The shares of the small-cap company specializing in investment management and related financial services, particularly for its mutual fund schemes. As one of India’s largest and oldest asset managers, it declined by upto 10 percent in the day’s trade. In this article, let’s explore the reason for the decline.
With a market capitalization of 16,897.67 Crores on Monday, the shares of UTI Asset Management Company Ltd declined by upto 9.9 percent, reaching a low of Rs. 1263.30 compared to its previous close of Rs. 1402.90.
What happened
UTI Asset Management Company Ltd, engaged in investment management and related financial services, particularly through its mutual fund schemes, is one of India’s largest and oldest asset managers, has declined by up to 10 percent in today’s trade. Here is the reason behind the fall of this AMC.
This AMC has recently announced its Q2 results, which revealed a significant decline in both profit and revenue. Here are the results as follows: Its Revenue from operations declined by 22 percent YoY from Rs. 538 Crores in Q2FY25 to Rs. 419 Crores in Q2FY26, and it declined by 23 percent QoQ from Rs. 547 Crores in Q1FY26 to Rs. 419 Crores in Q2FY26.
Its Net Profit YoY declined by 50 percent from Rs. 263 Crores in Q2FY25 to Rs. 132 Crores in Q2FY26, and it declined by 48 percent QoQ from Rs. 254 Crores in Q1FY26 to Rs. 132 Crores in Q2FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 8.81, compared to Rs. 18.50 in the previous quarter.
The company shows strong financial performance with a Return on Capital Employed (ROCE) of 21.0% and Return on Equity (ROE) of 16.3%, indicating efficient use of capital and solid profitability. Its Price-to-Earnings (P/E) ratio of 28.5 is slightly below the industry average of 31.2, suggesting it is fairly valued compared to peers.
Additionally, the company has no debt, reflecting a strong balance sheet and low financial risk. Operationally, the company is efficient, with debtor days improving from 20.1 to 15.7, meaning it collects payments faster. It has also consistently rewarded shareholders, maintaining a high dividend payout ratio of 75.3%.
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Company Overview & Others
UTI Asset Management Company Ltd. (UTI AMC) is one of India’s largest asset managers, known for pioneering the mutual fund industry in the country. It manages various domestic and offshore funds, including wealth management, retirement solutions, and private equity. The company has a strong legacy, a wide national footprint through its financial centers and associates, and a commitment to corporate governance and ethical practices.
Between September 2024 and September 2025, UTI’s total AUM grew from Rs. 20,16,416 crore to Rs. 22,41,837 crore, reflecting a rise of around 11.18% YoY. The share of UTI PFL increased slightly from Rs. 3,35,930 crore (16.66%) to Rs. 3,89,080 crore (17.36%). While UTI International decreased both in value and share
UTI Alternatives also decreased both in value and share, and PMS grew from Rs. 13,05,267 crore (64.73%) to Rs. 14,48,028 crore (64.59%) in value, remaining the dominant contributor to total AUM despite a slight percentage dip.
Written by Sridhar J
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