Shriram Asset Management Company Ltd (531359)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Shriram Asset's revenue was ₹4.0 Cr (+12.1% year on year, +95.9% on the previous quarter), and net profit ₹-6.9 Cr (a bigger loss than a year earlier); the operating margin was -166.8%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹4.0 | +12.1% | +95.9% |
| Operating profit | ₹-6.7 | loss widened | loss narrowed |
| Net profit | ₹-6.9 | loss widened | loss narrowed |
| EPS (₹) | -4.05 | loss widened | loss narrowed |
| Operating margin | -166.8% | — | — |
📢 Recent Corporate Announcements
Shriram Asset Management Company reported zero deviation in the utilization of Rs 105 crore raised via preferential allotment in April 2025. As of June 30, 2026, the company has utilized Rs 40.95 crore, which is approximately 39% of the total funds raised. The largest expenditure has been towards working capital (Rs 32.11 crore), while business expansion and technology upgrades have seen slower deployment at Rs 3.30 crore. This fundraise is significant for the company, representing roughly 21% of its current market capitalization of Rs 500 crore.
- Total funds raised via preferential allotment on April 23, 2025, amounted to Rs 105 crore
- Cumulative utilization as of June 30, 2026, stands at Rs 40.95 crore, leaving Rs 64.05 crore unspent
- Rs 32.11 crore utilized for working capital requirements against an original allocation of Rs 60 crore
- Only Rs 3.30 crore spent on business expansion and technology out of the allocated Rs 25 crore
- General corporate purposes accounted for Rs 5.54 crore of the utilization
Shriram AMC reported a net loss of Rs 6.88 Cr for Q1 FY27, a significant widening from the Rs 2.76 Cr loss in the same quarter last year. While total income rose 11.7% YoY to Rs 4.04 Cr, it was heavily reliant on fair value gains of Rs 2.65 Cr rather than core fee income. Total expenses surged 70.5% YoY to Rs 10.87 Cr, primarily driven by employee benefit costs nearly doubling to Rs 7.37 Cr. The company continues to operate at a high burn rate relative to its small revenue base as it attempts to scale its 'quantamental' and PMS offerings.
- Net loss widened by 149% YoY to Rs 6.88 Cr from Rs 2.76 Cr in Q1 FY26
- Employee benefit expenses jumped 86.8% YoY to Rs 7.37 Cr, exceeding total income
- Revenue from core asset management services grew 21% YoY to Rs 86.75 Lakhs
- Total expenses of Rs 10.87 Cr represent approximately 90% of the company's entire TTM revenue
- Net gain on fair value changes contributed Rs 2.65 Cr to the total income of Rs 4.04 Cr
Shriram AMC reported a net loss of Rs 6.89 Cr for Q1 FY27, a significant widening from the Rs 2.76 Cr loss in Q1 FY26. While total income rose 11.7% YoY to Rs 4.04 Cr, total expenses jumped 70.5% to Rs 10.87 Cr. The primary driver was employee benefit expenses, which rose 86.8% YoY to Rs 7.37 Cr. The company's core revenue from asset management services remains small at Rs 0.87 Cr, covering less than 10% of total operating costs.
- Net loss widened to Rs 6.89 Cr in Q1 FY27 compared to Rs 2.76 Cr in the year-ago period
- Employee benefit expenses increased by 86.8% YoY to Rs 7.37 Cr
- Revenue from asset management services grew 20.9% YoY to Rs 86.75 Lakhs
- Total expenses for the single quarter (Rs 10.87 Cr) represent approximately 90% of the total TTM revenue of Rs 12 Cr
- Net gain on fair value changes contributed Rs 2.65 Cr to total income, up from Rs 2.10 Cr YoY
Shriram Asset Management Company has approved the grant of 66,200 stock options to an eligible employee at an exercise price of Rs 303 per share. The options will vest over a three-year period in a 30:30:40 ratio, with a 10-year exercise window post-vesting. This grant represents a small potential dilution of approximately 0.39% of the current equity base. The move comes as the company seeks to scale its AUM from the current Rs 895.72 Cr while navigating a loss-making phase with a TTM PAT of Rs -20 Cr.
