UTI Asset Management Company's Q2 FY 2025-26 Quarterly Results

Result Summary

• UTI Asset Management Company Ltd reported a 23.2% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a decline of 22.0%.
• Its expenses for the quarter were up by 15.6% QoQ and 25.9% YoY.
• The net profit decreased 47.9% QoQ and decreased 49.7% YoY.
• The earnings per share (EPS) of UTI Asset Management Company Ltd stood at 8.77 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

UTI Asset Management Company Ltd is a prominent player in the asset management industry in India. The company primarily focuses on managing mutual funds and providing asset management services, catering to a diverse range of clients including retail investors, institutional clients, and high-net-worth individuals. UTI Asset Management has a significant market presence in the Indian financial sector, known for its extensive distribution network and varied portfolio of mutual fund products. While specific recent developments are not provided, asset management companies often experience fluctuations in performance due to market conditions, regulatory changes, and shifts in investor sentiment.

Revenue

In Q2FY26, UTI Asset Management Company Ltd reported total income of ₹421.42 crores, a decline from ₹548.61 crores in Q1FY26 and ₹540.07 crores in Q2FY25. This represents a quarter-over-quarter decrease of 23.2% and a year-over-year decline of 22.0%. The decrease in total income could be due to various factors, such as market conditions affecting asset values and investment inflows. The financial data suggests that the revenue generation capability of the company has been challenged in the recent quarter compared to both the previous quarter and the same quarter of the previous year.

Profitability

The company's profit before tax for Q2FY26 was ₹164.11 crores, significantly lower than ₹326.02 crores in Q1FY26 and ₹335.66 crores in Q2FY25. This equates to a decline of 49.7% quarter-over-quarter and 51.1% year-over-year. Similarly, profit after tax stood at ₹132.20 crores, down from ₹253.86 crores in Q1FY26 and ₹263.08 crores in Q2FY25, reflecting a decrease of 47.9% QoQ and 49.7% YoY. The earnings per share in the current quarter were ₹8.77, compared to ₹18.42 in Q1FY26 and ₹18.67 in Q2FY25, marking a reduction of 52.4% quarter-over-quarter and 53.0% year-over-year. These figures demonstrate a notable reduction in profitability during the quarter.

Operating Metrics

Total expenses for Q2FY26 were reported at ₹257.31 crores, which is an increase from ₹222.59 crores in Q1FY26 and ₹204.41 crores in Q2FY25. This represents a 15.6% increase quarter-over-quarter and a 25.9% increase year-over-year. The rise in expenses could be attributed to various operational factors such as administrative costs, marketing expenses, or other operational expenditures. The tax expense for the quarter was ₹31.91 crores, which is significantly lower than ₹72.16 crores in Q1FY26 and ₹72.58 crores in Q2FY25, marking a decrease of 55.8% QoQ and 56.0% YoY. The reduction in tax expense aligns with the decline in profit before tax, reflecting lower taxable income.