HDFC AMC Q1 FY27 Results (NSE: HDFCAMC)
Signal: Margin pressure
The read
Revenue grew 13.6% YoY to ₹1,099.72 Cr, but operating margin compressed ~260bps YoY to 75.5% as employee costs surged 31.5% YoY, outpacing revenue growth. PAT grew 12% YoY to ₹837.13 Cr, aided by a lower tax rate and higher other income. EPS ₹19.53, +11.7% YoY, tracking PAT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,099.72 Cr | 13.6% | 4.6% |
| Net profit | ₹837.13 Cr | 12.0% | |
| EPS | ₹19.53 | ||
| EBIT margin | 75.5% |
P&L walk
Revenue grew 13.6% YoY, but operating margin compressed 260bps YoY because employee costs (+31.5% YoY) and other expenses (+21.7% YoY) outpaced revenue. PAT growth of 12% YoY was supported by a lower effective tax rate (23.1% vs 24.2%) and higher other income.
Key positives
- Revenue growth of 13.6% YoY, driven by higher AUM and management fees.
- PAT growth of 12% YoY, with strong absolute profitability at ₹837 Cr.
- Zero debt (D/E 0) and high dividend yield of 2%.
- Other income of ₹262.84 Cr provides additional earnings cushion.
Key concerns
- EBIT margin compressed 260bps YoY to 75.5% due to employee cost (+31.5% YoY) and other expenses (+21.7% YoY) growing faster than revenue.
- Employee cost to revenue ratio rose 170bps YoY to 13.1%, indicating cost inflation.
- Other income is volatile (Q4 was ₹11.55 Cr vs Q1 ₹262.84 Cr), making PAT less predictable.
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