Ladies and gentlemen, good day and welcome to Aditya Birla Sun Life Asset Management Company Limited Q2 and H1 FY 2026 earnings conference call hosted by Revit Capital. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Richa Singh from Revit Capital. Thank you, and over to you, ma'am.
Thank you. Good evening, everyone. I welcome you all to Aditya Birla Sun Life Asset Management Company Limited for their Q2 and H1 FY 2026 earnings conference call. Along with us from the management, we have Mr. A. Balasubramanian, MD and CEO, and Mr. Pradeep Sharma, CFO. We are thankful to the management for allowing us this opportunity. I would now like to hand over the call to Mr. Balasubramanian for his opening remarks. Thank you, and over to you, sir.
Yes. Thank you, Richa. Let me begin, extending my Diwali greetings and prosperous news to everyone. Good evening to everyone, and thank you for joining us, the call today. I'm sure all of you would have had a chance to review our earnings presentation, which is accessible on both the stock exchanges and on our company website. Let me begin with a quick commentary on the current outlook and update on the emerging investors. The global economy, as we all know, continues to show resilience despite trade tensions and policy uncertainties. Global growth remains stable at around 3%, with the trade expanding significantly in the first half of 2025. However, climate-related volatility has prompted countries to reassess supply chains and trade alliances. India's calls tend to have a pivotal moment transitioning from merely participating in global growth to becoming a pivotal force in shaping the world economic future.
The economy grew by about 6.5% in FY 2025, with growth accelerating to 7.8% in Q2 FY 2026, the highest in five quarters. For FY26, the RBI projects GDP growth at 6.5%, maintaining India's position as one of the fastest-growing major economies globally. Inflation has moderated significantly, with the CPI falling by 1.5% in September 2025, the lowest in the last 99 months. The CPI inflation forecast for FY 2026 has been revised down to 2.6%, with inflation expected to remain below the RBI target for most of the year. Key service initiatives, including DAT2 and RBI, accommodate these trends with a reported at 6.4%. The stability-like growth for India's fiscal position remains solid and on track to meet the deficit target.
Mustang exports grew by 6.7% year-on-year in September 2025, while service exports soared on 14% in Q4 FY 2025, driven by IT and business services, reinforcing India's strengthening global competitiveness in emerging as a service hub. Indian equity markets are positioned for sustained momentum over the medium term, with recent corrections. The valuations of large-cap stocks in broader markets are now closer to their long-term averages, with earnings growth in the medium term estimated in the range of about 12%- 15%. Strong domestic flows continue to support the markets, making up for outflows from international investors, with the domestic mutual fund ownership shares reaching new highs. India's long-term structural themes, including advanced manufacturing, infrastructure investment, rising discretionary spending, and digitization, position the economy well for sustained growth and emerging investment opportunities.
Coming to the mutual fund industry update, the quarterly average AUM of the mutual fund industry as of 30 September 2025 stood at INR 77.13 trillion as compared to INR 63.21 trillion as of 30 September 2024, growing by 15% year-on-year. The industry net inflows for September 2025 stood at INR 29,361 crore, growing by 8% quarter-on-quarter. The total number of mutual fund folios stood at INR 22.7 crore as of 30 September 2025. The industry saw a total SIP collection in Q2 FY 2026 of about INR 30,200 crore, coming from both equity and some debt fund launches, with the equity side primarily driven by sector, thematic, and multi-cap funds. Industry equity AUM for September 2025 grew by 12% year-on-year, from INR 42.11 trillion to INR 47.21 trillion, contributing around 60.7% of the total AUM.
Debt funds have an average AUM of INR 14.5 trillion, accounting for 18.6% of the total AUM. Coming to the Aditya performance highlights, at Aditya Birla Sun Life AMC I am pleased to announce that we have sustained and crossed the remarkable milestone of INR 4.25 trillion in average AUM. This achievement is a testament to our team's dedication and commitment to growth. Our overall average assets under management, including alternate assets, stood at INR 4.61 trillion, growing by 14% year-on-year. Our mutual fund quarterly average AUM reached INR 4.25 trillion, growing by 11% year-on-year. The quarterly equity average AUM crossed INR 2 trillion, including alternate assets. Our SIP contribution for September 2025 is about INR 1,100 crore, with INR 39 lakh coming from 39 lakh folios contributing to the SIP accounts. Our SIP AUM contributed around 44% of the total AUM, referencing stickiness of our assets.
