Target: ₹3,850
CMP:₹3,215.75
ICICI Prudential AMC’s (IPRU) operating revenue grew 20 per cent year on year (flat quarter on quarter) to ₹1,520 crore (in line) in Q4FY26. Yields came in at 55 bp vs. 57.7 bp in Q4QY25 and 56.3 bp in Q3FY26. For FY26, revenue grew 23 per cent to ₹5,760 crore.
Total opex at ₹360 crore was down 5 per cent. EBIDTA came in at ₹1,160 crore (in line), up 30 per cent YoY/2 per cent QoQ. Margins stood at 76.5 per cent vs. 70.5 per cent in Q4FY25 and 75.3 per cent in Q3FY26. For FY26, EBITDA came in at ₹4,290 crore, up 29 per cent YoY.
PAT stood at ₹760 crore (8 per cent miss due to negative other income), up 10 per cent YoY but down 17 per cent QoQ. For FY26, PAT came in at about ₹3,300 crore, up 24 per cent YoY.
Overall gross yield stood at 52 bp, with net yield at 48.3 bp as of March 2026; the management indicated new TER regulations (effective April 2026) may impact gross yields by 3-4 bp (under negotiation). Net yields for AIF/PMS improved to 0.98 per cent in Q4FY26 from 0.91 per cent in Q3FY26, driven by product mix.
We have maintained our earnings estimates for FY26, FY27 and FY28, factoring in relatively lower equity AUM growth, which is expected to be offset by incremental income and AUM inflows from SIF and ICICI Venture investments. Over FY26-28E, we project AUM/revenue/PAT CAGRs of 17 per cent/15 per cent/16 per cent. We maintain our Buy rating on the stock, with a target price of ₹3,850.