Following ICICI Prudential AMC 's September-quarter results, domestic brokerage firm Motilal Oswal has raised its earnings estimates for FY27/FY28 by 4%/2%, factoring in higher other income and improved yields in the MF business, partially offset by a marginal increase in operating expenses. The brokerage projects a compound annual growth rate of 16%/15%/15% in AUM/revenue/PAT over FY26-28E and has maintained a Buy rating with a target price of Rs 3,700, based on 45 times FY28E core EPS.
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Motilal Oswal Report
Following ICICI Prudential AMC Ltd.'s September-quarter results, domestic brokerage firm Motilal Oswal has raised its earnings estimates for FY27/FY28 by 4%/2%, factoring in higher other income and improved yields in the MF business, partially offset by a marginal increase in operating expenses.
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The brokerage projects a compound annual growth rate of 16%/15%/15% in AUM/revenue/PAT over FY26-28E and has maintained a Buy rating with a target price of Rs 3,700, based on 45 times FY28E core EPS.
Motilal Oswal believes ICICI Pru AMC remains well-positioned to deliver healthy growth, supported by strong net flows, product diversification and expansion in alternatives, including SIFs.
ICICI Pru AMC Q2 FY27 Results Highlights
- ICICI Prudential AMC's operating revenue grew 18% YoY/7% QoQ to Rs 1,670 crore (7% beat) in Q2 FY27. Yields came in at 57.9 basis points vs 56 bp in Q2 FY26 and 56.1bp in Q1 FY27.
- Operating net revenue mix stood at 89.9% for mutual funds, 8.7% for alternates and 1.4% for advisory.
- Total opex at Rs 460 crore was up 23% YoY/6% QoQ.
- Employee costs at Rs 200 crore rose 23% YoY/4% QoQ, while other expenses came in at Rs 110 crore, up 14% YoY/9% QoQ.
- Ebitda came in at Rs 1,220 crore (9% beat), up 16% YoY and 7% QoQ. Ebitda margin was at 72.6% vs 73.8% in Q2 FY26 and 72.4% in Q1 FY27.
- PAT stood at Rs 890 crore (13% beat mainly due to higher revenue growth), up 6% YoY but down 8% QoQ.
- PAT margins came in at 53.1% vs 58.8% in Q2 FY26 and 61.7% in Q1 FY27.
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