HDFC AMC Q4FY26: Stock jumps 5%, Buy target ₹3,170

Stock reacts to Q4FY26 print

HDFC Asset Management Company (HDFC AMC) shares gained nearly 5% in early trade after the company reported its March-quarter (Q4FY26) results. On the NSE, the stock touched an intraday high of ₹2,789. At around 10:35 AM, HDFC AMC was up 4.7% at ₹2,788, with about 0.8 million shares changing hands.

The move came as investors parsed a mixed quarter, where operating revenue growth remained strong but profit declined marginally year-on-year. Broker commentary also supported sentiment, with Motilal Oswal reiterating its positive stance on the stock.

Q4FY26 numbers: revenue up, PAT down

For the three months ended March 2026, HDFC AMC reported a 2.4% decline in consolidated profit after tax (PAT) to ₹622.66 crore. The company had posted PAT of ₹638.46 crore in the year-ago quarter.

Revenue from operations increased 17% year-on-year to ₹1,051.51 crore in Q4FY26. The quarter therefore showed a divergence between top-line momentum and reported profit growth, even as the company continued to highlight cost and profitability discipline through operating metrics.

Operating profitability: EBITDA growth cited by brokerage

Motilal Oswal said HDFC AMC’s revenue was in line, and noted that profitability remained healthy. The brokerage highlighted that EBITDA rose 16% year-on-year to ₹850 crore in Q4FY26.

The firm also pointed to full-year operating improvement, noting FY26 EBITDA increased by 18% year-on-year. While the company’s PAT for the quarter dipped, the operating profitability indicator referenced by the brokerage suggested steady underlying performance.

Full-year FY26: profit and revenue rose in double digits

For the full financial year FY26, HDFC AMC reported profit growth of 16% year-on-year to ₹2,858.06 crore. Revenue from operations rose 18% to ₹4,122.16 crore.

The full-year picture indicates that the March-quarter softness in PAT did not derail annual earnings growth. Investors typically track FY26 as the base year for forward estimates, particularly as the asset management industry remains sensitive to market levels, flows, and product mix.

Dividend: final payout recommended

HDFC AMC’s board recommended a final dividend of ₹54 per equity share for the financial year ended March 31, 2026. The dividend announcement was part of the broader Q4 and full-year developments being monitored by the market.

For shareholders, dividends remain a key element of total return for asset managers, given the sector’s cash-generative profile in stable market conditions.

Motilal Oswal reiterates ‘Buy’, targets ₹3,170

Motilal Oswal reiterated its ‘Buy’ rating on HDFC AMC and set a target price of ₹3,170 per share. The brokerage said the target implies an upside of around 17% from the current market price (CMP) at the time of its note.

The firm also flagged business mix as a driver, highlighting that HDFC AMC’s non-mutual fund (non-MF) business could contribute incremental growth going forward. This part of the franchise includes offerings beyond the core mutual fund product set.

Growth expectations: FY26 to FY28 projections

Motilal Oswal said it broadly retained its earnings estimates for FY26 to FY28. It expects revenue to grow at a CAGR of 13% over FY26-28, while EBITDA is projected to grow at a 14% CAGR and PAT at a 15% CAGR.

The brokerage also expects assets under management (AUM) to grow at a 16% CAGR over FY26-28. These estimates frame its target price and reflect its view that the franchise can sustain growth despite periods of market volatility.

Why the stock moved: key data points

The market’s immediate reaction combined three elements: a strong year-on-year rise in quarterly revenue from operations, a supportive brokerage stance, and a clear dividend recommendation. Even with a small year-on-year decline in quarterly PAT, investors appeared to focus on operating momentum and forward expectations.

At the same time, the move was measured, tracking the scale of the earnings update and the incremental new information available to the market on the day.

Snapshot table: Q4FY26 and FY26 highlights

Market impact: what investors are likely tracking

The key financial read-through from the reported numbers is that HDFC AMC delivered strong operating revenue growth in Q4FY26 and maintained EBITDA growth, as per brokerage commentary. The modest decline in PAT makes cost lines and other income trends important variables for investors to monitor, even when the core business remains stable.

Motilal Oswal’s emphasis on non-MF business also signals that the market is watching diversification and fee stability, particularly during periods when mutual fund industry revenue yields can be sensitive to mix and market levels.

Analysis: why this update matters for the AMC space

HDFC AMC is closely tracked as a large listed asset manager, so its quarterly commentary and numbers often influence sentiment for the broader listed AMC universe. The combination of double-digit revenue growth and a stable profitability narrative supports the view that scale and distribution remain key differentiators.

The reiterated ‘Buy’ call and a clearly stated target price provide an anchor for near-term expectations, but investors will likely continue to weigh the interplay between equity market direction, industry inflows, and the company’s ability to expand beyond core mutual fund fees.

Conclusion

HDFC AMC shares rose about 5% as investors reacted to Q4FY26 results that showed 17% growth in revenue from operations to ₹1,051.51 crore, while consolidated PAT fell 2.4% to ₹622.66 crore. Motilal Oswal reiterated a ‘Buy’ rating with a target of ₹3,170, and the company’s board recommended a final dividend of ₹54 per share for FY26.

The next set of updates investors typically watch include management commentary on growth drivers and how the company plans to scale non-MF business lines alongside its core mutual fund franchise.