Shares of asset management companies (AMCs) surged on Friday as investors assessed the December quarter earnings announced recently. Newly listed companies led the gains. While ICICI Prudential AMC rose the most by 7.2% at Rs 2,933.55, Canara Robeco AMC ended the day 4.5% higher at Rs 295.4 on the BSE.
Profitability Surge
HDFC AMC, which rose more than 6% during intra-day trade, settled 1.6% higher at Rs 2,596.20. The company reported an operating revenue growth of 15% year-on-year at Rs 1,080 crore, while profit after tax (PAT) was up 20% y-o-y at Rs 770 crore.
Motilal Oswal increased its target price for the stock to Rs 3,200, implying a 23% upside from its closing price on Friday. The brokerage said the company remains a strong player in the mutual fund industry, backed by robust financial performance, steady AUM growth, cost efficiency and a strong retail presence.
“With an improved market position, a diversified product portfolio across permitted segments by Sebi, multi-diversified business streams beyond MFs into alternatives, AIFs & PMS, and digital expansion efforts, HDFC AMC is well-positioned to sustain growth and deliver value to its stakeholders,” Motilal Oswal added.’
Regulatory Horizon
During the investor call, HDFC AMC MD & CEO Navneet Munot said that smaller schemes are less affected from total expense ratio (TER) reduction as it is largely offset by redefined slabs. “Larger schemes are definitely getting impacted,” he said, adding: “Many of the smaller schemes will see increased TER. We are evaluating the way forward with an objective to contain the financial impact, if any.”
ICICI Prudential’s PAT grew 45% y-o-y to Rs 917.09 crore. Brokerage Centrum set a target price of Rs 3,251 for the firm, implying a nearly 11% upside from the current levels. It said in a report that the company’s equity AUM distribution remains well-diversified, with direct at 28%, MFDs (mutual fund distributors) at 37%, ICICI Bank at 8%, other banks at 11%, and national distributors at 15% as of December 2025.
Shares of Aditya Birla Sun Life AMC closed nearly 3% higher at Rs 831.95, while that of Nippon Life India AMC ended 2.1% up at Rs 882.35.