- 66,200 stock options granted, each convertible into one equity share of Rs 10 face value
- Exercise price of Rs 303 per share, slightly above the current market price of Rs 300
- Vesting schedule follows a 30:30:40 ratio over a 3-year period from the date of grant
- Exercise period of 10 years from the date of vesting provides long-term incentive
Shriram Asset Management Company has scheduled a board meeting for August 07, 2026, to approve unaudited financial results for the quarter ended June 30, 2026. The company is currently navigating a loss-making phase, with a TTM net loss of ‡20 crore on a revenue base of ‡12 crore. Investors will be monitoring the results for any signs of narrowing operating losses, which stood at -163.7% for the trailing twelve months. The stock has underperformed significantly, declining 44.7% over the past year.
- Board meeting scheduled for August 07, 2026, to review Q1 FY27 results
- Company reported a net loss of ‡7.94 crore in the most recent quarter ended March 2026
- TTM revenue is ‡12 crore, representing only 2.5% of the current ‡476 crore market capitalization
- Mutual Fund AUM was last reported at ‡895.72 crore as of March 31, 2025
Shriram Asset Management Company (Shriram AMC) has announced a Refreshed Fund Opportunity (RFO) for three of its existing hybrid schemes: Multi Asset Allocation, Aggressive Hybrid, and Balanced Advantage. The company is introducing a new investment framework incorporating GARP (Growth at a Reasonable Price) principles for equity and adding exposure to Gold and Silver ETFs. A 'Partner Opportunity Offer Period' for distributors is scheduled from July 15, 2026, to August 7, 2026. This initiative aims to revitalize these products to attract higher Assets Under Management (AUM) through a more disciplined, research-led approach.
- Refreshed investment strategy for 3 hybrid funds: Multi Asset Allocation, Aggressive Hybrid, and Balanced Advantage.
- Partner Opportunity Offer Period for distributors runs from July 15, 2026, to August 7, 2026.
- New framework includes dynamic allocation across equity, debt, and precious metals (Gold/Silver ETFs).
- Equity selection methodology transitioned to GARP (Growth at a Reasonable Price) principles.
- The initiative is part of Shriram AMC's 'quantamental' approach blending quantitative and fundamental research.
Financial Performance
Revenue Growth by Segment
Total income decreased by 17.70% to INR 6.75 Cr (INR 675.46 lakhs) in FY 2024-25 from INR 8.21 Cr (INR 820.76 lakhs) in FY 2023-24. However, Management Fees from Mutual Fund operations grew by 100.56% to INR 1.97 Cr (INR 196.87 lakhs) compared to INR 0.98 Cr (INR 98.16 lakhs) in the previous year, driven by a 67.19% increase in Mutual Fund AUM.
Geographic Revenue Split
Not explicitly disclosed by region, but the company operates across India with a strategic mix of regional roadshows and digital outreach to connect with a diverse investor base.
Profitability Margins
Operating Profit Margin stood at -233% and Net Profit Margin at -244% for FY 2024-25. These negative margins are attributed to the company being in an expansion mode, investing heavily in infrastructure and resources to augment future revenue.
EBITDA Margin
Not explicitly disclosed as EBITDA, but Loss Before Tax increased by 140.64% to INR 16.38 Cr (INR 1637.95 lakhs) in FY 2024-25 compared to a loss of INR 6.81 Cr (INR 680.68 lakhs) in FY 2023-24, reflecting high upfront costs for business scaling.
Capital Expenditure
Historical expenditure increased significantly with total expenditure rising 54.08% to INR 23.13 Cr (INR 2313.41 lakhs) in FY 2025, primarily directed toward infrastructure, digital transformation (Shrifunds portal), and human resources to support future business growth.
Operational Drivers
Raw Materials
Not applicable as an Asset Management Company; however, human capital is the primary driver with employee strength at 73 as of March 31, 2025.
Capacity Expansion
Mutual Fund AUM increased 67.19% to INR 895.72 Cr as of March 31, 2025. PMS AUM reached INR 5.69 Cr within its first year of launch (FY 2024-25). The company is expanding its fixed income franchise with the launch of the Shriram Money Market Fund in January 2026.
Raw Material Costs
Not applicable; however, total expenditure as a percentage of total income rose to 342% in FY 2025 from 183% in FY 2024 due to expansionary investments.
Manufacturing Efficiency
Digital onboarding efficiency improved significantly, with non-individual distributor empanelment reduced from 4-5 working days to under 24 hours.
