HDFC Asset Management Company (AMC) has announced its first-ever bonus issue of shares in the ratio of 1:1, alongside a robust financial performance for the second quarter of the financial year 2025-26. The company's consolidated net profit jumped 24.6% year-on-year to ₹718.43 crore. The company has fixed Wednesday, November 26, 2025, as the record date for determining shareholders' eligibility for the bonus issue.
Q2 Financial Highlights
HDFC AMC's Q2 FY26 results showcase a strong performance with growth in both profit and revenue. The company's consolidated net profit for the quarter ended September 30, 2025, stood at ₹718.43 crore, a 24.6% increase compared to ₹576.61 crore in the same period last year. However, on a quarter-on-quarter basis, the net profit witnessed a 3.9% decline from ₹747.55 crore in Q1 FY26.
Revenue from operations for Q2 FY26 came in at ₹1,027.40 crore, reflecting a 15.8% growth compared to ₹887.21 crore in the corresponding quarter of the previous fiscal year. Sequentially, revenue rose by 6%. Total income for the quarter was reported at ₹1,121.92 crore, a 6.1% increase year-on-year.
The company's board has also approved a bonus issue in the ratio of 1:1, meaning one new fully paid-up equity share of ₹5 each for every one fully paid-up share held. This is the first bonus issue HDFC AMC has declared since its listing. The record date to determine eligible shareholders for the bonus issue is November 26, 2025. The dispatch of bonus shares is expected to be completed by December 14, 2025. The bonus issue will be funded through capitalization of approximately ₹107 crore from reserves.
Operational Performance
HDFC AMC's quarterly average assets under management (QAAUM) grew 16% year-on-year and 6% quarter-on-quarter to ₹8.8 trillion. The equity mix stood at 64.9% in Q2FY26, compared to 65.7% in Q2FY25 and 64.2% in Q1FY26. Closing AUM as of Q2FY26 stood at ₹8.7 trillion, up 14% year-on-year.
Market Reaction and Analyst Views
Following the announcement, HDFC AMC shares traded higher on the BSE. Several brokerage firms have revised their targets for HDFC AMC upwards, with analysts expressing confidence in the company's ability to sustain growth and deliver value. Nuvama Institutional Equities has reiterated a 'Buy' rating on HDFC AMC and increased the target price to ₹7,020 per share.
Other Key Points
- HDFC AMC's operating cash flow remained robust at ₹1,200.8 crore for H1FY26.
- The company paid a final dividend of ₹90 per share for FY25 in June 2025.
- The trading window for designated persons remains closed until October 17, 2025.
