Aditya Birla Sun Life AMC Limited ($ABSLAMC)

Ladies and gentlemen, good day, and welcome to the Q4 FY '26 Earnings Conference Call of Aditya Birla Sun Life AMC Limited, hosted by InCred equities. [Operator Instructions] I now hand the conference over to Ms. Meghna Luthra from InCred Equities. Thank you, and over to you.

Thank you, Rutuja. Good evening, everyone. On behalf of InCred Equities, I welcome you all to Aditya Birla Sun Life AMC's fourth quarter and full year FY '26 Ended Earnings Conference Call. We have along with us Mr. A Balasubramanian, MD and CEO; and Mr. Pradeep Sharma, CFO. We are thankful to the management for allowing us the opportunity to host them. I would now like to hand it over to Bala sir for his opening remarks. Over to you.

Thank you, Meghna, and good evening to everyone, and thank you for joining our Q4 FY '26 call. And I hope you all had the opportunity to read through the earnings presentation with available both the stock exchanges and our company website. Let me begin by sharing our perspective on the current macro environment, followed by update on the quarter ending effect in the 6 for [indiscernible] business. The ongoing conflict as is known investors and the view of global uncertainty, our fundamental in the world [indiscernible] and surging energy prices has changed the global macro perfective and are posing challenges for our Global economic growth term. For NBA, there is the disruptions in the Asian market, due to the political risk, even costs higher, and the depreciated the Indian rupee versus U.S. dollar, which continues to remain a risk in the very short term. The risk of sentiment has prompted [indiscernible] flow and broad-based equity market corrections across emerging market as a result of that. The IMF now projects global growth to comoderate to 3.1% in 2026, down from 3.4% in 2025, early inflation expense rise modestly. The peak of tariff-related uncertainties behind this and potential productivity gains from AI to a meaningful structural tailwind over medium term. India has demonstrated commendable as line through this period. Domestic growth momentum remains fundamenally healthy, and I expect the GDP growth to be about 6-point-some for the year, preserving India's position as the fastest-growing major economy. [indiscernible] inflation expect rise modestly. However, it remains at a comparable position within RBI tolerance band with subdeal core inflation and healthy food stocks providing addition in the first half. Our India growth outlook continues to be underpinned by strong domestic demand, improving investment activity, a report monthly policy sense and LD Bank and corporate balance sheet. Our [indiscernible] the equity market, the last quarter witnessed a sharp transition from [indiscernible] with market correcting from near record highs, driven by persisting FA outflows and global risk [indiscernible] grew prices there. Encouragingly, sustained parting on domestic mutual funds and retail investors question the decline, underscoring the grain maturity of our dramatic liquidity and reinforcing that discipline, long-term investing and trusted guidance have never been more valuable. Coming to an update on the machine industry. The quarterly average AUM for the industry as a whole stood at [ INR 8.5 crores ] as of March 2026, compare to INR 67.4 crores as our 3 math we see year-on-year growth of 20%. The industry recorded its highest ever SAB contribution. Approximately INR 300 crores for March '26, representing year-on-year growth of 24%. Total mutual fund fully stood at approximately INR 29 crores as of March 2026. During Q4 FY '26, the industry saw a total in collection, approximate INR 200 crores across the equity in the fund, with the equity collection driven by predominantly [indiscernible] funds and smaller mid-cap funds. And best market volatility Industry witnessed continued flows into various times, highlighting sustained investor conference, the long-term growth potential of inequities. In digital average for March stood at INR 47.4 lakh crores, contributing to about 60% of the total industry size there. And [indiscernible] an average AM of INR 4,400 crores accounted for 18% of the total AUM growing by 9% year-on-year. Coming to the base lens performance highlights at the Avantor overall average [indiscernible] including alternate assets now stands at INR 44 crore, growing by 17% year-on-year or [indiscernible] quarterly average AUM stood at INR 4.36 crores, representing 14% year-on-year increase. With this, our recruiting mutual fund quarterly average year. Stands at approximately INR 1.97 lakh crores, growing at 7% year-on-year. Our SIP contribution for March '26 has seen a reasonably good pickup to INR 5,204 crores going 11% quarter-on-quarter we closed at INR 1,080 crores, 1,204 crores, suffered by INR 40 lakh contribution coming from SIP accounts. Building on this momentum, we are the forefront of driving our SIP adaption through a [indiscernible] plan campaign, reinforcing the value of investing to the market cycles. And systematically, our ambition and [indiscernible] to reach every household in India, making [indiscernible] SIP a reality we're working in a direction, which will help us improving number further. [indiscernible] Folio for March 2026 stood at 1.1 crores. The new registration for the quarter, apart from [indiscernible] on a quarter-on-quarter basis, another area where we have shown interim in the current quarter. Basically had in the previous quarter, reflecting on both the number of risks that happened in the quarter. Over the last year, we at ASM have made meaningful investment in strengthening the investment team on people and sharpening our portfolio consuming processes and the investment framework [indiscernible] in our deliver constant performance. This has, in fact, resulted in a sustained improvement in our investment performance in equity directly transferred into growing investor conference and distributors conference and consistent flows across our core funds offering. In fact, in the current quarter, we continue to see momentum coming in our flows [indiscernible] funds, Multilatin funds, small and mid-cap funds, [indiscernible] funds and multi-cap funds. Our market expansion has always been a key priority, IFRS and continue to deepen our presence across our energy market. And today, we are present about 19,000 pin codes spanning across the country, reflecting our commitment to bring in quality investment solutions to every corner of India, building on this foundation, we plan to