Profit rose 26.36% QoQ, but operating margin fell 4.06 points
Other income contributed 14.12% of pre-tax profit, while expenses grew 20.91% against 3.11% revenue growth.
Filed 13 Jul 2026, 16:30 IST · after market close · ICICI Prudential Asset Management Co Ltd (ICICIAMC)
Key takeaways
- Standalone net profit rose 26.36% QoQ to Rs 964.63 cr, helped by a swing in other income.
- Operating margin fell 4.06 percentage points as expenses grew 20.91% against 3.11% revenue growth.
- The 72.41% operating margin remained 9.73 percentage points above the 62.68% median for 24 reported financial-services peers.
Price around the results
Other income drove the standalone profit increase
Standalone net profit increased 26.36% QoQ even as operating profit declined 2.36%, showing that the reported earnings improvement came mainly below the operating line. Other income contributed 14.12% of pre-tax profit after moving from negative Rs 89.28 cr in Q4FY26 to Rs 180.80 cr in Q1FY27. A 1.81 percentage-point decline in the tax rate also supported the increase in net profit.
Expense growth reversed the prior margin improvement
Revenue grew 3.11% QoQ, but expenses rose 20.91%, so operating margin narrowed 4.06 percentage points to 72.41%. This reversed the improvement seen in Q4FY26, when operating margin had risen from 75.29% in Q3FY26 to 76.47%. The margin still stood 9.73 percentage points above the 62.68% median among 24 Financial Services peers that had reported.
AIF asset-management rights add an expansion focus
The presentation said the company entered into a Business Transfer Agreement to acquire asset-management rights for identified Category II AIFs from ICICI Venture. The stated consideration was Rs 1,079.4 million, extending the quarter's business commentary beyond the existing operating result.
The stock underperformed the market after the filing
The shares fell 1.24% on the first session after the results and were down 1.81% by the next session, despite opening 1.42% higher. They underperformed the market by 0.59 percentage points on the first session and by 1.64 percentage points after five sessions, with first-session volume at 1.59 times the reference level.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹1,564 cr | ₹1,517 cr | +3.11% |
| Other income | ₹181 cr | ₹-89 cr | — |
| Expenses | ₹432 cr | ₹357 cr | +20.91% |
| Operating profit | ₹1,133 cr | ₹1,160 cr | -2.36% |
| Operating margin (%) | 72.41% | 76.47% | — |
| Interest | ₹5 cr | ₹5 cr | +3.49% |
| Depreciation | ₹28 cr | ₹28 cr | +1.56% |
| Profit before tax | ₹1,281 cr | ₹1,039 cr | +23.31% |
| Tax | ₹316 cr | ₹275 cr | +14.85% |
| Net profit | ₹965 cr | ₹763 cr | +26.36% |
| EPS (₹) | ₹19.52 | ₹15.45 | +26.34% |
Operating margin of 72.41% compares with a Financial Services sector median of 62.68% across 24 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.24% | -0.59% |
| Next session | -1.81% | — |
| 5 sessions | -1.73% | -1.64% |
Volume on the results session was 1.59× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The company entered into a BTA to acquire asset management rights of identified Category II AIFs from ICICI Venture for ₹1,079.4 million.
What to watch
- Whether operating margin holds above 72.41% after the 4.06-point QoQ decline.
- Whether expense growth moderates from the 20.91% QoQ increase.
- Progress on the Rs 1,079.4 million acquisition of Category II AIF asset-management rights.