HDFC AMC Q1 profit rises 12% as AUM crosses ₹9.3 lakh crore; margin contracts

HDFC Asset Management Company (HDFC AMC) on Wednesday reported a 12.1% year-on-year rise in net profit to ₹838.4 crore for the quarter ended June 2026, driven by healthy growth in assets under management (AUM) and higher revenue, although operating margins narrowed during the period.

Revenue from operations increased 13.5% to ₹1,098.5 crore in the June quarter from ₹967.8 crore a year earlier. Total income rose to ₹1,361.1 crore, while EBITDA grew 10.1% to ₹851 crore. However, the EBITDA margin declined to 77.4% from 79.9% in the corresponding quarter last year.

AUM growth supports earnings

The country's largest fund houses continued to benefit from steady investor inflows into mutual funds, with quarterly average assets under management (QAAUM) rising 13% year-on-year to ₹9.35 lakh crore. Closing AUM stood at ₹9.32 lakh crore, up 9% from a year ago.

The company's equity-oriented QAAUM rose to ₹6.15 lakh crore, while actively managed equity-oriented QAAUM reached ₹5.74 lakh crore, reflecting continued investor preference for equity-oriented products. HDFC AMC's market share based on QAAUM stood at 11.2% at the end of the quarter.

The asset manager also expanded its investor base, with 17.1 million unique investors and 31.1 million live accounts as of June 30. Its distribution network comprised over 1.1 lakh distribution partners, supported by 280 offices across the country.

Cyber incident had no material financial impact

In the notes accompanying its financial results, HDFC AMC said the cybersecurity incident reported in May had not affected business continuity and, based on assessments carried out so far, had no material impact on the company's financial results for the June quarter. The company said it has implemented additional safeguards and controls to further strengthen its cybersecurity framework.

The company had earlier informed stock exchanges that it had reported the incident to regulatory and law enforcement authorities and obtained interim relief from the Bombay High Court restraining the unauthorised dissemination or use of confidential data related to the company.

Shares of HDFC AMC ended 2.41% higher at ₹2,724 apiece on the NSE. The stock has gained over 3% in the past one year, broadly in line with the Nifty Next 50 index, which has risen nearly 5% during the same period.