ICICI Prudential AMC shares declined 1.4% to ₹3,160 in Tuesday's trading session despite broadly positive brokerage commentary following the company's June quarter results. The stock remains up about 20% so far in 2026, outperforming the benchmark Nifty 50, which has declined 7.5% over the same period. The company commands a market capitalisation of about ₹1.56 lakh crore. The decline came even as the broader market remained under pressure, with Sensex and Nifty 50 falling 0.65-0.7% each during the session.
The company delivered a stable quarter with operating revenue of ₹15.6 billion, growing 18% year-on-year and remaining flat quarter-on-quarter, in line with analyst estimates. Mutual fund QAAUM reached ₹11.17 lakh crore, increasing approximately 1% quarter-on-quarter, with the company maintaining an overall MF QAAUM market share of 13.4% as of June 30, 2026. PAT at ₹965 crore rose 23.1% year-on-year, driven by higher total income including treasury gains during the quarter. PAT margins improved to 61.7% versus 58.9% in Q1FY26 and 49.8% in Q4FY26. The management indicated no negative impact from TER regulation changes, with equity AUM benefiting from MTM gains while debt AUM saw corporate redemptions amid tight liquidity.
EBITDA came in at ₹11.3 billion, up 20% year-on-year but declined 3% quarter-on-quarter, with EBITDA margin at 72.4% compared to 71.1% in Q1FY26 and 75.7% in Q4FY26. Total operating expenses increased to ₹4.3 billion, up 12% year-on-year and 15% quarter-on-quarter, with employee costs at ₹2 billion rising 11% year-on-year and 45% quarter-on-quarter. Other expenses came in at ₹1 billion, up 6% year-on-year but down 12% quarter-on-quarter. CLSA described the broader operating environment as "largely business as usual" and noted that equity flows for the mutual fund industry were only marginally lower, with SIP inflows remaining stable. The brokerage trimmed its FY27-FY29 profit estimates by 3-4% to factor in higher operating expenses.
HSBC maintained its 'Buy' rating with a target price of ₹3,800, implying an upside of around 19% from Monday's closing price, while CLSA retained its 'Outperform' rating with a target price of ₹3,650. Both brokerages highlighted that the company's first-quarter profit after tax exceeded expectations, largely due to higher-than-anticipated treasury gains. HSBC noted that a significant portion of the mutual fund AUM market share decline was attributable to mark-to-market differences rather than underlying business weakness. The brokerages see scope for a valuation re-rating, supported by an expected earnings per share CAGR of 22% between FY26 and FY29 and an attractive PEG ratio of 1.4 times. CLSA also noted that equity quarterly average assets under management grew 2% sequentially, broadly matching the pace seen in the previous quarter.
