Shares of ICICI Prudential Asset Management Co Ltd (ICICI AMC) experienced a decline of nearly 4% on Tuesday, closing at Rs 3,092. This downturn followed the release of the company's first-quarter results for the fiscal year ending June 30, 2026, which presented a mixed financial performance.
Despite the immediate market reaction, several prominent brokerage firms have reaffirmed their positive outlook on ICICI AMC, forecasting potential upside of up to 30% for the stock.
Q1 FY27 Performance Highlights
ICICI Prudential Asset Management Company reported a substantial 23% year-on-year (YoY) increase in profit after tax (PAT), reaching Rs 965 crore. Revenue from operations also saw robust growth, climbing 17.5% YoY to Rs 1,564 crore during the June 2026 quarter. Operating profit for the period rose 20% YoY, totaling Rs 1,100 crore.
The company's mutual fund quarterly average assets under management (QAAUM) stood at Rs 11.17 lakh crore in Q1 FY27, securing a mutual fund market share of 13.4% as of June 30, 2026. Actively managed mutual fund QAAUM increased to Rs 9.25 lakh crore, with equity and equity-oriented schemes contributing Rs 6.31 lakh crore to the QAAUM.
Share Performance and Market Context
The 3.62% fall on Tuesday pushed ICICI AMC's market capitalization to Rs 1.52 lakh crore. While the stock saw some recovery during the trading session, it has corrected approximately 15% from its post-listing peak of Rs 3,609.85, which was reached in May 2026. Nevertheless, the shares remain up 43% from their initial public offering (IPO) price of Rs 2,165, launched in December 2025.
Brokerage Outlook and Recommendations
Brokerage houses largely expressed confidence in ICICI AMC's long-term prospects, despite the recent dip.
- Emkay Global Financial Services noted a stable quarter for ICICIAMC, with broadly stable yields. Although EBITDA margin dipped sequentially due to higher employee costs compared to the previous quarter, the management indicated no negative impact from upcoming TER (Total Expense Ratio) regulation changes. Emkay maintained a 'buy' rating with a target price of Rs 4,000, slightly tweaking estimates for FY27-29E.
- Motilal Oswal Financial Services highlighted the absence of material earnings impact from TER revisions, coupled with increasing contributions from alternative investments, AI-driven operational efficiencies, and new product launches. They projected AUM, revenue, and PAT CAGRs of 15%, 14%, and 15% respectively over FY26-FY28E, issuing a 'buy' rating with a target price of Rs 3,800.
- Equirus Securities underscored ICICIAMC's strong equity net inflows in Q1 FY27, among the highest in the industry, and a consistent top-quartile ranking for over 80% of its analyzed equity AUM. They upgraded the stock to 'long' (from 'add') with a trimmed March 2027 target price of Rs 3,620, based on an unchanged 40 times FY28E EPS.
- JM Financial acknowledged strong Q1 FY27 results, attributing sequential declines to a gradual AUM recovery after a weak March and normalized employee expenses, including ESOP costs and appraisals. They reaffirmed an 'add' rating with a target price of Rs 3,600.
The collective sentiment from these leading brokerages suggests a continued optimistic view on ICICI AMC's growth trajectory, supported by strategic initiatives and robust asset management performance.