The total number of investor folios for September 2025 stood at INR 1.07 crore, witnessing 5% year-on-year growth. Our consistent investment performance and improvement are driving robust momentum across our focus funds, along with fixed income and arbitrage funds, highlighting the diversification and the strength of our product suite. We continued our engagement with our distribution partners by hosting growth summits across India during the quarter to strengthen our market positions and drive sustained growth. These strategies showcase our investment philosophy on thought leadership while encouraging our distributor partners and expanding our market footprint. In fact, this engagement at the ground level has enhanced the flows in our focused equity funds that we are promoting as part of our push compared to the last three quarters. Our alternate business represents a cornerstone of our growth story.
We have built a high-caliber team with deep domain expertise, underscoring our commitment to building future-ready capability. The equity segment of our alternate platform has gained significant momentum.
This is the operator.
Complemented.
Sorry for interrupting.
Yes.
Your voice is breaking. Let me just reconnect you once again.
Thank you.
The management line has been reconnected. Please go ahead.
Yes. Thank you, and sorry for that, for this, for the trouble. Coming to the alternate business, our alternate business represents the cornerstone of our growth story. We have built a high-caliber team with deep domain expertise, underscoring our commitment to building future-ready capability. The equity segment of our alternate platform has gained significant momentum, complemented by our expanding suite of credit offerings. We continue to refine our portfolio management services and Alternative Investment Funds products across equity and fixed income to address the sophisticated requirements of HMIs and family offices. Our research demonstrates the success of this strategic focus. Portfolio management services and Alternative Investment Funds assets grew significantly from INR 3,828 crore in Q2 FY 2025 to INR 3,750 crore in Q2 FY 2026, representing an increase of about 8x .
The ESIC mandate acquired for about INR 20,800 crore as of September 2025, while our portfolio management services and Alternative Investment Funds assets under management, excluding ESIC, have achieved a strong 14% year-on-year growth, reflecting solid organic momentum in our core alternate business. In fact, we are seeing increased participation coming from MFDs to sell our portfolio management services product. I'm delighted to announce that we have been selected by the EPFO to manage its debt portfolio over the next five years, as disclosed by the Assembly Board of Trustees during the press conference. We are currently awaiting the formal confirmation letters from the EPFO office. This is a significant milestone that reinforces the trust placed in our capabilities. We successfully completed the first close of ABSL Structured Opportunities Fund II during the quarter and are preparing to launch ABSL India Equity Innovation Fund.
Our real estate business has built significant momentum and gained traction, driven by strong investors' interest and a robust pipeline of opportunities. Our real estate book has grown by 23% year-on-year, and we are on track to double our book size by the end of this financial year, backed by the strong performance and track record that we have created of giving back money to the investors. The experience that we are creating gives us the confidence that the real estate business of ours will also continue to see growth momentum. We are focused on scaling this vertical by deepening our stakeholders' engagement and leveraging strategic partnerships to drive execution excellence. These collective efforts aim to build our excellent, high-quality alternate platforms, positioning us for sustained growth and a well-diversified product portfolio across the alternate space.
With the new leadership and dedicated teams now in place, we are well equipped to elevate our alternate business, broadening our product suite and deepening our investor engagement. Our offshore average assets stood at INR 4,793 crore for Q2 FY 2026. During the quarter, we have witnessed withdrawals from a few customers in view of the portfolio restructuring, moving toward other emerging market economies compared to India. Under the GIFT City platform, we have a fundraising underway for the India ESG Engagement Fund, ABSL Flexi Cap Fund, and ABSL Global Blue Chip Fund, which are created for outward remittance as well as for inward remittance into our domestic mutual funds. On the passive front, during the quarter, we have launched ABSL Nifty 500 Momentum 50 Index Fund and ABSL Nifty 500 Quality 50 Index Fund with the aim to build our passive AUM.
