ICICI Prudential profit rises 23% on resilient margins
ICICI Prudential AMC's first-quarter profit surged to Rs 965 crore on an 18% revenue increase, highlighting the enduring profitability of India's largest asset managers despite recent market volatility.
ICICI Prudential AMC posted a 23% rise in net profit to Rs 965 crore for the April-June quarter of financial year 2027. Revenue from operations climbed 18% year-on-year to Rs 1,564 crore. The fund house's assets under management reached Rs 82.40 lakh crore as of March 31, 2026, representing an 11% annual increase.
The results underscore the structural profitability of India's asset management sector. Profit before tax margins reached 81.87% of revenue, while profit after tax margins stood at 61.67%. Although total expenses increased 12% to Rs 464.4 crore, the firm contained non-staff operating costs, keeping other expenses at Rs 104 crore compared to Rs 98 crore a year earlier.
Employee benefit expenses, however, saw significant acceleration. They rose 11% year-on-year to Rs 204 crore, but surged 45% from the preceding March quarter. Fees and commission expenses also climbed to Rs 124 crore from Rs 103 crore a year prior.
Analysts interpreted the results as a sign of resilience following a sharp March market correction. JM Financial noted that while quarter-end AUM recovered alongside a nearly 20% rebound in mid and smallcap indices, average AUM remained flat quarter-on-quarter. The brokerage highlighted that management believes a "revised TER framework is unlikely to materially impact profitability for even the large, leading AMCs" and that the "growing contribution from alternatives should support earnings growth over the medium term."
Growth projections remain robust across the board. Motilal Oswal Financial Services maintained its earnings estimates, projecting a 15% compound annual growth rate for both AUM and profit through fiscal year 2028. Emkay attributed the earnings beat to "higher mark-to-market gains," noting that a "robust product pipeline is expected to support long-term AUM growth and diversification, while strong brand, wide distribution and consistent fund performance remain key advantages."
The stock gained 2% following the earnings release to close at Rs 3,205.60. Despite pulling back more than 11% from a May record high of Rs 3,609.85, the shares remain well above their December listing price of Rs 2,606.20 and 48% higher than the IPO price of Rs 2,165. Brokerages see further upside, with target prices ranging from Rs 3,600 at JM Financial to Rs 4,000 at Emkay.
