ICICI Prudential AMC Q4FY26 Results: Core PAT Rises 27%, Market Share Gains
- 16th April 2026
- 01:40 PM
- 3 min read
Summary
ICICI Prudential AMC posted steady Q4FY26 results with core PAT rising 27% YoY and strong equity flows boosting market share. Track key earnings insights and stock updates with PL Capital.Mumbai | 15 April 2026
ICICI Prudential AMC posted a steady Q4FY26, with core profit after tax rising 26.9% year-on-year to ₹829 crore. Strong equity fund performance pushed net flow market share to the highest in the industry. Quarterly average AUM crossed ₹11 trillion for the first time. PL Capital retains a Buy rating with a revised target price of ₹3,585.
ICICI Prudential AMC closed FY26 on a steady note. Core profit after tax rose 26.9% year-on-year to ₹829 crore in Q4FY26, driven by improving operating efficiency and the company’s growing dominance in equity fund flows.
The headline profit number told a different story. Reported PAT came in at ₹763 crore, up just 10.4% YoY, dragged down by a mark-to-market loss of ₹89 crore on the investment book and a higher tax rate of 26.5%. Strip those out, and the quarter was largely in line with expectations.
What Drove Revenue Growth This Quarter?
Revenue grew 18.5% year-on-year to ₹14,055 mn, broadly flat from the previous quarter. A shift in the Asset Under Management (AUM) mix towards lower-yielding ETF and liquid assets pulled revenue yield down 1.2 basis points QoQ to 47.6 bps.
The company made up for it on costs. Total expenses fell 13.4% YoY to ₹2,777 mn. Staff costs dropped 22.5% sequentially as the company replaced certain deferred pay components with a new ESOP scheme. Core income grew 30.3% YoY to ₹11,279 mn, and core income as a share of revenue reached 88.5%, the best in recent quarters.
Total quarterly average AUM grew 25.6% YoY to ₹11.05 trillion, crossing ₹11 trillion for the first time.
Why Are Equity Flows the Real Story?
ICICI Prudential AMC held the highest net equity flow market share in the industry at approximately 19% across the 11 months of FY26. That translated directly into AUM share gains. The equity-plus-balanced fund market share rose 35 basis points QoQ to 14.23% in Q4FY26, continuing a steady climb over the past year.
Equity fund performance in one-year and three-year return buckets remained among the best in the industry. When fund performance is strong, flows follow.
How Will New TER Rules Affect the Company?
The company flagged a gross Total Expense Ratio (TER) impact of 3-4 basis points from new SEBI guidelines effective April 2026. Mitigation measures are underway and management expects clarity on the net impact shortly.
PL Capital views ICICI Prudential AMC as better positioned than peers to absorb this, given its lower distributor payout structure. The firm has factored a 1.5 basis point decline in equity yields over FY26-FY28E into its estimates. Operating expense estimates remain unchanged.
The ESOP scheme approved this quarter will add a non-cash charge of ₹64-68 crore in FY27, tapering over FY28 and FY29.
What Is the Outlook for ICICI Prudential AMC?
PL Capital raises its target price to ₹3,585 from ₹3,500, applying a 40x multiple on March 2028 core EPS, and retains a Buy rating.
The company also completed a transfer of investment management rights from ICICI Venture Funds, adding three alternative strategies: private equity, early-stage private equity, and affordable real estate. Fee-paying funds of ₹46.28 bn are in place effective 1 April 2026. One to two NFO launches are planned in the coming weeks across SIF and mutual fund categories, subject to regulatory approvals.
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