HDFC AMC, ICICI AMC, Nippon Life India rally up to 6%; here's why

Analysts have been positive on AMC space, considering the levers of stable systematic investments and a better yield outlook now led by the passage of recent regulations on total expense ratio (TER).

Share prices of Asset Management Companies (AMCs) today

 

Shares of asset management companies (AMCs) were in demand, and rallied up to 6 per cent on the BSE in Friday’s intra-day trade after the AMCs reported healthy financial results for the third quarter (October to December) of the financial year 2025-26 (Q3FY26).

 

Among individual stocks, HDFC Asset Management Company surged 6 per cent to ₹2,695.75 on the back of two-fold jump in average trading volumes. Share price of ICICI Asset Management Company hit a new high at ₹2,885, as it soared 5.5 per cent in intra-day deals.

 

The market price of Shriram Asset Management Company was up 4 per cent at ₹394, while Nippon Life India Asset Management gained 3 per cent to ₹892.70, followed by UTI Asset Management Company (up 2.5 per cent at ₹1,104.40) and Canara Robeco Asset Management Company (up 2 per cent at ₹ 289). In comparison, the BSE Sensex was up 0.42 per cent at 83,734.58 at 09:58 AM.

 

 

What’s driving AMC stock prices on Friday?

 

Analysts at ICICI Securities said they have been positive on asset management space, considering the levers of stable systematic investments and a better yield outlook now led by the passage of recent regulations on total expense ratio (TER).  HDFC AMC and ICICI Prudential reported strong earnings for Q3FY26. HDFC continued to deliver a healthy set of results in Q3FY26, aided by industry tailwind, steady market share and a favourable asset mix. Quarterly average asset under management (AUM) grew 5 per cent quarter-on-quarter (QoQ) to ₹9.25 trillion, with market share broadly stable at 11.4 per cent. 

 

The high-yielding equity oriented mix remained strong at 65 per cent of Average quarterly assets under management (QAAUM) against the industry average of 56 per cent, supporting yields, while actively managed equity QAAUM increased to ₹5.7 trillion with an improved market share of 13.0 per cent. 

 

Revenue rose 5 per cent QoQ to ₹1,074 crore, supported by AUM growth while operating profit increased 10 per cent QoQ on the back of lower other expenses. Profit after tax (PAT) grew 7 per cent QoQ to ₹770 crore, aided by operating leverage and improved profitability.

 

Meanwhile, ICICI Prudential AMC’s net profit surged 45.1 per cent Y-o-Y to ₹917.1 crore in December 2025 quarter, as against ₹631.8 crore in the Q3FY25. On a sequential basis, profit increased 9.8 per cent from ₹835.43 crore.

 

Revenue jumped 23.5 per cent to ₹1,514.7 crore compared to ₹1,226.7 crore in the year-ago quarter. Sequentially, revenue was up 6.7 per cent from ₹1,419.63 crore in Q2FY26. The company also announced an interim dividend of ₹14.85 per share.

 

Mutual funds drove the growth, with QAAUM rising to ₹10.76 trillion for Q3FY26, up about 23.2 per cent from ₹8.74 trillion in the year-ago period.

 

Brokerages view on HDFC AMC

 

HDFC AMC has been maintaining its market share despite its large base and intensifying competition. Flow market share for HDFC AMC remains healthy esp. on SIP end. Recent Sebi regulation to increase transparency and reduce cost for investors shall impact financials to limited extent while management remains confident to neutralize the impact at optimum level, taking instance of 2019 regulation change wherein total expense ratio was sharply reduced. At industry level, positive MF experience shall continue to attract strong flows esp. on SIP side. HDFC AMC is one of the key beneficiaries with its long-term performance track record and distribution network, ICICI Securities said in a note.

 

 

HDFC AMC stock has been range-bound since the SEBI draft regulations in late October, supported by equity markets remaining sideways and inflows failing to really pick up. Despite this, the AMC has reported strong profit growth. Analysts at JM Financial Institutional Securities believe in the strength of the franchise and the business model to maintain its profitability over FY27-FY28E.

  The brokerage firm expects the company to deliver a strong 16 per cent earnings compound annual growth rate (CAGR) over FY26-FY28E on the base of a strong 22 per cent PAT growth in FY26E. It maintains ADD with an unchanged target price of ₹2,900, valuing the AMC at 31x FY28e EPS of ₹94.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.