• Total mutual fund quarterly average AUM reached INR 11.05 trillion, up 25.6% YoY and 2.6% QoQ, maintaining #2 position with 13.5% market share
• Largest market share in active schemes at 13.7% with quarterly average AUM of INR 9.21 trillion (up 21.9% YoY)
• Equity and equity-oriented schemes AUM of INR 6.2 trillion grew 27.2% YoY and 2% QoQ, outperforming industry which declined QoQ
• Systematic transactions (SIP + STP) reached INR 51,040 crores in March 2026, up 30.6% YoY from INR 39,060 crores
• Passive AUM grew 48.3% YoY and 10% sequentially to INR 1.84 trillion with 10 basis point margin
• Unique customer base expanded to 17 million, with net flow market share in equity schemes exceeding AUM market share
• Completed acquisition of investment management rights from ICICI Ventures for INR 46,280 crores of fee-paying committed funds across private equity, early-stage PE, and affordable real estate strategies
• Launched first IFSC offering in GIFT City - ICICI Prudential Smart Navigator Fund (Category III AIF) and established Dubai office with dedicated team

ICICI Prudential AMC maintained its position as India's second-largest AMC with 13.5% market share, demonstrating resilience amid market volatility with Q4 FY26 quarterly average AUM of INR 11.05 trillion (up 25.6% YoY). Despite challenging market conditions with Nifty50 declining 14.5% QoQ, the company sustained positive equity flows, expanded its unique customer base to 17 million, and achieved operating margin expansion to 37.6 basis points for FY26. The acquisition of ICICI Ventures' investment management rights and continued strength in SIP flows (up 30.6% YoY) position the company well for future growth.

Operating revenues for Q4 FY26 stood at INR 15,170 million, up 19.5% YoY but nearly flat at 0.2% QoQ. Operating net revenue mix was 90.65% from mutual funds, 7.58% from alternates, and 1.77% from advisory. The company recorded negative other income of INR 890 million due to mark-to-market impact. Operating expenses decreased 3.5% YoY and 3.9% QoQ to INR 3,890 million. Operating profit before tax increased 30.2% YoY and 1.6% QoQ to INR 11,280 million. Profit after tax was INR 7,630 million, up 10.4% YoY but down 16.8% QoQ due to other income impacts. For FY26, gross yield stood at 52 basis points and net yield at 48.3 basis points, with operating margin expanding to 37.6 basis points from 35.9 basis points in FY25. Return on equity for FY26 was 85.8%. The Board declared a final dividend of INR 12.4 per share subject to shareholder approval. Employee strength stood at 3,585 as of March 31, 2026.

Management demonstrated confidence despite market turbulence, emphasizing that customer behavior remains resilient with SIP flows continuing strong through March and April. Leadership highlighted that even on days when markets fell sharply, investors continued deploying capital, reflecting long-term conviction in equities. The team stressed their cautious approach, consistently guiding investors toward dynamic asset allocation funds given market uncertainty, though noting many investors are choosing straight equity based on their risk appetite. Management emphasized their 18-year track record and strong product suite catering to different customer preferences. The strategic focus on digital channels for acquiring young, first-time investors was highlighted as a key competitive advantage. Leadership expressed confidence in maintaining market share leadership in active schemes and growing presence in alternatives through the ICICI Ventures integration, which they positioned as completing their product bouquet from liquid funds to private equity.

The primary challenge cited was significant market volatility, with Nifty50 declining 14.5% during the quarter from 26,130 to 22,331, driven by geopolitical uncertainty. Industry-wide mutual fund AUM declined 0.4% QoQ to INR 43.80 trillion reflecting challenging market conditions. The debt segment saw quarterly average AUM decline 5.2% QoQ from INR 13.38 trillion to INR 12.69 trillion, with ICICI AMC's debt AUM declining 2.7% QoQ to INR 1.99 trillion. Arbitrage funds saw large redemptions, partly due to year-end corporate cash deployment and anticipated STT implementation. The company faced a three to four basis point impact from regulatory TER changes effective April 1, 2026, though management indicated mitigation steps are being discussed with crystallized impact expected within two months. Employee costs showed volatility due to ESOP/ESU grant timing. Management acknowledged ongoing geopolitical uncertainty and cautioned that past 10-year equity returns may not repeat, though customer sentiment remains positive. The passive business yield compression to 10 basis points reflects competitive pressure and product mix shift toward gold/silver ETFs.

Revenue Outlook: Management did not provide specific revenue guidance but indicated normalized OpEx growth expected. Regulatory TER changes from April 1 have 3-4 bps gross impact with mitigation steps being discussed; crystallized impact to be shared in 2 months

Margin Outlook: Operating margin expanded to 37.6 bps in FY26 from 35.9 bps in FY25. Company working to mitigate TER regulation impact through various steps under discussion

Key Targets:

• ESOP/ESU expense of INR 1.2-1.3 billion over vesting period: ~INR 640-680 million in FY27, ~INR 360-400 million in FY28, ~INR 182-260 million in FY29
• 4-5 new fund offerings planned across SIF and MF segments pending regulatory approval, with 1-2 launches expected next month
• ICICI Ventures integration adding INR 46,280 crores of fee-paying committed funds from April 1, 2026

The Q&A session focused heavily on understanding customer behavior resilience amid market volatility, with analysts probing SIP flow sustainability, customer acquisition dynamics through fintech channels, and the texture of new versus existing investors. Multiple questions addressed the significant sequential decline in employee costs and its normalization going forward, with management clarifying the ESOP/ESU grant timing impact. The ICICI Ventures acquisition received considerable attention, with analysts seeking clarity on economics, AUM contribution (INR 46,280 crores confirmed), and strategic fit. Yield compression concerns emerged across multiple questions, particularly regarding the 3-4 bps impact from April 1 TER regulatory changes and passive business margin pressures. Analysts also focused on arbitrage fund redemptions, product mix impacts, and tax rate volatility. Management consistently emphasized their cautious yet confident stance, highlighting that while they cannot predict geopolitics, underlying investor behavior remains constructive with flows continuing even during market declines. The tone was reassuring on business fundamentals while acknowledging near-term uncertainty, with management stressing their comprehensive product suite and market share gains as key differentiators.