Thank you. Good evening, everyone.

Thank you all for joining the call for Q1 FY '27 investors call. I hope you all had the opportunity to read through the earnings presentation.

It is available on both the stock exchanges and our company website. Let me begin by sharing our perspective on the current macroeconomic environment.

The global economy, as is known, has shown real resilience this quarter navigating the uncertainty from the West Asia conflicts with limited impact on activity so far. The [current?]

into an uneasy kind of. The IMF projects global growth moderating to about 3% in 2026 and before improving to 3.4% in FY '27 as war-related disruptions gives way to the strengthening of AI and technology investment cycle.

Inflation may rise modestly, keeping central banks cautious on easing. Risk from geopolitics, commodities, and trade fragmentations remain, but the outlook is more balanced with resilient demand and technology-led productivity gains.

India has handled this crisis better than most energy-importing economies, helped by diversified imports, timely policy action, and strong buffers, and regulated real pricing. That said, the higher import costs have pressured the external account with some pass-through into domestic prices.

That's why we are seeing the SNR with deposit also being announced by RBI. Growth remains supported by strong private consumption, steady services, improving investment, and healthy balance sheet of companies, and continued government capex.

The key risk is a monsoon with the IMD expecting below-normal rainfall due to El Nino. Though comfortable food grain stocks, healthy reservoirs, and better supply management should soften and food price impact compared to the past years.

Overall, the near-term challenges are real, but India remains on track to be among the fastest-growing major economies. Coming specifically to equity markets, Indian equities were volatile, but broadly resilient this quarter with sentiment shaped by domestic strength, earnings expectations, FII flows, and global developments.

While large caps stayed range-bound amid bouts of profit booking, and broader markets outperformed with Nifty Midcap 150 and Smallcap 250 both posting gains. Despite FII outflows at various points, sustained domestic institutional flows and improving macro fundamentals helped Indian equities to close the quarter on a stable note.

Coming to update on mutual fund industry, the quarterly average AUM stood at ₹83.14 lakh crore as on 30th June 2026, compared to ₹78 lakh crore as on 30th June 2025, registering year-on-year growth of 14%. The SIP contribution for industry stood about ₹31,780 crore for June 2026, representing year-on-year growth of about 20%.

Total mutual fund folios stood at 29.1 crore as on June 2026, growing by 19% year-on-year, with the unique customers close to about 5.7 crore. During Q1 FY '27, the industry saw total NFO collection of approximately ₹4,749 crore across equity and debt mutual funds, with equity collections driven by index funds, aggressive hybrid funds, and value funds.

Despite equity market volatility, industry witnessed continuous flows into various schemes highlighting sustained investor confidence in the long-term growth potential of Indian equities, though we witnessed marginal slowdown in the overall SIP flows. Individual average AUM for June 2026 stood at 51 lakh ₹51.08 lakh crore, contributing about 61% of total AUM.

B30 cities and average AUM of ₹15.6 lakh crore, accounted for 18.5% of the total AUM, growing by 13% year-on-year. Coming to the ABSLAMC performance highlight, at ABSLAMC, we are pleased to announce that overall average AUM, including alternate assets, surpassed the ₹6 lakh crore milestone this quarter, and now stands at ₹6.28 lakh crore, reflecting robust 42% year-on-year growth.

This includes the mandate received from both ESIC and EPFO. EPFO got added the last quarter.

Therefore, overall average assets for about 1.5 months got added to the overall assets under management. We are pleased to share that we have been entrusted with the EPFO mandate of approximately about ₹6.08 lakh crore.

With this landmark addition, our closing total AUM as on 30th June 2026 has crossed ₹10 lakh crore milestone. This achievement reflects the trust and confidence our clients and partners have placed in us over the years, and stands a testament to the strength of our franchise and investment capability.

Our mutual fund quarterly average AUM stood at ₹4.28 lakh crore, representing 6% year-on-year increase. Within this, our equity mutual fund quarterly average AUM stood at approximately ₹1.99 lakh crore, and growing about 10% year-on-year.

Our equity mix for the quarter stood at 46.5%. Our SIP contribution for the June 2026 stood at ₹1,080 crore, supported by 40 lakh 40 lakh folios contributing to the SIP account.

