PL Capital lowered its target for Nippon Life India Asset Management after quarterly profit fell 6%, as a ₹96.76 crore Yes Bank bond-related charge outweighed stronger operating earnings.
The company reported profit after tax of ₹324.37 crore for the quarter ended Sept. 30, 2026. Consolidated total income rose 18% year over year to ₹818.89 crore, and operating profit increased 25% to ₹523 crore, according to company results and a media release.
The exceptional item comprised ₹89.08 crore, including interest, from reversing management fees earned on the investments, and a ₹7.68 crore settlement amount for the company and certain officials. The Securities and Exchange Board of India (SEBI) had issued a show-cause notice alleging securities-law noncompliance involving certain mutual fund schemes’ investments in the bonds. The company said it submitted settlement applications without admitting or denying the findings or legal conclusions.
SEBI communicated in-principle acceptance of settlement terms during the quarter, but the settlement order was still awaited, the company said. It considered no further provision necessary based on its current assessment.
NDTV Profit reported that PL Capital retained its Buy rating and cut its target price to ₹1,200 from ₹1,250. NDTV Profit also reported that PL Capital cut its valuation multiple for September 2028 core earnings per share to 37 times from 38 times and put potential upside at 23%.
Nippon India Mutual Fund’s quarterly average assets under management rose 20% year over year to ₹7.87 trillion. Systematic flows increased 4% to ₹111.5 billion, and its unique investor base reached 24.3 million. Managing Director and CEO Sundeep Sikka said the company had the strongest asset growth and market-share gains among the top 10 asset managers in the first half of FY27.
The company said the Supreme Court of India on Oct. 15 dismissed appeals against a Bombay High Court judgment that set aside Yes Bank’s March 2020 AT-1 bond write-off. Any recovery would accrue to unitholders in the relevant schemes and would not affect the asset manager’s financial results. The board also approved an interim dividend of ₹9.50 per share, with Oct. 28 as the record date and payments beginning on or after Nov. 5.
