HDFC AMC Q1 Results Review: Yes Securities Maintains 'Add', Hikes Target Price — Here's Why

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Yes Securities Report

HDFC Asset Management Company Ltd.'s overall calculated revenue yield has been broadly stable sequentially and YoY at 47 bps. The share of equity-oriented assets was 64.2% for Q1 FY26 as against 64.3% in Q1 FY25.

Yield has been flattish YoY despite similar AUM mix and increased equity AUM due to distributor commission rationalization undertaken by the company last year.

The other operating expense for the quarter was Rs 839 million, up 15.5% QoQ and 6.7% YoY. The sequential increase in other operating expense was due to the timing of CSR expenditure. The employee cost was up 8% YoY.

The company has granted 1 million ESOP and 0.2 million PSUs in Jun-25 under a new scheme. ESOP and PSU expense for the new scheme is estimated to be Rs 2.05-2.10 billion over FY26-FY30 as against Rs 1.8 billion in the last five years.

The estimated impact of ESOP cost will be 0.8 bps in FY26.

We maintain ‘Add’ rating on HDFC AMC with a revised price target of Rs 6200.

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