Key Highlights

  • Profit: Net profit fell 10.5% quarter-on-quarter to ₹749 crore.
  • Core business grew: Revenue from operations rose 6.3% to ₹1,169 crore.
  • The real reason: Other income, largely from the company’s own investments, fell sharply.
  • Margins: EBITDA margin expanded to 79.65% from 77.3%.
  • Stock: Rose about 5% to ₹2,406.5; down about 8.5% this year.

HDFC Asset Management Company reported a net profit of ₹749 crore for the September quarter (Q2 FY27), down 10.5% from ₹837 crore in the June quarter. Total income also fell 9% to ₹1,241 crore.

Yet investors cheered. HDFC AMC shares rose about 5% to ₹2,406.5 on Thursday after the results.

The Numbers

Metric Q2 FY27 Q1 FY27 Change
Revenue from operations ₹1,169 cr ₹1,099.7 cr +6.3%
Total income ₹1,241 cr ₹1,363 cr −9%
Other income* ~₹72 cr ~₹263 cr ~−73%
EBITDA ₹931.1 cr ₹850.4 cr +9.5%
EBITDA margin 79.65% 77.3% +235 bps
Net profit ₹749 cr ₹837 cr −10.5%

*Calculated as total income minus revenue from operations.

Why It Matters: The Core Business Is Doing Well

The headline profit drop hides the real story. HDFC AMC’s main business, managing mutual fund money, actually grew: revenue from operations rose 6.3%, and operating profit (EBITDA) climbed 9.5%, with margins expanding to nearly 80%.

The decline came from “other income,” which fell from about ₹263 crore to about ₹72 crore. For asset managers, this mostly reflects returns on the company’s own investments. In a quarter when markets were weak, those returns dropped, pulling down overall profit.

That is why investors reacted positively. Markets value the core fee business more than one-off investment gains, and that business is growing. It is also backed by strong industry trends: in September, monthly SIP contributions hit a record ₹32,490 crore and equity fund inflows rose 31%, according to AMFI data. Steady SIP money means steady fees for fund houses.

Stock Performance

Period Change
Thursday ~+5%
Last five days +7.24%
Last one month +0.25%
Year to date ~−8.5%

HDFC AMC’s profit dipped on paper, but its core business strengthened. With record SIP flows supporting the industry, investors chose to look past the headline number.

With inputs from IANS.