HDFC AMC Q3 Net Profit Jumps 20% to ₹770 cr; AUM Tops ₹9 Lakh Crore

Mumbai: HDFC Asset Management Company Ltd, the country’s second-largest fund house, reported a 20% year-on-year rise in net profit for the December 2025 quarter to ₹770.1 crore, driven by steady growth in equity assets and strong inflows via systematic investment plans (SIPs).

The company’s assets under management (AUM) crossed the ₹9 lakh crore mark for the first time, with equity-oriented AUM exceeding ₹6 lakh crore. Its operating profit margin expanded to 36 basis points in Q3 from 35 bps in the previous quarter, aided by lower expenses.

Key Q3 FY26 Highlights:

Net Profit: ₹770.1 crore (up 20% YoY)
Operating Revenue: ₹1,074.3 crore (up 15% YoY)
Total AUM: ₹9+ lakh crore (Equity: 65.5% of mix)
Operating Margin: 36 bps (up 1 bps QoQ)
Unique Investors: 15.4 million (26% industry penetration)
Systematic Flows (SIP/STP): ₹4,730 crore in December (up 24% YoY)

Management Commentary:

Navneet Munot, MD & CEO, expressed optimism about structural growth drivers: “The momentum in the SIP book has been continuing… We feel very optimistic on the overall industry growth for next several years.” He highlighted that monthly industry SIP inflows hit a record ₹31,000 crore in December.

On regulatory changes set for April 1, 2026—including removal of the additional 5 bps TER in lieu of exit load—Munot stated the impact would vary by fund size. “Larger schemes will see an impact… smaller schemes less affected,” he said, adding the company would optimize to contain financial impact, similar to its approach in 2019.

Segment-Wise Performance & Strategy:

PMS & AIF: AUM crossed ₹5,000 crore. The company announced the first close of its structured credit fund at ~₹1,290 crore, anchored by IFC.
Yield Metrics: Equity yield stood at 56-57 bps (incl. passive), debt at 27-28 bps, liquid at 12-13 bps. Blended yield was ~45 bps.
Passive & Alternatives: Munot emphasized building across mutual funds, PMS, AIF and international offerings to be a “one-stop partner.”
HDFC Bank Channel: Market share in equity AUM through the parent bank is in the late-20s percent, higher than the industry average of 13%.

Addressing Fund Manager Transition:

Responding to queries on the recent exit of a senior fund manager, Munot underscored the strength and experience of the investment team, noting the recent return of former veteran Amar Kalkundrikar. “We have one of the most experienced investment teams in the industry… We have handled transitions in the past extremely well.”

Outlook:

The management remains focused on profitable growth, balancing scale with margins. While telescopic pricing exerts pressure on yields, disciplined cost control has helped maintain operating margins in a 33-36 bps range. The company continues to invest in digital platforms and sees fintechs as a vital, growing distribution channel.

The board declared a dividend payout, continuing its policy of returning nearly all post-tax cash profits to shareholders.