• Quarterly AUM grew 20% YoY to INR 9.3 trillion, with equity-oriented AUM reaching INR 6 trillion
• Total unique investors reached 16.7 million, adding 3.5 million new investors (nearly 50% of industry's 7.2 million additions)
• SIP and STP flows grew 33% YoY to INR 48.8 billion in March 2026, with total accounts crossing 30 million
• Industry SIP collections hit all-time high of INR 321 billion in March, up 24% YoY with 97 million contributing accounts
• Digital adoption reached 97% of transactions, up from 81% three years ago and 69% six years ago
• Direct plans now account for 31% of equity AUM, showing strong traction in self-directed investing
• Launched seven new mutual fund schemes during the year and announced first close of private credit fund with IFC as partner
• Won two prestigious mandates from EPFO and SPFO (Siemens Provident Fund Organization) for fixed income portfolio management
• B30 locations now contribute over 40% of SIP flows, demonstrating geographic diversification

HDFC AMC delivered solid FY26 results with 18% YoY revenue growth and maintained strong operating margins at 35 bps of AUM despite market volatility. Management demonstrated high confidence in long-term growth drivers, highlighting record SIP flows of INR 321 billion in March and strong investor additions of 3.5 million unique investors, while successfully navigating new TER regulations with minimal expected impact on margins through distributor commission optimization.

Total revenue for FY26 was INR 46.2 billion with revenue from operations at INR 41.2 billion, representing 18% YoY growth. Total expenses were INR 9.1 billion, resulting in operating profit of INR 32.1 billion with 18% YoY growth and operating margin of 35 basis points of AUM. Profit after tax stood at INR 28.6 billion, growing 16% YoY. Employee costs (excluding ESOPs) grew 4.5% YoY, with a five-year CAGR of 13% as employee count expanded from 1,250 to 1,700. Non-employee costs showed a five-year CAGR of 13.5%. Yields by asset class were: equity 56 bps (60-61 bps excluding index funds), debt 28 bps, and liquid 13 bps, with blended yield at 45 bps. Board recommended dividend of INR 54 per share versus INR 45 adjusted for bonus last year, translating to 81% payout ratio. The company maintained strong cost efficiency with expenses declining as percentage of AUM over time.

Management displayed strong confidence despite market volatility, emphasizing the maturity of Indian retail investors who increased allocations during market corrections. CEO Namit Manod articulated a clear long-term vision with the mission to be 'the wealth creator for every Indian,' highlighting that only 60 million of India's 1.4 billion people invest in mutual funds. Management stressed disciplined execution across multiple strategic priorities: expanding physical distribution presence, investing heavily in digital and AI capabilities (appointing Rajan Anandan to Technology Committee), building alternatives business (private credit, PMS), and growing international operations through GIFT City. On the new TER regulations, management conveyed confidence in offsetting gross impact of 3-4 bps through commission optimization and cost management with minimal margin impact. The tone was decidedly optimistic about long-term industry tailwinds including financialization of savings, SIP discipline, and geographic penetration into B30 markets. Management repeatedly emphasized quality over speed in product launches, preferring thoughtful, differentiated offerings over shelf-space occupation.

The primary challenge discussed was the new TER regulation impact, with gross impact of 3-4 bps on margins from select large schemes, though management aims to offset through distributor commission cuts and cost optimization. The removal of 5 bps available in lieu of exit load represents a direct reduction on new flows. Market share concerns emerged with HDFC Bank's share in equity AUM declining, attributed to open architecture and seasonal NFO-driven variations at the parent bank, though management maintained confidence in long-term potential. One-year scheme performance deteriorated across most equity categories except mid-cap and value, though management emphasized superior long-term track records. The flow market share has remained relatively flat at 12.8-13% over recent quarters despite aspirations for higher share. Rising competition from fintech platforms and direct investing channels poses distribution challenges. Regulatory uncertainty continues with ongoing changes to TER structure and potential future modifications. Employee costs and technology investments are increasing as the company scales, with five-year CAGR of 13% for both employee and non-employee costs. The untested behavior of direct/fintech channel investors during prolonged market downturns remains a risk, as most recent investors have only experienced 4-5 years of predominantly rising markets.

Revenue Outlook: No specific revenue guidance provided; management indicated employee costs and non-employee costs should broadly grow in line with business at historical 13% CAGR

Margin Outlook: Targeting minimal impact on margins from new TER regulations through commission optimization and cost management; aiming to offset gross 3-4 bps impact on existing book

Key Targets:

• Continue expanding physical distribution presence across geographies
• Achieve 100% digital transaction rate from current 97%
• Grow market share across all product categories
• Build alternatives business (private credit, Category II AIF, fund-to-fund)
• Expand PMS capabilities and international business through GIFT City
• Launch differentiated SIF products (regulatory approvals secured)

The Q&A session revealed analyst focus on three primary areas: (1) impact of new TER regulations and margin sustainability, (2) distribution dynamics particularly around HDFC Bank's declining mix share and fintech channel growth, and (3) market share expansion strategies. Management responded with consistent confidence, emphasizing their ability to navigate regulatory changes through optimization while maintaining margins. On distribution, they highlighted broad-based growth across all channels rather than weakness in any specific channel, with flow share exceeding book share. Analysts probed extensively on investor behavior during volatility, with management providing reassuring data points on SIP account growth and contrarian investor behavior during market corrections. Questions on product strategy, particularly around SIFs and NFOs, revealed management's preference for quality over speed. Overall, analysts appeared satisfied with explanations, though some skepticism remained on near-term market share expansion given 8-9 quarters of stagnation. Management's tone throughout was confident and focused on long-term structural opportunities in Indian wealth management rather than short-term competitive positioning.