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Informist, Saturday, Jul. 11, 2026

By J. Navya Sruthi

MUMBAI – ICICI Prudential AMC Ltd.'s net profit for the June quarter is expected to grow 18% on a sequential basis owing to strong investment income, according to brokerages. However, the asset management company's earnings before interest, taxes, depreciation, and amortisation are expected to fall due to a rise in operating expenses. 

The asset management company is expected to report a net profit of INR 9.04 billion for the June quarter, up over 18% on quarter, according to the average of estimates from five brokerages. The highest estimate for net profit is INR 9.28 billion from Prabhudas Lilladher Pvt Ltd. and the lowest of INR 8.80 billion is from JM Financial Institutional Securities Pvt Ltd. The company was listed on Dec. 19 and the earnings for the corresponding quarter of the previous year were not available. 

The company's net sales for the June quarter are expected at INR 15.11 billion, down 0.4% on quarter, according to the average of five estimates. The highest estimate for net sales is INR 15.53 billion from Motilal Oswal Financial Services Ltd. and the lowest is INR 13.95 billion from Prabhudas Lilladher. For the March quarter, the company had reported net profit of INR 7.63 billion on revenue of INR 15.17 billion.  

ICICI Prudential AMC's net profit is expected to grow on the back of strong growth in investment income, according to Emkay Global Financial Services. The brokerage firm expects net revenue to grow on quarter, driven by a 1% rise in assets under management with broadly stable yields on funds during the June quarter.

The overall quarterly average assets under management of the company are likely to record a steady growth sequentially and 18% on year, broking firm Prabhudas Lilladher said. However, its equity quarterly average assets under management are likely to grow 1.7% on a quarterly basis. "Yields may fall by 0.7 bps QoQ (basis points on quarter)/0.8 bps YoY due to lower revenue yields despite recovery in equity markets." Operating expenses as a percentage of quarterly average assets under management are seen broadly flat on quarterly basis, Prabhudas Lilladher said.

ICICI Prudential mutual fund's EBITDA is expected to grow 19% on year, according to reports. However, the company is likely to report a 3% on-quarter fall due to annual hikes in employee costs and other operating expenses, Emkay Global said.   

On other hand, analysts expect the mutual fund industry's assets under management to grow 1-3% sequentially due to sustained inflows through systematic investment plans and mark-to-market gains on the back of Nifty movement. These mark-to-market benefits are likely to provide a 34% on-quarter boost to the net profit of the industry, Motilal Oswal brokerage firm said in a report. The benchmark Nifty 50 rose around 7% during the quarter, aiding mark-to-market gains across equity-oriented schemes.

The operating expenses of the industry are likely to increase 1.3% on quarter to INR 10.5 billion due to an 8% rise in staff cost, Prabhudas Lilladher said. Investors are likely to focus on the impact of the new brokerage expense ratio regime on revenue yields and distribution commissions, which could influence profitability in coming quarters. Apart from financial performance, management commentary on retail flows, SIP sustainability, alternate investment growth and margin outlook under the revised regulatory framework will remain in focus.

The company will detail its June quarter financial results Monday. Friday, its shares closed 0.7% lower at INR 3,159.60 apiece on the National Stock Exchange. Shares of the company have fallen nearly 2% since Apr. 13, when it detailed the March quarter earnings. All the six research estimates on the company available with Informist have a "buy" recommendation with an average target price of INR 3,590 per share, over 13% higher than the current market price.  

Following are earnings estimates for the June quarter, in INR billion, for ICICI Prudential Asset Management Co., in descending order of net profit:

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Edited by Himanshi Gupta

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