ICICI Prudential Asset Management Company (AMC) reported a robust 23% increase in net profit for the April-June quarter of FY27, reaching Rs 965 crore. The company's revenue from operations rose by 18% year-on-year to Rs 1,564 crore, while its mutual fund assets under management (AUM) increased by 11% to Rs 82.40 lakh crore as of March 31, 2026.
The company's total expenses grew by 12% year-on-year to Rs 464.4 crore, with employee benefit expenses rising 11% to Rs 204 crore. Fees and commission expenses increased to Rs 124 crore from Rs 103 crore a year earlier, and other expenses stood at Rs 104 crore compared to Rs 98 crore in the previous year. ICICI Prudential AMC maintained a strong profit before tax margin of 81.87% and a profit after tax margin of 61.67%.
Brokerage firms have expressed confidence in ICICI Prudential AMC's performance. JM Financial highlighted the company's ability to protect revenue yields across equity, debt, and liquid segments, despite regulatory changes. The brokerage maintained an 'Add' rating with a target price of Rs 3,600, indicating a potential upside of over 12%.
“Given the company's strong execution in protecting yields over FY23–26, we believe management would continue to offset regulatory pressure through distributor commission rationalisation.”
JM Financial
Motilal Oswal Financial Services maintained its earnings estimates for FY27 and FY28, citing higher other income and lower operating expenses as offsets to higher employee costs. The brokerage expects a 15% CAGR in AUM, a 14% CAGR in revenue, and a 15% CAGR in profit over FY26-28, with a 'Buy' rating and a target price of Rs 3,800.
Emkay also maintained a 'Buy' rating with a target price of Rs 4,000, noting the company's stable AUM growth and resilient yields. The brokerage emphasized the importance of a robust product pipeline and strong brand presence in supporting long-term growth.
ICICI Prudential AMC shares debuted on the market in December last year with a 20% premium over the IPO price. After initial fluctuations, the stock reached a record high in May, but has since fallen over 11% to close at Rs 3,205.6 on Monday. Despite this, the stock remains 23% higher than its listing price.
Background
ICICI Prudential AMC's strong financial performance comes amid a recovering market environment, following a sharp correction in March. The company's strategic focus on maintaining stable revenue yields and expanding its product offerings has positioned it well for sustained growth.
Looking ahead, market watchers will be keen to see how ICICI Prudential AMC navigates regulatory pressures and leverages its strong brand and distribution network to sustain growth. The company's focus on higher-yielding alternatives could play a crucial role in maintaining profitability.
