PNippon Life India Asset ManagementExecutive Cockpit

CFO — Finance, Cash & Capital

Quality of earnings, 13-week cash, covenant runway, working-capital unlock and the value levers behind the PE thesis.

Nippon Life India Asset Management · FY26 (modeled)
Top 5 Indian AMC by AUM
1,200 employees · 0+ US sites · 2 countries
Executive read· the answer, then the moves

Liquidity of $2100M (≈ 194 weeks of cover) and $9990M of deal capacity make capital the lever, not the constraint. Free the trapped cash first: normalizing DSO to 48d releases ≈ $-324.9M and clears $11.2M of overdue receivables.

8 of 8 headline metrics improving vs prior · still off target: Revenue $3.83B vs $4.10B, EBITDA $1.85B vs $2.00B, EBITDA Margin 48.4% vs 50.0%

Do now — ranked by urgency
  1. 1
    Reliance Industries Staff Superannuation Fund credit exposureAct now
    Why it matters

    Move to credit hold pending paydown; reforecast ARR net of likely churn.

    What's driving it
    • Overdue AR
    • Signal: Alert
    FYI

    Distress filings + overdue AR; churn risk High on $6.4M account.

  2. 2
    Covenant headroom 0.9× (lev 4.6× vs 5.5×)Act now
    Why it matters

    Sets deal capacity and refinancing risk.

    What's driving it
    • Q1 (act)
    • Signal: Threshold
    FYI
    • Net-debt/EBITDA 4.6× against a 5.5× ceiling.
    • Owner: CFO · Treasury
  3. 3
    Pull working capital — drive DSO 17→48dWatch
    Why it matters

    Closing the DSO gap releases ≈ $-324.9M of one-time cash; $11.2M is already >60 days overdue and at collection risk.

    What's driving it
    • DSO 17d vs 48d target
    • Overdue (>60d) $11.2M of $68M AR
    FYI
    • Brand-level unlock to a 50d stretch ≈ $5.0M
    • Owner: Treasury
  4. 4
    3 brands running DSO > 65 daysWatch
    Why it matters

    Targeted collections sprint on $0.9M; tighten milestone billing on ISC projects.

    What's driving it
    • DSO
    • Signal: Alert
    FYI

    ISC (67d), Nippon Wealth Management (66d), Reliance Industries Staff Superannuation Fund account (67d) lifting blended DSO.

Adjusted EBITDA
$1850M
+26% YoY · 48.4% margin
Liquidity
$2100M
≈ 194 weeks of disbursements
M&A deal capacity
$9990M
≈ $999M EBITDA @ ~10x to 5.5x
Working-capital unlock
$-324.9M
DSO 17→48d target
Quality of earnings

Reported → Adjusted EBITDA

$1796.09M of add-backs (97% of adj.) — the diligence-grade walk.

Driver bridge

EBITDA — prior to current year

Organic vs. acquisitive vs. price/mix vs. cost.

Treasury

13-week direct cash flow forecast

Breach risk

Net weekly cash (bars) and ending cash (line) vs. $20M minimum. Forecast trough: $16.82M.

$19.92M
Opening cash
$143M
13-wk collections
$141M
13-wk disbursements
$21.74M
Closing cash
Capital structure

Leverage runway vs. covenant

Net Debt/EBITDA deleveraging path against the 5.5x covenant ceiling.

Headroom = firepower

Deal capacity

Net-debt capacity to 5.5x
$9990M
≈ $999M acquirable EBITDA @ ~10x
Net Debt/EBITDA0.1x
Covenant Headroom1.9x
DSCR4.8x
Free Cash Flow$1.53B
Where the cash is trapped

Working-capital cash unlock

$5.0M opportunity

Normalizing laggard brands to a 50-day DSO releases ~$5.0M of one-time cash.

Debt Portfolio: Hybrid Fund67d
$1.1M
Equity Portfolio: Hybrid Fund61d
$1.0M
Nippon Hybrid Fund56d
$0.9M
Nippon Wealth Management66d
$0.7M
Nippon AIF Growth Opportunities60d
$0.6M
Nippon Large Cap Fund58d
$0.4M
Nippon Tax Saver Fund54d
$0.1M

Concentrated in newer cohorts (ISC, Signet, RFI) where billing discipline lags integration — the fastest cash win this fiscal year.

Revenue quality

Recurring engine & margin

Annuity growth and where EBITDA is generated.

Recurring Fee Income
$3.20B
▲ 8.5% vs priorTarget $3.50B
Recurring Revenue Mix
90.2%
▲ 0.4% vs priorTarget 91.0%
Net Revenue Retention
98.2%
▲ 0.7% vs priorTarget 99.0%
Gross Revenue Retention
98.9%
▲ 0.3% vs priorTarget 99.5%
Annuity engine

ARR bridge

Trend

ARR growth

By business unit

EBITDA margin

Collections

AR aging

Total AR $68M

Current days$31.94M
1-30 days$16.99M
31-60 days$7.91M
61-90 days$5.74M
90+ days$5.45M

Overdue (>60d) = $11.2M at collection risk.

By account

Receivables & credit watch

Accounts ranked by DSO and credit/churn risk.

AccountRevenueDSONRRCredit/Churn
Reliance Industries Staff Superannuation Fund$3.75M67d97%High
Brookfield Corporation$7.56M63d104%Medium
Aditya Birla Sun Life Insurance$2.4M59d100%Medium
Rajiv Mehra$8.32M58d112%Low
ICICI Prudential Life$4.22M55d105%Medium
IBM$5.68M52d101%Medium
UPS$6.62M49d106%Low
Bharat Insurance$10.9M47d108%Low
State Bank of India Employees Pension Fund$9.43M44d119%Low
HDFC Life Insurance$3.4M41d110%Low
M&A

Acquisition cohort economics

EBITDA uplift, DSO normalization and synergy realization (as-acquired → current).

Brand (cohort)Acq.RevenueEBITDA %DSOIntegrationSynergyStatus
Nippon Large Cap Fund2021$19.92M5.278.2%7158d100%92%Integrated
Nippon Tax Saver Fund2021$12.89M4.697.62%6654d100%90%Integrated
Nippon Hybrid Fund2022$56.26M6.459.38%6856d95%88%Integrated
Equity Portfolio: Hybrid Fund2023$33.99M5.867.62%7061d82%74%In progress
Debt Portfolio: Hybrid Fund2024$24.03M5.276.45%7367d60%55%In progress
Nippon AIF Growth Opportunities2024$21.68M5.277.03%7160d80%78%In progress
Nippon Wealth Management2024$16.99M4.695.27%6966d45%40%Early
Supply

Supplier terms & risk

Partner spend, DPO (working-capital lever), delivery and risk.

SupplierCategorySpendDPOOTIFScoreRisk
SEBIVideo Surveillance$37.5M45d96%91Low
Market Data ProviderFire & Access$33.99M42d93%88Low
Fund Admin SystemCritical Comms$24.03M38d90%85Medium
Risk EngineVideo Surveillance$15.82M36d89%83Medium
CRMVideo VMS$13.48M40d95%87Low
Portfolio ManagementAV / Collaboration$11.13M44d92%86Low