Skip to content

    SBIFUNDS Q1 FY27 earnings call

    SBIFUNDS
    Financial Services·3 Aug 2026
    Management Summary

    SBI Funds Management reported a strong Q1 FY27, with mutual fund QAAUM growing 11% YoY to ₹12.6 trillion and operating revenue up 15% YoY to ₹1,149 crores. Profit after tax saw a significant 37% QoQ increase to ₹873 crores. The company also saw robust growth in SIP AUM, up 15% YoY to ₹2.1 trillion, and expanded its investor base by 12% to 1.82 crores. While debt assets moderated and SIP flows were slightly flattish sequentially, the overall asset mix shift towards higher-yielding assets improved margins.

    Highlights

    6

    • Mutual fund QAAUM grew 11% YoY to ₹12.6 trillion, with market share at 15.1%.

    • Operating revenue increased 15% YoY to ₹1,149 crores, and operating profit grew 17% to ₹907 crores.

    • Profit after tax saw a significant 37% QoQ growth, reaching ₹873 crores.

    • SIP AUM increased 15% YoY to ₹2.1 trillion, supported by 1.7 million fresh SIP additions in the quarter.

    • The investor base expanded 12% YoY to 1.82 crores, reflecting strong retail participation.

    • Yield improved by 2 basis points due to a strategic shift from low-yielding passive assets to higher-yielding equity and hybrid funds.

    Concerns

    3

    • Debt assets moderated due to institutional redemption patterns and tight short-term liquidity.

    • Monthly SIP flows were slightly flattish from March to June due to market volatility and geopolitical conditions.

    • Other income was muted due to mark-to-market impact on the portfolio from the previous year.

    Key financials

    Single quarter

    06 metrics
    1. 01Mutual Fund QAAUM12.6 trillion+11%YoY
    2. 02Operating Revenue₹1,149 Cr+15%YoY
    3. 03Operating Profit₹907 Cr+17%YoY
    4. 04Profit After Tax₹873 Cr+37%QoQ
    5. 05SIP AUM2.1 trillion+15%YoY

    Segment breakdown

    AUMY-o-Y Growth
    Active QAAUM8.6 trillion10%
    Passive QAAUM4 trillion12%
    Alternate Business AUM (Non-Mutual Fund)——
    AIF Assets6,800 trillion29.0%
    Offshore Funds——
    Heatmap· 2 shared metrics

    What to watch in Q2 FY27

    4

    Growth in Alternate Business AUM

    Next quarter
    Current₹16.5 trillion (non-mutual fund AUM), AIF assets ₹6,800 crores (29% YoY increase)
    TargetContinued significant growth, new product launches

    Why it matters

    Management has 'huge ambition plans' for this segment, and it's a focus area for investment and resource hiring.

    I think on the question on alternatives, like you saw the numbers, while its early days💬 for us and we have just started our alternate journey very recently in terms of new business, we have grown from 5,300 crores to 6,800 crores in the last one year and this is of course very small compared to our operation, but we have huge ambition plans to grow this particular business. We have started hiring resources now.

    Risks & concerns

    3
    RiskSeverity

    Debt assets moderation

    Debt assets moderated due to institutional redemption patterns and tight short-term liquidity. — Management acknowledged

    medium

    Market volatility and geopolitical conditions

    Slightly flattish SIP flows from March to June due to market volatility and geopolitical conditions. — Management acknowledged

    low

    Muted other income

    Other income was a little muted due to mark-to-market impact on the portfolio from the previous year. — Management acknowledged

    low

    Q&A highlights

    8

    “So, SBI penetration, as you asked rightly, it is our largest distribution franchise and we have now with YONO, around 12 crores customers in our reach and who have been regularly engaging with us. The NISM certified bank employees have gone up to 15,700 and we are now available at 98.2% pin codes and that is only through SBI's franchisee and SBI has been supporting us in distribution network, reach, and more so in Tier-2, Tier-3 cities, where market share is very good.”

    Clarifies the significant reach and impact of the SBI channel, including YONO, on customer acquisition and market share, especially in B30 locations.

    asked by Prayesh Jain

    2 min read7 chapters

    Detailed Narrative

    01

    Strong Financial Performance and AUM Growth

    SBI Funds Management reported a robust Q1 FY27 with operating revenue reaching ₹1,149 crores, a 15% YoY increase from ₹997 crores last year. Operating profit grew 17% to ₹907 crores, and profit after tax saw a significant 37% QoQ growth, totaling ₹873 crores. The company's mutual fund QAAUM expanded by 11% YoY to ₹12.6 trillion, maintaining a market share of 15.1%.

    02

    Asset Mix Shift Driving Margin Expansion

    Gross margins remained stable, but net margins improved due to a strategic shift in asset mix. The concentration on low-yielding passive assets decreased, replaced by higher-yielding equity and hybrid funds. This shift resulted in a 2 basis points increase in overall yield, a trend expected to continue. The company successfully navigated TER reductions, passing them on to distributors in a calibrated manner, resulting in a net neutral or positive impact on its financials.

    03

    Robust SIP Growth and Investor Base Expansion

    SIP AUM grew 15% YoY to ₹2.1 trillion, with monthly SIPs increasing 14% to nearly ₹4,000 crores. The company added 1.7 million fresh SIPs in the last quarter, bringing the total live SIPs to 16 million. The investor count expanded by 12% YoY to 1.82 crores as of June 30, 2026, demonstrating strong retail participation despite intermittent market volatility🌐.

    04

    Deepening Distribution and B30 Market Leadership

    The company strengthened its distribution franchise, leveraging over 23,000 SBI branches, 124,000 independent financial advisors, and 90 banking partners. It maintained market leadership in B30 locations with a 19% MAAUM market share, with approximately 65% of SIP contributions originating from these markets. The SBI YONO platform, with 12 crore customers, has become a major digital delivery partner, facilitating 2.5 lakh IPO applications directly.

    05

    Product Innovation and Platform Expansion

    SBI Funds Management is actively enhancing its product platform across active, passive, and alternate strategies. It plans to launch a second SIF strategy this quarter, positioned in the Ex-Top 100 long-short category, and is also launching the SBI Balanced Hybrid Fund. The alternate business, including PMS, advisory, offshore, and AIF assets, reached ₹16.5 trillion, with AIF assets growing 29% YoY to ₹6,800 crores.

    06

    Digital Transformation and AI Adoption

    Technology and AI continue to improve customer experience, productivity, and distributor enablement. AI-driven tools offer personalized nudges and intuitive digital journeys for investors. Approximately 50,000 distributors now use the partner app and portal for advanced analytics, and 94% of investor transactions are processed digitally through a secure hybrid cloud infrastructure. The in-house research platform, Neo, is also being enhanced with AI capabilities.

    07

    Outlook on PMS through Mutual Funds

    Management expressed strong bullishness on the potential for PMS through mutual funds for ticket sizes of INR 25 lakhs, viewing it as a 'very right step' that will increase the number of players. They anticipate being a leader in this category, benefiting from the ability to launch embedded PMS products and having their mutual funds as part of PMS portfolios.

    This is an AI-generated summary of a publicly available earnings call transcript.