The total investors folio for June 2026 stood at 1.11 crore with the new SIP registration for the quarter is approx about 5.5 lakh new SIP registrations. Our SIP book remains a cornerstone of our long-term wealth creation strategy.

Through campaigns like Sabse Important Plan, we continue to reinforce the value of discipline and systematic investing. To take our SIP book to the next level, we have launched focused initiatives for both employees and partners, and expect these to drive our stronger outcome in the quarters ahead, though we have seen this quarter a marginal reduction in the SIPs book.

Something we continued remain a big focus area to drive to the next level of growth momentum. Our investment performance continues to demonstrate strong consistency and meaningful improvement across both our equity and hybrid portfolios.

For the past year, we remained focused on strengthening our investment capability, enhancing our investment team, and refining our portfolio constructing investment framework. In fact, it is reflecting on the overall performance improvement, not just on only in the short term, even in the medium to long term, our performance have been showing an improvement.

These efforts have translated to significant not only performance, it also strengthened the investors' confidence, supported healthy inflows across our flagship offerings such as Flexi Cap, Balanced Advantage Fund, Midcap, Multicap, Small Cap, Index Fund, where we are seeing the inflows on a month-on-month basis showing an improvement. In fact, most of these funds now also feature on the recommendation list of our banking channel partners, which will further support flows in going forward.

In fact, this quarter, our product got added to the two of the large banks as part of the recommendation list, which I hope to improve the overall sales numbers from these channels as we move forward. Strengthening and expanding our distribution network remains our key priority in order to improve the overall sales productivity.

In fact, I have undertaken what's called yatra across various cities in India in order to meet all our distribution partners and the investment community at large. These interactions have brought several insights from the ground what customers are seeking and how we are perceived by the market, which have given us great confidence that we are on the right track towards growth, building on the legacy, goodwill, and market equity that we have garnered over the decades.

Technology and innovation remains at the heart of our customer-first approach, and our efforts to enhance the overall investors' experience. As part of digital transformation journey, we have launched series of technology-led initiatives.

Our GenAI-powered chatbot is designed to engage investors early in their decision journey, understand their needs, and guide them towards relevant investment action without requiring human intervention. We also launched our new distributors and investors app, enabling enhanced portfolio tracking, seamless transactions, and improved business engagement.

In addition, our WhatsApp-enabled servicing platform helps investors and partners access services more conveniently and efficiently. Turning to our alternate business, we witnessed good growth during the year.

Our PMS and AIF assets increased about ₹28,650 crore as of Q1 Q1 FY '26 to nearly ₹2 lakh crore, which includes EPFO flows. This growth was largely supported by ESIC and EPFO mandate, which I mentioned about it earlier.

We also launched ABSL Select Sector Fund during the current quarter, and the fundraising is still underway. Along with that, we also have fund launches, which is Structured Opportunity Fund 2, and Multi Manager Fund, and India Select Sector Fund, in addition to the Special Opportunities Fund Series 2 in order to build our PMS and AIF portfolio.

These offerings are broadly in line with investors' demand, and from differentiated portfolio and investment opportunities point of view. In our real estate business, our AUM stood at approximately about ₹700 crore, reflecting a 28% year-on-year growth.

Fundraising is currently underway for Aditya Birla Real Estate Credit Opportunities Fund Series 2, which focus on senior secured lending opportunities in post-approval brownfield real estate projects across Tier 1 cities. With the recent grant of our retail license at GIFT City, we are enabling NRIs and global investors to seamlessly access both inbound investment into India and outbound opportunities across global markets.

Building on this momentum, fundraising is currently underway in our ABSL Flexi Cap Fund, which is a feeder fund. We have seen a marginal success in this space to get money from NRI investors to invest in India feeder fund through the Flexi Cap Fund.

We're also on track to launch retail product via GIFT City in the upcoming quarter, including Emerging Market Equity Fund and India Growth Fund, and also launch series of index funds to invest in global markets. by growing product suite in the GIFT City global investment ecosystem, we are well placed to build scalable offshore franchise in the coming years.

Let me now turn to our passive business, which remains one of our key strategic focus. We continue to see significant opportunity in this segment, and remain committed to building leadership position through a comprehensive product suite, a strong distribution network, and strength of our brand.

