More Stories

Informist, Wednesday, Apr. 16, 2025

By Sachi Pandey

MUMBAI – HDFC Asset Management Co. Ltd. is expected to post a steady performance for the March quarter, with a sharp rise in assets under management driving revenue and profit growth. However, when compared with Oct-Dec, the bottomline is seen lower due to the correction witnessed in the equity market in the first three months of 2025.

The fund house is scheduled to report its Jan-Mar earnings on Thursday. On Wednesday, its shares closed 0.1% lower at INR 4,130.00 on the National Stock Exchange.

According to the average of estimates from 10 brokerages, HDFC AMC's net profit for Jan-Mar likely rose 10% year-on-year to INR 5.94 billion on the back of continued growth in assets under management and stable operational metrics. On a sequential basis, the net profit is seen 7% lower, primarily due to mark-to-market losses and lower equity market returns, analysts said.

"HDFC AMC is expected to account for around 11.5% of the industry's total AUM in Q4FY25E (Jan-Mar), maintaining its position among the top asset managers. Key growth catalysts include new product launches, deeper penetration into tier 2/3 cities, and enhanced cross-selling opportunities following the merger with HDFC Bank. These factors are expected to strengthen distribution capabilities and improve customer acquisition, translating into revenue growth of 36.8% year-on-year. The synergy benefits from the bank-parent integration are likely to continue unlocking value over the medium term, positioning HDFC AMC for sustainable growth," KR Choksey Research said in a pre-earnings report. The brokerage has a 'buy' rating on HDFC AMC with a target price of INR 5,095.

According to KR Choksey, HDFC AMC's assets under management were up 33% year-on-year as at the end of March, with other brokerages also forecasting growth of around 30%. As on Dec. 31, HDFC AMC's assets under management stood at INR 7.76 trillion, up 35% on year.

The robust AUM growth is seen pushing the fund house's revenue for the March quarter higher by 32% to INR 9.20 billion, according to the average of brokerages' estimates. The estimates were in the range of INR 8.76 billion and INR 9.52 billion. Sequentially, revenue is seen down 1.6% due to a dip in stock market levels through most of the quarter.

The weak market performance in Jan-Mar is widely seen as hitting HDFC AMC's other income for the quarter. In Oct-Dec, the fund manager's other income stood at INR 927.4 million. According to Nuvama Wealth Management, other income may fall as much as 64% due to adverse mark-to-market movement. Equirus Securities estimates the other income to fall to INR 0.67 billion.

While short-term pressure from market-linked income and yield compression persists, most analysts agree that HDFC AMC remains well placed due to its strong brand, fund performance, and distribution network.

Following are the Jan-Mar earnings estimates for HDFC HDFC Asset Management Co based on reports from 10 brokerage firms in descending order of their estimate of net profit:

End

Edited by Deepshikha Bhardwaj

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.