HDFC Asset Management Company Limited Q3 FY26 Earnings Call Summary

Summary

HDFC Asset Management Company Limited - Q3 FY 2026 Earnings Call Summary Wednesday, January 14, 2026, 6:00 PM IST

Event Participants

Executives 3 Navneet Munot (MD & CEO), Naozad Sirwalla (CFO), Simal Kanuga (Chief Investor Relations Officer)

Analysts 7 Abhijeet Sakhare, Devesh Agarwal, Dipanjan Ghosh, Divij Punjabi, Gaurav Jani, Kushagra Goel, Mohit Mangal

Financials & KPIs

Geographic & Segment Commentary

• Mutual Fund Segment: Overall industry AUM reached ₹80.2 trillion with SIPs hitting a record ₹31,000 crores monthly. HDFC AMC’s equity mix stands at 65.5%, with a strong focus on maintaining yields between 33-36 bps while managing telescopic pricing impacts.
• PMS & Alternatives: PMS AUM crossed ₹5,000 crores excluding new mandates. The company completed the first close of its Structured Credit Fund with ₹1,300 crores in commitments, anchored by a ₹220 crore contribution from IFC.
• Distribution Channels: HDFC Bank remains a key partner with HDFC AMC holding a ~28% share of the bank’s equity mutual fund sales. Fintech channels are expanding rapidly, contributing to 25 million SIP registrations industry-wide in the first nine months of FY26.

Company-Specific & Strategic Commentary

• Partnerships & Anchoring: Secured a strategic partnership with IFC for the Structured Credit Fund, focusing on mid-sized corporate financing. The company committed 14% of the fund corpus from its own balance sheet to demonstrate alignment.
• Talent & Continuity: Addressed the transition of fund manager Roshi Jain by highlighting the depth of the 25-year-old investment platform. Management noted the return of senior talent like Amar Kalkundrikar to manage diversified mandates.
• Digital & Efficiency: Integration between AMC and HDFC Bank digital teams is a priority to capture millennial/Gen-Z investors. Digital adoption is handled through opex, focusing on high engagement via fintech platforms.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Regulatory Changes (TER)

• Question: What is the impact of the new TER circular effective April 1st? (Devesh Agarwal)
• Answer: Industry-wide impact from the 5 bps removal is ~₹2,200 crores. Larger schemes are more impacted, but smaller schemes may see TER increases due to slab realignment. The firm will optimize to minimize margin impact, similar to its 2019 strategy (Navneet Munot).

Investment Team Transition

• Question: How are you handling the exit of Roshi Jain and the impact on flows? (Dipanjan Ghosh)
• Answer: Transitions are handled via a deep, experienced team. Senior managers like Amar Kalkundrikar have returned, and sectoral analysts are moving into diversified mandates. The firm remains confident in its long-term institutionalized research process (Navneet Munot).

Yield Resilience

• Question: Why have yields remained resilient despite AUM growth? (Devesh Agarwal)
• Answer: The firm bakes telescopic pricing into incremental flow pricing. While some compression is inevitable as AUM scales, the focus remains on absolute profit compounding rather than just percentage margins (Navneet Munot).

HDFC Bank Channel

• Question: How is the bank channel performing post-merger? (Madhukar Ladha)
• Answer: The bank follows open architecture. HDFC AMC has a ~28% share of the bank’s equity sales. SIP flows through the bank are higher than the existing AUM share, indicating future market share gains (Navneet Munot).

Key Takeaway

HDFC AMC delivered a robust Q3 FY26, with total QAAUM crossing the ₹9.00 lakh crore milestone and PAT growing 20% YoY to ₹770.1 crores. The quarter was characterized by resilient operating margins at 36 bps and a significant shift toward equity, which now comprises 65.5% of the mix. Strategically, the firm is aggressively expanding beyond traditional mutual funds into Alternatives and PMS, evidenced by the ₹1,300 crore first close of its Structured Credit Fund in partnership with IFC. While upcoming regulatory changes to Total Expense Ratios (TER) in April 2026 present a headwind for larger schemes, management is utilizing a proven optimization playbook to protect profitability. Despite recent fund manager transitions, the company maintains its focus on a process-driven investment approach and strengthening its multi-channel distribution through HDFC Bank and fintech partners. The outlook remains optimistic, contingent on sustaining alpha and navigating regulatory fee caps while leveraging the structural tailwinds of Indian financialization.