add [indiscernible] location in FY '27, other expanding our Jagra footprint. In fact, during the current quarter, we have seen our retail productivity improving across our markets is replacing a number of distributors getting added at our fund as a number of distributors getting activated across different markets in order to further drive our business sense. We have a nano technology platform and digital capabilities with a clear focus on delivering a seamless experience, including the launch of new [indiscernible] Dat is reinforcing our commitment to simple transparent and accessible investing. We also launched a new partner with demand capabilities, and we remain focused on leveraging technology [indiscernible] wealth creation and long-term value to our industries. In fact, in our digital platform, we added some of the features, which will actually bring in the number of customer additions and having customers multifold to as a for and also improve the service standards in our app, which can, in fact, help us in terms of adding more customer base as time to come. Moving to our automatic business, the PMS and AIF category has maintained a strong momentum, complement by a comprehensive suite of trade offerings. Our payment AIS assets grew significantly from INR 300 crores to INR [indiscernible] crores with a growth of 3x is also supported by ASAC mandate that we won last year. And as you all know, [indiscernible] who's our PMS Head managing the investments as a head of investment. Now in additional responsibility, our offshore for management, along with building the business and expanding our global investment capability as a head of offshore business, both our money management as well as reading the business as and [indiscernible] With this new commitment and passion. I'm sure that these 2 asset classes will start building some more outcome as time to come. We continue to drive funds in some of the funds that we launched last year, and G11 Buildout occupy, ABL Plexicafund for enormitangiity and global blue-chip fund, which again created -- which has given a quite experience for investors to provide global competitive solution to investors. We plan to launch ABS global emergmarket fan very soon to the [indiscernible] [indiscernible] was part of our AB Capital talent pool now taking charge of debt AI platform in order to provide presence-oriented performing art funds were lease credit strategy with a focus on scaling our offerings in this space. The ESA demand date account of about INR 20 crores as of March 2026, while PMS and AIF excluding ESA mandate, registered year-on-year growth of about 14%, reflecting healthy underlying momentum backed by strong performance coming from our PMS as well. On the EPFO mandate, which last quarter, I mentioned about we won the equity mandate. This quarter, we signed the agreement, formal agreement we signed. And we already operationally to get the inflows after fulfilling a few other formalities next few days. I'm so in the following quarter, we get to and the EPA money in the fixed income space as well as mandated [indiscernible]. We are currently in the fundraising plan and the special opportunities fund the Series 2 and structured opportunities fund series 2 and money manager funds in the AIF has, along with AIF India sector fund in the equity space. On the real estate front, for AAM grew approximately by INR 740 crores reaching 14% year-on-year growth. We currently have a fundraising and rebate portable real estate [indiscernible] series 2 and focus on senior secured lending to post-approval brownfield real estate projects across [indiscernible] cities. In our passive business, we continue to witness significant momentum with our quarterly average AUM crossing, INR 47 crores mark to stand at INR 47,200 crores in Q4 FY '26. So a pace year-on-year growth at 25% and our customer base expanding was INR 16.99 lakh crores. [indiscernible] average in grew the was 68% year-on-year. [indiscernible] industry EPS growth about 40%. Our [indiscernible] product suit now comprise 54 testing offerings across equity, prisons, commodities and valiant designed to address the diverse investment needs of investors. During the quarter, we launched 2 new products in the [indiscernible] in the ADSL, India ATFN. This will be a bad of [indiscernible] into our fund in India. And hopefully, we'll get about flows from FI industrial fund and for which our large is funded. The thing that we also launched BSE top 10 banks ETF start seeing a flow of investment -- for those who are dedicated investment they make in the cranes index them. I are happy to announce that we have incorporated our wholly owned subsidiary I and live Am International ISE, and have particularly applied retail license to further tapes. And the 88% in Get was in the form of a branch as an external am for AMC a for enters only owned subsidiary company. With this, we'll be able to launch a product or invremittance and outrate for smaller ticket rate about sales and dollar as even [indiscernible] Beyond our FI vertical under the FX brand is our first offering in the hybrid long start fund all investors need and the rapid expansion of India is applying segment. This category represents significant growth lever for us. Building on this momentum, we plan to introduce a pipe of new offerings as aided by new circular, the near term to further strengthen and scale this platform. In line with further enhanced investment capability we at 2 specialist bringing deep expertise in long chat as well as the e-to-e strategy using options and futures in the market. Moving to the financial numbers. Pipetting revenue for our operation is at INR 458 crores as compared to INR 492 crore in Q4 FY '25. However, Q4 operating profit by about INR 252 crores as compared to INR 233 crores. Our Q4 is profit after tax of INR 180 crores as compared to INR 208 crores, this is likely on account of increase in reduction in other income, due to the mark-to-market actions for the quarter. Revenue from operations for the full year FY '26 was INR 1,845 crores as against INR 1,030 crores. FY operating profit while INR 1,014 crores as compared to INR 941 crores. FY '26 profit after tax INR 970 crores as compared to INR 913 crores. We are pleased to announce that the Board has proposed a dividend of 25.5% per share, we somewhat equal by 78% of profit distribution for the current quarter, for the full year. With this, I would like to open the floor for any questions. I'll be joined by Pradeep Sharma to take away the question that you may have.

