Nippon India AMC’s net profit plunged 35.6% to ₹324.14 cr in Q2FY27, triggering a 9.7% intraday slide as investors weigh yield compression.
Revenue rose modestly 3.8% QoQ to ₹795.75 cr, but operating profit only edged up 5.8% to ₹537.55 cr, leaving the operating margin at 67.55%—still higher than the 66.23% seen in Q1.
Equity revenue yield slipped 2 bp to 52 bps, while blended yield fell to 37 bps, a sign that the tightening cost structure may bite profit growth. The company’s settlement of ₹96.76 cr for the Yes Bank Tier‑1 bond and an 86.4% drop in other income to ₹23.14 cr further weigh on the bottom line.
Assets under management grew 4.7% QoQ to ₹7.87 lakh cr, keeping Nippon’s market share flat amid a sector‑wide AUM rise. The firm remains the fastest‑growing asset manager by share, but the dip in new investor additions could dampen future momentum.
With 26 analysts covering the stock, 21 rate it "buy" and only one at Kotak Securities labels it "sell", the consensus price target suggests a 35% upside. However, sector analysts caution that yield compression and cost pressures could keep valuations muted until the next quarterly report on December 15.
The company is expected to release its Q3FY27 results on December 15, where investors will look for signs of yield recovery and cost containment.