As of September 2025, our total passive quarterly average assets reached INR 36,000 crore, growing by 20% year-on-year, and the customer base reached 13.5 lakh folios. Our current product suite comprises 53 distinct offerings designed to meet varied investment needs. Coming to the financial performance, Q2 FY 2026 revenue from operations stood at INR 461 crore, up 9% year-on-year. Q2 FY 2026 operating profit stood at INR 270 crore, up 13% year-on-year. Profit before tax for Q2 FY 2026 is at INR 316 crore, and profit after tax stood at INR 241 crore. Our H1 FY 2026 revenue from operations stood at INR 909 crore, up by 12% year-on-year. H1 FY 2026 operating profit stood at INR 523 crore, up by 17% year-on-year.
H1 FY26 profit after tax stood at INR 518 crore, up 18% year-on-year. At Aditya , we remain committed to leading this transformation by building innovative products, robust platforms, and strategic partnerships backed by a dynamic team with continued drive momentum that democratizes wealth creation and empowers investors to achieve their financial goals. With this, I would like to open the floor for any questions. I'll be joined by Pradeep Sharma, who is our CFO, to take some of the questions as we feel appropriate. Thank you.
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one. on your touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Dipanjan Ghosh with Citi. Please go ahead.
Hi. Good evening, sir. A few questions from my side. First, if we were to see your SIP growth trajectory, despite improvement that we are seeing in some of your schemes, the SIP market share has been kind of declining. We have two questions on this front. One is, if you can just color on your overall growth trajectory, that will give us some understanding of your redemption and lump sum trends on the equity side of things. Secondly, if I were to dissect this SIP market share decline that's over the last 12 to 18 months across channels, which channel has been the biggest drag out there? My next question is on the in-stock expense. If you can quantify the number for cost of, and with this in-stock 2025 scheme, assuming it gets approved, what can be the in-stock cost rate over the next, let's say, by 2027, 2028?
The third question is on the other expense that has been controlled quite well. Is there any one-off out there, or is this a normal run rate that we should think of? Lastly, a data keeping question, if you can get the SIP AUM for the quarter.
Coming to the first question on SIPs, of course, SIP, we've been seeing, while we have been adding new registrations month on month, our new registrations have been rising. That is one area of focus that we have. Of course, given the fact that SIP growth for the whole industry has been quite, very, very strong, and also given the fact that we have always been one of the large players in the SIP book, our overall shares look slow, but otherwise, we have been maintaining that close to about INR 1,180 crores. A clear focus has been brought in to drive the SIPs across our channel partners. In fact, one of the targets that we have set is for the entire sales team to increase the focus on SIP numbers by way of increasing the registration. We are seeing month on month improvement on that.
In fact, the larger contributor to the SIPs is coming from the online platform. Second is MFDs. Third is the NDs. Fourth is banks, and then direct. Online platform largely on the base of the funds coming as part of the recommendation. In fact, one or two quarters before, we had reasonably good flows coming from the online platform. With the improvement on the performance that we are seeing across our equity scheme, our product is also coming as part of the recommendation list of some of our partners. A few of our banking partners have approved our products such as Flexi Cap and Frontline Equity, as well as a few other products which are coming as a focus product. That is reflecting pretty well. Next is improvement coming on products like Frontline Equity, Flexi Cap, GenX Fund, Conglomerate Fund.
Even in small and mid-cap too, we are seeing some kind of flows, which is, I see, that trend crystal compared to the last two, three quarters. Therefore, that focus is there. Even for employees, we have rolled out incentive plans to step up the focus on the SIPs, and therefore, the overall numbers should get better. I'm clearly seeing some turnaround on this. Also, given the large size that we have built in the past, definitely, the SIPs expertise also comes along the way. That's something we can't help. At the same time, we continue to focus on building our book. The similar learning would come by way of the performance improvement now reflecting on a two and three-year basis, which ultimately should help us in getting recognition of this improvement on performance coming in the form of numbers as well.
We are already seeing it in the focus of the equity product. In fact, while we have seen significant redemption in the past due to a variety of reasons, we have seen a declining redemption on all those schemes given the improved performance we are seeing. I think both combinations should go well. On the expenses part, I'll ask Pradeep to answer.
Yeah. Dipanjan, just to add, you also asked SIP AUM, which is around INR 86,000 crore.
44%, I think.
Yeah, which is around 44% of our total equity AUM. As far as expenses are concerned, you asked for other expenses. This is by and large, see, this depends on the various engagement activities we undertake in the market. A few growths here and there on quarter-to-quarter volatility would be there, but this is normal, and there's nothing one-off case in this quarter.
