HDFC AMC Q2 Results: Net Profit Jumps 24.59% To Rs 718.43 Cr, Board Declares 1:1 Bonus Shares

The unaudited consolidated financial results for the quarter and a half that ended on September 30, 2025, were released by HDFC Asset Management Company Limited (AMC) on Wednesday. The results showed a consistent rise in both income and profits.

Compared to the same quarter of the previous year, when it was Rs 1,058.19 crore, the company's total income for Q2FY26 was Rs 1,123.59 crore. Revenue from operations increased to Rs 1,027.40 crore, indicating a successful asset management business. Higher staff and commission expenses were the main causes of the total consolidated expenses' increase from Rs 199.78 crore to Rs 247.63 crore in the quarter under review.

The quarter's profit before tax was Rs 875.96 crore, while its profit after tax was Rs 718.43 crore, up 24.59% YoY from Rs 576.61 crore in Q2FY25. The firm reported a net profit of Rs 1,465.98 crore and total income of Rs 2,324.75 crore for the half-year that ended in September 2025, both of which were higher than the same quarter of the previous fiscal year.

The Board of Directors considered and approved "Issuance of bonus Equity Shares in the ratio of 1:1 i.e. 1 (One) new fully paid-up Equity Share of Rs. 5/- (Rupees Five Only) each for every 1 (one) fully paid-up Equity Share of Rs. 5/- (Rupees Five Only) each, to the Members of the Company as on the record date (mentioned below), subject to approval of the Members of the Company to be obtained through Postal Ballot and statutory and regulatory approvals, as applicable," said HDFC AMC in a stock exchange filing on Wednesday.

The record date for determining the entitlement of the members of the company to receive bonus equity shares is fixed as Wednesday, November 26, 2025, as per HDFC AMC.

The company proposes to issue around 21,40,03,751 bonus equity shares, each worth Rs. 5 and totaling about Rs. 107.00 crore. As part of a 1:1 bonus issue, these shares will be issued to current shareholders, which means that for every existing fully paid-up equity share owned by members as of the record date, one new fully paid-up equity share will be issued. As on September 30, 2025, the company's Securities Premium Account and Capital Redemption Reserve Account will be used to issue the bonus shares.

The total number of shares may vary depending on the exercise of Employee Stock Options by eligible employees until the record date.

Prior to the scheduled bonus issue, HDFC Asset Management Company Limited revealed information on its share capital structure. The authorized share capital of the firm is Rs. 3,50,00,00,000, which is divided into 5,00,00,000 redeemable, cumulative, non-convertible preference shares of Rs. 10 each and 60,00,00,000 equity shares of Rs. 5 each. The company's current issued, subscribed, and paid-up capital is 21,40,03,751 equity shares, each worth Rs. 5 and totaling about Rs. 107.00 crore.

Following the announcement of the 1:1 bonus issue, the company's paid-up share capital is set to increase accordingly, enhancing liquidity and rewarding shareholders while maintaining its strong capital base.

HDFC Asset Management Company Limited would have 42,80,07,502 equity shares of Rs. 5 each, issued, subscribed, and paid-up, totaling Rs. 214.00 crore after the proposed 1:1 bonus issue. The authorized capital of the company won't change. According to the balances available on September 30, 2025, the approximate amount of Rs. 107.00 crore needed for the bonus issue would come from the Capital Redemption Reserve of Rs. 52.41 crore and the Securities Premium Account of Rs. 760.23 crore.

The company plans to credit or dispatch the bonus shares within two months from the date of Board approval, but no later than December 14, 2025.

HDFC AMC Target Price

"The stock trades near record highs with strong bullish structure and consistent higher-top, higher-bottom formation. RSI at 68 shows strength, supported by robust volumes. Momentum indicators remain positive, suggesting further upside toward ₹5750-₹5850. Immediate support lies at ₹5500. Outlook: Positive; trail stop loss below ₹5475," commented Riyank Arora, technical analyst at Mehta Equities Ltd.

"HDFC AMC stock price is bearish on the Daily charts with strong resistance at 5712. A Daily close below support of 5448 could lead to a target of 4890 in the near term," said A R Ramachandran, Independent SEBI registered Research Analyst.