HDFC AMC sees strong growth in AUM and profit, proposes bonus shares

HDFC Asset Management Company Limited (HDFC AMC) reported a robust financial performance for the second quarter and half year ended September 30, 2025. The company's assets under management (AUM) reached Rs.8.7 trillion, reflecting an 11.5% market share, or 12.8% on an ex-ETF basis. Actively managed equity-oriented AUM rose to Rs.5.4 trillion, securing a 12.9% market share, with total AUM surpassing the Rs.9 trillion mark post-quarter. The equity proportion of AUM increased to 64.9% on a QAAUM basis. Systematic Investment Plan (SIP) contributions continued their upward trend, reaching Rs.294bn in September 2025, with 6 million new SIP accounts added during the quarter.

Financially, revenue from operations grew by 16% year-over-year to Rs.10,260m. Operating profit saw a 13% year-over-year increase, reaching Rs.7,796m, equating to 35 basis points of AUM. Profit after tax stood at Rs.7,179m, benefiting from a Rs.468m reversal of income tax provisions from earlier periods; without this reversal, PAT would have been Rs.6,711m. The board of directors also approved a 1:1 bonus share issue, subject to shareholder approval.

HDFC AMC launched two new fund offerings (NFOs) during the quarter: "HDFC Innovation Fund," which collected Rs.24bn, and "HDFC Diversified Equity All Cap Active FoF," gathering Rs.11bn. The company highlighted increased demand for gold and silver ETFs, with its gold ETF AUM rising from Rs.102bn to Rs.141bn and silver ETF AUM more than doubling from Rs.9bn to Rs.24bn.