Synopsis: ICICI Prudential AMC shares are in focus after its Q1 FY27 results and brokerage updates. Revenue grew 17.5% YoY to ₹1,564 crore, while net profit rose 23.1% to ₹965 crore. Global brokerages remain largely positive on the stock, citing strong long-term growth prospects, though some have flagged higher employee costs and rich valuations.
The shares of the large-cap company, which specializes in managing mutual funds, Portfolio Management Services (PMS), Alternative Investment Funds (AIFs), and international advisory mandates, are in focus following their Q1 results and Brokerage views.
With a market capitalization of Rs. 1,54,950.05 crores in the day’s trade, the shares of ICICI Prudential Asset Management Company Ltd rose upto 2.3 percent, making a high of Rs. 3,284.90 per share compared to its previous closing price of Rs. 3,209.55 per share.
What happened
Its Revenue from Operations increased by 17.5 percent YoY, from Rs. 1,331 crore in Q1 FY26 to Rs. 1,564 crore in Q1 FY27, and rose by 1.4 percent QoQ, from Rs. 1,542 crore in Q4 FY26 to Rs. 1,564 crore in Q1 FY27.
Its net profit increased by 23.1 percent YoY, from Rs. 784 crore in Q1 FY26 to Rs. 965 crore in Q1 FY27, and grew by 25.5 percent QoQ, from Rs. 769 crore in Q4 FY26 to Rs. 965 crore in Q1 FY27.
The earnings per share (EPS) for the quarterly period stood at Rs. 19.52, compared to Rs. 44.39 in the previous year’s quarter. During the quarter ended June 30, 2026, the Company has paid a final dividend of 12.4 per equity share (face value of 1 each) for the year ended March 31, 2026.
Brokerage views on results
Jefferies on ICICI Prudential AMC
Jefferies has maintained a Buy rating on ICICI Prudential AMC with a target price of Rs. 3,770. The brokerage said Q1 results missed expectations as higher employee costs and lower yields from the alternatives business weighed on operating performance.
Operating profit came in below estimates due to weaker revenues and elevated employee expenses, while PAT also missed forecasts because of lower other income. As a result, Jefferies has cut its FY28–FY29 EPS estimates by 3–4%.
Despite the near-term earnings miss, Jefferies remains positive on the stock, citing ICICI Prudential AMC’s diversified business model and the strong long-term growth potential of its rapidly expanding alternatives business.
Morgan Stanley on ICICI Prudential AMC
Morgan Stanley has maintained its Equal-weight rating on ICICI Prudential AMC while cutting the target price to Rs. 3,320 from Rs. 3,410. The brokerage said Q1 operating profit came in 1% below its estimates due to higher employee costs.
The brokerage noted that mutual fund inflows have remained resilient, reflecting the strength of the company’s core franchise. It has raised its FY27 estimates to factor in the recent market recovery but trimmed its FY28 forecasts.
Morgan Stanley continues to like ICICI Prudential AMC’s franchise and long-term business quality. However, it believes the current valuation is fairly priced, limiting the scope for significant upside at present.
Bernstein on ICICI Prudential AMC
Bernstein has maintained its Outperform rating on ICICI Prudential AMC with a target price of Rs. 3,510. The brokerage said the company delivered healthy operating growth in Q1 FY27, supported by favourable market conditions.
Strong equity markets during the quarter helped mutual fund assets under management (AuM) expand, while higher treasury gains provided an additional boost to earnings and overall profitability. Bernstein remains positive on the company’s outlook, supported by healthy operating momentum, robust AuM growth, and continued benefits from improving market conditions.
CLSA on ICICI Prudential AMC
CLSA has maintained its Outperform rating on ICICI Prudential AMC with a target price of Rs. 3,650. The brokerage noted that Q1 FY27 PAT stood at Rs. 9.6 billion, up 5% compared to Q3 FY26, despite higher operating expenses.
Revenue grew a modest 1% QoQ, while operating profit declined 3% sequentially due to higher employee costs. The operating environment remained largely stable, with industry equity inflows only slightly lower and SIP inflows broadly steady during the quarter.
For ICICI Prudential AMC, monthly SIP inflows moderated 5% QoQ but remained 15% higher YoY, while equity quarterly average AUM increased 2% QoQ to Rs. 6.3 trillion. CLSA has trimmed its FY27–FY29 PAT estimates by 3–4% to reflect higher operating expenses.
HSBC on ICICI Prudential AMC
HSBC has maintained its Buy rating on ICICI Prudential AMC with a target price of Rs. 3,800. The brokerage said Q1 FY27 PAT beat its estimates, driven by higher-than-expected treasury gains, while the core operating performance remained broadly in line with expectations.
HSBC noted that the company witnessed some AUM market share loss during the quarter. However, it believes this was largely due to mark-to-market (MTM) differences and relatively muted SIP trends rather than any structural weakness in the business.
The brokerage continues to remain positive on the stock, expecting a potential re-rating supported by an estimated 22% EPS CAGR over FY26–FY29 and an attractive 1.4x PEG valuation.
Company Overview & Others
ICICI Prudential Asset Management Company Ltd is one of India’s largest asset management companies and a joint venture between ICICI Bank Ltd. and Prudential Corporation Holdings Limited (UK). The company manages a wide range of investment products, including equity, debt, hybrid, passive, ETF, and alternative investment funds, serving retail, institutional, and high-net-worth investors.
The company generates revenue primarily through asset management fees based on its assets under management (AUM). Backed by a strong distribution network, digital platforms, and a diversified product portfolio, ICICI Prudential AMC has established itself as a leading player in India’s rapidly growing mutual fund industry.
ICICI Prudential Asset Management Company Ltd. has a strong financial profile, with an impressive ROCE of 115%, ROE of 85.8%, and a debt-to-equity ratio of 0.00, reflecting high capital efficiency and a debt-free balance sheet.
The company has delivered a 21.5% profit CAGR over the last five years, maintained a robust 3-year average ROE of 83%, and consistently rewarded shareholders with a healthy dividend payout ratio of 103%.
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