ICICI Prudential AMC shares fell 2.11% to ₹3,138.10 on NSE in early trade on Tuesday following the earnings announcement, despite the company delivering strong year-on-year growth. The stock opened at ₹3,251.10, touched a high of ₹3,287.70, and slid to a low of ₹3,090.70, with sell orders outpacing buys at 63.84% of the order book. According to The Hindu BusinessLine, the price pressure came after the fund house reported a cost-driven miss on quarterly earnings, with profit after tax of ₹9.65 billion falling short of street estimates of around ₹10.25 billion. Despite the earnings miss, brokerages have broadly maintained their constructive stance on the stock, with Motilal Oswal maintaining a Buy rating with a target price of ₹3,800, Equirus Securities upgrading its rating to Long from Add with a March 2027 target of ₹3,620, and JM Financial maintaining its Add rating with a target of ₹3,600.
ICICI Prudential Asset Management Company delivered robust financial results for the April-June quarter of FY27, with net profit rising 23.10% year-on-year and 25.45% quarter-on-quarter to ₹964.63 crore. According to latest reports, this represents a significant improvement from the ₹783.64 crore profit recorded in the corresponding quarter of the previous financial year. The company announced these quarterly financial results in an exchange filing on Monday, 13 July, demonstrating effective business operations and market positioning during the quarter. Shares gained 2% to ₹3,285 on BSE following the results announcement, reflecting positive market sentiment toward the strong quarterly performance. Despite missing some estimates, brokerages largely remained constructive on the stock, with JM Financial maintaining its 'Add' rating with a target price of ₹3,600, Motilal Oswal maintaining a 'Buy' rating with a target price of ₹3,800, and Emkirus Securities upgrading its rating to Long from Add with a March 2027 target of ₹3,620.
The asset management company's total income increased 17.55% year-on-year to ₹1,564.22 crore in the June 2026 quarter, compared to ₹1,330.67 crore in the previous year period. As reported by Business Standard, this revenue growth indicates strong operational performance and market demand for the company's asset management services. The company's operating profit before tax increased 20.2% year-on-year to ₹1,100 crore, with profit before tax standing at ₹1,280.65 crore, up 22.45% quarter-on-quarter and 20.61% year-on-year. Revenue from operations also grew 1.45% quarter-on-quarter from ₹1,542 crore in the January-March quarter of FY26, demonstrating consistent momentum across quarters. According to the latest reports, total income rose 20.2% to ₹1,745 crore for the June quarter, with revenue from operations increasing 17.6% year-on-year to ₹1,564 crore. The company's mutual fund assets under management (AUM) rose around 11% YoY to ₹82.40 lakh crore as on March 31, 2026, indicating strong business growth.
The earnings miss was primarily driven by sharp sequential jump in employee costs, with employee expenses rising 11% year-on-year and 45% quarter-on-quarter to ₹2.04 billion. As reported by The Hindu BusinessLine, this increase was driven by ESOP costs accruing from this quarter and a reversal of provisions in the prior quarter. Management indicated that the quarterly run-rate going forward would be in line with Q1FY27 levels, with total ESOP costs of ₹1.25–1.30 billion spread over three years. Total expenses increased 11.74% YoY to ₹464.37 crore, with employee benefit expenses rising to ₹204 crore from ₹186 crore a year earlier. Finance costs declined 7.96% YoY to ₹4.74 crore, while depreciation and amortisation expense increased 10.78% YoY to ₹28.06 crore. Other income increased 23.12% YoY to ₹180.80 crore, with tax expense rising 13.55% YoY to ₹316.02 crore. The operating expenditure-to-AUM ratio stood at 15.5 basis points, compared with 16.3 basis points in Q1FY26 and 13.6 basis points in Q4FY26**.
ICICI Prudential AMC maintained its strong market position with quarterly average assets under management (QAAUM) for mutual funds at ₹11.17 lakh crore at the end of June 2026, representing a market share of 13.4%. As reported by Business Standard, the company's actively managed QAAUM increased 15.13% YoY to ₹9.25 lakh crore, with a market share of 13.5%. The company managed average assets under management (AUM) of ₹11.2 trillion through its mutual fund schemes in Q1. The company's equity and equity-oriented schemes QAAUM grew 19.82% YoY to ₹6.31 lakh crore, with a market share of 14.0%. Equity-oriented hybrid QAAUM climbed 24.84% YoY to ₹2.22 lakh crore, giving the company a market share of 26.6%. The alternatives business reported QAAUM of ₹79,446 crore, comprising portfolio management services assets of ₹28,996 crore, alternative investment fund assets of ₹22,737 crore and advisory assets of ₹27,713 crore. During the quarter, monthly systematic transactions increased 14.77% YoY to ₹4,872 crore in June 2026, with the company's customer base expanding 15.1% year-on-year to 1.73 crore. Unique customers across the asset management industry stood at 61.9 million, while ICICI AMC had 17.3 million, or around 28% of unique customers.
ICICI Prudential AMC appears well positioned for sustained growth with multiple products in the mutual fund pipeline and an expanding product portfolio. According to Business Standard, another three SIF strategies are in the pipeline, in addition to the four already launched, along with several commercial real estate and real estate alternate funds. The company has also launched its first GIFT City inbound offering. Management said ICICI AMC's Q1FY27 net equity inflows were among the industry's highest, though equity AUM market share slipped marginally by 16 basis points QoQ to 13.75% due to stronger gains in small- and mid-cap segments compared with large-caps. Analysts estimate annual growth of 22% in PMS and AIF through FY28, with mutual fund average AUM growth over FY26-28 could remain in the mid-to-high teens. Net profit could also grow at a mid-to-high teens rate over FY26-28. The company's blended mutual fund revenue yield was flat QoQ at 46.7 basis points, while gross AIF and PMS revenue yield was 191 basis points with net yields at 95 basis points after deducting fees and commissions.
