ICICI Prudential Asset Management Company (AMC) has announced robust financial results for the second quarter of the fiscal year 2026-27, reporting a significant rise in net profit and declaring an interim dividend for its shareholders. The positive performance has led several brokerages to reiterate their 'Buy' ratings for the company's stock.
Q2 Financial Highlights
For the July-September quarter of FY27, ICICI Prudential AMC recorded a net profit of Rs 888 crore, marking a 7% increase compared to Rs 837 crore in the same period last year. Revenue from operations also saw a healthy growth of 16.3% year-on-year, climbing from Rs 1,439.06 crore in Q2 FY26. Total income for the period rose by 11.9% from Rs 1,510.92 crore a year earlier.
Despite the strong revenue growth, the company's total expenditure increased by 17.9% year-on-year, reaching Rs 493 crore from Rs 418.31 crore. This included a 30.3% rise in fees and commission expenses and a 14.3% increase in employee benefit expenses. However, profit before tax (PBT) still advanced by 9.6% to Rs 1,197.70 crore, and operating profit before tax grew by 15.7% year-on-year.
Earnings per share (EPS) for Q2 FY27 stood at Rs 17.99. While this represented an improvement on a year-on-year basis from Rs 16.95, it saw a sequential decline from Rs 19.52 reported in the preceding June quarter.
Interim Dividend Declared
The company's board announced an interim dividend of Rs 30 per equity share on Monday, October 12, 2026. ICICI Prudential AMC has set Wednesday, October 21, 2026, as the record date to determine the eligibility of shareholders for this dividend payment.
Brokerages Maintain Positive Outlook
Following the Q2 results, leading brokerages have expressed confidence in ICICI Prudential AMC's prospects:
- Jefferies maintained a 'Buy' rating on the firm, increasing its target price to Rs 3,760 from an earlier Rs 3,600. The brokerage highlighted that the Q2 results surpassed estimates, primarily driven by improved revenue yield, especially from alternate and equity segments. While redemptions led to net outflows, gross flows remained stable, and the expansion of the alternates business is progressing as planned.
- Emkay Global Financial Services also reiterated its 'Buy' call with a target price of Rs 3,800. Emkay noted a 4% sequential rise in Quarterly Average Assets Under Management (QAAUM) and a 7% increase in revenue. Margins stood at 72.6%, with yields improving to 57.5 basis points. Despite a sequential 8% fall in profit after tax due to mark-to-market losses, the results still beat Emkay's estimates by 4%.