Prabhudas Lilladher has upgraded HDFC AMC's target price to ₹3,040 from the previous target, while maintaining a 'Buy' rating on the stock in its research report dated July 16, 2026. The brokerage maintains its multiple at 36x on March 2028 core EPS and raised the target price by 0.7% to ₹3,040. The upgrade comes after HDFC AMC delivered strong Q1 FY27 results, with revenue beating estimates by 4.7% due to better yield at 47 basis points which increased by 1.7 basis points quarter-on-quarter. As per Prabhudas Lilladher's report, the positive yield movement suggests that the major impact of TER change has been passed on to distributors.
HDFC Asset Management Company (HDFC AMC) delivered robust financial results for the first quarter of FY27, with consolidated profit after tax rising 12% year-on-year to ₹837.13 crore from ₹747.55 crore in the corresponding quarter last year. According to reports from CNBC TV18, Upstox Securities, The Economic Times, Business Standard, and The Hindu BusinessLine, the asset management company demonstrated strong operational momentum across key financial metrics during the June quarter. The company's revenue from operations increased 13.6% to ₹1,099.72 crore from ₹968.15 crore a year ago, reflecting consistent growth trajectory in the asset management sector. Total income rose to ₹1,361.06 crore from ₹1,200.44 crore in Q1 FY26 and ₹1,061.67 crore in the preceding quarter (Q4 FY26), while EBITDA grew 10.1% to ₹851 crore. However, EBITDA margin declined to 77.4% from 79.9% in the corresponding quarter last year, indicating some moderation in profitability despite strong revenue growth.
The company showed strong sequential performance with revenue from operations rising 4.6% from ₹1,052 crore in the March quarter, while net profit increased 34.4% from ₹623 crore in the preceding quarter. As reported by CNBC TV18, this sequential growth was aided by a significant jump in other income to ₹263 crore from ₹12 crore in the March quarter. The sharp rise in profit demonstrates the company's ability to capitalize on market opportunities and maintain strong operational efficiency across quarters. Profit before tax stood at ₹1,090.25 crore in Q1 FY27, up from ₹986.05 crore in the prior year's first quarter, while operating profit from the core asset management business increased 10% YoY to ₹8,276 million. For the full financial year 2026, total income amounted to ₹4,622.20 crore with net profit of ₹2,858.06 crore.
HDFC AMC's assets under management (AUM) stood at ₹9.35 trillion crore, with quarterly average AUM (QAAUM) rising 13% year-on-year to ₹9.4 trillion from ₹8.3 trillion a year ago. The company held a market share of 11.2% in QAAUM of the mutual fund industry, as reported by The Economic Times. QAAUM in actively managed equity-oriented funds stood at ₹5.74 lakh crore for the quarter ended June 30, 2026, with a market share of 12.8%, positioning it amongst the largest actively managed equity-oriented mutual fund managers in the country. The ratio of equity and non-equity oriented QAAUM is 66:34, compared to the industry ratio of 57:43 in Q1 FY27. During June 2026, the company processed 17.2 million systematic transactions worth ₹4,810 crore and maintained its leadership position in the mutual fund industry. Notably, SIP assets climbed 16% to ₹2.3 trillion, reflecting resilient investor participation despite market volatility.
Of the 30 analysts who have coverage on the HDFC AMC stock, 26 have a 'buy' rating and four have a 'hold' rating, as reported by CNBC TV18. While brokerage firm Nomura maintains a 'buy' rating with a price target of ₹3,130, indicating an upside of 14.7% from its previous closing price, HSBC has a 'hold' recommendation with a target of ₹2,590. Nomura noted that the revenue yield expansion is unlikely to sustain and has trimmed its estimated earnings per share (EPS) for FY27, FY28 by 1% due to higher opex, while HSBC believes that a meaningful operating performance from the stock is needed in comparison to its peers for it to re-rate again. HDFC AMC shares are trading 4.7% lower on Thursday at ₹2,601, with the stock turning negative for the year despite the strong quarterly results. The company's alternatives AUM grew 13% sequentially to ₹14,800 crore, while expenses grew 19% from the previous quarter leading to a sequential margin dip, though they still remained healthy at 77%.
