Financial Services · NSE: HDFCAMC
HDFC Asset Management Company
Q2 FY27 earnings call · Guided by management
Call held 15 Oct 2026 · Read the filing on NSEFiling
- M.Cap
- ₹1,17,065Cr₹1.17L Cr
- P/E
- 39.3×
- 1Y return
- −0.46%
- From 52W high
- −5.9%
Highlights are read by AI from the company's filing and can contain mistakes. Check the source page linked to each line.
Share price
Results Q2 FY27, as filed · consolidated · ₹ Cr
| Q2 FY27 | Q2 FY26 | YoY | Q1 FY27 | QoQ | |
|---|---|---|---|---|---|
| Revenue | 1,170 | 1,027 | +13.9% | 1,100 | +6.4% |
| PBTProfit before tax | 977 | 876 | +11.5% | 1,089 | -10.3% |
| Net profit | 749 | 718 | +4.2% | 837 | -10.6% |
| EPS (₹) | 17.40 | 33.42 | -47.9% | 19.46 | -10.6% |
From the company's own results filing on NSE. Net profit is the owners' share. Growth and the dotted lines are worked out from the filed figures.
In short
- 01Quarterly average AUM was INR9.69 trillion, up 10% year-on-year and 4% sequentially.
- 02Revenue from operations was INR11.7 billion, up 14%; operating profit INR9.1 billion, up 16%.
- 03Year-ago PAT included a INR468 million income tax provision reversal, so PAT is not directly comparable.
- 04Full-year FY27 non-cash ESOP cost expected at around INR79-80 crore.
- 05A couple of SIF product launches expected over the next couple of quarters.
- 06Two new AIFs launched; AIF fees are 80 to 90 basis points, above the equity mutual fund book.
- 07Management said STP, not SIP, drove softer systematic flows; SIP market share has gone up.
- 08Board has distributed almost all cash profits; balance sheet is used as seed capital for alternates.
Segments
actively managed equity: Active equity AUM up 14% to INR6.08 trillion, market share 12.7%
Simal Kanuga · Chief Investor Relations Officer · p. 4
actively managed equity: Active equity AUM up 14% to INR6.08 trillion, market share 12.7%
“Within this, actively managed equity AUM grew by 14% year-on-year to INR6.08 trillion with a market share of 12.7%.”
fixed income: Debt AUM INR1.62 trillion with 13% share; liquid AUM up 10% to INR860 billion
Simal Kanuga · Chief Investor Relations Officer · p. 4
fixed income: Debt AUM INR1.62 trillion with 13% share; liquid AUM up 10% to INR860 billion
“On fixed income, debt AUM stood at INR1.62 trillion with a 13% market share, while liquid AUM grew 10% year-on-year to INR860 billion.”
International: Investing upfront in international business though its AUM is not large
Navneet Munot · Managing Director and Chief Executive Officer · p. 10
International: Investing upfront in international business though its AUM is not large
“Same thing is on the international side, where the AUM is not very large, but we are investing upfront because we see a lot of potential in that business.”
mid-cap fund: Mid-cap fund in its 20th year, more than INR1 lakh crore
Navneet Munot · Managing Director and Chief Executive Officer · p. 13
mid-cap fund: Mid-cap fund in its 20th year, more than INR1 lakh crore
“In fact, it's our 20th year of the mid-cap fund. It's more than INR1 lakh crore.”
small cap fund: Small cap fund still about 0.5% of small-cap universe market cap, as in June 2019
Navneet Munot · Managing Director and Chief Executive Officer · p. 13
small cap fund: Small cap fund still about 0.5% of small-cap universe market cap, as in June 2019
“But it was 0.5% of the small-cap universe market cap in June '19, if I remember correctly. And it's still like 0.5% of the market cap universe today.”
Demand
SIP: Management says it remains confident on its SIP book
Navneet Munot · Managing Director and Chief Executive Officer · p. 7
SIP: Management says it remains confident on its SIP book
“And we remain confident. I think this is one of the biggest area of focus for us and remain very confident on our SIP book.”
SIP: Softer systematic flows came from STP; SIP-only market share has gone up
Navneet Munot · Managing Director and Chief Executive Officer · p. 8
SIP: Softer systematic flows came from STP; SIP-only market share has gone up
“If you strip out STP and look at SIP alone, our market share has actually gone up.”
