconds they have so with this we feel that the bouet is quite vast and uh complete uh but we'll keep evaluating and uh you 39:37 39 minutes, 37 seconds know uh searching for opportunities where we can add 39:47 39 minutes, 47 seconds Yes. Right. From public markets to private markets, the whole product switch from a liquid fund to private equity is is is what we encompass. 39:57 39 minutes, 57 seconds Uh got it. Uh uh thank you for the comprehensive answers and uh all the best. 40:05 40 minutes, 5 seconds Thank you. Our next question comes from the line of Lalith Moando from Eridius Securities. Please go ahead. 40:19 40 minutes, 19 seconds Hello. Yeah. Yeah, we can hear you. 40:23 40 minutes, 23 seconds Yeah. Good evening, sir. Thank you for the opportunity. So, for so first question was on the so like as you mentioned that uh in the current times like there has been a strong growth on 40:31 40 minutes, 31 seconds the Pentax, right? So, could you give a color like uh like how much the entire industry would be of the Pentax and how how much our market share would be in 40:38 40 minutes, 38 seconds that same segment. Second like if you look at the investment book so there we are seeing that we have increased our investments in the other equity reads 40:47 40 minutes, 47 seconds and as and AIS. So what would that be? And just lastly uh like there has been some 40:54 40 minutes, 54 seconds moderation in the SIP market share. So could you give a give us some reason like where we are losing some market share over there if we are. 41:05 41 minutes, 5 seconds So the first two questions we we we heard maybe the third question we'll come to as we go on on the first part on 41:12 41 minutes, 12 seconds the fintex I think it's uh it's in line with the industry that fintex contribute to the new customer growth uh when it 41:20 41 minutes, 20 seconds comes to number of customers volumes and upwards of 50 60% customers across the industry come through uh come through 41:27 41 minutes, 27 seconds fintex and we we we tend to also benefit uh being you know one of the largest players integrated with fintex 41:35 41 minutes, 35 seconds uh on um on on your second question on SIP flows uh the data is is there and 41:44 41 minutes, 44 seconds March was March was better then from a quarteron quarter perspective SIP flows have been structured so third question we didn't get actually so like in the 41:53 41 minutes, 53 seconds investment books like uh we are saying that there has been an increase in investment through towards the other like other equity AIS and the RE side so 42:01 42 minutes, 1 second just wanted to understand the nature of that those investments like the investment book like the all that 4,000 crores like our own investment book. 42:10 42 minutes, 10 seconds Yeah. So of our investment book uh the large component is on account of the seed money which needs to be deployed of 42:17 42 minutes, 17 seconds the balance money you know we keep looking for opportunities uh and uh depending on where we find opportunities 42:24 42 minutes, 24 seconds we would we would deploy. So there isn't any uh particular number with respect to any asset class. So what you're seeing 42:33 42 minutes, 33 seconds is reflective of how we look at the numbers look at uh the deployment pattern as of now. 42:40 42 minutes, 40 seconds Sure. Yeah. Thank you. 42:45 42 minutes, 45 seconds Thank you. Your next question comes from the line of Shash gameplay from Namura. Please go ahead. 42:53 42 minutes, 53 seconds Hello. Uh thank you for the opportunity sir. Uh I wanted to understand uh the yield on site. I know it's a very small 43:02 43 minutes, 2 seconds group currently but uh are these yield similar to the mutual fund that we see? 43:12 43 minutes, 12 seconds Yeah. So FIF effectively follows the same model as equity so far as the pricing is concerned. It's slap based 43:19 43 minutes, 19 seconds based on the the corpus. So yields are exactly the same as any other equity fund. 43:27 43 minutes, 27 seconds Okay. So if the the if there is a debt based uh sif will the yields be similar to debt mutual fund yield? 43:38 43 minutes, 38 seconds Yes, if that is the case if if it is debt based then it will okay thank you so much. And the second 43:46 43 minutes, 46 seconds question was on the passive side. Uh is it fair to say that in this quarter we have seen uh gold ETF uh and commodity 43:55 43 minutes, 55 seconds ETF AUM uh not growing as much as EQ index and equity ETF uh AUM growing because we 44:04 44 minutes, 4 seconds have seen uh yields overall yield going down. Uh is that assumption correct sir? 44:14 44 minutes, 14 seconds Yeah. So if if we look at the if you divide the uh you know analysis in two parts. One is if you look at for the year you would see the share of gold and 44:23 44 minutes, 23 seconds silver uh component in the passes having gone up but uh if you look at this 44:30 44 minutes, 30 seconds quarter versus last quarter also there has been some incremental flows but I think the increase has declined the rate of increase has declined. 44:41 44 minutes, 41 seconds Wonderful. Yeah. Thank you so much. 44:47 44 minutes, 47 seconds Thank you. The next question comes from the line of Manish Osw from Nimal Bank. Please go ahead. 44:55 44 minutes, 55 seconds Yes sir. Thank you for the opportunity. 44:57 44 minutes, 57 seconds Most of the question already answer. I have only one question to understand the detailed uh investor behavior in this uh volatile times. I mean in terms of 45:06 45 minutes, 6 seconds incremental 100 rupees coming in terms of flow how the money split in the equity asset class like uh ETF to the 45:14 45 minutes, 14 seconds active funds if you give quality to comment on that it will be very uh great insightful for us. Thank you. 45:25 45 minutes, 25 seconds Now I think we gave that number uh in our opening remark we mentioned that if you look at only the equity category at the industry level for this quarter uh 45:35 45 minutes, 35 seconds the net inflows was 1.24 24 trillion rupees. This is only on the aspect side. 45:45 45 minutes, 45 seconds Okay sir. Okay. Thank you. 45:49 45 minutes, 49 seconds [clears throat] 45:52 45 minutes, 52 seconds Thank you ladies and gentlemen. We'll take that as a last question. I would now like to 46:00 46 minutes hand the conference over to Mr. Navin Awar for closing comments. 46:08 46 minutes, 8 seconds Uh thanks a lot. We appreciate uh the interest by all of you. Thank you very much once again and wish you all a very good evening. Thank you. 46:19 46 minutes, 19 seconds Thank you on behalf of ICFI Provincial Asset Asset Management Company Limited. 46:25 46 minutes, 25 seconds That concludes this conference. Thank you all for joining us and you may now disconnect your lines.