Nippon Life Ind. Q1 FY27 Results (NSE: NAM-INDIA)
Signal: Margin expansion
The read
NAM India delivered its highest ever quarterly operating profit and PAT, driven by 23% YoY growth in MF QAAUM and market share gains. Operating margin expanded YoY (+216bps) but contracted sequentially (-234bps) as expenses grew faster than revenue. PAT grew 27% YoY, with EPS up 26% YoY after minor dilution. The pending SEBI show cause notice remains an overhang, but management is pursuing settlement.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹766.87 Cr | 26.41% | 3.81% |
| EBIT | ₹494.28 Cr | 30.79% | |
| Net profit | ₹503.7 Cr | 27.15% | |
| EPS | ₹7.89 | 26.44% | |
| EBIT margin | 64.46% |
P&L walk
Operating profit (revenue minus total expenses) grew 31% YoY to ₹494.3 Cr, expanding margin 216bps YoY, but contracted 234bps sequentially as expenses rose 11% QoQ vs revenue up 3.8%.
Key positives
- Highest ever quarterly PAT of ₹503.7 Cr, up 27% YoY.
- Operating profit up 31% YoY to ₹494 Cr, with margin expansion YoY.
- MF QAAUM grew 23% YoY to ₹7.52 trillion, market share up 54bps YoY to 9.04%.
- Industry-leading unique investor base of 24.1 million with 39% market share.
- Equity MF QAAUM up 22% YoY, ETF QAAUM up 40% YoY.
Key concerns
- Sequential operating margin contraction from 66.8% to 64.5% due to higher employee and other expenses.
- Pending SEBI show cause notice for alleged non-compliance; settlement proceedings ongoing with uncertain outcome.
- EPS growth slightly diluted by ESOP allotments (0.6% increase in shares).
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