Systematic transactions rose from about 17 million in June to nearly 19 million in September
Navneet Munot · Managing Director and Chief Executive Officer · p. 8
Systematic transactions rose from about 17 million in June to nearly 19 million in September
“So our systematic transactions rose from about 17 million in June to nearly 19 million in September.”
Monthly systematic book grew nearly 5x in about 5 years versus industry 3x
Navneet Munot · Managing Director and Chief Executive Officer · p. 8
Monthly systematic book grew nearly 5x in about 5 years versus industry 3x
“monthly systematic transaction book has grown nearly 5x in about 5 years to around INR48 billion and industry in the same period would have grown 3x.”
Investors continue and top up SIPs despite two years of muted returns
Navneet Munot · Managing Director and Chief Executive Officer · p. 13
Investors continue and top up SIPs despite two years of muted returns
“We have seen like two years of muted returns. There are still people not only continuing their SIPs, but even topping up or taking advantage of falling market.”
Margins and costs
Operating profit INR9.1 billion, up 16%; operating margin 36 bps of AUM
Simal Kanuga · Chief Investor Relations Officer · p. 4
Operating profit INR9.1 billion, up 16%; operating margin 36 bps of AUM
“Operating profit was INR9.1 billion, up 16% with an operating margin of 36 basis points of AUM.”
Yields: active equity 61 bps, overall equity 58 bps, debt 28-29 bps, liquid 13 bps
Naozad Sirwalla · Chief Financial Officer · Q&A · p. 5
Yields: active equity 61 bps, overall equity 58 bps, debt 28-29 bps, liquid 13 bps
“So, for active equity, our yield were 61 basis points. For overall equity fund, this was 58 basis points. Debt is around 28, 29 basis points. Liquid, 13 basis points.”
Sequential yield rise largely from asset mix change, not material
Naozad Sirwalla · Chief Financial Officer · Q&A · p. 5
Sequential yield rise largely from asset mix change, not material
“Largely asset mix change. It's not like a material movement. It's slightly upwards from previous quarter.”
equity: Equity yield rise was marginal and not due to a decline in AUM
Naozad Sirwalla · Chief Financial Officer · Q&A · p. 23
equity: Equity yield rise was marginal and not due to a decline in AUM
“No, not a decline in AUM. I think it's just a marginal increase.”
AIF: AIF fees of 80 to 90 bps, above the equity mutual fund book
Navneet Munot · Managing Director and Chief Executive Officer · p. 6
AIF: AIF fees of 80 to 90 bps, above the equity mutual fund book
“AIF is a margin-accretive business. Fees here sit above what we earn on our mutual fund equity book in the range of 80 to 90 basis points depending on the product.”
Debt and working capital
Balance sheet currently used as seed capital for alternate platforms
Naozad Sirwalla · Chief Financial Officer · p. 24
Balance sheet currently used as seed capital for alternate platforms
“The balance sheet that we have, currently, we are using for seed capital for all our alternate platforms.”
Seed capital need is continuing as new strategies are seeded
Navneet Munot · Managing Director and Chief Executive Officer · p. 25
Seed capital need is continuing as new strategies are seeded
“It is a continuing process. As we keep seeding new strategies, this will require seed capital.”
Return on capital attributed to cash held on the balance sheet
Naozad Sirwalla · Chief Financial Officer · Q&A · p. 18
Return on capital attributed to cash held on the balance sheet
“So that is a function of how much cash we have on our balance sheet.”
Acquisitions and new business
Alternatives: Two new AIFs launched; Category II private markets fund expects first close this quarter
Simal Kanuga · Chief Investor Relations Officer · p. 4
Alternatives: Two new AIFs launched; Category II private markets fund expects first close this quarter
“During the quarter, we also launched 2 new AIFs, a Category II equity fund focused on private markets. We are anticipating first close in this quarter”
Alternatives: Category III fund in listed securities achieved first close last quarter
Simal Kanuga · Chief Investor Relations Officer · p. 4
Alternatives: Category III fund in listed securities achieved first close last quarter
“launched the Category III fund, investing in listed securities, which achieved first close during the last quarter.”
SIF: A couple of SIF product launches expected over the next couple of quarters
Navneet Munot · Managing Director and Chief Executive Officer · p. 12
SIF: A couple of SIF product launches expected over the next couple of quarters
“We are now well set, and you will see a couple of product launches in this space over the next couple of quarters.”
mutual fund: Plans to launch new categories such as contra and life cycle funds over time
Navneet Munot · Managing Director and Chief Executive Officer · p. 16
mutual fund: Plans to launch new categories such as contra and life cycle funds over time
“So for example, a contra fund or life cycle funds. And over a period of time, we would be launching that.”