[Operator Instructions] The first question is from the line of Mohit Mangal from Centrum Broking.

So my first question is on the regulatory impact. So from the first of April, we see that there will be a 5 basis impact on the equity area. So how do you intend to mitigate the impact? And what would be the net impact on our books?

I think this is the broad impact generally for the related changes is in the range of about 3 to 4 basis points roughly. But however, given the fact that the way the industry has been operating the way we are in, we will try and do the structures in such a manner that it does have the least impact as far as the P&L is concerned encounter, given the fact that the reduction is actually quite marginal. And total making the structures that we have both on the commission structures and other expenses keeping all those things in mind, we'll try and make it real to everyone and win-win for the overall business without having any kind of deep impact. Either for the distribution community or for our [indiscernible]

So you intend to pass on to the distributors basically. And will be like 1 or 2 basis point 5, that is what you intend to say?

No, not antenna exact number. I think we will have to roll it out in the current quarter. And as of now, the assumption that you are making as far as the impact concerns will be very marginal. We would look at it from all angles, how do we maintain the overall profitability. At the same time, when we also look at passing on optimizing the entire thing also, of course, since it goes across the entire discipline community, we also feel even from a distribution point of view. Even if it is a margin in part an impact will be the least.

Understood. How is the slow market share versus the book market share this quarter? .

In line with the market only. So in terms of market share, you are saying?

Yes, yes, market share. Flow market share versus book market share.

