Key facts
- Aditya Birla Sun Life AMC expects corporate earnings recovery to drive Indian equity market.
- The firm forecasts earnings growth in the low-to-mid teens for the next two to three years.
- Large-cap stocks are seen as better positioned for the next market cycle phase.
- Aditya Birla Sun Life AMC reported a 20% year-on-year increase in net profit for Q3 FY26.
- Revenue from operations rose 7.4% to Rs 478.08 crore in Q3 FY26.
Aditya Birla Sun Life Asset Management Co., a major Indian money manager, is positioning for gains in the nation's equity market, driven by an anticipated recovery in corporate earnings. The firm's Chief Investment Officer for Equities, Harish Krishnan, stated that India Inc.'s competitiveness is increasing and that stock markets reflect companies' ability to deliver earnings, which are expected to grow significantly better over the next two to three years compared to the previous 24 months.
From an asset allocation standpoint, domestic equities are considered attractive relative to other asset classes, with fixed income expected to provide stability as the rate cycle turns favorable. The asset management company (AMC) also anticipates better rate transmission in debt markets and a potential 25 basis point rate cut by the Reserve Bank of India in the coming months.
Aditya Birla Sun Life AMC believes the period of indiscriminate outperformance by small- and mid-cap stocks is likely over. Instead, large-cap stocks are seen as better positioned for the next phase of the market cycle, especially as earnings growth begins to catch up with market capitalization growth in 2026. Despite persistent risks from geopolitics, trade concerns, and currency movements, the fund house expects investors to benefit from earnings-led returns.
In its Q3 FY26 financial results, Aditya Birla Sun Life AMC reported a 20% year-on-year increase in consolidated net profit to Rs 269.52 crore. Revenue from operations grew 7.4% to Rs 478.08 crore, while total income, including other income, rose to Rs 562.40 crore.