HDFC AMC Q2 FY27 Results Analysis: Revenue Grows 14%, Margin Expands 159 bps (HDFCAMC)
HDFC Asset Management Company Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 1,168.93 Cr (+13.93% YoY) and PAT growth of +4.42% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 15, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 1,168.93 Cr (+13.93% YoY) |
| PAT (Q2) | Rs. 749.81 Cr (+4.42% YoY) |
| EBITDA margin | 79.56% (+152 bps YoY) |
| EPS (Q2) | Rs. 17.49 (+4.23% YoY) |
| Market cap | Rs. 101,154.08 Cr |
| CMP | Rs. 2,357.50 |
Quarter Snapshot
HDFC AMC grew revenue from operations 13.93% YoY to Rs.1,168.93 Cr with QoQ acceleration despite a ~5.2% Nifty decline, lifting operating profit 16.30% YoY and operating margin to 77.58% (+159 bps YoY). Normalized PAT grew 11.70% YoY (reported 4.42% on a year-ago tax-credit base effect), while Other Income fell 72.98% QoQ on fair-value reversals. Employee costs ex-ESOP grew 19.76% YoY, above the 12–13% guided range, though the 1.33% QoQ decline points to H2 convergence toward guidance.
Key Investment Insights
Key Positives
- Revenue from Operations grew 13.93% YoY to Rs.1,168.93 Cr, with QoQ growth accelerating to 6.41% from 4.6% in Q1 despite a ~5.2% Nifty decline over the quarter
- Operating profit (Revenue from Operations minus Total Expenses) grew 16.30% YoY to Rs.906.80 Cr, with operating margin expanding to 77.58% from 75.99% YoY and 75.35% in Q1
- Normalized PAT grew 11.70% YoY to Rs.749.81 Cr; reported growth of 4.42% is depressed by the year-ago Rs.46.81 Cr tax-provision reversal
- Total expenses grew 6.41% YoY, well below revenue growth; other expenses declined 6.47% YoY and 7.54% QoQ
- H1 FY27 operating cash flow of Rs.1,310.99 Cr (0.83× PAT) with free cash flow of Rs.1,283.69 Cr
- ESOP cost of Rs.41.30 Cr in H1 FY27 tracks at ~52% of the guided Rs.79–80 Cr FY27 range
- Annualised ROE of 35.58% on H1 FY27 average equity; debt-free with finance costs at 0.3% of revenue
Risk Factors
- Other Income collapsed 72.98% QoQ from Rs.262.56 Cr to Rs.70.94 Cr as fair-value gains reversed with the equity market decline, adding PAT volatility
- Employee benefit expenses excluding ESOP grew 19.76% YoY, above management's 12–13% operating expense growth guidance
- Reported PAT growth of 4.42% YoY lags revenue growth of 13.93% due to the year-ago tax-credit base effect
- Investment portfolio contracted Rs.650.66 Cr (Rs.9,396.23 Cr to Rs.8,745.57 Cr) on mark-to-market decline in a falling equity market
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.