It's in line with our market share. In line with the market share. Okay. in the market we have seen improvement in terms of color flows. I think we have to just give you some kind of color. One, we actually this quarter better than the previous quarter in terms of flow of funds coming into the funds that we have been promoting, backed by presumably good acceptance more and more approvals are also coming in from the banking channel. That sorting is good news. Second is the way we look at it, as you that we've been saying for the last only 1.5 years. We'll continue to focus on reducing the fall in the market share that before we start rising. That's something again has happened in quarter 2. I mean overall, reduction is very, very marginal -- very narrow quite significantly. Within good flows broadly, I would say, we would come should come reasonably close to the market growth momentum [indiscernible]

Understood. Sir, my last question is on few book questions. First is what is the [indiscernible] Secondly, if you could quantify the APA per fix income include the in a Paurand lastly, the PMS and EIS revenue for financial ties and Q4 financial.

Sure. As I entered the second question, which is the ETF equity rather than roughly micros is the ETF, which includes gold and gold and silver, roughly about INR 1,109 crores roughly as -- and the balance is actually preincome target mature if you can pull it. As far as the other question, I said the book is about INR 76,000 crores is SAP book. With rest to the revenue overall the... As at the TMS and this revenue, I just tell you. Revenue coming from PMS and.

Yes. So revenue share from CMS and I [indiscernible] Around 6% on gross basis more -- and on , it will be around 3.5%. Yes.

Okay, understood. Sir, sir, just 1 follow-up. You just pay is INR 7,000-odd crores. Last quarter, it was around INR 87,000 crores. So is this a movement, right?

Yes, Yes.

[Operator Instructions] The next is the line of Dipanjan Ghosh from Citigroup.

So just 3 questions from my side. First, you mentioned in your previous comment, that your flows in the funds that you have been pushing or funds or performance of could there have been improvement in flows quarter-on-quarter. But if I look at the overall active equity, we have the cohort for you and look at 4Q versus 3Q or 4Q versus last year 4Q, how the quarter-on-quarter a Y-o-Y look like for the entire active equity basket as a whole. My second question is on the expense side. You mentioned in your commentary that you kind of have expanded your team on the FIS side. And you also have ambitions to continue to scale up our alternate and PM business is offshore businesses. So when I look at the employee expense growth, how should 1 think of, let's say, for the next 1 or 2 years in terms of the growth. Finally, I have a few data keeping questions. One is SIP flows for the quarter. The second is ESOP expense for the quarter and year. And third is the number of employees outstanding as of March 31.

As far as the floor content panel, I think the last quarter, as I mentioned, and this was also the -- so the way I look at it, what you're trying to build in addition to Arbutfan, which also considers active equity. I have seen a good pickup in the back half of this year in terms of our brand as an tired, the thing pickup coming in FlexiCaptlocation fund, multicar fund and the Palamon. So that's why I think we continue to see inflows and even if you're also promoting this kind of focus products. On the thematic side we continue to see flows in the next fund. And now we are saying would pick up in the small and mid-cap fund. We are now seeing flows in a small and mid-cap fund. So that is the way we are pushing it. And third, of course, we were also losing some assets in the early part of the year is Las games, thanks to the significant improvement that you have seen in the performance. In fact, our outflows has come down quite far. So the asset as a category is not getting flows. But we had a bit of extra outflow initially for the 4 months of the schemes, that got narrowed quite significantly. I say we have seen a significant pick. In fact, I must also share with you the number of funds that have delivered Q-on-Q to performance and equity. Now has gone almost about 85%. In fact, current quarter, we have almost significant significant infection in the Q4. And that company is something. It's being accepted. In fact, and in the current quarter, we got our products approved part of the banking channel, which is also another phase we are working on it. Now however, we got 1 product that in now to product added from the list of on the deal. So I think -- I think each quarter-on-quarter basis, we are improving it. And hopefully, this year, we'll see the momentum continuing as far as a flow is concerned, that we are pushing the team for into the productivity point of view. Then other 2 questions, I'll ask Pradip to just give you a [indiscernible]

So the other was on the employee expenses you were talking about. So basically, see, we launched a new employee of scheme which we had impact in the current quarter, and that will continue in the next year in coming quarters also. However that impact is not that really visible in the Q4 numbers if you see, there there's not increase from Q3 to Q4, largely on account of there were some employee-related levers because of the performance, variable pay performance that has been offset in Q4. Going forward, there would be an impact of around INR 210 crores per quarter in next year. Yes, next year. So this would be on account of [indiscernible] As far as you said on the employee, the 2 new employees, I think that there should not be much impact. That is only running employee cost on a normal interest or employee costs should be.