The fourth question is on employees, right?
Yeah. Employee count is around 1,719 people for the quarter.
I'm sorry, also the question on in-stock expense for the first quarter and how it's incorporated for the next two years.
For the quarter, in the current quarter, there are no major in-stock expenses because the last in-stock scheme got over last year. Today in the board meeting, our board has approved the new in-stock scheme, which is subject to the shareholders' approval, maybe in the next three to four months. Once it is approved, we may have the impact, and we will communicate to you.
That will come back to Dipanjan on that once it is approved.
Got it. Got it. Thank you and all the best.
Thank you. Thank you.
Thank you. A reminder to all the participants that you may press star one to ask a question. Next question comes from the line of Harjit Toshtiwal from Plainview Invest. Please go ahead.
Hello. Hi, sir. Am I audible?
Hi, yes, Harjit.
Hi. Thank you, sir. Happy Diwali. Sir, I have two questions. One is on the SIP piece itself. I got some part of your explanation, but if I look at the SIP just in terms of the market share, then we see a sharp dip versus last quarter. I think it has moved from 4.1%, 4.2% to 3.6%, 3.7%. Now, it's probably the older, the redemptions might be lower, but do you think that is it in the newer SIPs getting created? Our market share is negligible compared to the 3.5% we have on the overall flow. Is that, can be done to address that? Because despite the performance has started to improve, that reflection in the SIP number is not there. The second one was on the yield, sir.
On a like-to-like basis, if I look at the equity yields, then probably I think we, if we assume that around at least that calculation suggests, around 2 basis points- 3 basis points in decline. If you can help us know that, is there anything particular which has changed in the distributor commission or the slabs, which has led to that number? So these two questions, sir.
As far as the SIP is concerned, we did have some maturities of SIPs which came in the form of FTP form, largely on account of that. Otherwise, the SIPs coming from retail continue to show strength. Again, SIP new registration is something which we keep track of. Wherever incremental market share coming from the SIP registration also has been on the rise. Sometimes, when we get SIPs by way of an FTP, which largely come in with fixed income and then they do an equity FTP, we have seen something is getting expired. This time, anyway, it's quite common, and that's something I, it's not, doesn't make me worry.
At the same time, the renewed focus that we are bringing in, power of driving the numbers on the improved performance on one side, with the product getting approved from the channel partners, of leading channel partners in the banking side. All of those should only help in terms of improving it. Overall, cross-volume market share has been improving. Ultimately, this will lead to actually improvement on the overall numbers. In fact, we even have focused on existing SIP investors, how we can increase the ticket size on the existing SIP investors, by way of drive to the existing SIP investors, increase the number of products per customer from 1.42 to about 1.56. That's something we are actually doing a drive. All such initiatives should only help in increase the numbers.
In fact, even for the industry point of view, while the numbers, I keep tracking it, again, some of the accounting, which I think comes at different channel partners, even daily SIPs have grown. They also get counted. Different types of SIPs are being driven by different set of people. Also, being compared, as long as we are present in those segments, as long as daily SIP, we are not fully present, given the cost of acquisition of customers on this pay pie, it's low, high. At the same time, ticket size are low. Those are some of the things which I still keep evaluating on a time-to-time basis. Then we'll, of course, push it as and when there is a, as we see merit for pushing our SIP growth. As far as the margin is concerned.
If I understand correctly, you are saying that on a growth basis, our share is improving, but there are certain redemptions which have been keeping the net share low. If I can answer, are these redemptions from, say, more than five-year holding category, or are these redemptions from any particular channel? I'm just trying to see that. Do you see a sunset period by which probably that higher redemption class of SIP will be low?
No, no. The margin is coming from digital platform shift. I think digital platform, where we also had significant volume pickup, and there are also expertise that generally is there. This is a function of every market. They have to switch from one to others. The digital platform is the one generally low. Other MFDs and the traditional banking channels are high. Some of the partners with whom we have, we enjoyed high market share in the past, and they have signed up for a good number of years. That's something which also we see as SIPs getting expired. More than cancellation, they can get expired, we want to win them back. There is a separate strategy called SIP win-back through the proactive communications and also predicting that which are the customers' potential of returning.
