Synopsis:
UTI AMC’s Q1FY26 results showed strong sequential growth with a 149% jump in Net Profit and robust AUM expansion. However, muted YoY performance and forex losses dampened sentiment, dragging the stock down 5.5%. Analysts remain positive, citing healthy SIP inflows and operational progress as long-term growth drivers.
Shares of a leading asset management company came under pressure after reporting its Q1FY26 results. Despite strong sequential growth across key financial metrics, a muted year-on-year performance weighed on investor sentiment. The company also highlighted operational progress and digital expansion, indicating a strategic focus on long-term growth.
The company in focus is UTI Asset Management Company Ltd, which has a market cap of Rs. 17,160 crore. The stock opened at Rs. 1,408.10 and touched an intraday low of Rs. 1,337.50, compared to its previous close of Rs. 1,415.60. The stock slipped nearly 5.5 percent during the session as investors reacted to the annual comparison.
What’s the news?
Quarter-on-Quarter Performance, On a sequential basis UTI AMC posted a solid set of quarterly numbers on a sequential basis. Revenue from operations rose by 45.7 percent to Rs. 547 crore in Q1FY26, up from Rs. 376 crore in Q4FY25. Operating profit more than doubled, increasing by 101.2 percent to Rs. 340 crore from Rs. 169 crore.
Profit before tax grew by 111.7 percent, rising from Rs. 154 crore to Rs. 326 crore. Net profit jumped by 149 percent, coming in at Rs. 254 crore compared to Rs. 102 crore in the previous quarter. Operating margins expanded significantly from 45 percent to 62 percent, while earnings per share nearly tripled from Rs. 6.83 to Rs. 18.50, a rise of 171 percent.
Year-on-Year Performance, Compared to the same quarter last year, the company’s performance was relatively subdued. Revenue rose by only 3.4 percent from Rs. 529 crore in Q1FY25 to Rs. 547 crore in Q1FY26. Operating profit declined by 3.1 percent, falling from Rs. 351 crore to Rs. 340 crore. Profit before tax dipped by 4.4 percent from Rs. 341 crore to Rs. 326 crore.
Net profit declined by 7.3 percent, coming in at Rs. 254 crore as against Rs. 274 crore a year ago. Management attributed this drop in profit to currency devaluation in international subsidiaries, which impacted earnings by Rs. 39 crore. Adjusted for this, PAT would have stood at Rs. 276 crore, reflecting an 8.6 percent YoY growth.
Comments from Management
Mr. Imtaiyazur Rahman, Managing Director & Chief Executive Officer of UTI AMC, said: “Q1 FY26 has offered a strong start to the financial year, both for UTI AMC as well as the mutual fund industry.
At the Company level, we have seen a notable growth in AUM and steady SIP inflows depicting a progressive curve in the last quarter. The MF industry has witnessed a continued rise in the assets under management and SIP contributions, which is quite encouraging, and this reflects the resilience of investors. We are hopeful that we will be able to leverage this positively to aid in building a long-term positive outlook for the overall industry.
Despite global triggers and other geopolitical tensions that persisted, the impact on the Indian economy has been well contained. This bodes well for the investors and the mutual fund industry, keeping the momentum intact and driving volumes.”
Additionally, management noted that the decline in consolidated PAT was partially due to forex translation losses stemming from the depreciation of the US dollar against SGD and GBP on a QoQ basis. Gains from GBP appreciation were captured in reserves as per accounting standards, not in reported earnings.
Operational Highlights
The company reported a total Group AUM of Rs. 21.93 lakh crore, registering a 13.28 percent YoY and 4.17 percent QoQ growth. UTI Mutual Fund contributed 16.45 percent to the overall mix, while PMS made up the largest chunk at 64.86 percent. UTI PFL, UTI International, and UTI Alternatives contributed 17.39 percent, 1.18 percent, and 0.12 percent, respectively.
As of June 30, 2025, UTI MF’s quarterly average AUM (QAAUM) stood at Rs. 3,60,867 crore, showing a 16.15 percent YoY rise. Equity (active + passive) assets made up 69 percent of UTI MF’s total average AUM.
The firm continues to emphasize digital growth as 42.23 percent of total gross sales in equity and hybrid funds were mobilized through digital platforms, while digital SIP transactions increased 25 percent YoY. Overall digital purchases surged to 49.14 lakh, up 29.86 percent from the same quarter last year.
In a key international development, UTI AMC received registration from the U.S. Securities and Exchange Commission (SEC) and has initiated operations via a UTI International subsidiary. Its India-domiciled equity fund (IDEF), based in Ireland with an AUM of USD 991 million, continues to gain global traction.
Analyst Commentary
Motilal Oswal maintained a ‘Buy’ rating on UTI AMC with a revised target price of Rs. 1,650. The brokerage noted that the company delivered a PAT beat, largely driven by higher other income. It also highlighted that steady AUM growth supported by strong SIP inflows should continue to support earnings momentum going forward.
About the Company
UTI Asset Management Company Ltd is one of India’s oldest and most respected asset managers. It serves as the Investment Manager to UTI Mutual Fund and is also registered as a Portfolio Manager with SEBI. Through its subsidiaries, the company offers services in alternative investments, offshore funds, and retirement solutions.
UTI AMC operates a pan-India network with 255 branches, of which 205 are in B30 cities. It has a diversified shareholder base with no identifiable promoter. Major institutional holders include State Bank of India, LIC, Bank of Baroda (each holding 9.89 percent), Punjab National Bank (15.09 percent), and global investment firm T. Rowe Price, which is the largest shareholder with 22.77 percent.
Witten By Manan Gangwar
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