HDFC AMC Announces First-Ever 1:1 Bonus Issue; Q2FY26 Net Profit Grows 24% at ₹718 Crore

Mumbai, 15 October 2025: HDFC Asset Management Company Ltd (NSE: HDFCAMC, BSE: 541729) has declared its maiden bonus issue in the proportion of 1:1 following a healthy financial performance for the September 30, 2025, quarter ending (Q2FY26). The standalone net profit of the company grew 24.4% year-on-year to ₹718.06 crore, backed by good growth in its asset management and advisory business.

HDFC Asset Management Company Ltd, a joint venture between HDFC Ltd and abrdn Investment Management Ltd, is India’s largest mutual fund house. The company has a diversified range of investment products in equities, debt, hybrid, and liquid funds under the HDFC Mutual Fund brand name. Both listed on NSE and BSE, HDFC AMC continues to be able to sustain robust profitability, high liquidity, and a zero-debt balance sheet, reasserting its leadership in India’s mutual fund space.

Healthy Financial Performance in Q2FY26

HDFC AMC had revenue from operations of ₹1,026.04 crore for the quarter, a growth of 15.6% over ₹887.21 crore a year ago and 6% higher sequentially. Total income was at ₹1,121.92 crore, up 6.1% on a year-on-year basis. Profit before tax was at ₹875.59 crore, a 2% increase from ₹858.68 crore last year, and profit after tax was up 24.4% YoY at ₹718.06 crore. On a sequential front, net profit was down 4% from ₹747.92 crore in Q1FY26.

Earnings per share (EPS) for the quarter were ₹33.56 versus ₹27.01 in Q2FY25. The net profit for the half year ended September 30, 2025, was at ₹1,465.98 crore, up by 24% YoY, and total income increased 15.8% to ₹2,322.36 crore.

First-Ever 1:1 Bonus Issue

The Board of Directors approved a 1:1 bonus issue, the first bonus declaration by HDFC AMC since listing. The paid-up share capital would be doubled from ₹107 crore (21.4 crore shares) to ₹214 crore (42.8 crore shares). The record date for ascertaining the eligible shareholders is November 26, 2025, and the dispatch of bonus shares is by December 14, 2025.

The issue will be funded through capitalization of about ₹107 crore from reserves, including ₹52.41 crore from the Capital Redemption Reserve and ₹760.23 crore from the Securities Premium Account as at September 30, 2025.

Operational and Financial Highlights

The growth in revenue of the company was led by consistent inflows into its debt and equity schemes, along with steady management fees from advisory solutions. Operating cash flow continued to be robust at ₹1,200.8 crore for H1FY26, up from ₹918.7 crore a year ago. HDFC AMC continued its track record of providing consistent shareholder returns as well, paying a final dividend of ₹90 per share for FY25 in June 2025.

Consolidated Performance

Consolidated income of HDFC AMC stood at ₹1,123.59 crore during Q2FY26, a 6.2% rise over Q2FY25’s ₹1,058.19 crore. Consolidated profit after tax was higher by 24.6% year-on-year at ₹718.43 crore, and total comprehensive income at ₹719.91 crore showed a 24.8% expansion over the previous year.

Management Commentary

Navneet Munot, HDFC AMC Managing Director & CEO, said that the firm’s maiden bonus issue is a testament to its healthy fundamentals and its intent to reward shareholders. “Our consistent growth and profitability indicate the strength of our business model and our intention to create long-term value,” Munot added.

REF: https://nsearchives.nseindia.com/corporate/DEEPTI_15102025145437_NSEBSE_48.pdf

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