Logistics & Distribution
Distribution reach is being expanded through ARN-embedded transaction links for group MIS portals and UPI Autopay for SIPs to simplify recurring investments.
Strategic Growth
Expected Growth Rate
23.1%
Growth Strategy
Growth will be achieved through a 'quantamental' investment approach, expansion of the fixed income suite (Money Market Fund launch in Jan 2026), and scaling the Portfolio Management Services (PMS) launched in Dec 2024. The company is also leveraging digital transformation via the 'Shrifunds' portal and high-impact marketing like the SMURF campaign which generated INR 2.04 Cr in media visibility.
Products & Services
Mutual fund schemes (Equity, Debt, Hybrid, ELSS, Overnight, Liquid, Multi-Asset, Sector Rotation), Portfolio Management Services (Shriram LEAPS, Shriram Future GEMS, Shriram Liquid PMS), and ETFs.
Brand Portfolio
Shriram Asset Management, Shriram Mutual Fund, Shrifunds, SMURF (Shriram Multi Sector Rotation Fund).
New Products/Services
Launched Shriram Nifty 1D Rate Liquid ETF (July 2024), Shriram Liquid Fund (Nov 2024), Shriram Multi Sector Rotation Fund (Dec 2024), and Shriram Money Market Fund (NFO Jan 2026).
Market Expansion
Expanding fixed income franchise to target institutional treasuries, corporates, HNIs, and retirees with new liquidity and duration-focused products.
Market Share & Ranking
The company's Mutual Fund AUM is INR 895.72 Cr, which is a small fraction of the total industry AUM of INR 65.74 lakh Cr, indicating significant room for growth from a low base.
Strategic Alliances
Integration with Shriram Group companies through ARN-embedded transaction links on group MIS portals to leverage the existing group ecosystem for distribution.
External Factors
Industry Trends
The Indian Mutual Fund industry AUM grew 23.1% YoY to INR 65.74 lakh Cr in March 2025. Retail participation is deepening with 23.45 crore folios and SIP contributions reaching INR 2.89 lakh Cr in FY25. The industry is shifting toward more stringent institutional mechanisms for market abuse deterrence.
Competitive Landscape
Competes in a crowded market of 40+ AMCs; differentiates through niche thematic funds and leveraging the Shriram Group's massive existing customer base.
Competitive Moat
Moat is built on the Shriram Group brand heritage, a unique 'quantamental' investment process, and innovative product launches like India's first Sector Rotation Fund (SMURF). Sustainability depends on consistent fund performance and digital execution.
Macro Economic Sensitivity
Sensitive to domestic consumption recovery and private investment levels. India's GDP growth and moderating inflation provide a supportive backdrop, while global trade tensions pose intermittent challenges.
Consumer Behavior
Increasing trust in mutual funds as long-term avenues; shift toward digital-first investing and UPI-based SIPs.
Geopolitical Risks
Global uncertainties and geopolitical risks are noted as potential challenges for export-oriented sectors, which may indirectly affect the equity fund performance.
Regulatory & Governance
Industry Regulations
Mandatory implementation of 'Standards on Institutional Mechanism' for identifying and deterring market abuse (front-running) by Feb 02, 2025, for AMCs with AUM < INR 10,000 crores. Compliance with SEBI (Portfolio Managers) Regulations, 2020 for the new PMS business.
Taxation Policy Impact
Tax provision for FY 2024-25 was INR 13.27 lakhs compared to INR 5.24 lakhs in FY 2023-24.
Legal Contingencies
The Audit Committee reviews reasons for any substantial defaults in payments to shareholders or creditors; however, no specific pending court case values were disclosed.
Risk Analysis
Key Uncertainties
Market risk affecting AUM and fee income; execution risk associated with the rapid expansion of infrastructure and new product lines; and regulatory compliance risks regarding market abuse standards.
Geographic Concentration Risk
Concentrated in the Indian market, with a focus on expanding distribution through the Shriram Group's national footprint.
Third Party Dependencies
Dependency on AMFI and SEBI regulatory frameworks and third-party digital payment gateways for SIP processing.
Technology Obsolescence Risk
Mitigated by continuous upgrades to internal control systems and the launch of the revamped Shrifunds investor portal in May 2024.
Credit & Counterparty Risk
Fixed income products like the Money Market Fund focus on high-quality instrument selection and prudent credit evaluation to manage counterparty risk.
