Aditya Birla Sun Life AMC reported a 20% year-on-year rise in net profit to Rs 270 crore for Q3 FY26, up from Rs 224 crore a year ago, aided by stable operations and higher other income. Revenue from operations increased 7% YoY to Rs 478 crore, reflecting steady momentum despite pressures from the equity AUM mix.
Brokerage View: Citi on Aditya Birla Sun Life AMC
Citi issued a double upgrade to ‘Buy’ on Aditya Birla Sun Life AMC with a target price of Rs 900. The brokerage noted that the company’s performance over the past few years had been muted due to weaker returns across key equity schemes, which led to a decline in its market share in actively managed equity-oriented MAAUM to 4.2% by March 2025.However, Citi highlighted that market share has begun to stabilise over recent quarters, supported by improving performance in key equity schemes, especially in near-term performance buckets. The brokerage expects gross flows to gradually recover as consistent one-year performance translates into stronger performance across longer-term buckets. Management has also indicated lower redemption pressures and improving net inflows across several schemes. While execution risks persist, Citi believes the company’s strong sales engine and sustained performance trends should aid AAUM growth and market-share recovery, paving the way for a potential re-rating.
Brokerage View: Nuvama on Aditya Birla Sun Life AMC
Nuvama upgraded the stock to ‘Buy’ from ‘Hold’ and raised its target price to Rs 950. The brokerage stated that the earnings beat was primarily driven by higher other income, despite a decline in the equity AUM mix. Nuvama flagged that operational metrics remain weak and market-share losses continue across key parameters, indicating the need for further improvement.
Despite these challenges, Nuvama increased its FY26E, FY27E and FY28E NOPLAT estimates by 5.4%, 5.5% and 4.3%, respectively, reflecting improved earnings visibility.Also read: Bandhan Bank jumps 5% on Motilal Oswal, JM Financial upgrade. Check target
Overall, positive earnings momentum and broker upgrades boosted investor sentiment, driving the stock higher in Friday’s session.
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