Asset managers see profit fall in Q4, but FY26 may be better

Growth equity schemes saw continued net inflows of ₹94,073 cr in Q4, up from ₹71,278 cr year earlier

- Srushti Vaidya

Listed asset management companies saw slower growth in fourth-quarter revenue and profit amid a broader market correction that not only dampened investor sentiment but also squeezed earnings for fund managers.

The aggregate profit after tax of India's top four listed asset managers declined 0.24% year-on-year (y-o-y) in the March quarter compared with a 42% rise a year earlier. Total revenue from operations grew 16.8% in the fourth quarter, slower than 22% growth a year ago, showed a Mint analysis.

Growth in equity quarterly average assets under management (QAAUM) slumped to 22% in Q4 from 63% a year ago. QAAUM is the average of equity investments managed by a fund over a three-month period.