To further strengthen our business in this space, we recently appointed Hemant Bhatia as head of our passives along with a team of people under him. He brings more than two decades of experience in building passive and ETF business in India, and we assume will play a critical role in driving product innovation, strengthening investment capability, and accelerating growth in segment, as well as add new customer base through this business model.

During FY '27, our passive quarterly average AUM stood at approximately about ₹40,000 crore, representing 14% year-on-year growth. Our investor base also continued to expand with the total portfolio of reaching about 17.4 lakh.

Within passive, our ETF franchise delivered particularly strong momentum. ETF quarterly average AUM grew by about 47% year-on-year, significantly ahead of the industry growth of about 29%.

Today, our passive products suite comprises of 52 offerings and spanning equities, fixed income, and commodities, multi-asset allocation solutions, and enabling us to cater to the broader spectrum of investors' portfolio. In the apex SIF segment, we launched our first apex SIF hybrid long-short fund, and backed by our strong investment team.

Before building our size in this space, we want established performance track record for six months. Now that the six months is over, now to start building a size in this space.

In order to build a further momentum, we are also now preparing to launch two more SIF, equity long-short fund and equity top 100 long-short fund. This addition will further scale our SIF platform, tapping into the new product segmentation, which I think we can build size.

Also to support this business, we strengthened this team by adding two more specialists to run these products for us. Moving to financials, Q1 FY '27 total revenue is about ₹625 crore as compared to ₹565 crore, with our Q1 FY '26 up by 11% year-on-year.

Q1 FY '27 profit before tax ₹406 crore as compared to ₹372 crore in Q1 FY '26, up by 9% year-on-year. Q1 FY '27 profit after tax ₹309 crore as compared to ₹277 crore in Q1 FY '26, up by 12% year-on-year.

With this, I'd like to open the floor for any questions that you may have. I'll be joined by Pradeep to take any of the questions that you may have.

Hi, sir. Thank you for the opportunity.

Two, three questions from my side. Sir, if I were to calculate the yield, primarily focusing on the active part of the business and keeping out the AUM for the ESIC and the EPFO mandate, by my calculation I am seeing some increase in yield.

Just wanted to understand whether this is the right approach and the increase, how should we think about it? Is this an outcome of the TER regulation and we have actually slightly benefited if you could highlight on that?

Second is also if you could call out the segment-wise yield, that would be really helpful. Thirdly, sir, wanted to understand on the employee expense part, what is the reason for the increase and is there anything one-off there and also if you could call out the ESOP number in that?

These will be my questions, sir. Thanks.

Sure. Just I'll ask Pradeep to answer, yeah.

Swarnab, this TER actually now this was effective from 1st April '26. That has been rolled out completely and we have optimized the commission structure along with the management of cost.

This is win-win for both as an AMC for us as well as for our partners. That has been rolled out and the yields what is there in Q1 reflects the true picture and will be maintained going forward in these levels.

Yeah. Coming to the yield levels, for equity, it is around 60 to 63 to 64 basis points, debt it should be around 24 to 25 basis points, and liquid would be in a range of 12 to 13 basis points, and ETF around eight basis points.

These are the yield levels. Coming to employee cost for this quarter has increased mainly due to the ESOP cost.

If you remember, we actually rolled out the ESOP for the employees in Q1, in January from effective January '26. This is because of that.

The impact of that is around ₹10 crore per quarter of a additional employee cost through the ESOP. Roughly the employee cost which is there in Q1 should continue in the same range for coming quarters.

Yeah.

Sir. Very very helpful.

Understood that, sir. Just a follow-up on the headline yield number that you have mentioned.

As you said that this is the true picture, now how should we think about overall the dilution of the yields going forward as our AUM increases? Also if I could squeeze in another question more on the broader industry level that we are seeing this trend that lot of manufacturers are focusing on the passive side and the ETF side and planning to develop that.

Over the next, say, three, five years, sir, how do we foreseeing the industry say that from the active side as well as from the passive side, how should we expect things to develop? These will be my questions.

Swarn,

actually see, by and large, now the regulatory changes have been now rolled out. Now only thing which will come in play is the telescoping pricing, which will be based on the AUM size, which will grow, right, as you are aware.

What we can do, we will all as a business would like to maintain our yields plus-minus few basis points basis the mix which we will be working on through the alternate business. We feel that going forward, the yield should be in the similar range, barring one or two basis point here and there plus the telescoping pricing.

