HDFC Asset Management Company stock jumps over 3% after Q3 profit rise 20% on-year, beats estimates

HDFC AMC

• HDFC AMC shares rose over 3 percent after strong Q3 FY26 earnings beat estimates
• Net profit jumped 20 percent year-on-year to Rs 769 crore, revenue up 15 percent
• Company approved 58,700 new employee stock options and performance-linked units

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Shares of HDFC Asset Management Company rose over 3 percent on Wednesday afternoon, after the fund house reported a stronger-than-expected set of Q3 FY26 earnings, with a 20 percent jump in net profit and a healthy revenue growth.

HDFC AMC stock was trading 3.4 percent higher at Rs 2,570.3 in afternoon deals. Over the past one year, the stock has gained about 32.5 percent, significantly outperforming the Nifty 50’s roughly 11 percent rise over the same period. The company’s market capitalisation stood at around Rs 1.1 lakh crore.

For the third quarter of FY26, HDFC AMC reported consolidated net profit of Rs 769 crore, marking a 19.8 percent year-on-year increase from Rs 642.3 crore in the corresponding quarter last year. The profit comfortably beat the CNBC-TV18 poll estimate of Rs 730 crore. Consolidated revenue rose 15 percent year-on-year to Rs 1,075 crore, marginally ahead of the Street’s estimate of Rs 1,068 crore, according to the company’s exchange filing approved by the board on January 14.

The earnings growth came alongside a steady operating performance -- consolidated total income for the quarter stood at Rs 1,234.4 crore, while profit before tax rose to Rs 1,013.9 crore. Total expenses for the quarter were reported at Rs 220.5 crore, with employee benefit expenses and other operating expenses forming the bulk of the cost base, the stock exchange filing showed.

On the cost and regulatory front, HDFC AMC said the implementation of the government’s new labour codes will not have any significant financial impact on the company. The management noted that the company’s existing employee benefit policies are already more beneficial than the statutory requirements under the new labour framework.

Separately, the company also disclosed a fresh equity-linked incentive action. In a regulatory filing on Wednesday, HDFC AMC said its nomination and remuneration committee approved the grant of 41,250 employee stock options and 17,450 performance-linked stock units, aggregating to 58,700 equity shares, under its ESOP and PSU Scheme-2025.

The stock options have been granted at a price of Rs 2,485.7 per option, based on the latest available closing price on the NSE prior to the grant date, while the performance-linked stock units have been granted at a face value of Rs 5 per unit. The options and PSUs will vest over a four-year period, subject to the fulfilment of conditions laid out under the scheme, the company said.

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