ICICI AMC shares fall 4% after Q1 results; brokerages still see up to 30% upside

Shares of ICICI Prudential Asset Management Co Ltd (ICICIAMC) plunged nearly 4 per cent during the trading session on Tuesday after the company reported a mixed set of numbers for the quarter ended on June 30, 2026. However, brokerage firms continue to remain positive on the stock and see up to 30 per cent upside in the counter.
 

How were ICICI AMC Q1 results?
ICICI Prudential Asset Management Company reported a 23 per cent rise on a year-on-year (YoY) in profit after tax (PAT) to Rs 965 crore, while it reported a 17.5 per cent YoY growth in revenue from operations at to Rs 1,564 crore for the during the June 2026 quarter. Its operating profit rose 20 per cent YoY to Rs 1,100 crore.

ICICI AMC's mutual fund quarterly average assets under management (QAAUM) stood at Rs 11.17 lakh crore in Q1FY27 and its mutual fund market share stood at 13.4 per cent as of June 30, 2026. The actively managed mutual fund QAAUM increased to Rs 9.25 lakh crore. Equity and equity-oriented schemes QAAUM stood at Rs 6.31 lakh crore.
 

How ICICI AMC share performed?
Shares of ICICI AMC tumbled 3.62 per cent to Rs 3,092 on Tuesday, with its market capitalization slipping to Rs 1.52 lakh crore. The stock made a recovery during the session, but it has corrected nearly 15 per cent from post-listing peak at Rs 3,609.85 hit in May 2026. Despite the correction, the stock is still up 43 per cent from its IPO price of Rs 2,165, which was launched in December 2025.

What brokerage firms say on ICICI AMC?
ICICIAMC delivered a stable quarter. While yields were broadly stable but Ebitda margin at 72.4 per cent dipped sequentially, as the base quarter benefited from lower employee cost. The management indicated no negative impact from the TER regulation changes, said Emkay Global Financial Services.

"While equity AUM benefited from MTM gains during the quarter, debt AUM saw corporate redemptions amid tight liquidity. Baking in the Q1 developments, we tweak our estimates, raising revenue by 1 per cent while cutting EBITDA by 1 per cent on higher employee costs, leading to 1 per cent cut in PAT over FY27-29E," it added with a 'buy' rating and a target price of Rs 4,000.

The absence of any material earnings impact from TER revisions, coupled with improving contribution from alternatives, AI-led operating efficiencies, and new product launches, strengthens confidence in the company's long-term growth trajectory and valuation, said Motilal Oswal Financial Services.

"We have broadly maintained our earnings estimates for FY27 and FY28, factoring in higher employee costs and lower debt AUM assumption, which should be offset by higher other income and lower other expenses. Over FY26- FY28E, we project AUM, revenue and PAT CAGRs of 15 per cent, 14 per cent and 15 per cent, respectively" it said with a 'buy' rating with a target price of Rs 3,800.

More than 80 per cent of analysed equity AUM has consistently ranked in the Q1/Q2 quartiles over the key three-year period, supporting robust equity net inflows. Management indicated ICICIAMC's 1QFY27 equity net inflows were among the highest in the industry, said Equirus Securities, which continue to model 22 per cent CAGR in PMS/AIF AUM over FY26-FY28E.

Factoring in ICICI Ventures' financials, we marginally revise our estimates and build in 16 per cent EPS CAGR over FY26-FY28E. We remain constructive on the AMC space, with ICICI Pru AMC among our preferred picks," it added and upgraded the stock to 'long' (from 'add' earlier) but trimmed March 2027 target price of Rs 3,620 (earlier Rs 3,640), based on an unchanged 40 times FY28E EPS.

ICICIAMC reported strong Q1FY27 and the sequential decline is attributable to gradual recovery in AUM after a weak March  and normalised employee expenses—with the impact of ESOP costs and employee appraisals for FY27, said JM Financial. "It called out zero impact of SEBI’s expense ratio relook on its P&L," it added with an 'add' rating and a target price of Rs 3,600.