Sir, do you want to add something?

Yeah. Just to add to that as Pradeep in terms of passive business growth, the way as Pradeep was mentioning, as the size improves, definitely the telescoping pricing will be coming in.

We also believe that active will continue to be the dominant asset class when it comes to the question of overall momentum growth. Having said that, the passive is something in order to build choice to the customers, at the same time ensure that asset allocations remains key.

Passive is something we have now invested on people who have a passion towards building passive. The way we are looking at passive is it should help us build scale and get more at the same time has to be extremely low-cost kind of product.

I think the way we are looking at, it will add to the overall profitable numbers, not in terms of absolute profit. Of course, margin could be lower given the fact that we pass on the benefit both to the customers as well as in the form of low expenses.

In terms of addition of profit, revenue, as well as the bottom line, that's something is the road map in which I think we are planning to drive. Even the GIFT City product that we will be looking at doing, especially for investing in overseas markets, that also we are doing with a similar intention.

Of course, the expenses could be lower than the actively managed funds, but at the same time given the fact it could be relatively lower, but absolute profit that will add to the scheme will remain high. In terms of mix, I think the way we see is, see today if we look at passive is about ₹11 lakh crore roughly is the size, if you knock off mandate-based investments, the pure retail would be roughly about ₹2.5 to ₹3 lakh crore.

Within that if we take large components coming from gold and silver, again will remain one of the asset class for us to focus, which gives reasonably good profitability as well. Maybe this number will keep rising.

At the same time, our intent is actually to build size in the key product, which is where we believe that given the comparable asset class in the same size if you take, given the significant improvement of performance that you are witnessing, we would focus on building a size in our core product, which is what our current focus is, while building our base for the passive and ETF.

Right, sir. This is very, very helpful, sir.

Thank you so much, and all the best.

Yeah. Thanks for the opportunity, and good evening, everyone.

Sir, you just said that the commission was restructured. Sir, out of five bps, how much was kind of transferred to the distributors?

Go on, Pradeep. Yeah.

Mohit, actually we have optimized the commission structure so that it is win-win for both, right? There's no on terms of basis points.

We have reviewed the entire whole ecosystem of commission, and we have ensured that it should remain neutral for everyone and win-win for we as an AMC as well as for our distributor partners. Then the outcome is that by and large, our yields also remains intact, and by and large distributors also maintain their margins.

Yeah.

See, the broad approach we have taken on this space is, when we mean by win-win is something neither I can make too much profit, nor we can take hit. At the same time, from distributors' point of view also.

When we relooked at the whole model and looking at account broadly the sharing formula that we have, I think basis which our own assessment is significant benefit or the loss. That's the way we approach.

With a marginal here and there, some benefit would have accrued to us, some benefit would have got accrued to distributor community, but broadly we have kept it more like a neutral kind of impact.

Understood. Sir, second question is that we have kind of lost market share in SIP as well.

Just wanted to know that even in your opening comments you said that your flagship schemes have been doing well. Where are we seeing problems within the SIP?

Is this non-flagship schemes or how should one look at it? Right.

No, flagship scheme, our effort has been to build. I think flagship scheme as it is that about seven, eight flagship schemes we have mentioned, we are seeing improved flows even compared to last year as well as even this quarter too.

I think largely our SIPs especially in the ELSS schemes are seeing generally outflow in the industry, and we did have impact on some of the ELSS schemes. In fact, even industry also this time the cancellation rates are higher than the previous quarter.

To some extent I would say that has added to the. Of course, sometimes some of the for long, we have seen some cancellations in that.

Having said that, the core schemes, that is one of our intent is to core seven, eight schemes that we have identified, is the one where we call it the focused product. There we are seeing an improvement in terms of SIP registration as well as SIP drives.

This quarter was more or less, say, as a result of what I just mentioned. Second is as far as fixed income concerns, the volatility that we witnessed in interest rates, especially in the month of May, May was actually a little panic month when it comes to fixed income.

Fixed income, we do have large size in the non-liquid fund, liquid fund plus category, which is basically duration-based. We did lose some bit of money.

In fact, all the money has come back in June end and July. At least for a month, I think it affected in the month of May, therefore it got impacted in the average assets.

Otherwise, had it gone in the June end, would not have had an impact. That went in the month of May and coming back after a month's gap.

