HDFC Asset Management Company Reports Strong Financial Results and Announces Bonus Share Issuance

The financial results for the quarter and half-year ending September 30, 2025, were released by HDFC Asset Management Company Limited (AMC). The company reported a steady increase in both income and profits. Total income for Q2FY26 was Rs 1,123.59 crore, up from Rs 1,058.19 crore in the same period last year. Revenue from operations reached Rs 1,027.40 crore, reflecting successful asset management.

HDFC AMC's Board of Directors approved a bonus equity share issuance in a 1:1 ratio. This means one new fully paid-up equity share of Rs. 5 will be issued for every existing share held as of the record date. The record date is set for November 26, 2025. The issuance is subject to member approval via Postal Ballot and necessary regulatory clearances.

The company plans to issue approximately 21,40,03,751 bonus equity shares, each valued at Rs. 5, totalling around Rs. 107.00 crore. These shares will be distributed to current shareholders based on their holdings as of the record date. The Securities Premium Account and Capital Redemption Reserve Account will fund this bonus issue.

HDFC AMC's profit before tax for the quarter was Rs 875.96 crore, with a profit after tax of Rs 718.43 crore, marking a 24.59% increase from Rs 576.61 crore in Q2FY25. For the half-year ending September 2025, net profit stood at Rs 1,465.98 crore with total income reaching Rs 2,324.75 crore, both surpassing figures from the previous fiscal year.

Before the bonus issue announcement, HDFC AMC disclosed its share capital structure. The authorized share capital is Rs. 3,50,00,00,000, divided into preference shares and equity shares of different denominations. Currently, the issued and paid-up capital comprises 21,40,03,751 equity shares worth Rs. 107.00 crore.

Post-bonus issue, HDFC AMC's paid-up share capital will double to include 42,80,07,502 equity shares of Rs. 5 each, totalling Rs. 214.00 crore. This move aims to enhance liquidity and reward shareholders while maintaining a robust capital base.

Financial Implications

The funds required for the bonus issue will be sourced from the Capital Redemption Reserve of Rs. 52.41 crore and the Securities Premium Account of Rs. 760.23 crore as per balances available on September 30, 2025.

The company intends to credit or dispatch these bonus shares within two months from Board approval but no later than December 14, 2025.

Riyank Arora from Mehta Equities Ltd commented on HDFC AMC's stock performance: "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."

A R Ramachandran noted a bearish trend on daily charts: "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."