. As well as your employee cost and additional reading mentioned for mentioned, I think from a team point of view, we are more or less there, except would our ETF passage gentlemen left. So we've been carrying on automate to build our passive business. Of course, you are an existing team no doubt. But to have that business, we have a someserious plan in order to bring in higher focus on passive growth as well. That's something you'll do. And second, of course, some people have left and therefore, some people are coming in. So largely, if I look at this from employee cost con,therewill be margin increase, not a big time increase -- so out of a gene also keep looking at optimizing the existing resources or addition this far they can take. And therefore, this will remain from but under control. As far as the SAP concern, while mentioned about Nextel impact will come in by I must mention, we rolled out our retaplanthis years the onetime close to INR 40 price. In fact, there's also boosted the confidence and motivation of people. We robot 100 employees we covered. Therefore, I would probably say that with the improvement in performance, -- and it also got motivated apposition of resolve. And it also should add to the overall opportunity for the fund.

Got it. If I can get the data point that I asked for SIP flows for the quarter, number of employees? And yes, to the 2 questions.

So SIP flows are INR 1,204 crores. Sorry, once again. INR 1,208 crores is for the March. And if you see fourth quarter, it is INR 3,600 and employees are 1,650 employees of March.

So INR 1,650 you said, right?

5-0.

So just 1 follow-up maybe. I mean, if I look at your risk year, I mean -- you started with around 16, 30 employees. You went up to around INR 1,700 crores, and now you're back to INR10 despite the business momentum, you're not picking up. So what should -- what it really getting captured in this employee count from [indiscernible]

So we always see this is always -- there will be always some ongoing vacancy at RM level, et cetera, at the bottom of the pyramid. As well as we always keep on optimizing our employee strength and also keep on improving the productivity levels by way of implementing the new tech solution, et cetera, et cetera. I think 250 employees plus/minus will keep on happening always depending on the optimization.

Also, we also onboard certain segment of the business. [indiscernible] all people, then they come on the onboard. So roughly about 800.

[Operator Instructions] Next question is from the line of [indiscernible] from 361 Capital.

Three questions from my side. First, sir, on this regulatory impact, I just wanted to -- and will we be getting some clarity on what is the full extent of the impact because we are already in the third week of April. And I mean I think -- so would it be like that we will have an idea as we close April or feel like that optimization will continue for a few months -- so if you could give some clarity on that. Secondly, in terms of your customer, how have the movement been during the quarter? The reason why I said that in the SIP slide growth that we have seen in terms of loans as well as the registration that is not reflecting so much in terms of the contributing SIP account. So I just wanted to understand the dynamics there that are our existing customers any incremental effect fees? Or how is it playing out in terms of onboarding the new ABL AMC customers? And also, if you could help us understand that -- in terms of this incremental IP flow growth that has happened during this quarter, which channels are providing that? Is this coming from an online channel or any other kind of distribution partners who we have added, if you could give some color on that. And lastly, sir, also, if you could share the yield by asset a that will be [indiscernible]

