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    UTI AMC

    UTIAMC
    Financial Services·18 Oct 2025
    Management Summary

    UTI AMC reported a quarter of resilient growth, with total AUM increasing 11% YoY to ₹22.42 lakh crores and normalized consolidated PAT showing a 4% QoQ increase. The company saw strong SIP inflows, up 12.04% YoY, and significant digital adoption, with 41% of equity and hybrid gross sales from digital platforms. Key initiatives include a VRS scheme, with a one-time family pension revision cost of ₹25 crores, and strategic focus on hybrid funds and SIP market share, despite a decline in overall equity MF inflows and a rise in SIP stoppage ratio.

    Highlights

    5

    • UTI Group's total AUM reached ₹22.42 lakh crore as of September 30, 2025, a growth of 11% from ₹20.16 lakh crores a year ago.

    • Normalized consolidated core PAT for Q2 FY26 was ₹127 crores, up 4% QoQ, excluding the one-time family pension impact.

    • SIP gross inflows for UTI Mutual Fund witnessed a year-on-year growth of 12.04%, with H1 FY26 inflows at ₹4,599 crores, up 17.70% from H1 FY25.

    • UTI Pension Fund Limited recorded AUM growth of 15.82% YoY, reaching ₹3.89 lakh crores as of Q2 FY26.

    • Digital platforms mobilized 41% of total gross sales for equity and hybrid funds in Q2 FY26, with 89% of total gross sales in the quarter coming from the digital platform.

    Concerns

    4

    • Equity MF inflows fell 9% to ₹30,422 crores in September from ₹33,430 crores in the previous month.

    • The SIPs stoppage ratio rose to 76.27% in September, up from 74.51% in August.

    • UTI International AUM declined due to redemptions in UTI Phoenix Fund and mark-to-market impact on UTI India Dynamic Equity Fund and UTI Innovation Fund, resulting in a loss of approximately ₹2,000 crores.

    • Consolidated core PAT for Q2 FY26 was ₹107 crores, down 5% YoY (including the one-time family pension impact).

    Key financials

    Metrics

    7

    Periods

    2

    Headline

    6
    • UTI Group Total AUM
      ₹224.20L Cr
      YoY+11%
    • Mutual Fund AUM
      ₹3.78L Cr
    • Consolidated Core Income
      ₹390 Cr
      YoY+5%QoQ+3%
    • Normalized Consolidated Core PAT
      ₹127 Cr
      YoY-5%QoQ+4%
    • SIP AUM
      ₹42,267 Cr
      YoY+6.0%

    Q2

    1
    • SIP Gross Inflows
      ₹2,338 Cr
      YoY+12.0%

    Segment breakdown

    Active Equity Plus Hybrid AUM
    ₹1.3L Cr Quarterly Average AUM
    Index and ETF AUM
    ₹1.6L Cr Quarterly Average AUM
    UTI Pension Fund Limited AUM
    ₹3.9L Cr AUM
    UTI International AUM
    ₹23,647 Cr AUM2.66 billion AUM
    UTI Alternatives Private Limited AUM
    ₹2,669 Cr Total AUM
    List

    Guidance & targets

    3
    CategoryTargetPriority
    Other
    Other Expenses
    7%-8%
    		High
    Tax Rate
    Full Year Tax Rate
    26-27%
    		High
    Capacity
    UTI Pension Fund Branches
    40
    		High

    What to watch in Q3 FY26

    4

    Actual VRS Impact and Employee Cost Run Rate

    Q3 FY26 results
    CurrentOne-time family pension revision cost of ₹25 crores booked in Q2. 479 employees eligible for VRS, average payout ₹60-65 lakhs.
    TargetActual total VRS cost and new normalized employee cost run rate.

    Why it matters

    The VRS scheme is a significant one-time📎 event, and its final cost and impact on ongoing employee expenses will affect profitability.

    The actual impact of VRS will depend on how many number of people actually opt for. And that we will be communicating sometime maybe in the later part of the month of November... So we will communicate the actual run rate maybe while we announce the Quarter 3 results.

