HDFC Asset Management Company (HDFCAMC IN) – Q3FY26 Result Update – Net equity flow market share is higher than stock – BUY
Published on 15 Jan 2026
HDFCAMC saw a strong quarter yet again as opex was 16% below PLe while revenue was 1.0% higher. Revenue yield was better at 46.5bps (PLe 46.0bps) since equity share rose QoQ to 61.6% from 61.0% due to MTM gains in Q3FY26. Led by strong equity performance in 1/3-yr buckets, market share in net equity flows remains healthy and is second highest at 15.4% in 9MFY26 (12.9% in FY25). Hence stock market share in equity increased by 10bps QoQ to 12.93%. Due to strong pedigree and superior 3-yr performance HDFCAMC could benefit from increased flows. While industry could see a dent in profitability due to SEBI directives on TER, we expect HDFCAMC to pass on the impact to industry participants and protect profitability. We have factored a 2.5-3.0bps decline in equity yields over FY26-28E (vs 0.8bps fall in FY26). We raise core EPS for FY27/28E by ~1.7% and maintain TP slightly at Rs2,950 as we tweak multiple on core Sep’27 EPS to 37.0x from 37.5x. Retain ‘BUY’.