Yes. So as far as the subsequent question concerned with respect to the optimization, I think this is after the multiple on of discussion, when the faster claim in the final circular. I lafouldhave known and as an industry, we worked with SEBI and the broader scenario added will have the least impact, including the broking form with 1 deal with on the equity side. In fact, I was personally involved in ensuring that the working with the other team members of the industry to see that it has as impact. So that's the broader upon which we did there. And whatever the pattern that has come, the way we have worked out at this point of time is from ANC profitability point of view. I will try and make it neutral, if not positive. As far as the distribution concerns -- and we are in any case in a scenario where we have always been ensuring that the dissipater should work out very closely. But why we kept the commission structures in a manner it remains somewhat attractive for them in order to grow our business. There will be some marginal reductions could come. So that we broadly I'll see it without having too much impact as far as term concerns that. But the way we are currently working on is from our profitability fund a few, somewhat neutral kind of model that we are working on it. That's why we are looking at building the whole plan. And as far as the SAP concern, of course, we have seen some bit of cancellations this quarter. Maybe I would say, increased content during the period of volatility. It used to be somewhere in about 40% to 50% for the industry, I'm talking about -- it went up to about 92% of the industry. In fact, our SAP cancellations were actually lower than the industry, I would say. At the same time, this normally happens [indiscernible] we do see a cancellation increasing. But that in my way, not generally a part registrations have not come down quite significantly. I say the situation remains somewhat strong. So number from the partly were 6.1 lakh as again 5.4% in the previous quarter is that the trend that we see. So therefore, this is something one would good big achievement, I would say as the industry will have an including ourselves making SIPs are not into the market volatility. In fact, I myself was during the volatile period, keep harping on the importance of North SIP. Infact I came at the mantra is called if you have an SIP, continue SIP, If you canceled SIP, start SIP, whenever a SIP, we start SIP. So we actually came out to the combine during the period. So being appreciated by people because during the altered in guidance to the investor is extremely important. In fact, we have and all around the place in reimbursing SIP important SIP. In fact, there has been appreciable allow our partners and investors that delay is actually bettering the transport in promoting SIP, which hopefully could help us in building SIP. That's one. As far as the general concerns, in fact, we have seen digital, of course, remains a dominant component, no doubt. MFDs have seen improvement during the current quarter due to the high engagement coming from our sales team because the improvement on performance, the naratives gives us more confidence for them that will go out in the market not having a figure of reaching out. That's something is helping our sales team actually go out in the market, talk about its [indiscernible] the yes we are doing well. So that is helping us in improving our [indiscernible] after a long way to go no doubt. Secondary product coming at about the approved list of banking channels, also improving the contribution both the floors and SIPs. And third, of course, is the NBA channel. Before NBA channel team, channels also we are seeing an improvement of the direct team channels, both the [indiscernible] as well as the [indiscernible] trust. We also have channels coming in the institutional space. That space is also we are seeing STPs now contribution is coming. In fact, last quarter some of the even institution customers prominently nonequity as well. And equity when the market sell. So that is the earlier -- as for real concerned, I'll just give it to Pradeep to give you insight.

Mixing equity category are around 62, 63 basis points. On that side, it is around 24 to 25 basis points, liquidity is around 12 to 13 basis points. ETF is around 6 basis points.

And sir, I think a great set of numbers on the SIP side. Sir, just one follow-up, if I may. In terms of the month of April, so just wanted to understand that how are we seeing the month of April now that the volatility is kind of reduced a bit the markets have also started to show some encouraging signs. So just wanted to understand how you are seeing incremental uptake in the month of [indiscernible]

Sure, in March quarter, I think there was also pressure on fixed income side due to as well as interest rates, banks and some other pressure to rise the post. That did have an impact as was the [indiscernible] grows content. In fact, post-RBI giving more liquidity and borrowing calendar is more skewed towards the shorter end better than the longer end. As again, bond markets have come back to normal, liquidity come back normal, flows or to come back on the impact, as I speak, our number an come back now close to 445, running number. So that's something that's an overall basis, I would say. As for equity is concerned, we did have a conference normally we have in the beginning of every year, we ran a conference taking all our distribution partners to 1 location. We lock ourselves to talk about what we have done last year and what we intend to next year. In fact, we got a reasonably good response coming from distributors or Akara presentation of India. And that's something got a feeling that everyone want to actually add and accumulate during the fall period rather than the desi just 1 feeling I got -- so therefore, this might be assuming the about 400 distributors particular our conference aging I think that as a voice of representation of the whole community. Probably we should see the flow is not getting impacted, given the Ag market also come back quite nicely. From our side, we are seeing improved contribution, though it's too early for me to give that number, having improved traction. In fact, I must mention post our conference in [indiscernible] Latika. Internet sales force have become extremely confident in order to improve their own productivity in every market. So that I report it here.

The next question is from the line of HT from Premji Invest.

Sir, just wanted to join a bit late, maybe you covered it, but what was the equity which you mentioned, sir, the equity segment each?

