The operating profit margin was 81.5 per cent vs 81.7 per cent in Q3FY25 and 77.9 per cent in Q2FY26. For M9FY26, operating profit came in at ₹2,450 crore, up 19 per cent Y-o-Y. Net profit margin came in at 71.6 per cent vs 68.6 per cent in Q3FY25 and 69.9 per cent in Q2FY26. For M9FY26, net profit came in at ₹2,240 crore, up 23 per cent Y-o-Y.
Total assets under management (AUM) growth was 5 per cent, with 6 per cent growth in equity AUM, having flat yields. Industry inflows were range-bound. HDFC AMC launched one new fund, the HDFC BSE India Sector Leaders Index Fund. Core revenue grew 5 per cent Q-o-Q to ₹1,060 crore. Other income was strong at ₹160 crore.
Management cut both CSR (corporate social responsibility) and marketing expenses in Q3, and maintained guidance of ₹68 crore of ESOP (employee stock ownership plan) expenses for FY26, FY27, and FY28. Of this, ₹47 crore has been booked, including ₹21 crore in Q3, and ESOP expense of ₹21 crore in Q4 is guided, with guidance of ₹63 crore for FY27 and ₹33 crore for FY28.
HDFC AMC’s quarterly average AUM (QAAUM) at ₹9.2 trillion grew 18 per cent Y-o-Y and 5 per cent Q-o-Q, driven by 22 per cent Y-o-Y growth in equity with 103 per cent growth in exchange-traded funds (ETFs). On a QAAUM basis, the equity mix rose to 62 per cent in Q3FY26 vs 61 per cent in Q3FY25 and 61.3 per cent in Q2FY26.
Closing AUM for Q3FY26 of ₹9.2 trillion keeps overall market share in total AUM at 11.5 per cent. Excluding ETFs, market share declined to 12.8 per cent from 12.9 per cent in December 2024. Actively managed equity market share is 13 per cent. Unique investors for HDFC AMC were 15.4 million (vs 12.6 million for Q3FY25), about 26 per cent penetration in the mutual fund (MF) industry.
The individual monthly average AUM grew 15 per cent Y-o-Y to ₹6.4 trillion (69 per cent of total AUM). Live individual accounts rose 25 per cent Y-o-Y to 27.6 million. The SIP (systematic investment plan) AUM as of December 2025 was up 24 per cent Y-o-Y and up 8 per cent Q-o-Q at ₹2.2 trillion. The average ticket size declined Q-o-Q to ₹3,300 from ₹3,400 in Q2FY26.
Management is optimistic about long-term growth, supported by strong SIP flows of ₹31,000 crore, which allow stable scaling up. The first tranche of the Alternative Structured Credit Fund-I closed with commitments of ₹1,300 crore from institutions, family offices, and investors. It is developing a second fund focused on private equity (PE) and venture capital (VC) targeting foreign portfolio investors (FPIs). It will look for absolute profit growth rather than margin protection. There will be no impact of the new labour codes.
The recent regulation on removal of the additional 5 bps total expense ratio (TER) linked to exit loads will affect larger schemes more while smaller ones may see neutral to mildly positive effects. Given ₹44 trillion active equity AUM, industry level impact could be ₹2,200 crore revenue reduction, compared to FY25 industry operating profit of ₹16,000 crore. Cash market brokerage cap reduction to 6 bps from 12 bps (including levies) translates to a cap of 8.5 bps. HDFC AMC plans to manage the impact through scheme optimisations and careful pricing to allow gradual pass-through. Analysts are assuming a hit of 2-4 bps on FY27 yields.
HDFC AMC stock has been range-bound since the draft regulations in October but the strong results could push the price up.
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