It had an impact on the overall average assets.

Okay. Understood.

This is helpful.

Sir,

data-keeping questions, if you can spell out the PMS or AIF or the non-mutual fund revenue for the quarter and the SIP AUM.

SIP AUM is approx ₹87,000 crore for quarter. PMS and AIF contribution, if you see, contribution on total revenue on gross basis is around 7% for the quarter.

On net revenue basis, post payout of commission to distributors, is around 4% on overall revenue.

Out of 463%, 4% would be PMS, AIF revenue, right? Yes.

Yes.

Yes.

Understood. Sir, thank you and wish you all the best for the entire year.

Thank you.

Yeah. Thank you for the opportunity.

I have two questions. Firstly in this particular quarter you just mentioned that we are seeing some healthy flows in our flagship products.

Just wanted to understand if you could give some more color into it, in terms of the market share, how is it tracking with respect to our overall AUM market share and flows in those particular schemes? Also if you could also give some color from a channel-wise perspective, where we are seeing some healthy flows and where we are seeing probably some redemptions over there, probably on the distributor side or banking channel?

Yeah.

See, with respect to these core funds, we are seeing though I not track the exact how much is the improvement in terms of market, I generally look at the flows. The core funds such as Flexi Cap, Balanced Advantage Fund, Multi Cap, Small Cap, and then Midcap, and Multi Asset Allocation Fund.

These are the generally core funds, including I am even seeing flows coming into our BSE Equity Fund given the fact it has good performance track record. We are seeing flows in these core funds.

Now idea is actually to ramp up the flows into these funds by keeping this as a high focus area for the entire sales team across the country. Wherever even I'm been traveling with my sales team across different parts of the country to push our overall engagement, I do see positive vibes coming from each one of them, acknowledging that some of our fund performance is even doing better than the competing funds in the same category, where volume would have gone in the last three, four years.

That's something is high realization which is there. Second, with respect to the channels, seeing more or less a steady growth.

I see MFD volumes gradually is picking up. With the banking channel, earlier some of our products were not part of the approved list.

We already started seeing products getting now becoming part of the approved list. Recently, HDFC Bank approved some of our products.

Kotak wealth management team onboarded some of our schemes. We are seeing already product approved part of HSBC, YES Bank, as well as on Standard Chartered Bank and also some of the other wealth management firms, including LGT, Ask Wealth, and IndusInd Bank.

Some of our products were probably missing as part of their comparison, such as Flexi Cap Fund, Balanced Advantage Fund, even our Equity Savings Fund on the fixed income category. These are all now getting added to the overall recommendation list, which in my belief is, given the fact that our engagement is pretty good and also they normally sell the products that are part of the recommendation list, I see improvement coming from sales engagement leading to a better outcome from these channel partners.

We're already seeing this coming in some of the bank channel partners. In fact, HDFC Bank added only a Flexi Cap Fund only in the last two weeks, adding to the overall AUM growth.

Sure, sir. Thank you for that detailed answer.

Sir, just one data-keeping question. Could you also spell out the total number of employees as of June end?

Yes. Total number of employees as on June end is 1 1638.

Sure, sir. Thank you.

1,638.

Yeah.

Hi. Good evening, everyone.

First question is a clarification on the data. When I look at the slide number 11, where you have the closing and the average assets under management, just wanted to clarify that I would have thought the equity AUM, the closing AUM, would be slightly higher than the average for the quarter given the returns from the market and what we've seen with other players.

Just wanted to clarify that first. Second question is in terms of the ESIC mandates, if you could give some idea in terms of what would be the annualized revenue from these mandates?

Last question, sir, would be just a qualitative one in terms of flows. What would you say would be, say top two or three funds where you expect maximum flows in the next 12 months?

Thank you.

On the closing AUM, you're saying?

1.98.

Yeah. Yeah.

In

top two, three funds.

Yeah. See, in terms of take the last question first.

In terms of funds that we see position with respect to the competing funds, also the funds which remains relevant from the broader distribution community point of view when it comes to going allocation of our money, first and foremost, Flexi Cap Fund; second is Balanced Advantage Fund; and third is the Multi Asset Allocation Fund; and fourth is the Small Cap Fund. Though we don't position Midcap at this point of time, there we also wanted to do a justice in showing a high conviction on that space.

