HDFCAMC - HDFC Asset Management Company Limited Share Price

The management of HDFC Asset Management Company Limited provided a positive outlook during the Q2 FY26 earnings call, emphasizing continued growth and market positioning despite recent market fluctuations.

Key highlights include:

1. AUM Growth: The company reported an AUM of Rs. 8.7 trillion, with a market share of 11.5% and 12.8% on an ex-ETF basis. Active equity-oriented AUM rose to Rs. 5.4 trillion, reflecting a 12.9% market share.

2. SIP Contributions: The SIP contributions reached Rs. 294 billion in September 2025, with a significant net addition of 6 million SIP accounts, indicating a growing long-term investment behavior among Indian investors.

3. Revenue and Profitability: Revenue from operations was Rs. 10,260 million, showcasing a 16% year-over-year growth. Profit after tax settled at Rs. 7,179 million, benefiting from the reversal of earlier tax provisions amounting to Rs. 468 million. The adjusted PAT would have been Rs. 6,711 million without this reversal.

4. Cost Control: Total expenses were Rs. 2,464 million, influenced by non-cash charges related to ESOPs and increased business promotion and CSR expenses. Management indicated a focus on maintaining cost efficiency, with OPEX expected to grow by 12-15% annually moving forward.

5. Future Plans: Management envisions significant potential for growth across different investment avenues, emphasizing their mission to be the wealth creator for every Indian and their vision to be the most respected asset manager globally. They continue to invest in digital assets, office expansion, and alternative investment spaces, particularly in PMS and AIF initiatives.

Overall, the management's narrative underscores confidence in their strategic direction and commitment to leveraging the HDFC brand, technology, and investor education to enhance their competitive edge in the upcoming years.

Question and Answer Summary

Q1: "As the industry is changing, how do you plan to stay ahead of the game? Will it be through new products, tech upgrades, or deeper client engagement?"

A1: I believe our growth will stem from our established franchise, best-in-class products, extensive distribution network, and a solid digital presence. Our mission is to be a wealth creator for every Indian, leveraging our growth potential in smaller towns and continued investment in technology and people. We're focused on expanding into alternative investments and engaging with global institutions, while ensuring a premium experience for our 14 million customers.

Q2: "What are the segment-wise yields?"

A2: The equity yield for the quarter was around 58 basis points. For debt, it was approximately 27-28 basis points, while liquid funds were stable at about 12-13 basis points. Our focus remains on optimizing yields and managing costs effectively.

Q3: "What has caused the increase in other expenses this quarter?"

A3: The increase primarily stems from higher business promotion and CSR expenses. Specifically, other expenses rose from Rs. 87 crores to Rs. 101 crores year-over-year, coinciding with a significant increase in our revenue from operations. We're mindful of controlling costs while supporting our growth through necessary investments.

Q4: "How do you see market share extending over the next 12 to 18 months?"

A4: We expect to optimize our market share across asset classes and distribution channels by enhancing our relationships with institutional clients and promoting retail participation, especially in fixed income. On the equity side, we aim to leverage our strong product track record to expand further.

Q5: "What is the potential for alternate investments to contribute to overall revenues?"

A5: While I can't provide exact projections, we're laying a solid foundation for our alternatives platform, which includes dedicated teams and successful fund launches. We believe, with time, alternatives can significantly contribute but would require consistent investment and capability building to realize this potential.

Q6: "What is the expected OPEX growth moving forward?"

A6: We generally anticipate OPEX to grow between 12% to 15% annually. Current increases were influenced by CSR expenses and promotions for new fund offerings. Any one-time costs will be factored into this guidance.

Q7: "Could you summarize your approach to new fund offerings?"

A7: While our current product lineup is comprehensive, we're always on the lookout for opportunities that align with customer needs. Our recent launches, like the HDFC Innovation Fund, saw strong interest. We're committed to ensuring our product offerings are guided by sound investment principles rather than market fads.

This summary captures key questions and management responses from the earnings call, reflecting their strategic vision and current financial outlook.