Earnings Review
HDFC AMC Q2 PAT rises 24%, beats Street estimate again
This story was originally published at 16:43 IST on 15 October 2025
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--HDFC AMC:Liquid closing AUM INR 656 bln as on Sept 30 vs INR 659 bln yr ago
--HDFC AMC: Debt closing AUM INR 1.84 tln as on Sept 30, up 20% on yr
--HDFC AMC: Equity closing AUM INR 5.40 tln as on Sept 30, up 11% YoY
--HDFC AMC: SIP AUM at INR 2.05 tln as on Sept 30
--HDFC AMC: Market share as on Sept 30 11.5%, not 11.4%
--HDFC AMC AUM as on Sept 30 INR 8.73 tln, not INR 8.81 bln
--HDFC AMC Jul-Sept tax outgo at INR 1.58 bln vs INR 2.82 bln year ago
--HDFC AMC Apr-Sept revenue INR 19.94 bln vs INR 16.62 bln year ago
--HDFC AMC Apr-Sept net profit INR 14.66 bln vs INR 11.81 bln year ago
--HDFC AMC sets Nov 26 as record date for bonus share issue
--HDFC AMC Jul-Sept revenue INR 10.26 bln vs INR 8.87 bln year ago
--HDFC AMC Jul-Sept net profit INR 7.18 bln vs INR 5.77 bln year ago
--HDFC AMC board OKs 1-for-1 bonus share issue
--Analysts saw HDFC AMC Jul-Sept revenue at INR 10.17 bln
--HDFC AMC Jul-Sept revenue INR 10.26 bln
--Analysts saw HDFC AMC Jul-Sept net profit at INR 6.59 bln
--HDFC AMC Jul-Sept net profit INR 7.18 bln
By Priyasmita Dutta
NEW DELHI – HDFC Asset Management Co. Ltd. reported a jump of over 24% in the net profit for the September quarter, beating the Street view for the second quarter in a row. Although the headline figure looks glittery, the financial performance is not entirely gold, given a sharply lower tax outgo during the quarter made it appear shinier than it is. A healthy on-year rise in the fund house's revenue from operations did support the bottom line but the on-year growth in the top line was the weakest in the last nine quarters.
HDFC AMC's net profit rose to INR 7.18 billion in Jul-Sept, with the revenue from operations rising 16% on year to INR 10.26 billion. Sequentially, the net profit was down 4% and the revenue from operation was up 6%. Analysts had expected HDFC AMC's net profit to rise 14% on year to INR 6.59 billion.
The fund house's tax outgo during the quarter was 44% lower on year at INR 1.58 billion. Sequentially, it was down 34%. At 1513 IST, shares of HDFC AMC traded at INR 5,800 on the National Stock Exchange, up 3.7%. The stock eventually closed at INR 5,764, up 3% from the previous close. "Considering recent assessments orders, the company has re-assessed its income tax position during the quarter ended September 30, 2025. As a result of which, the company has reversed income tax provision for earlier periods amounting to ~ 46.81 Crore (INR 468.10 million)," HDFC AMC informed exchanges Wednesday.
For any AMC, revenue from operations comprises investment management fees from mutual funds and portfolio management services, and other advisory services fees. Beyond a weaker revenue from operations--comapred with last nine quarters--HDFC AMC's other income was also down 44% on year and 59% on quarter at INR 959 million. Its total income was INR 11.22 billion in the September quarter, up just 6.1% on year. On a quarter-on-quarter basis, it was down 6.5%.
The fund house's assets under managment at the end of September were INR 8.73 trillion, 14% higher on year and 2% higher on quarter. The fund house's market share at the end of September was maintained at 11.5%. HDFC AMC, investment manager to HDFC Mutual Fund, has diversified asset classes and scheme categories. For the quarter ended September, the operating margin was 35 basis points, slightly lower from the 36 bps at the end of June quarter.
HDFC's net profit for Apr-Sept was INR 14.66 billion, 24% higher on year. The revenue from operations was up 20% on year during the same period to INR 19.94 billion. In the trailing quarter, HDFC AMC had reported a net profit of INR 7.48 billion, up 24% on year and 17% sequentially on the back of a 34% on-year surge in other income to INR 2.33 billion. The revenue from operations had also risen nearly 25% to INR 9.68 billion during the June quarter.
As of Sept. 30, the fund house's equity AUM was INR 5.40 trillion, up 11% on year, and debt scheme assets were INR 1.84 trillion, up 20% on year. The company's liquid assets were flat on year at INR 656 billion. The market share in each of the asset classes was 12.9%, 13.3%, and 11.8%, repectively.
Systematic investment plan assets were INR 2.05 trillion at the end of September. Individual investors accounted for 69.8% of the company's monthly average AUM, higher than 60.7% for the industry. The share of individual investors, however, fell 160 bps from the year-ago share. As on Sept. 30, the fund house's total live accounts were 25.94 million.
HDFC AMC will issue bonus shares in the ratio of 1:1 and the record date for determining the entitlement of bonus issuance will be Nov. 26, it said. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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