So equity is were 63 basis points and that it was 24, 25 basis points like 12 to 13 basis.

Okay. Sir, when I look at the equity, at least to say back calculate broadly. So there is a good around 2, 3 basis point yield reduction, which would have happened this quarter. So I think if I take every other thing constant, then we have a 3 basis point decline in the equity segment. Is it -- should I -- is there anything particular to do here?

So there's no specific reason. I mean this is the function of telescoping pricing as well as mix of products. So both these things will have impact on this versus if you see for last year, we had also -- actually in the earlier calls, we have said last year, we had some reversal because of the regulatory changes. So if you see from last year to this year, a marginal drop of 2 to 3 basis points. Otherwise, they would [indiscernible] will continue.

So just on the sequential part itself, and I wanted to check that it looks like line. So you are saying. Yes, within equity you are saying there could be more as basically index funds, et cetera, would have increased, that would have led to that [indiscernible]

Yes, yes. So product mix.

Yes. Are in the core product, there is no fall. Of course, as I mentioned about some of the funds be growing in size. To the extent that the relisting price impact math I would say there is one component of it. But otherwise, even ongoing our path as get added to that segment.

Sir, just the other point, you mentioned that the impact of the [indiscernible] you would want to keep the distributor also on the distributor commission not being impacted. But -- and then you said that we also want to ensure that our business is neutral in terms of the economics. But how can that do you expect that we should take -- we have to taking some hit.

Just to clarify that, Harshit, there is some rough math, just back then on the math, which is data. Let us assume scenario that is [indiscernible] to make it somewhat neutral negative sales assuming for the [indiscernible] what the impact will come. Given our current the brokerage structure we have. We have current distribution structure that we have. So I would say we would be in, I would not say too high, I likely not too low as well. I think we are a little above the median, I can say, from compared industry people. Therefore, we felt that what the impact will come does mean that 2, 3 basis points is actually comes at the cost of -- to the distribution side. Then we felt the impact is very marginal from the people who get a larger AM versus smaller AM. And for us also, given the fact this has come, we also relooked at some of our cost structures we can improve this. Therefore, we look at across the board, how we can actually ensure that impact is less is also coming from the fact that as I mentioned earlier in the call, that area than the initial fear, which was there on the circular came at the final [indiscernible] in that call-out mentioned it will be more or less neutral, if not highly positive that we continue to maintain that. This has to get evolved in my view. Therefore, we can't say this exactly work because anyway, once it is then implemented, we come back to a normal distribution structure, which [indiscernible] 60%, 70% is the distribution structure. I will come back to the model. Therefore, we shortage confuse in terms of who will get the impact and how we are benefiting. We are ultimately come back to the distribution model.

Sir, 1 last question. If I look at my net equity flows across both active funds basically. But I think last year, if I assume that in the interim, we had some higher redemptions from the older scheme then we had some higher redemptions in the online. So just -- so are we because of the performance now being much more stable and larger track of stable performance. Is it fair to assume that right now, we are at a stage that on a monthly basis, we are getting INR 250 crores, INR 300 crores of net inflows at a bare minimum right now. Just trying to understand that have we reached a point that net of redemption, we are right now at a point that INR 250 crores, INR 300 crores monthly inflows are more predictable inflows, which we can get every month.

Yes. I think that trend is that Harshit. I think clearly, we articulated it nicely in terms of how we are checking up. In fact, so I don't know many say last year flows actually 2x higher than the previous year's low in terms of closure. So that's again, nothing but an effort that we are doing it. As I mentioned in my opening remarks, whatever steps we have to take in order to bring in the talent side where we have to improvise it and response is changing and so on so forth. Each of the areas the together we brought in on target even -- it takes some time for people to get adjusted as start delivering. In fact, when I mentioned about 80% of the funds today in Q1, Q2, is a happens the outcome of what we see. When the product is coming but approved is also a function of how now is coming in the radar there the competition so on the first. I think we are going in the right direction, I would say.

So am I -- the course of each INR 200 crore, INR 300 crore number, which we have already now at a stage there now that is the base minimum month. so we are there at -- or do you think that still we are not at INR 250 crores, INR 300 crores. It's still maybe a few months we get it, but it's not that number, which we have reached on a more steady-state basis as of now.