This exit that is being carried out also should ultimately add to the overall improvement on the numbers.
Sir, if I may ask, like I think two quarters back, we got a significant bump up in SIP because of the digital platform.
Yes.
Will it be right to say that what we got at, say, half a year back, that is only creating redemption? In that case, if you can also give some color on the mix which is coming through these online channels, say, if I take Groww, Zerodha, Angel, these three, four large online channels, direct online channels, how much of our SIP would be incrementally coming from these channels?
See, roughly about 34% of the new SIPs sustained coming from digital channel.
This 34% would be on volume term. If I look at the value, then give it to that class.
In the SIP amount.
Okay. 35% of the incremental is from these online platforms.
In the online platform, these channels are very dynamic. Within the online platform, there are platforms which are more ARM-based platforms where we are seeing an improvement in the numbers. I think it's quite mixed. We can't generalize it. The online platform, I think, is everything is getting canceled or given a volume. Some give volume. Somebody else, of course, increase the market share. This is the moving numbers, Harjit.
Got it. Any online marketing or online promotion of our performance, does that help in retention? I'm trying to understand that, sir, if on the growth basis, we have been continuously improving. If I look at our performance also, that has picked up a lot in the last two, three quarters. Just wanting to see that probably a place where we can maintain that 4% SIP flow set and grow from there on a net basis is where I'm thinking. Is there a timeline which we should look to, or it's very difficult to predict that, sir?
No, no. It remains a high-focus area. I think that's something there. Whatever we have to do on a monthly basis, either through engagement, through the communications, or highlighting our product improvement on performance and making it a part of the recommendation list, that's a continuous exercise. Wherever we have to spend money in terms of promotion, for example, we are already rolling out a drive called SIP, Systematic Investment Plan, a drive that we drew last quarter. This quarter two, we have already planned some more initiatives to drive the SIP across India. This will remain as an ongoing, regular exercise rather than something we have to do one time. From a sales team point of view, while they have been improving our overall productivity, which is what I mentioned about growth, sales market share has been showing an improvement.
At the same time, improving the overall SIP subscription in terms of adding new customer base will remain one of the key areas. That's something that's also being driven by way of encouraging, through the incentive plan to the sales team. This is going to be an ongoing exercise, Harjeet. Coming to your question on the margin, yields.
Harjeet , yields for equity are in the range of 64 basis points, 65 basis points. Yes, there is a drop around 1 basis points to 2 basis points. That is because of the from earlier quarters, because of the telescoping prices mainly. Because our equity AUM has grown from around INR 180,000 crore to around INR 192,000 crore. I think going forward, it should remain in the same range, around 64 basis points, 65 basis points in equity.
Yeah, the marginal drop is on account of the offshore AUM discount. That is less than 0.4 basis points kind of drop.
Got it. Got it. One last thing, sir, on the ETF for debt money, which we plan to manage, do you think that we'll have to, will this be a profitable thing altogether, or this will be a marginally loss-making business?
I would say cost neutral. I'll not say loss-making rather than profit-making. It's cost neutral because we have a team dedicated for managing a large pool of money across different segments. The team strength will be leveraged to manage this money. I think we need to also look at it as a business prestige mandate and improve the overall credentials of our existence of the three years in managing money. Ultimately, this will have a rub-off effect as we move forward.
Perfect. Got it, sir.
Yeah.
Thanks a lot. Thanks a lot, sir. All the best.
Thanks.
Thank you. A reminder to all the participants that you may press *1 to ask a question. Next question comes from the line of Mohit Mangal with Centrum. Please go ahead.
Yeah, thanks for the opportunity. My first question is on the employee expenses. If I look, you know, employee expenses grew 6% YoY in Q2. If I look in Q1, the YoY growth rate was around 4%. You said that, you know, the in-stock won't, I mean, ideally come, say this year. Do you think it will remain in, you know, a single digit at around 6% or 7%, or it will grow in a higher double digit for the entire year?
Yeah. Mohit, in this quarter, we had some reversals of around INR 6 crore on our various pay provision of last year, after we disbursed all the amounts based on the employees' performance. If you see on a normalized basis, it should be higher by around 12% instead of 6%.