However, we are seeing some of flows coming in. Among the the thematic and purely early fund also, we are just positioned, but otherwise largely these four, five funds.

In the hybrid category, both SIF, that new one that we launched, as I mentioned, we want to establish performance record before we start pushing it. Now that we have in place, again we are driving that kind of overall closed point of view.

Equity Savings Fund again comes with equity taxation from a view. The large pool of HNI investors who do not does not have much experience in terms of equity return, that also we have positioned.

In fact, some of the conservative investors, we are positioned that as a scheme for flows. That way broadly we are positioned, but the key schemes largely remains Flexi Cap, Multi Asset, Balanced Advantage Fund, and Small Cap.

With respect to your the AUM ESIC, ESIC mandate of course in the in terms of the revenue, very marginal. We don't earn any much on this.

Of course, we do we do have a team of people who are actually have a separate team of people for managing both EPFO and ESIC mandate. That's what it it the it's the requirement is.

Otherwise, in terms of revenue, it doesn't add much revenue to us. Like that doesn't give you big revenue, but definitely is open the gate for privately managed EPFO, through which we are seeing somewhat of traction in terms of flows coming towards passive funds, as well as actively managed funds, though it's a small beginning.

We are giving a complete re- re-push, rather we are emphasizing the need for reaching out to 1,350 EPFO to contribute from their equity contribution to our existing funds purely on the basis of the mandate that gives us the gives us the edge over others for us to get closer. In terms of closing versus average, Pradeep is just giving a clarification on that.

Abhijeet, average equity AUM for quarter one was ₹1,98,722 crore, and closing also was ₹1,98,969 crore. Because if you see in quarter during the quarter, there was dips in the market and that's why the average also is in the range of closing only.

I think you were saying that why this is in line with closing, there should be some movement on basis the market movement. If you see overall during the quarter April to June, there were days wherein market also has dipped.

That's why average is also in the similar line.

Got it, sir. Sir, last question, Pradeep, any OpEx growth outlook for the year?

OpEx I think remain within the inflationary guidelines. Employee cost, as we discussed in the first call, was in employee cost should remain largely in the similar range as we have already factored in the ESOP cost, etc., which based on for the new ESOP plan which was rolled out for the employees.

Other than employee cost, it should largely remain with as per the inflationary, normal inflationary. There are no cost shocks, I think, as of now.

That's right.

Yeah.

Got it. Thank you so much.

Hi, good evening, sir. A few questions from my side.

First, if I look at your non-mutual fund portfolio, and this is excluding the large mandates from EPFO and ESIC that you have received, if I look at the AUM ex of that average AUM, from 1Q '24 to 1Q '27, which is almost a three-year horizon, or two-, three-year horizon, things look largely stable in terms of the average AUMs ex of the large mandates, despite kind of onboarding new teams, strengthening the sales franchise, etc. Just wanted to understand, if I have to take a two-, three-year view, and given that the market space has kind of widened, your franchise has deepened, how should one aspire to either look at AUM or revenue contribution from this ex-large mandate non-MF book?

That's the first question. The second question comes back to the SIP market share.

Now, if I understood correctly, you mentioned that ELSS has seen some amount of run-down and maybe a little bit of pressure in terms of flows. Now, correct me if I'm wrong, my understanding was that the ELSS contribution to SIP as a at an industry level might not be that relevant.

Unless ELSS SIPs for you guys are a meaningful contributor, triangulating the SIP market share decline quarter on quarter, or at least from March to June, looks a little challenging. Or in case you can give some color on that or maybe the quarterly SIP data, that would be useful, ex of maybe ELSS also.

Third question would be on the fee and commission expense. Is it fair to assume that the increase that you're seeing in fee and commission expense over the past few quarters is largely attributed to the alts and non-MF business basically, and that should continue to remain robust given the product pipeline that you have?

Those were my three questions. Yeah.

With respect to the first question around the AIF side, see, if you look at our alternate business, we can split them into three categories. One is the PMS long-only equity, which is in the listed space, where we have roughly about ₹5,000 crore kind of size.

That's an asset class we want to build size. In fact, they're already part of some of this leading wealth management team approved list.

Definitely, we have a target to take it to anywhere between ₹20,000-₹25,000 crore over a period of next three years. The second category where we have built internal capability as well as the team, is to build AIF performing credit as well as AIF money market fund in the AIF category.

