PPFAS reported its June 2026 quarter on 13 August. Profit up 35%. Assets up 38%. Unique investors growing three times faster than the industry.
Excellent on the surface. But the shareholder deck contains four numbers that complicate it — and they all arrived in the same three months.
Parag Parikh Financial Advisory Services is a holding company. The business sits in PPFAS Asset Management, its wholly-owned subsidiary. The standalone parent reported EPS of ₹3.91 this quarter — that's a small wealth division, nothing more. Always use consolidated numbers.
The shares aren't listed. They trade over the counter: wider spreads, thinner price discovery, no guaranteed exit, and a 24-month holding period for long-term capital gains.
₹ crore | Q1 FY27 | Q1 FY26 | YoY |
|---|---|---|---|
| Total income | 194.59 | 146.61 | +32.7% |
| Total expenses | 24.46 | 19.65 | +24.5% |
| Profit after tax | 131.43 | 97.45 | +34.9% |
| EPS basic / diluted (₹) | 166.16 / 148.65 | 127.03 / 112.35 | — |
Net margin: 67.5%. Strip out the market-linked income and the core business looks even better — operating income grew 38.1% and operating profit 40.8%, both faster than reported PAT. The treasury book was a drag on the growth rate this year, not a boost.
Over twelve months, the franchise genuinely won:
Jun-25 | Jun-26 | YoY | |
|---|---|---|---|
| QAAUM | ₹1,16,145 cr | ₹1,60,807 cr | +38.45% |
| Unique investors | 46.7 lakh | 61.9 lakh | +32.55% |
| Individual MAAUM | ₹1,11,190 cr | ₹1,45,806 cr | +31.13% |
The industry grew QAAUM 15.44%. PPFAS grew 2.5x faster, taking market share from 1.60% to 1.92%.
Four structural strengths are worth naming:
Customers, not just asset values. Investors grew 32.55% against the industry's 11.93% — nearly 3x. Live folios at 75.7 lakh. Customers stay when markets don't.
Overwhelmingly retail. Individual MAAUM is ₹1,45,806 cr of ₹1,62,448 cr closing AUM. The industry sits at ₹51.1 lakh cr of ₹82.4 lakh cr. Retail money is far stickier.
Beyond the metros. B-30 mix at 24.44% versus the industry's 18.50%. B-30 MAAUM up from ₹29,070 cr to ₹40,467 cr.
Operating leverage. Operating profit yield climbed 26.85 → 30.93 → 31.99 bps across FY24-FY26 while expense yield fell 13.68 → 9.83 bps. ROE at 41.91%.
Mar-26 | Jun-26 | QoQ | |
|---|---|---|---|
| QAAUM | ₹1,52,328 cr | ₹1,60,807 cr | +5.57% |
| Closing AUM | ₹1,46,201 cr | ₹1,62,448 cr | +11.11% |
| Closing market share | 1.97% | 1.97% | flat |
| Operating income | ₹164.29 cr | ₹162.69 cr | −1.0% |
The gap between closing and average AUM is the tell. Flows arrive smoothly; markets move in bursts. Closing AUM growing at double the rate of the quarterly average means the assets showed up late and fast — price appreciation, not inflows. The industry shows the identical pattern.
And market share stopped moving. 1.97% in March, 1.97% in June. The entire annual gain happened between June 2025 and March 2026.
Rough flow arithmetic: industry equity net sales were about 2.8% of the opening base while equity AUM rose 15.5%, so roughly 12-13 points came from markets. Applying a comparable return to PPFAS's ₹1,46,201 cr opening base against its actual ₹16,247 cr increase leaves net flows somewhere between mildly negative and modestly positive. The SIP book alone contributes ₹4,770 cr gross per quarter — so redemptions consumed most of it.
(This is an estimate. PPFAS doesn't disclose net flows.)
Mar-25 | Jun-25 | Mar-26 | Jun-26 | |
|---|---|---|---|---|
| Systematic transactions | ₹1,061 cr | ₹1,291 cr | ₹1,591 cr | ₹1,590 cr |
| Active SIP accounts | 28.2 lakh | 29.1 lakh | 37.7 lakh | 38.8 lakh |
Accounts grew 2.9% QoQ. Volume grew 0%. More accounts, smaller cheques.
Not PPFAS-specific — industry monthly SIP flows also slipped from ₹32,087 cr to ₹31,781 cr. But this is the leading indicator for everything downstream.
