Operating margin guidance: 33-35 bps of AUM
Management targets net operating margin within the historical 33-35 basis point corridor, having offset TER-to-BER transition impacts through commission and cost optimization.
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HDFC Asset Management Company · forward-looking guidance across the available source record.
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ESOP amortization schedule: ₹79-80 crore FY27, ₹63 crore FY28, ₹41 crore FY29
Front-loaded ESOP costs following new stock option grants in late June 2026; quarterly run-rate now normalized to ~₹20 crore versus prior 9-month basis.
SIF launch: HDFC SIF Equity X approved
Board approved first sustainability-focused equity fund; to be launched in near term, marking entry into the SEBI-regulated SIF category.
Alternatives platform: targeting full-suite capability
Hired 6 investment professionals each for PE/VC and private credit, 8 for PMS; management fee of 80-90 bps on alternatives with discretionary PMS margins in line with equity MF business.
Opex growth of 12-15% annually
Management expects operating expenses to grow at 12-15% on an annual basis, including investments in distribution, technology, and new businesses.
ESOP amortization guidance for H2 FY26 and beyond
Non-cash ESOP amortization for H2 FY26 is ~₹42 crore, FY27 ~₹67 crore, FY28 ~₹53 crore, FY29 ~₹33 crore, then tails off.
SIF (Specialized Investment Fund) approvals in place
HDFC AMC has received approvals for launching SIFs and is evaluating options to be a full-service provider across categories.
Maintain operating margins within 33-36 bps band
Management aims to keep operating margins in the 33-36 bps range through cost discipline and operating leverage, despite telescopic pricing pressure.
Optimize regulatory impact to minimize margin hit
The removal of 5 bps exit load and TER restructuring will be managed via optimization, similar to 2019 playbook, with net impact expected to be small.
Continue building PMS and alternatives business
PMS AUM crossed ₹5,000 crore; structured credit fund first close at ₹1,290 crore. Plans to launch second VC/PE fund of funds and engage global institutions.
Deepen HDFC Bank channel engagement
Equity market share via HDFC Bank is in late 20s vs industry 13%; dedicated team and digital collaboration expected to increase AUM share over time.