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Quick Pointers

* Steady quarter; core income in-line, lower revenue/opex.

* Net equity flows remain highest driving market share gains.

* ESOP scheme announced; no major change in staff cost.

ICICIAMC saw a steady quarter as core income at INR 11.3bn was in-line. Due to QoQ increase in share of liquid/ETF, revenue was lower which was offset lesser staff cost. Deferred employee costs are being replaced by fresh ESOP which would entail a non-cash charge. There is no material change in our opex estimates. Led by strong equity performance in 1/3-yr buckets, market share in net flows remains highest at 18.9% in 11MFY26. Hence stock market share in equity increased by 35bps QoQ to 14.3%. ICICIAMC could better navigate impact of new TER guidelines due to lower payout; we have factored a 1.5bps decline in equity yields over FY26-28E. We tweak multiple to 40x on Mar’28 core EPS and raise TP INR 3,585 from INR 3,500. Retain ‘BUY’.

* Steady quarter; lower revenue offset by lesser opex: Equity QAAuM (incl. bal) was INR 6.24trn that grew by 2.1% QoQ. Revenue was 1.4% lesser at INR 14.06bn (PLe INR  14.26bn) led by lower revenue yield at 47.6bps (PLe 48.3bps). Staff cost fell by 22.5% to INR 1.3bn (PLe INR 1.7bn) while other expenses soared to INR 1.17bn (PLe INR 1.04bn). Core income was in-line at INR 11.3bn (PLe INR 11.2bn) resulting in operating yields at 38.2bps (PLe 37.9bps). Other income was a miss at INR -0.9bn (PLe INR 0.2bn). Tax rate was higher at 26.5% (PLe 24.5%) in Q4'26. Core PAT was 2% below PLe at INR 8.29bn. PAT was -10.9% below PLe at INR 7.6bn.

* Superior equity performance leading to market share gains: MF yield declined by 1.5bps QoQ as share of equity/debt segments fell by 32/95bps QoQ to 56.5%/17.7% while that of liquid/ETF inched up by 20/123bps QoQ to 6.1%/12.6%. Management indicated a gross TER impact of 3-4 bps due to new TER guidelines with mitigation measures underway; clarity on net impact is expected shortly. Equity performance in 1/3-yr bucket remains one of the best-in-class. As a result, market share in net equity flows (ex-NFOs) is highest in the industry at ~19% in 11MFY26. Hence, stock market share continues to rise; it enhanced by 35bps QoQ to 14.23% in Q4FY26.

* ICICI venture funds to cushion profits; ESOP scheme announced: Staff cost fell sharply QoQ as certain component of cost is being replaced by ESOP cost that would be due from Q1FY27. NRC approved grant of ESOP; P&L charge would be FY27: INR 640–680mn, FY28: INR 360–400mn and FY29: INR 180–220mn. ICICI Venture Funds transferred 3 strategies to the AMC viz. private equity, early-stage private equity and affordable real estate. Fee-paying funds of INR 46.28bn have been received w.e.f. 1st Apr’26; revenue yields would be in-line with industry.

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