HDFC Asset Management Company (HDFCAMC IN) – Q2FY26 Result Update – Earnings quality remains strong – BUY
Published on 16 Oct 2025
HDFCAMC saw a strong quarter yet again as revenue was 1.9% more than PLe as revenue yield was better at 46.6bps (PLe 45.7bps) since (1) equity share improved QoQ to 61.0% from 60.3% due to strong MTM gains in Q1FY26 and revival in industry flows after May’25 (2) 137bps QoQ fall in share of liquid and (3) commission rationalization in Q2FY25. Due to strong equity performance in 1-yr/3-yr buckets, market share in net equity flows remains healthy at 14.3% in H1FY26 (12.9% in FY25). Hence stock equity market share increased by 3bps QoQ to 12.83%. MF industry is seeing healthy equity flows; net flows rose QoQ from Rs779bn to Rs1,259bn in Q2FY25. Due to strong pedigree and superior performance HDFCAMC could benefit from increased industry flows. We maintain core EPS for FY27/28E but slightly increase multiple to 41x from 40x and raise TP to Rs6,175 from Rs6,000. Retain ‘BUY’.
