HDFC Asset Management Company (HDFCAMC IN) – Q4FY26 Result Update – New TER guidelines may not have a material effect – BUY
Published on 17 Apr 2026
HDFCAMC saw a soft quarter as core income at INR 8.4bn was 2.3% lower to PLe due to miss on revenue. Management attributed this to lesser days in Q4FY26 (90 days) vs Q3FY26 (92 days). Company suggested that GST impact as per new TER directives may be 3-4 bps which could be passed to distributors. Led by strong equity performance in 3-yr bucket, market share in net flows remains 2nd highest; it was 15% in FY26. Hence stock equity market share increased by 6bps QoQ to 13% in Q4FY26. HDFCAMC could better navigate impact of new TER guidelines due to its pedigree; we have factored a decline of 1bp each in equity yields over FY26-28E. We tweak multiple to 36x on Mar’28 core EPS but maintain TP at INR 3,000. Retain ‘BUY’.