Third is the AIF real estate credit fund. Real estate credit fund, we have established reasonably good track record return to the investors.

The same way AIF performing credit, so far we have been able to deliver close to about 14% return, which again it's being seen by people reasonably acceptable underwriting we have done. With that, our intention is to build the size to the next level.

I think each one of them we will gun for about anywhere between ₹5,000 to ₹7,000 crore kind of size to start with. That is one of the reasons we also given a commitment from our AMC P&L in order to provide seed capital up to 10% of the fund size.

At the same time, we'll provide temporary bridging gap whenever they have a deal so that we can participate in some of the large deals, at the same time get money into the fund. That is the model we have applied as far as the AIF performing credit fund.

Third is of course GIFT City. GIFT City is something now got the retail license.

Clearly, we have a road map in building GIFT City, both for inward remittance and outward remittance. In fact, the three gentlemen who was joining on our passive side, they're quite convinced and quite bullish in terms of building GIFT City as one of the route for domestic savings to get diversified into the international equity market.

That's why we'll launch a few products in that segment. That is what I think we will build size.

As far as the domestic concerns, even the passive side, some of these institutional investors as well as HNIs who largely chooses the passive funds as part of normal asset allocation, that also we have put some kind of in place. In fact, the new team of people are also quite convinced and passionate about building passive.

Therefore, this is something which is the fourth category we will do. That's the way we are building the overall size.

In fact, the way we always drive our alternate business should not only attribute to the overall AUM growth, but it should also attribute to overall profitability, to speak. That's the way we built.

Second question, Pradeep is just answering. Yeah.

SIP cumulative contribution for the quarter was around ₹3,300 crore, which is actually in line with Q4 numbers also. In fact in Q4 also, the contribution was around ₹3,300 crore.

However, there have been month-on-month fluctuations. This is one.

Secondly, you asked about the alternate revenue.

Revenue.

Largely we feel in coming quarters, I think the revenue contribution for alternate should be in the similar range except 1% or 2% here and there, I think should be there because all our LOBs are firing. All our LOBs are growing.

We feel that in coming quarters, this should remain in the same range.

Yeah. See, while we are seeing somewhat of pick-up, I think increasingly we are seeing acceptance for the product.

Ultimately, that should lead to a volume conversion, which is what my belief is will start. Even PMS, there are certain markets where we have been pushing even at the MFD level is also seeing somewhat of success.

That's something which we believe that as you move forward, you will see gradual momentum in this space.

Sure. On the fee and commission expense increase, is that partly attributed to new launches and marketing expense in the alts and PMS businesses?

Yeah.

Fee and commission expense is actually directly linked to the business of alternate business because this is the commission which is paid to the distributor community. I think that is directly linked to the business which we'll be garnering on the alternate side.

I think this should have a similar growth rate of our revenue for alternate side.

Got it. Just maybe one small question if I can squeeze in.

You mentioned that you normally tend to look at absolute flows rather than the market share, which looks fair. If you were to index your flows to 100, let's say in 1Q '26 or 4Q '26, how would the trajectory be tracking incrementally, let's say for the quarter or on a 100 basis, indexing to 100 a particular base quarter?

I think generally I see improvement or up-trend. When I look at the number very very objectively from last year's similar quarter and this year's similar quarter, the numbers are better.

If you look at last year full year run rate versus the three months run rate, is actually the better than the last year full year run rate. However, when we began this year just to give you some sense, April was pretty good for us.

April was started quite well. May and June was relatively muted as we have seen generally in the equity market.

Otherwise, the trend is largely getting better as far as the key funds flows are concerned, which is what I mentioned rather than comparing with the market share right now, how the flows is improving is something. I think once it gets established, it comes in auto mode, then naturally we'll be able to link that into a improvement in the gap between competing funds in the same space.

That's why we start looking at it. I think we'll have to give some time for that now that the products are coming as part of the recommendation list, and now that the performance in the longer term also now getting better.

That's the way normally I see it.

Got it. Thank you, everyone, and all the best.

Thank you.

Yeah. Thank you, everyone, with this we'll conclude our Q1 FY '27 earnings call.

If you have any questions, please feel free to contact Pradeep and

Paritosh.

Thank you. Thank you.