    Risks & concerns

    3
    RiskSeverity

    Market Volatility and Geopolitical Tension

    The last few months have brought volatility to the Indian markets, among rising geopolitical tension and also trade challenges. — Management acknowledged

    medium

    FPI Appetite Cooling

    FPI appetite towards India is currently fairly cooled in that sense, right? There has been a net outflow. So India as a category is actually not attracting too much flows at this point of time. — Management acknowledged

    medium

    SIP Stoppage Ratio Increase

    In September, the SIPs stoppage ratio rose to 76.27% up from 74.51% in August. — Management acknowledged

    low

    Q&A highlights

    8

    “So overall, the number of employees that are eligible for VRS is 479 out of roughly around 1450 employees that we have. So only one third of the employees are actually eligible for VRS. And these are primarily the employees who are more than 50 years of age and joined prior to 2003. The average VRS payout per employee, would be in the range of around 60-65 lakhs.”

    Provides specific numbers on VRS eligibility and potential payout per employee, crucial for estimating the total financial impact, which is a key concern.

    asked by Prayesh Jain

    2 min read6 chapters

    Detailed Narrative

    01

    Leadership Transition and Strategic Vision

    Mr. Imtaiyazur Rahman, MD & CEO, announced his succession by Mr. Vetri Subramaniam, effective February 1, 2026, with Mr. Rahman transitioning to Strategic Advisor until June 12, 2026. Mr. Subramaniam outlined key strategic priorities including workforce rejuvenation, enhancing brand visibility for younger cohorts, investing in best-in-class digital assets, and continuously raising SIP market share, particularly in core diversified products. The focus is on products, fund performance, and a people-driven business model.

    02

    Q2 FY26 Financial and Operational Performance

    UTI AMC reported a total AUM of ₹22.42 lakh crores as of September 30, 2025, marking an 11% YoY growth from ₹20.16 lakh crores. The mutual fund AUM reached ₹3.78 lakh crores. Consolidated core income for Q2 FY26 was ₹390 crores, up 5% YoY and 3% QoQ. Normalized consolidated core PAT, excluding a one-time📎 family pension impact, stood at ₹127 crores, up 4% QoQ, though down 5% YoY.

    03

    Voluntary Retirement Scheme (VRS) Impact

    The Board approved a VRS scheme effective October 1, 2025, with applications open until October 31, 2025. A one-time📎 financial impact of ₹25 crores, related to family pension benefit revision, was fully accounted for in Q2 FY26. Approximately 479 employees are eligible for the VRS, with an estimated average payout of ₹60-65 lakhs per employee. The company expects to communicate the actual total impact and new employee cost run rate in Q3 FY26.

    04

    SIP Growth and Digital Adoption

    SIP inflows for Q2 FY26 were ₹2,338 crores, with gross inflows growing 12.04% YoY. The SIP AUM reached ₹42,267 crores, a 5.98% YoY increase. Digital platforms played a crucial role, mobilizing 41% of total gross sales for equity and hybrid funds in Q2 FY26, and contributing to 89% of total gross sales in the quarter. Initiatives like Salesforce partnership and ONDC integration are enhancing digital engagement and transaction ease, with 6 lakh new SIPs registered in H1, 75% digitally.

    05

    Subsidiary Performance and New Initiatives

    UTI Pension Fund Limited's AUM grew 15.82% YoY to ₹3.89 lakh crores, managing 24.62% of the NPS industry's AUM, and plans to expand its branch network from 31 to 40 in FY26. UTI Alternatives Private Limited's AUM reached ₹2,669 crores, and it launched its fourth SDOF series fund, planned at ₹1,500 crores. UTI International, rebranded as UTI Investments, reported AUM of USD 2.66 billion or ₹23,647 crores, despite a decline in H1 due to specific fund redemptions and mark-to-market impact🌐s.

    06

    Market Share and Product Strategy

    UTI AMC captured a market share of 6.2% of the industry's gross sales in Q2 FY26. The company's go-to-market strategy remains focused on the hybrid category of funds, with active equity plus hybrid quarterly average AUM at ₹1,33,202 crores. Management emphasized that SIPs are a core strategy, and they are working to increase SIP market share across all platforms. The company is also exploring new product categories like SIFs, but acknowledges the need for distribution readiness and market education before full launch.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.