Q1 2026 HDFC Asset Management Company Ltd Earnings Call Transcript
Key Points
- HDFC Asset Management Co Ltd (NSE:HDFCAMC) reported a 22% year-on-year increase in AUM, reaching INR74.4 trillion as of June 2025.
- Equity-oriented AUM crossed INR43 trillion, marking a 21% increase over the same period.
- The company added 0.5 million unique customers during the quarter, contributing to a 25% penetration of mutual fund investors in the country.
- Revenue from operations grew by 25% year-on-year to INR9,678 million, with other income increasing by 34% year-on-year.
- Profit after tax grew to INR7,480 million, a growth of 24% year-on-year, with a stable operating profit margin of 36 basis points of AUM.
- The yield expansion was not as significant as anticipated, with equity yields remaining broadly in line with the previous quarter.
- The cost implications of the new ESOP and PSU plans are expected to result in a non-cash charge of about INR56 crore in FY26, impacting future expenses.
- HDFC Bank's contribution to overall and equity AUM has declined in percentage terms, despite absolute growth.
- There is a concern about higher lump sum redemptions affecting the closing equity AUM, which increased by only 12.5% on a QoQ basis.
- The sequential increase in other operating expenses, partly due to the timing of CSR expenditure, raised concerns about cost management.
Ladies and gentlemen, good day, and welcome to Q1 FY26 earnings conference call of HDFC Asset Management Company Limited. From the management team, we have with us Mr. Navneet Munot, Mr. Naozad Sirwalla and Mr. Simal Kanuga.
(Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Simal Kanuga, who will give us a brief following which, we will proceed with the Q&A session.
Thank you, and over to you, Simal.
()
Thank you so much. Good evening, everyone, and we hope that you had a chance to go through our presentation. Brief update on the industry. So the AUM stood at INR74.4 trillion as of June 2025, reflecting a 22% YoY increase. Equity-oriented AUM crossed INR43 trillion, up 21% over the same period.
During the quarter, equity-oriented funds witnessed net inflows of INR911
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