HDFC AMC

HDFC AMC's closing AUM reached INR 8.5 trillion as of June 2025, marking a 21% year-on-year growth. The company maintained an overall market share of 11.5%, which increased to 12.8% when excluding ETFs. Actively managed equity-oriented assets grew 19% year-on-year to INR 5 trillion, securing a 12.8% market share in this segment. Debt and liquid AUM also saw robust growth of 22% and 17% year-on-year, respectively, with market shares of 13.3% and 12.6%.

The company reported a 25% year-on-year increase in revenue from operations, reaching INR 9,678 million for Q1 FY26. Other income also grew significantly by 34% year-on-year, supported by mark-to-market gains on both equity and debt. Despite an increase in total costs to INR 2,144 million, operating profit for the quarter grew by 30% year-on-year, maintaining a stable operating profit margin of 36 basis points of AUM. Profit after tax saw a 24% year-on-year growth, amounting to INR 7,480 million.

SIP flows remained strong, with monthly contributions reaching INR 273 billion in June 2025, and the number of contributing accounts growing to 86.5 million, up from 67 million a year ago. SIP AUM crossed INR 15 trillion, now accounting for 37% of actively managed equity-oriented AUM. The company added 0.5 million unique customers during the quarter, contributing to its unique investor penetration reaching 25% of mutual fund investors in the country. Systematic transactions (SIP + STP) stood at INR 40.1 billion in June 2025, up from INR 32 billion in June 2024.

HDFC AMC introduced a new ESOP and Performance Stock Unit (PSU) scheme with a 4-year vesting period, replacing an older 3-year scheme. The new scheme, approved by the NRC on June 20, 2025, involves 10 lakh ESOPs and 2.28 lakh PSUs, granted to over 800 employees (50% of the workforce). The estimated noncash expense for this scheme is INR 205-210 crores over the vesting period, with approximately INR 56 crores projected for FY26. Management views this as a long-term investment in talent, with an estimated impact of 0.8 basis points on AUM for FY26.

The company has secured SEBI approval to establish a Specialized Investment Fund (SIF), opening a new avenue for product launches. This initiative aims to leverage HDFC AMC's strong foundation, investor base, and distribution network to offer a comprehensive investment platform that includes mutual funds, PMS, and alternative strategies. Management emphasized a focus on designing thoughtful offerings that align with their investment capabilities and investor feedback, rather than being the first to market.

Debt and liquid funds recorded significant net inflows during the quarter, with industry-wide inflows of INR 1.34 trillion and INR 609 billion respectively. Management attributed this to RBI measures improving system liquidity and a favorable outlook for interest rates, making debt markets attractive. The company maintains a constructive view on debt funds, noting that Q1 FY26 saw the highest-ever flows in the debt and liquid categories for the industry.

HDFC AMC clarified its approach to asset allocation, stating that it does not actively move customer money between funds unless it is an asset allocation product like the Dynamic Asset Allocation Fund. The company believes in investors holding money for the long term with a strategic asset allocation, as frequent technical adjustments do not necessarily lead to optimal wealth creation. Their strategy focuses on maximizing share within each category by acquiring new customers and cross-selling products to existing investors.