Period | Revenue yield (bps of AAUM) |
|---|---|
| FY24 | 40.53 |
| FY25 | 41.64 |
| FY26 | 41.82 |
| Q1 FY27 (annualised) | 40.16 |
Yield had been rising for three years. It broke this quarter. Calculated sequentially it's sharper — roughly 43.1 bps in Q4 FY26 against 40.5 bps now, about a 6% drop in one quarter. This is the percentage of Assets Under Management (AUM) that the AMC earns as revenue — essentially, how much the fund house makes for managing the money, expressed as a rate on its total assets.
Revenue Yield = Total Revenue (or Management Fee Income) / Average AUM × 100
That's precisely why QAAUM rose 5.57% while operating income fell 1.0%. Assets grew; revenue didn't.
SEBI's expense ratio slabs shrink as a scheme grows, and the flagship has crossed ₹1 lakh crore — where the slabs bite hardest. Whether this is structural or a Q4 base inflated by year-end true-ups, one quarter can't say.
Within the AMC, distribution has been deliberately widened — 40,943 empanelled distributors in March 2024 to 59,043 now, with a genuinely spread channel mix: Direct 27.96%, Fintech 27.72%, Regular 17.90%, National Distributors 11.23%, RIA 8.34%. Non-equity AUM is growing faster than equity (+46.72% vs +37.72%). Digital transactions are at 90%.
Outside it, four newer businesses:
Business | Size | Status |
|---|---|---|
| Pension | ₹60 cr capital infused May 2026 | Not operating |
| GIFT City | USD 36.51 mn (~₹305 cr) | Two products live |
| Wealth Management | ₹791 cr SEBI-reported, 73 clients | Operating |
| Legacy PMS | ₹76 cr, 13 clients | Closed to new money |
Add them up: roughly ₹1,170 cr against group AUM of ₹1.63 lakh cr. About 0.7%. The headline "₹1.63 lakh cr Group AUM" is ~99.5% mutual fund.
The three non-MF subsidiaries together contributed ₹1.39 cr of revenue and a ₹0.37 cr loss this quarter. Real as intent and infrastructure; not yet real as revenue. Everything still rests on one flexi-cap fund.
Share count derived from profit and EPS: 79.10 lakh basic, 88.42 lakh diluted — 11.8% embedded ESOP dilution. Market cap is ₹16,453 cr basic, ₹18,391 cr diluted.
Q1 × 4 gives ₹525.7 cr of earnings, but that annualises ₹31 cr of market-linked gains (FY26's full-year figure was ₹27 cr) and employee costs of ₹14.5 cr (FY26 actual: ₹97 cr, because bonuses land in March). Working from yields instead — ~40 bps revenue on growing AUM, FY26's 9.83 bps expense level, normalised treasury income — normalised FY27 earnings land near ₹440 cr.
| Basis | P/E @ ₹16,453 cr | P/E @ ₹18,391 cr |
|---|---|---|
| Q1 annualised | 31.3x | 35.0x |
| Trailing twelve months | 43.1x | 48.2x |
| Normalised FY27 | 37.4x | 41.8x |
The 31x doing the rounds uses basic shares and unadjusted Q1 earnings. The consistent number — diluted shares, normalised earnings — is about 42x. Worth noting: at 42x, an unlisted share is trading at no discount to listed peers despite materially worse liquidity and disclosure. Logically it should carry one.
For: operating income up 38%, operating profit up 41%, ROE above 41%, customer acquisition at 3x the industry, ~90% retail money, B-30 reach well ahead of peers, 59,000 distribution partners, and free options on pension and GIFT City.
Against: this quarter's AUM growth was market-driven, market share went flat, revenue yield broke a three-year uptrend exactly as the flagship crossed ₹1 lakh crore, the SIP book plateaued, there's 11.8% dilution, capital allocation is diluting ROE, and diversification is 0.7% of assets.
Three numbers in October will settle whether June was a pause or a turn: whether the SIP book moves off ₹1,590 cr, whether yield holds near 40 bps, and whether closing market share breaks above 1.97%.
The twelve-month record is strong and the franchise is real. The quarter is where the caution lives.
Informational only, not investment advice. The author is not a SEBI-registered investment advisor. Figures are from PPFAS's unaudited consolidated results for the quarter ended 30 June 2026 (reviewed by Chokshi & Chokshi LLP) and the company's Q1 FY26-27 shareholder presentation — which, per its own disclaimer, has not been reviewed by any regulatory authority and sources AUM data to "Internal". Net flow estimates and normalised earnings are the author's calculations, not company disclosures. Unlisted shares carry liquidity and disclosure risks materially higher than listed equity.