International: International: NFO of two outbound funds concluded; six inbound funds
Navneet Munot · Managing Director and Chief Executive Officer · p. 16
International: International: NFO of two outbound funds concluded; six inbound funds
“on the International side, we have just concluded the NFO of two outbound funds, and we have got a 6 inbound funds.”
Dividends and buybacks
Board distributed almost all cash distributable profits over the last three years
Naozad Sirwalla · Chief Financial Officer · p. 18
Board distributed almost all cash distributable profits over the last three years
“Last three years, the Board has distributed almost all the cash distributable profits that we have generated in the business.”
Last year's dividend distributed almost all post-tax cash profits
Naozad Sirwalla · Chief Financial Officer · p. 24
Last year's dividend distributed almost all post-tax cash profits
“For the last year, the Board has declared a dividend, which effectively where we have distributed the almost entire post-tax cash profits that we generate.”
Management
SIF: Two senior investment professionals hired for SIF
Navneet Munot · Managing Director and Chief Executive Officer · p. 12
SIF: Two senior investment professionals hired for SIF
“So we have also hired like two senior investment professionals.”
hybrid funds: Expert fund manager Dalwai brought in for hybrid strategies
Navneet Munot · Managing Director and Chief Executive Officer · p. 21
hybrid funds: Expert fund manager Dalwai brought in for hybrid strategies
“And in fact, we have brought in an expert fund manager on that, Dalwai, who has an excellent track record in managing hybrid strategies”
One-offs
Year-ago quarter PAT included INR468 million income tax provision reversal
Simal Kanuga · Chief Investor Relations Officer · p. 5
Year-ago quarter PAT included INR468 million income tax provision reversal
“as the September 2025 quarter benefited from INR468 million reversal of income tax provision, which resulted in an additional credit to the tax account and the PAT.”
First-quarter CSR expenses skewed H1 cost numbers
Simal Kanuga · Chief Investor Relations Officer · p. 25
First-quarter CSR expenses skewed H1 cost numbers
“There were some CSR expenses which were taken up in the first quarter. And because of that, you are seeing the H1 numbers getting kind of a bit skewed.”
Risks
Industry not completely immune to market cycle
Navneet Munot · Managing Director and Chief Executive Officer · p. 19
Industry not completely immune to market cycle
“So I wouldn't say that industry is completely immune to market cycle.”
Other
Quarterly average AUM at INR9.69 trillion, up 10% year-on-year and 4% sequentially
Simal Kanuga · Chief Investor Relations Officer · p. 4
Quarterly average AUM at INR9.69 trillion, up 10% year-on-year and 4% sequentially
“Our quarterly average AUM stood at INR9.69 trillion, up 10% year-on-year and 4% sequentially.”
Live individual accounts 32 million; unique investors 17.7 million, 28% penetration
Simal Kanuga · Chief Investor Relations Officer · p. 4
Live individual accounts 32 million; unique investors 17.7 million, 28% penetration
“Our live individual accounts increased to 32 million from 26 million a year ago. Our unique investor base stood at 17.7 million, representing a penetration of 28%.”
PMS: Started managing EPFO fixed income mandate during the quarter
Simal Kanuga · Chief Investor Relations Officer · p. 4
PMS: Started managing EPFO fixed income mandate during the quarter
“We have started managing EPFO fixed income mandate during the quarter that went by.”
Revenue from operations INR11.7 billion, up 14% year-on-year
Simal Kanuga · Chief Investor Relations Officer · p. 4
Revenue from operations INR11.7 billion, up 14% year-on-year
“Revenue from operations for the quarter was INR11.7 billion, up 14% year-on-year.”
Profit before tax INR9.8 billion, up 12%
Simal Kanuga · Chief Investor Relations Officer · p. 4
Profit before tax INR9.8 billion, up 12%
“Profit before tax stood at INR9.8 billion, up 12%.”
Sources
- Earnings call transcript, Q2 FY27 Filed 21 Oct 2026 · 26 pages
Management's own statements, quoted from its NSE filings. This page was read by AI and can contain mistakes: check the source pages before relying on any figure. No forecast or opinion of ours. Not investment advice.