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AMC companies–Resilient flows despite equity market volatility noteworthy

ICICIdirect Research 15 May 2026 DISCLAIMER

At industry level, AUM grew at decent 21% YoY, 0.6% QoQ at Rs 81.5 tn for Q4, despite equity market correction while resilient flows in such scenario is noteworthy. Among our coverage companies, HDFC AMC and Nippon AMC continue to gain market share. Besides, Aditya Birla Sunlife AMC performance is improving with the drop in pace of market share loss in equity book while UTI AMC continues to struggle.
 
HDFC AMC: Steady set of Q4FY26 results.
AUM growth & Market share - Quarterly average AUM (QAAUM) grew ~20% YoY, 0.3% QoQ to ₹9.3 tn, with stable market share at ~11.4%. Here, flow market share and SIP AUM share for HDFC AMC is on higher side than book share as per management.
Yield & financials - Revenue yield was at 45.3 bps (down ~1.2 bp QoQ) owing to lower number of days i.e. 90 days in Q4 vs 92 in Q3. PAT was optically subdued at ₹623 crore, declining by 2.5% YoY and 19.1% QoQ, mainly owing to lower other income, which was impacted by MTM loss on equity investment book.

Nippon AMC: All-round strong set of results. 
AUM growth & Market share – Nippon has consistently been the fastest growing AMC among top 10 names. In Q4, its MF Quarterly average AUM (QAAUM) grew ~30% YoY, 3.4% QoQ to ₹7.25 tn. Market share improved 63 bps YoY, 24 bps QoQ to 8.9%. Flows and SIP market share (9.8% in Q4) are better than book market share.
Yield & financials - Blended revenue yields improved marginally from 40.2 bps to 40.8 bps QoQ which was aided by better asset mix. Revenue grew 30% YoY, 5% QoQ to ₹739 crore. EBITDA margin improved 419 bps YoY, 199 bps QoQ at 68.6%, owing to operating leverage. PAT reported at ~₹385 cr (up 29% YoY, -5% QoQ) despite other income recording loss of ₹33.5 cr (MTM on investment book).

Outlook & valuation – Both HDFC & Nippon AMC are steadily adding to their market share despite their large size and intensifying competition. Both are stable play on structural MF growth story with their multi-channel distribution, long-term performance track record, operational efficiency and strong parentage. We have BUY rating on both stocks with HDFC AMC having target price of Rs 3200 and Nippon at Rs 1190 / share, valuing both stocks at PE of 36x FY28E EPS.

 

 

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