HDFC AMC Q3 Preview: Revenue may surge up to 36.4% YoY amid strong AUM growth

HDFC Asset Management Company (AMC) is set to release its December quarter results tomorrow, January 14. Analysts estimate a year-on-year (YoY) revenue increase of 34.6% to 36.4%, with the company's net profit projected to surge by 16.6% to 23.9% YoY.

Estimates from four brokerages also suggest that HDFC AMC's Quarterly Average Assets Under Management (QAAUM) could soar by 42% to 48.8% YoY during the review period.

In the preceding September quarter, HDFC AMC reported a net profit of Rs 576.6 crore, a 32% increase YoY, with revenue rising 38% YoY to Rs 887.2 crore.


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Here's what analysts are forecasting for the Q3 results:

Motilal Oswal

Motilal Oswal forecasts a 35.7% YoY and 2.7% QoQ increase in revenue to Rs 911.3 crore, with EBITDA rising 41.1% YoY and 2.6% QoQ to Rs 721.7 crore. Net profit is expected to increase by 23.9% YoY and surge 5.2% QoQ to Rs 606.7 crore.

The brokerage predicts equity AUM to maintain growth momentum, supported by improving fund performance, although yields are likely to decline sequentially. Revenue growth is expected to be driven by AUM scaling, with a consistent cost-to-income ratio and stable operational expenses. Other income is likely to decline sequentially due to weak market performance.

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Nuvama

Nuvama Institutional Equities anticipates a 34.6% YoY and 1.9% QoQ increase in revenue for Q3 FY25, with EBIT rising 41.8% YoY and 2% QoQ. Adjusted PAT is expected to grow by 23.4% YoY but may decline 6.9% QoQ.

The firm expects equity QAAUM to grow by 48.8% YoY and 2.7% QoQ, maintaining a 65.2% equity mix. Other income is likely to fall 37% YoY and 47.4% QoQ due to adverse MTM movements, with key areas to watch including new asset class commentary, fund launches, and distributor commission payouts.

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Nomura

Nomura anticipates a 35% YoY and 2% QoQ increase in revenue to Rs 907.5 crore for Q3 FY25, with Core-PBT expected to rise by 43% YoY and 3% QoQ to Rs 707.4 crore. PAT is projected to increase by 19% YoY and 1% QoQ.

The brokerage expects HDFC AMC’s QAAUM to grow by 3% QoQ and 42% YoY, driven by a 2% QoQ and 51% YoY growth in equity AUM.

Nomura favors HDFC AMC and Nippon Life India Asset Management in their coverage universe for their higher AUM and operating profit growth outlook.

Prabhudas Lilladher (PL Capital)

Prabhudas Lilladher projects a 36.4% YoY increase in revenue to Rs 915.4 crore, with a 3.2% QoQ rise. PAT is expected to increase by 16.6% YoY to Rs 570.9 crore but may decline 1% QoQ.

Overall QAAuM might grow by 3.7% QoQ/42.8% YoY, while yields may reduce slightly QoQ by 0.3bps due to partial impact of rationalization expected in Q3 offset by decline in share of equity in QAAuM mix. The opex as a percentage of QAAUM may decline slightly due to operating leverage.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)