HDFC AMC Q4 Results Highlights: Profit dips 2.5% YoY; board recommends ₹54 dividend

On a sequential basis, the revenue dipped marginally by 2.23% while the profit saw a steep decline of 19%.

HDFC AMC announced a dividend of ₹54 per share for the financial year 2025-26 (FY26).

“Recommended a final Dividend of Rs. 54/- (Rupees Fifty Four only) per equity share of Rs. 5/- each of the Company, for the financial year ended March 31, 2026, subject to approval of the shareholders at the ensuing Annual General Meeting. The final dividend, if approved by the shareholders, will be remitted within the applicable regulatory timelines after the Annual General Meeting,” the company said in a filing today.

Revenue from operations rose 16% YoY to ₹1051.51 crore during the January-March period of FY26, as against ₹901.36 crore in the same period last fiscal.

HDFC AMC board has announced a 2.5% YoY decline in its consolidated profit to ₹622.66 crore in Q4 FY26 as against ₹638.46 crore in the same period a year ago.

The Indian MF industry operates within a regulatory framework that, while important, can sometimes slow progress. Alterations to tax laws, investment rules and compliance standards can perplex investors and complicate the investment process. To foster ongoing investor trust, the industry must stay abreast of these regulatory changes while maintaining transparency. For instance, with a reduced cap on brokerages, the research support from brokers available to mutual funds can reduce, which may impact performance.

For HDFC AMC, Prabhudas Lilladher has reduced its multiple to 35x from 37x but raised the target price slightly to ₹3,000 from ₹2,950. The brokerage has retained ‘BUY’ rating.

Kotak Institutional Equities (KIE) expects HDFC AMC to post a 3% YoY and a 19.5% QoQ decline in profit to ₹619.5 crore while its revenue could rise 1.2% YoY but fall 15.9% QoQ, according to the brokerage's estimates.

We build nearly zero QoQ growth in QAAUM, reflecting fall in markets (Nifty-500 is down 3% QoQ on average), offset by strong flows, said KIE. Additionally, it expects marginal decline in yields (mix and flows). Core PBT to decline 3% QoQ (+17% YoY). Focus to remain on stability of retail flows and outlook on flow market share, it said.

Price & Futures Positioning: HDFCAMC ended the March series -17.3%, with rollover rising to 89.5% vs 78.8%, indicating short positions carried forward. In the current series, the stock is up 14% while OI has declined 5.2%, pointing to continued short covering.

Volatility Setup: The IV–HV spread (42.6% vs 38.7%) is near monthly highs, indicating elevated option premiums and a high probability of post-event IV crush.

Sentiment Indicators: PCR at 0.60 reflects bearish positioning with heavy call writing, but also signals a contrarian setup, where any positive trigger could lead to sharp short covering.

Options Skew: The skew has steepened, with OTM puts getting expensive and calls softening, highlighting strong downside hedging demand.

Key Levels

Resistance: 2700–2800 (heavy Call addition; upside capped)

Support: 2500 immediate, with strong base at 2400 (Put OI concentration)

Seasonality: April remains historically strong (+5.2% avg return, 71% success rate), but the current ~20% rally suggests the stock is overextended in the near term.

Suggested Strategy: Bull Call Spread

Buy HDFCAMC (1 lot) 2,700 Call 64 – 74

Sell HDFCAMC (1 lot) 2,780 Call 26 - 32

Breakeven Point (BEP): 2,727.00

Max Loss: -8,100.00

Max Gain: 15,900.00

— Axis Securities

Traditionally, HDFC AMC has traded at a ~20% premium to NAM; however, NAM is trading at a similar valuation—of 28x FY28E EPS to HDFC AMC. This is the result of market share gains – its flow market share remains substantially higher than book market share and a large ETF book, which has helped it over the last two quarters. Hereon, we expect HDFC AMC to outperform both IPRU AMC and NAM, said JM Financial.

The brokerage said it is upgrading HDFC AMC to a BUY, valuing the AMC at 33x FY28E EPS of INR 96, yielding a revised TP of INR 3,200 from INR 2900 (earlier valuing it at 31x FY28E).

We expect coverage AMCs to see equity QAAuM growth of 0.1% QoQ/22.5% YoY. Equity QAAuM for ICICI could grow by 2.0% QoQ while it may be flat for HDFC & NAM. Adjusting for one-time VRS impact for UTIAMC, core income for our AMC universe might rise by 3.6% QoQ. ICICI, HDFC and NAM continue to see higher net equity flow market share compared to stock while ICICI remains a top equity performer. We continue to prefer ICICI and HDFC.

— Prabhudas Lilladher Capital

HDFC AMC said last month that a meeting of Board of Directors is scheduled to be held on Thursday, i.e. April 16, 2026, inter alia, to consider the following:

1. To consider and approve audited standalone and consolidated financial results of the Company for the quarter and year ending March 31, 2026.

2. To recommend Dividend, if any, for financial year ending March 31, 2026.