HDFC Asset Management Company Q2 FY27 results: net profit up 4.2% to ₹748.73 crore, revenue up 13.9%

How did HDFC Asset Management Company perform in Q2 FY27?

HDFC Asset Management Company Limited reported consolidated revenue of ₹1,170 crore for Q2 FY27, up ₹142.82 crore or 13.9% from Q2 FY26. Total income rose ₹117.89 crore or 10.5% to ₹1,241.48 crore, while EBITDA increased ₹129.08 crore or 16.1% to ₹929.85 crore. The EBITDA margin rose 1.6 percentage points to 79.5%.

Profit before tax was ₹976.66 crore, up ₹100.70 crore or 11.5% from a year ago, and net profit rose ₹30.30 crore or 4.2% to ₹748.73 crore. Basic EPS declined ₹16.12 or 48.0% to ₹17.46. Against Q1 FY27, revenue rose ₹70.50 crore or 6.4% and EBITDA rose ₹79.43 crore or 9.3%, but PBT fell ₹112.36 crore or 10.3% and net profit fell ₹88.40 crore or 10.6%.

On a standalone basis, Q2 FY27 revenue was ₹1,168.93 crore and net profit was ₹749.81 crore, with revenue up 13.9% from the year-ago quarter. The board approved the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026, subject to limited review by the statutory auditors.

What changed in HDFC Asset Management Company's costs and profit?

Total expenses were ₹264.82 crore in Q2 FY27, up ₹17.19 crore or 6.9% from Q2 FY26. Employee cost increased ₹17.91 crore or 14.5% to ₹141.74 crore, finance costs rose ₹0.53 crore or 16.6% to ₹3.72 crore, and depreciation rose ₹2.92 crore or 16.4% to ₹20.73 crore. Other expenses fell ₹6.17 crore or 6.1% to ₹94.75 crore.

Other income declined ₹24.93 crore or 25.9% to ₹71.26 crore from a year ago. There was no exceptional item. Tax expense increased ₹70.40 crore or 44.7% to ₹227.93 crore, while PBT rose ₹100.70 crore or 11.5% to ₹976.66 crore and net profit rose 4.2% to ₹748.73 crore.

Compared with Q1 FY27, total expenses were lower by ₹8.72 crore or 3.2%. Employee cost fell ₹1.87 crore and other expenses fell ₹7.92 crore, while depreciation rose ₹0.21 crore. Other income fell ₹191.58 crore or 72.9% and tax expense fell ₹23.96 crore or 9.5%; net profit consequently declined 10.6% to ₹748.73 crore.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue was ₹2,269.94 crore, up ₹274.39 crore or 13.8% from H1 FY26. Total income rose ₹279.29 crore or 12.0% to ₹2,604.04 crore, and PBT increased ₹204.04 crore or 11.0% to ₹2,065.68 crore. Net profit rose ₹119.88 crore or 8.2% to ₹1,585.86 crore.

Reported basic EPS for H1 FY27 was ₹37.0, compared with ₹68.53 in H1 FY26, a decline of ₹31.53 or 46.0%. The standalone financial results reported H1 revenue of ₹2,267.43 crore, total income of ₹2,600.93 crore, PBT of ₹2,067.99 crore and net profit of ₹1,588.17 crore.

What do the balance sheet and cash flow show?

Total assets were ₹9,402.17 crore as on 30 September 2026, compared with ₹9,991.44 crore as on 31 March 2026. Total equity was ₹8,617.87 crore, compared with ₹9,228.71 crore, while cash was ₹3.43 crore against ₹11.58 crore. No borrowing figure was provided in the supplied consolidated balance-sheet data.

Operating cash flow for H1 FY27 was ₹1,308.27 crore, compared with ₹1,200.54 crore in H1 FY26. Investing cash flow was ₹950.45 crore against ₹731.69 crore, and financing cash flow was ₹-2,267.16 crore against ₹-1,906.18 crore. Capital expenditure was ₹21.95 crore compared with ₹8.06 crore.

How has HDFC Asset Management Company done over the last 8 quarters?

Revenue rose in each of the last eight quarters on a year-on-year basis and reached ₹1,170.22 crore in Q2 FY27, the highest level in the reported trend. It had bottomed at ₹901.36 crore in Q4 FY25. The latest quarter marked a return to revenue growth after the quarterly profit decline in Q4 FY26.

Net profit reached a high of ₹837.13 crore in Q1 FY27 and then fell to ₹748.73 crore in Q2 FY27. The low in the reported period was ₹622.66 crore in Q4 FY26, while the Q2 FY27 result remained above ₹718.43 crore in Q2 FY26.

The EBITDA margin bottomed at 77.3% in Q1 FY27 and recovered to 79.5% in Q2 FY27. The peak was 81.7% in Q3 FY25, and Q2 FY27 remained above the 77.9% margin reported in Q2 FY26. Revenue rose year on year in each of the last eight quarters, while profit rose year on year in each of the last two quarters.

What else did the company announce?

The board approved the grant of 53,925 employee stock options and 14,925 performance-linked stock units to eligible employees on 15 October 2026. Together, they covered 68,850 equity shares of ₹5 each, with the options granted at ₹2,296.90 per option and the PSUs at ₹5 per PSU.

Option vesting was scheduled over four years, beginning after the expiry of one year from the grant date, with 10% vesting at the first anniversary and 40% at the fourth. PSU vesting was scheduled over four years, with 30% at the third anniversary and 70% at the fourth. The same-day results filing enclosed the investor presentation and press release for the quarter and half year ended 30 September 2026.

What did HDFC Asset Management Company's management say?

Management said the full-year FY27 ESOP non-cash expense was estimated at around ₹79–80 crore, and no other formal forward guidance was provided. It said cost discipline remained a priority while the company front-loaded investment in alternatives, technology and distribution. Navneet Munot said: “We watch every rupee we spend. We watch it very closely.”

Management identified tactical pauses by wealth managers in choppy markets as a risk to systematic flow optics, market-share losses in some hybrid categories and low-priced government mandates as risks. It also said three funds above ₹1 lakh crore lowered blended equity yield through the SEBI TER formula. Munot said retail investors had “evolved much faster than many of us anticipated.”

Management said the EPFO and SPFO mandates were highly contested, reflected lower pricing and were not margin-accretive on a stand-alone basis. It said AIF fees were in the range of 80 to 90 basis points depending on the product, while discretionary PMS earned broadly what the equity mutual fund business earned. The filing did not provide figures for the analyst questions and answers beyond these disclosed details.

How did HDFC Asset Management Company shares react?

The stock was up 1.6% after 5 minutes, 1.6% after 15 minutes and 2.1% after 30 minutes from the price when the filing appeared. It closed the reaction day 5.1% higher from the pre-results close of ₹2,296.90 and was 4.4% higher by the next day's close. By the fifth session, it was 2.0% lower from that same pre-results close.

On the reaction day, the median move for other asset-management companies was a fall of 0.5%, making HDFC Asset Management Company's 5.1% rise 5.6 percentage points higher than the industry median. The excess return was 4.8 percentage points by the next day's close and 4.9 percentage points by the fifth session, while the Nifty 100 rose 1.3% on the reaction day.

Earlier reaction-day moves were positive on 15 July 2026 at 2.1%, 16 April 2026 at -0.5%, 14 January 2026 at 2.5%, 15 October 2025 at 2.9%, 17 July 2025 at 2.8%, 14 January 2025 at 1.7%, 15 October 2024 at 1.6% and 15 July 2024 at 0.6%.