Strong Q3 performance, growth prospects to drive gains for HDFC AMC

HDFC Asset Management Company (AMC) reported strong results for the third quarter of 2025-26 (Q3FY26) with net profit of 2770 crore, which was up 7 per cent quarter-on-quarter (Q-o-Q), and up 20 per cent year-on-year (Yo-Y).

- DEVANGSHU DATTA

Expenses moderated by 11 per cent Q-o-Q. The operating revenue grew 15 percent Y-0-Y to%1,080 crore. Yields were around 46.5 basis points (bps) in Q3FY26 vs 47.5 bps in Q3FY25 and 46.6 bps in Q2FY26. For the first nine months of 2025-26 (M9FY26), revenue grew 18 per cent Yo-Y to %3,070 crore. Operating expenses (opex) at £200 crore grew 16 percent Yo-Y but was down 11 per cent Q-o-Q. Operating profit came in at 880 crore, up 15 percent Yo-Y and up 9 percent Q-0-Q.

‘The operating profit margin was 81.5 per cent vs 817 per cent in Q3FY25 and 779 per cent in Q2FY26. For M9FY26, operating profit came in at €2,450 crore, up 19 per cent Yo-Y. Net profit margin came in at 71.6 percent vs 68.6 percentin Q3FY25 and 69.9 per cent in Q2FY26. For MOFY26, net profit came in at %2,240 crore, up 23 per cent Y-0-Y.

Total assets under management (AUM) growth was 5 per cent, with 6 per cent growth in equity AUM, having flat yields. Industry inflows were range-bound. HDFC AMC launched one new fund, the HDFCBSE IndiaSector Leaders Index Fund. Core revenue grew5 percent Q-0-Qto%1,060 crore. Other income was strong at %160 crore.