Analyst Concall
HDFC AMC sees 12-15% rise in operating spend on yearly basis
This story was originally published at 20:30 IST on 15 October 2025
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--HDFC AMC: Continue to invest in digital assets, technology
--CONTEXT: HDFC AMC management's comments in post-earnings analyst call
--HDFC AMC: Other expenses in Jul-Sept rose YoY due to business promotion
--HDFC AMC: Other expenses rose YoY in Jul-Sept due to CSR spends
--HDFC AMC: Optimistic about growth trajectory of asset management industry
--HDFC AMC: Expect operating expenses to rise 12-15% on annual basis
--HDFC AMC: Saw greater traction in SIPs from beyond top 30 towns
By Arya S. Biju and Anjana Therese Antony
MUMBAI – HDFC Asset Management Co. Ltd. expects its operating expenses to increase 12–15% on an annual basis going forward, the company's management said in a post-earnings call with analysts Wednesday. During the September quarter, the company's other expenses grew over 16% on year and nearly 20% on quarter to a little over INR 1 billion. This on-year rise in other expenses was largely on account of costs related to corporate social responsibility initiatives and business promotions for the company's new fund offers, its management said.
On the Securities and Exchange Board of India's recent decision to reintroduce incentives for mutual fund distributors to encourage investments from towns and cities beyond the top 30, the company said it is awaiting final guidelines on it. "We actually welcome SEBI's guidance on that (B30 incentives) to increase both number of women investors as well as new investors from B30 towns," a top official from the company said in the call.
Under this initiative of SEBI, mutual fund distributors will get 1% of the first application amount in case of lump sum investment or 1% of the total investment during the first year in case of systematic investment plans, for inflows from new individual investors from beyond 30 cities. The payment is capped at INR 2,000 per investor. The B30 programme was first introduced in 2012. It was suspended in 2023 and reintroduced this year.
HDFC Asset Management Co. said it has seen greater traction in systematic investment plans from beyond top 30 towns in the last couple of years. "We remain fully prepared both in terms of our physical presence there...and the overall ability to make the most of it as and when the opportunity arises with our distribution partners," the management said. The company said it sees potential for growth in cities beyond the top 30, where penetration is still low, given its "pedigree brand". "We continue to invest in our digital assets, in our technology to create the best possible experience for our investors and distribution partners," the management said.
The company said it remains optimistic about the growth trajectory of the asset management industry in India. As of Sept. 30, the overall quarterly average of assets under management of the industry was INR 77.1 trillion, up over 16% on year, the company said in a post-earnings presentation. Equity assets, which form 56% of the overall quarterly average of assets under management of the industry, grew 15% on year to INR 43.5 trillion as of Sep. 30. Contributions from systematic investment plans have risen 20% on year to INR 294 billion as of Sept. 30, the company said.
As of Sept. 30, HDFC Asset Management Co.'s quarterly average of assets under management grew 16% on year to INR 8.81 trillion, it said in the presentation.
The company's September quarter earnings detailed Wednesday showed its net profit rose over 24% on year but fell nearly 4% on quarter to INR 7.18 billion. Revenue for the quarter rose 16% on year and 6% on quarter to INR 10.26 billion. On the National Stock Exchange, shares of the company closed over 3% higher at INR 5,764. End
Edited by Ashish Shirke
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