UTI Asset Management Company reported a steady second quarter for FY27 with consolidated profit after tax climbing 22% year-on-year to Rs 131 crore. Core revenue reached Rs 398 crore, supported by a healthy SIP franchise and expanded digital acquisition efforts. While the company maintains an aggressive 90-95% dividend payout policy, shareholders should watch the recovery of key equity schemes like the Flexi-Cap fund to gauge future AUM growth.
UTI AMC Posts 22% Profit Growth in Q2 FY27
Consolidated PAT stands at Rs 131 crore for the quarter; Core revenue reached Rs 398 crore.
Reader Takeaway: Strong digital SIP inflows drive revenue, but persistent outflows in flagship equity schemes remain a key concern.
What just happened
UTI Asset Management Company released its financial results for the quarter ending September 30, 2026. The company saw a 22% year-on-year growth in consolidated profit after tax, reaching Rs 131 crore, while core revenue from services rose 2% to Rs 398 crore. Standalone operations showed even stronger momentum, with profit rising 31% year-on-year to Rs 136 crore.
Why this matters
As a prominent institutional player in the Indian mutual fund industry, UTI AMC’s performance serves as a barometer for retail investor participation. The company successfully grew its quarterly average AUM to Rs 4.02 lakh crore. Notably, 87% of new SIPs were sourced through digital channels, highlighting a successful shift in distribution strategy. The management has reaffirmed its commitment to a 90-95% dividend payout policy, prioritizing shareholder returns.
Business Performance
- SIP Franchise: Gross SIP inflows for Q2 stood at Rs 2,583 crore, with the total SIP AUM reaching Rs 45,572 crore.
- Digital Channels: Fintech partners now account for 67% of all new investor acquisitions, proving that digital transformation is effectively lowering customer acquisition friction.
- Product Updates: The Flexi-Cap fund, previously a laggard, has begun showing signs of recovery and ranks in the first quartile over the past three months. The company is now gearing up to launch the 'UTI Classif Hybrid Long Short Fund' in Q3.
Risks to watch
Despite the profit growth, the company continues to face net outflows in certain equity schemes. Management has identified the Flexi-Cap fund as a primary area for operational focus, noting that redemptions have been consistent across bank and national distribution channels. Investors should monitor whether the 'YOUnited' engagement program and branch expansion can successfully stem these outflows.
Context metrics
- Group AUM: Rs 16.28 lakh crore as of September 30, 2026.
- Market Share: 4.61% of the mutual fund industry.
- Employee Costs: Maintained guidance of Rs 95 crore (standalone) and Rs 130 crore (consolidated) per quarter.