HDFC AMC

HDFC AMC reported robust financial results for Q3 FY26, with total AUM crossing INR 9 trillion and equity-oriented AUM exceeding INR 6 trillion. Operating revenue grew 15% year-on-year to INR 10,743 million, contributing to a 20% year-on-year increase in Profit After Tax (PAT) to INR 7,701 million. The operating profit margin stood at 36 basis points, reflecting disciplined cost management and a 1 bp increase quarter-on-quarter.

The company highlighted strong industry momentum, with monthly SIP inflows reaching a record INR 310 billion in December 2025. For the calendar year 2025, total SIP inflows amounted to INR 3.3 trillion, and the SIP asset base grew to INR 16.6 trillion, accounting for over 20% of industry AUM. HDFC AMC is actively participating in this growth across all channels and asset classes, with systematic transactions (SIP + STP) reaching INR 47.3 billion in December 2025, a Y-o-Y growth of 24%.

HDFC AMC is strategically expanding its presence in alternative investment funds (AIF) and Portfolio Management Services (PMS). The company successfully completed the first close of its structured credit fund, raising commitments of approximately INR 1,290 crores, with IFC as an anchor investor contributing up to INR 220 crores. PMS AUM also crossed INR 50 billion during the quarter, with management indicating plans to build both discretionary and non-discretionary segments gradually.

Management discussed the upcoming regulatory changes effective April 1, 2026, including the removal of 5 basis points additional TER, revised expense ratio construct, and rationalized brokerage limits. While these changes are deemed 'material' for the industry (estimated INR 2,200 crores impact from 5 bps TER removal on INR 44 trillion equity AUM), the company plans to optimize its strategies to contain any financial impact, drawing on its experience from similar changes in 2019.

Despite the impact of telescopic pricing, HDFC AMC has maintained resilient asset class yields, with equity yields at 56-57 basis points, debt at 27-28 basis points, and a blended yield of 45 basis points for the quarter. Management reiterated its commitment to balancing scale, quality, and profitability, ensuring operating margins remain within the 33-36 basis point band through disciplined cost management and operating leverage, focusing on growing absolute profits sustainably.

The HDFC Bank channel remains a crucial distribution partner, with HDFC AMC's equity AUM market share in the bank's sales in the late 20s, significantly higher than its overall industry share of 13%. The company is deepening its engagement through a dedicated internal team, digital collaboration, and a strong focus on SIP buildup, which is expected to drive increased AUM market share over time^⏳ and aligns with the long-term objective of customer engagement.

Fintech platforms have emerged as a vital distribution channel for the mutual fund industry, expanding reach and accessibility. Fintechs registered 25 million SIPs in the first nine months of the current fiscal year. HDFC AMC has built a strong presence on leading fintech platforms, securing a notable share in new flows and SIP registrations, maintaining good relationships with both large and emerging players to leverage this growing channel.