Higher Mutual Fund Yields Lift ICICI Prudential AMC Q2FY27 Revenue 18%

Key Takeaways:

• ICICI Prudential AMC reported Q2FY27 operating revenue of ₹1,670 crore, an increase of 18% year-on-year. 
• Net profit rose 6% year-on-year to ₹890 crore, while mutual fund yields increased to 57.9 basis points. 
• Equity quarterly average AUM, including balanced funds, stood at ₹6.62 trillion, while SIF QAAUM increased to ₹4,950 crore. 

ICICI Prudential Asset Management Company reported an 18% year-on-year rise in operating revenue to ₹1,670 crore for the September quarter of FY27, helped by higher yields from its mutual fund business. 

Revenue was also 7% higher sequentially. 

Mutual fund yields increased to 57.9 basis points in Q2FY27, compared with 56 basis points in the corresponding quarter of the previous year and 56.1 basis points in Q1FY27. 

Mutual funds accounted for 89.9% of operating revenue, with alternative investment funds contributing 8.7% and advisory activities accounting for 1.4%. 

Net profit rose 6% year-on-year to ₹890 crore, although it declined 8% sequentially. Operating expenditure increased 23% year-on-year to ₹460 crore, while EBITDA rose 16% to ₹1,230 crore. 

The AMC's equity quarterly average assets under management, including balanced products, stood at ₹6.62 trillion, a 4.4% increase from the previous quarter. 

Its overall equity market share, however, declined 29 basis points sequentially to 13.8%. The company's market share in net equity flows during April-August also moderated compared with FY26, partly reflecting lower presence in some small-, mid-cap and flexi-cap segments. 

ICICI Prudential AMC's specialised investment fund business also expanded during the quarter. SIF quarterly average AUM increased to ₹4,950 crore, compared with ₹2,680 crore in Q1FY27. 

The AMC's unique customer base reached 17.8 million at the end of September, up 3% sequentially. 

The company has also been expanding its product range. Four funds were launched and another launch is planned during Q3FY27, according to management commentary cited by Business Standard. 

The September-quarter numbers show that higher mutual fund yields supported revenue growth even as competition affected equity market share. With nearly 90% of operating revenue still coming from mutual funds, changes in the scale, mix and yield of its mutual fund assets remain central to the AMC's earnings profile.