Aditya Birla Sun Life AMC hits new high, stock gains 5% post Q4 earnings

The company has traditionally been stronger on debt side while on equity side, it has consistently been losing market share for which the stock trades at a considerable discount to other larger peers.

Illustration: Binay Sinha

Deepak Korgaonkar Mumbai

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Aditya Birla Sun Life AMC stock price

Share price of Aditya Birla Sun Life Asset Management Company (AMC) hit a new high of ₹1,098.90, as they rallied 5 per cent on the BSE in Friday’s intra-day trade post March 2026 quarter earnings (Q4FY26). Thus far in the month of April, the stock has surged 25 per cent.

At 10:52 AM; Aditya Birla Sun Life AMC stock was quoting 2.5 per cent higher at ₹1,075.40, as compared to 1 per cent decline in the BSE Sensex. The stock surpassed its previous high of ₹1,082 touched on April 20, 2026. CATCH STOCK MARKET UPDATES LIVE

Aditya Birla Sun Life AMC‘s Q4 results

Aditya Birla Sun Life AMC reported Q4FY26 profit after tax (PAT) of ₹187 crore, down 18.0 per cent year-on-year(YoY), ahead of analyst estimate of ₹ 176 crore, due to below-expected employee expenses and a lower quarterly tax rate. The decline in PAT was mainly owing to lower other income that is related to loss in investment book as equity markets witnessed correction in Q4.

Monthly systematic flow market share improved to 3.75 per cent vs 3.48 per cent in Q3FY26. Overall quarterly average asset under management (QAAUM) rose 14.2 per cent YoY to ₹4.36 trillion, while equity QAAUM grew 16.2 per cent YoY to ₹1.95 trillion, taking its share in total QAAUM to 44.8 per cent (vs 44.0 per cent in Q4FY25). However, the company’s equity QAAUM market share declined 4bps quarter-on-quarter (QoQ) to 4.14 per cent, while it continues to remain a relatively stronger player in debt segment.

The management highlighted that FY26 net flows were nearly 2x FY25 levels, with improving traction across equity schemes. Analysts at Equirus Securities note that Aditya Birla Sun Life AMC’s scheme performance has also strengthened, albeit with some moderation in February 2026. READ | LTM shares fall 5% after posting Q4 results; brokerages trim target price

Brokerages view on Aditya Birla Sun Life AMC

Analysts at Equirus Securities build in 16 per cent AQAAUM compound annual growth rate (CAGR) and 12 per cent EBITDA CAGR over FY26-FY28E. Improved scheme performance and further growth in equity net flows remain critical for further re-rating. The brokerage firm assigned ADD rating on the stock with a March 2027 target price of ₹1,100 (earlier March 2027 target price of ₹885). Key risks are adverse equity market trends, a sharp decline in revenue yields, it added.

Aditya Birla Sun Life AMC has traditionally been stronger on debt side while on equity side, it has consistently been losing market share for which the stock trades at a considerable discount to other larger listed players. The management is taking measures to reduce the pace of this fall first, such as expanding fund management team and increasing engagement at ground level alongwith focus on fund performance. This execution remains the key to improve its higher yielding equity book market share wherein the result is yet to be showcased, ICICI Securities said in a note.

Meanwhile, the management highlighted that regulatory changes effective April 2026 could have a gross impact of ~3-4bp on equity yields. However, this impact is expected to be largely offset through recalibration of commission structures and cost optimization initiatives, thereby limiting the net impact on profitability to a marginal ~1-2bp or lower, analysts at Motilal Oswal Financial Services (MOFSL) said in the Q4 result update.

Aditya Birla Sun Life AMC’s mutual fund business is witnessing strong and broad-based growth, aided by improved fund performance across equity and fixed income segments, a steady rise in SIP traction, and continued expansion of its distribution network. Strategic initiatives to strengthen market share, along with enhanced product offerings and operational efficiencies, are driving business momentum.

The company’s focus on innovation, including the launch of a separate SIF platform and increasing focus on the growth of the non-MF segment via innovative product launches, positions it well for sustainable growth. Analysts at MOFSL have largely retained their FY27/FY28 earnings estimates, incorporating slower AUM growth that is expected to weigh on revenues, partly offset by stable cost structures. The brokerage firm maintains BUY rating with a target price of ₹1,230, based on a valuation of 36x FY28E core P/E. =============================== Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.

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First Published: Apr 24 2026 | 12:05 PM IST