ICICI Prudential Asset Management Q2 FY27 Results Analysis: Revenue Jumps 16%, PAT Growth Slips to 6% (ICICIAMC)
ICICI Prudential Asset Management Co Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 1,673.80 Cr (+16.31% YoY) and PAT growth of +6.08% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 12, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 1,673.80 Cr (+16.31% YoY) |
| PAT (Q2) | Rs. 889.00 Cr (+6.08% YoY) |
| EBITDA margin | 72.59% (-44 bps YoY) |
| EPS (Q2) | Rs. 17.99 (+6.14% YoY) |
| Market cap | Rs. 146,845.08 Cr |
| CMP | Rs. 2,969.40 |
Quarter Snapshot
Revenue from operations grew 16.31% YoY to Rs.1,673.8 Cr with sequential growth of 7.00% versus Q1's 1.45%, while OPBT — the company's primary metric — grew 15.68% YoY at a stable 70.55% margin. Reported PAT growth of 6.08% YoY lagged revenue as other income fell 90.65% QoQ on mark-to-market reversal and the effective tax rate rose 248 bps YoY to 25.78%; normalized PAT grew 11.9% YoY. The PMS acquisition of Rs.2,910 Cr AUM (pending SEBI approval) and the Rs.30 per share interim dividend are the near-term catalysts.
Key Investment Insights
Key Positives
- Revenue from operations grew 16.31% YoY to Rs.1,673.8 Cr, with QoQ growth of 7.00% versus Q1's 1.45% sequential growth
- OPBT grew 15.68% YoY to Rs.1,180.8 Cr with margin of 70.55%, up 24 bps QoQ
- Normalized PAT (excluding other income) grew 11.9% YoY to Rs.876.4 Cr versus reported PAT growth of 6.08%
- H1 FY27 revenue of Rs.3,238.0 Cr (+16.91% YoY), OPBT of Rs.2,280.6 Cr (+17.80% YoY) and PAT of Rs.1,853.6 Cr (+14.31% YoY)
- H1 free cash flow of Rs.1,651.2 Cr after capex of Rs.37.0 Cr; CFO at 91% of PAT
- Net worth grew 30.88% in six months to Rs.5,340.3 Cr with zero borrowings; investments rose 33.84% to Rs.5,186.6 Cr
- Interim dividend of Rs.30 per share (Rs.1,482.9 Cr) approved versus Rs.12.4 per share final dividend for FY26
- ESOP expense normalised to Rs.212.8 Cr in Q2 (+4.3% QoQ) after the Q1 step-up, with OPBT margin up 24 bps QoQ
Risk Factors
- Fees and commission expense grew 30.32% YoY, outpacing revenue growth of 16.31%; flagged as the largest margin headwind
- Other income fell 90.65% QoQ to Rs.16.9 Cr on mark-to-market reversal from the September equity correction, dragging reported PAT down 7.84% QoQ
- Effective tax rate rose to 25.78% from 23.30% YoY (+248 bps), limiting PAT conversion
- Total expenses grew 17.86% YoY, outpacing revenue growth and compressing OPBT margin 36 bps YoY to 70.55%
- Revenue growth of 16.31% YoY trailed Q1 reported AUM growth of 18.3% YoY, indicating yield-mix compression from lower-yield passive/debt AUM
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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.