Understood. Understood. For the entire year, basically, 10%- 12% is something that we can expect, right?
Yes. Yes.
All right. My next question is in terms of new pipeline of schemes that can be expected in H2.
Yeah. We have one product approval already in place for us, and that's something we've been debating when to launch it. Given the fact that too many already are there, we want to, of course, plan it carefully so that we have a good number of working days for us to have the NFO. Second, within the mutual fund, that's paid. We also planned one launch of a new product under the alternate AIF side, which is in the portfolio management services side. Plus, on the GIFT City also, we have a product which is currently running for investing in overseas markets. The last piece, of course, we are preparing ourselves for a SAF launch. We already got approval from SEBI for the brand which is called APEX. We already filed two products with SEBI for launching it, which is the Birla Plus kind of product.
We'll start with that to begin with. We'll start with Birla Plus kind of product, and then as we finish the first launch, we'll go for a long-short once we have the talent in place, which we are currently in the process of getting on board. Once it is done, then we'll go for a long-short product also.
Understood. Basically, we have a team in place for this SIF and will basically be there in financial year 2026. We could see some impact of that in P&L, right?
Yes. Only the team we don't have in the long shot. We have a team, but we have not been in a position to manage the long shot fund using the derivatives, big time, only to generate alpha over the index. That's something we thought we'll have a dedicated person to drive that. That's something that should be in place, maybe within about one to one and a half months' time. Otherwise, the rest of the product, like hybrid kind of product, we already have internal capability.
Understood. I guess my last question is towards portfolio management services, I mean, AUM, so that I think we have seen a lot of growth, although significantly lower. In terms of AUM, do we make around 0.6% on average, AUM on this?
Yeah, I think it's even higher if I'm not wrong.
Actually, we are, and our average is around 0.8%.
0.8.
0.8.
Okay.
We get roughly about 80 basis points we get per head. In fact, the last two, three quarters, we have seen the contribution coming from portfolio management services to the overall revenue. We are seeing an upward trend.
Okay.
In fact, I must also mention, in addition to equity portfolio management services and AIF , we are also seeing the credit opportunities fund and real estate credit fund. Both are not only stabilized, they've also now done the first closure, and investments also have been more or less done. With this, that revenue from contribution coming from this document also will keep improving.
Understood. Out of this INR 461 crore, how much would be the portfolio management services and AIF this time?
This would be, Mohit, around INR 31 crore-INR 32 crore.
INR 31 crore-INR 32 crore . Okay. Okay. Thanks. Thanks. Wish you all the best.
Thank you. A reminder to all the participants, please restrict yourself to three questions. Also, a reminder to all the participants that you may press *1 to ask a question. Next question comes from the line of Amit Singh with Innosmith Insight Private Limited. Please go ahead.
Hello.
Hello.
Hi.
Hi, Amit Singh.
Hi.
Yeah, you're audible. Yeah.
Congratulations, sir. Thank you for giving me the opportunity. My question is, on the growth of Birla Fund, last quarter you mentioned that it was behind the industry. How has the business segment performed in this quarter, and what are the changes in your strategy to improve this performance?
Sure. Of course, this was a fund where we felt that we can grow a little faster than the industry. In fact, we had reasonably good AUM growth going about, it was about 20% rate of growth compared to the industry. In order to improve the performance, of course, we have done a good mix of generating a little higher return by increasing the focus on, one, on the fixed income space, between the selection of securities in fixed income space for the respective maturities, adding about 700 basis points total return. Also, the efficiency that we have brought in terms of identifying opportunities wherever it's available to improve the overall return. That's why I think the performance of Birla Fund also has been supporting the overall growth momentum.
Okay. Okay.
Yeah.
The second question is, as you mentioned in the last quarter, the mid-cap and small-cap segment does not have the large presence. What other progress has been made since then, and what other strategies are being implemented to improve the market share in this segment?
Yeah. In fact, we have seen reasonably good performance with respect to the mid-cap fund. A smaller mid-cap also is now part of the overall performance improvement strategy that we have. We recruited a gentleman almost about a year back, and we gave him some time to settle down and start focusing on building the performance of these two schemes and also the multi-cap fund, so that we'll be able to actually get our new market share in this space. We're already seeing the similar incoming in the form of improvement in performance. In fact, our flows, even both in mid-cap and small-cap, is positive, though it's not to the extent of what the industry is getting. This will probably help in terms of, as we move forward, to get our new market share in this space.
