Nippon Life India Asset Management approved a ₹9.50 interim dividend after reporting a 6% annual decline in quarterly profit, with a settlement-related exceptional item weighing on results as operating profit rose.
For the three months ended Sept. 30, profit after tax was ₹3.24 billion. The company’s Q2 FY27 release put total income at ₹8.19 billion, 18% above the year-earlier quarter, and operating profit at ₹5.23 billion, a 25% increase.
The results filing lists a ₹96.76 crore exceptional item tied to settlement proceedings with the Securities and Exchange Board of India (SEBI). The company said it received SEBI’s in-principle acceptance of the settlement terms during the quarter.
The proceedings stem from Yes Bank Additional Tier 1 bond holdings in some Nippon India Mutual Fund schemes. Nippon Life India Asset Management manages the schemes. Its FY2024-25 annual report links SEBI’s show-cause notice, dated Aug. 30, 2024, to those investments. The report also records a settlement application filed by the company and certain officials on Oct. 28, 2024.
The asset manager’s closing assets under management (AUM) reached ₹8.68 trillion, up 14% from a year earlier. Nippon India Mutual Fund’s quarterly average AUM was ₹7.87 trillion, a 20% gain, while its market share measured by that average rose 51 basis points to 9.02%.
Systematic flows totaled ₹111.5 billion in Q2 FY27, 4% above the prior-year quarter. The company also reported a unique investor base of 24.3 million and a 38.4% market share. Sundeep Sikka, managing director and CEO, said net sales and systematic investment plan market shares were “well above Equity AUM market share,” according to the release.
The interim dividend is for financial year 2026-27. The exchange filing sets Oct. 28 as the record date, with payment due on or after Nov. 5.
