According to reports from ET Now, HDFC Asset Management Company Ltd reported a 2% year-on-year decline in profit after tax (PAT) at ₹623 crore in Q4 FY26 against ₹638 crore in the same quarter of the previous year. On a quarter-on-quarter basis, the company reported a 19% decline in consolidated profit for the January-March quarter, with earnings coming in at ₹622.66 crore. The asset management company posted a net profit of ₹769.42 crore in the December quarter (Q3 FY26), with revenue from operations up 17% YoY at ₹1,051 crore versus ₹901.36 crore in the year-ago period. However, revenue slipped 2.2% from ₹1,075.10 crore on a quarter-on-quarter basis.
As reported by ET Now, multiple brokerages maintain bullish stances on HDFC AMC despite the quarterly decline. Morgan Stanley remains bullish with an overweight rating and a revised target price of ₹2,975 (raised from ₹2,915), citing strong SIP flows supporting AUM growth and concerns around yield compression appearing overdone compared to peers. Motilal Oswal maintains a buy rating with a target price of ₹3,170, expecting non-mutual fund businesses to drive incremental growth while the company remains a strong player in the mutual fund industry. Nuvama has maintained a buy rating with a revised target price of ₹3,170 (earlier ₹3,620), expecting strong SIP inflows of ₹929 billion and projecting AUM growth of 9% in FY27 and 37% in FY28.
According to ET Now, the company's QAAUM at ₹9.3 trillion was largely flat sequentially despite market volatility, with overall QAAUM market share maintained at 11.4%. Emkay Global maintains a buy rating with a target price of ₹3,200, implying FY28E P/E of 37x, noting that HDFC AMC delivered decent Q4FY26 performance with QAAUM at ₹9.3 trillion. The brokerage expects revenue, EBITDA, and PAT to grow at a CAGR of 13%, 14%, and 15% respectively, along with approximately 16% AUM growth over FY26-28. Despite near-term market volatility, long-term fundamentals remain solid with earnings estimates for FY26–FY28 largely retained.
As reported by ET Now, the company's revenue yield was at 46 basis points with EBITDA margin at 80.4% down 140 basis points quarter-on-quarter, driving down EBITDA at ₹8.5 billion (-2% QoQ). Other income was at ₹11 crore in Q4 FY26 compared to ₹124 crore in Q4 FY25. The company's equity market share improved to 13.0%, indicating steady competitive positioning, while SIP flows remained strong with a market share of 15.2% despite a minor decline. Despite these pressures, the management plans to offset the 3-4 basis points hit from new base TER regulations through optimization of commissions and prudent management of other costs.