Okay. Thank you, sir.
Thank you.
That's all from my side.
Yeah. Thanks.
Thank you. Next question comes from the line of [Dwij] Punjabi with InCred Equities. Please go ahead.
Yeah, my question was around the offshore AUM. That has declined sequentially. Can you just maybe share the yield on that and also the reason for the decline?
Yeah, offshore. Offshore, largely, of course, we have been managing a few mandates from some of the large funds that invest in India. As you know, India exposure by most of the FIAs has been on the reduction side. Having managed the money for almost 14 to 15 years, very successfully generating more than 2% alpha over MSA index, due to the allocation chain that we had, that has moved out. Our impact of that is about 0.2%, which is roughly about 0.4 basis points. 0.4 basis points roughly is the impact on the contribution coming from the offshore assets. Nothing significant, but definitely, because of the reduction that the FIAs generally have been having on India exposure, our money also had moved out.
I'm sure given our strong track record that we have given them over 14 to 15 years, some of them may even come back as they gain confidence in India coming back.
Sir, I just have one more question around the debt fund. Can you just talk about what is driving the growth in the debt segment? Year on year and quarter on quarter, we're seeing decent growth. Which are the segments over there? Longer term, also, what is our strategy around active versus passive funds?
Yeah. As far as the debt fund concerns, largely, the fixed income team has been having a very bullish view on interest rates, especially, causing the RBI move on cutting the interest rates. In fact, all the moves of RBI, our team has been predicting it quite well ahead of time and positioning the portfolio to benefit investors by running a duration portfolio. That's something helped us in building fixed income side. Second, within the fixed income, hybrid funds, which is the equity-cum-fixed income funds, which is a new category, also, we could add assets given the tax benefit that accrues to investors. At the same time, the way we conservatively manage between equity and the fixed income, both of them have helped. That's where I think money has come. Large segment of the people have come from both HNIs and corporate treasuries as well as MSMEs.
Which is your second question?
Of course, active.
Yeah. Active versus passive. Of course, the passive is something that has seen some kind of good momentum by way of launching a new product. In fact, we launched two, three funds last year, like, defense fund we launched, and that has done extremely well. We have seen a flow coming in the segment. We have positioned some of the product launches in the passive side, which are more like, unique. Something you can consider as a fund that can help investors to diversify by choosing funds like Quality 50 Fund and Momentum Index Fund. That's something we continue to drive in our product innovation and structuring product. Third, we've also seen the flows coming in our Pillar Fund and Gold Fund. In fact, our Pillar Fund crossed a size of about INR 2,000 crore.
In the last two weeks, when the market turned volatile, even we had to also close the fund for subscription for some days. Of course, we are now coming back in terms of opening the fund for subscription. One good thing is, given the fact that we have the product in place, when the time was available for getting flows in these funds, we could get some kind of flows both in Pillar and Gold Fund as well. There is an ongoing exercise, rather an ongoing push that we are giving in terms of our passive funds. Active continues to remain a focus area, no doubt, both in building SIPs as well as growing our site.
At the same time, the passive is also will remain as one of the other looking funds from an investors' point of view that continue to be driven by a separate team of people to keep a focus. Lastly, we're also trying out some of these booking forms, so that our product will become as part of their daily trading that they can do on ETF, while creating some kind of buying behavior in the exchange platform. These are some of the initiatives we are taking, and hopefully, it should help in terms of increasing our number of customers. In fact, as I speak, we have about 13.5 lakh customers in the ETF platform. I think that will continue to remain a focus area for building the asset class.
Sure. Thank you.
Yeah.
Thank you. Ladies and gentlemen, that was the last question for today. We have reached the end of the question and answer session. I would now like to hand the conference over to the management for closing comments.
Thank you, everyone, for joining the call. With this, we conclude our Q2 FY26 earnings call. Thank you.
Thank you. On behalf of Aditya Birla Sun Life AMC Limited, we would like to formally conclude the Q2 and H1 FY26 earnings conference call. We sincerely appreciate your participation in this event, and we kindly request that you now disconnect your lines. Thank you for your time and engagement.