Yes. I will probably say a number much higher than what they are indicating. I want to say right now, but I would -- we would probably push for higher than these numbers.

The next question is from the line of Meghna Luthra from InCred Equity.

Just one question is, sir, you mentioned on the banking front. We are -- we've got some approvals from some products. Can you give some more color on that? And how do we see the strategy in the banking talent changing? I underside proportion of the [indiscernible]

See, I think the way we look at our banking channel is there were the large key partner for Adult. It's basically starting from HDFC Bank, Potash Bank, Axis Bank and [indiscernible] and [indiscernible] bank. And that is a smaller bank, we can say DSV Bank and other Bank of Baroda large distributors. While we used to always the presence, but I think each one has to generate items volume coming in. And that we are seeing it across each of these channels. Second is [indiscernible], the tightened the product recommendation after the 2019 financial market crisis. So they don't promote more than 3 or 4 products in part of the list. In fact, I'm happy to say 2 of our products is part of the recommendation list. That's something is also helping us. Our engagement is good, connect is good, product coming and recommendations will lead to increase in flows. That's something we are seeing. And we have seen [indiscernible] is also part of our wealth management team and retail team of [indiscernible] on for us. In fact, 2 of our products are a part of the competes as I understand, they are constrained we can't give more than 2 products per funhouse and this as the performance collection. I'm happy to say I desire some of the protominate that recommendation is fuel and ways of performance improvement, engagement, their own conviction and understanding of what we are doing would deliver the much desired outcome. So that way we are pushing it. And this is something would help us in keeping that momentum.

On the flow part, would the banking contribution be materially different than the -- specifically on the equity assets?

I would say materially different from the past. The flows have come down quite significantly from this channel because the products were not part of the completion list. So now with the engagement being there, the product coming about a recommendation only to actually increase the flows. Of course, even pushing the sales team to take full advantage of high engagement with the team, which I think the team is also doing it. On MFDs, they have the regular flow we have the connections MFDs when we connect -- we don't look at them only as well distribution a lot. We actually had a lot of value addition we give by providing guidance and we run a program called legacy leads, run a program called a in order to encourage the next generation of the distribution partners we have long location of the distributed partners at the 3 years. And whole generic can want to develop the next generation. In fact, we as a fund take a lot of leads in they're helping the next generation to build the business. All such things that are doing it, they're not insured. Our traditional channel NRV channel improves, while the ARM channel continues to get better. And direct is something we have made an investment. Last 1 on as we have been making our direct team. we bring in more areas in terms of improving the numbers. And then the last piece actually is the digital channel last year, I remember -- we got close about a customer added to the online channels in some of our funds like PS Equity Fund and a few others. That segment also we are pushing ourselves as to how we can increase the contribution from the vital channel as well. all around this kind of sharper focus. I'm sure each of the canal contributing better than the previous year. That should help in terms of keep building the momentum.

Great. Great, sir. And lastly, on the product pipeline, what will be on the equity side?

Yes. One, of course, A, we have already filed that company which will launch very soon. And second, under the new category, -- we have looked at some of the merit for having a lifecycle kind of funds that we are looking at. We're also looking at some of the reason we fund BG's approval, that's something you're looking at it. And that is part of the part of our regular side. In fact, we're also looking at our gift city, if the product as mentioned that we were the ingevity product invest in the energy market without meaning whether the housemate market is going to do. In fact, that fund has an extremely value giving good experience with investors getting about 30% dollar, $30 return on our net base. That company was closer on trends, we are now looking at launching the open-end fund in the gift. We have these plan housings in place. As a domestic concern, addition to life cycle from what I mentioned about I think and well, but we're not seeing much growth. deserving growth, I will say. That's something, again, we are pushing it there.

Ladies and gentlemen, that was the last question for today. I now hand over the conference over to management for closing comments.

Thank you. Thank you, everyone, for joining for this call. And with this, we conclude our Q4 FY '26, Thank you.

Thank you. Ladies and gentlemen, on behalf of Aditya Birla Sun Life AMC Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.