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Informist, Monday, Jul. 13, 2026

By J. Navya Sruthi

MUMBAI – HDFC Asset Management Co. Ltd. is likely to record a healthy on-year growth in net profit for the June quarter due to strong improvement in other income, according to brokerages tracking the company. 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 company is expected to report a net profit of INR 7.77 billion for the June quarter, up nearly 4% on year and 25% on quarter, according to the average of estimates from nine brokerages. The highest estimate for net profit is INR 8.15 billion from PhillipCapital (India) Pvt. Ltd. and the lowest INR 7.59 billion from Emkay Global Financial Services Ltd.

HDFC AMC's net profit is expected to grow on the back of strong growth in other income and revenue, Nuvama Wealth Management Ltd. said in its pre-earnings review. For the March quarter, the company had reported the net profit of INR 7.48 billion on net sales of INR 9.68 billion.  

The company's net sales for the June quarter are expected at INR 10.9 billion, up nearly 13% on year and 4% on quarter, according to the average of nine estimates. The highest estimate for net sales is INR 12.62 billion from Kotak Securities Ltd. and the lowest INR 10.5 billion from Prabhudas Lilladher Pvt. Ltd.

Most brokerage firms expect a largely stable revenue increase for HDFC AMC on a sequential basis due to lower growth in quarterly average assets under management of the company. "We build in 1% qoq (quarter-on-quarter) growth in QAAUM (quarterly average assets under management), reflecting 1% decline in average Nifty-500 during the quarter, offset by healthy flows," Kotak Securities said.

The share of equity assets under management increased on a sequential basis for HDFC AMC. The total equity assets under management with the company was INR 6.41 trillion, according to Nomura Financial Advisory and Securities (India) Pvt. Ltd. The total assets under management of equity oriented schemes was INR 6.05 trillion.

"We believe that trends as of June 2026 would be dependent on the trends seen till May while we additionally factor in Nifty Return of 1.8% and Nifty Midcap 100 return of (-) 0.1% for June 2026," YES Securities said. "We pencil in an overall AUM growth of 1.9% QoQ for HDFCAMC." The company's overall assets under management grew 1.2% as of May compared with end of June 2025. In the same period, the company's assets under management of equity funds grew 3.2%, the report said.  

Although the benchmark Nifty 50 index rose around 7% during the quarter, aiding mark-to-market gains across equity-oriented schemes in the mutual fund industry, it is not the same for HDFC AMC. The share of large-cap and large- and mid-cap funds in the total equity assets under management of the company is just 6% and 5%, respectively. The shares of flexi-cap, hybrid, and mid-cap are 17%, 17%, and 16%, respectively, according to the analysis by Nomura.

Analysts expect the asset management company's EBITDA margin to fall sequentially for the June quarter. Emkay expects EBITDA to fall 1% on quarter and EBITDA margin to dip over 79% on quarter due to annual salary hikes and a slight increase in costs.

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 costs, Prabhudas Lilladher said. Investors are likely to focus on the impact of the new brokerage expense ratio regime on revenue yields, stability of retail flows, and outlook on market share, which could influence profitability for the coming quarters. 

HDFC AMC will detail its June quarter financial results Tuesday. At 1333 IST, its shares were over 1% lower at INR 2,723.70 apiece on the National Stock Exchange. Shares of the company have risen over 2% since Apr. 16, when it detailed the March quarter earnings. Of the 13 research reports on the company available with Informist, 12 have a "buy" recommendation with an average target price of INR 3,127 per share, nearly 15% higher than the current market price.

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

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Edited by Shubhayan Bhattacharya

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