UTI AMC — Q2 FY26 earnings call

Call held 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

  • 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

  • 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

2 periods

Headline

  • 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%
  • Family Pension Revision Cost
    ₹25 Cr

Q2

  • SIP Gross Inflows
    ₹2,338 Cr
    YoY +12%

What they filed

Q1 FY27: revenue up 6.8%, net profit up 15.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue538 418 376 547 419 −22%517 +24%390 +4%584 +7%
EBITDA348 233 169 340 177 −49%302 +30%-12 −107%383 +13%
Net profit263 174 102 254 132 −50%138 −21%-51 −150%294 +16%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Active Equity Plus Hybrid AUM
    ₹1.33L Cr Quarterly Average AUM
  • Index and ETF AUM
    ₹1.62L Cr Quarterly Average AUM
  • UTI Pension Fund Limited AUM
    ₹3.89L Cr AUM
  • UTI International AUM
    ₹23,647 Cr AUM2.66 Bn AUM
  • UTI Alternatives Private Limited AUM
    ₹2,669 Cr Total AUM

Guidance & targets

Other

  • Other Expenses Other · full year · High confidence 7%-8%
    For the full year, we maintain a guidance of close to around 7%-8% for the other expenses.

    — Vinay Lakhotia

Tax Rate

  • Full Year Tax Rate Tax Rate · full year · High confidence 26-27%
    The full year tax rate actually will be slightly higher in the range of around 26-27.

    — Vinay Lakhotia

Capacity

  • UTI Pension Fund Branches Capacity · FY26 · High confidence 40
    We currently operate through 31 branches across India and plan to take the total number of branches to 40 in FY26.

    — Sandeep Samsi

What to watch in Q3 FY26

Actual VRS Impact and Employee Cost Run Rate

Q3 FY26 results
Current One-time family pension revision cost of ₹25 crores booked in Q2. 479 employees eligible for VRS, average payout ₹60-65 lakhs.
Target Actual 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

  • Market Volatility and Geopolitical Tension

    medium

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

    Management acknowledged

  • FPI Appetite Cooling

    medium

    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

  • SIP Stoppage Ratio Increase

    low

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

    Management acknowledged

Q&A highlights

6 direct
VRS Cost and Employee Run Rate Partial
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

SIP Market Share Decline Direct
I think if you look at our market share, it might have just gone down marginally. But otherwise, we have seen a month-on-month growth in our SIP numbers. So if you look at the SIP count of ours, it has also increased 11% on a year-on-year basis. So there are about 6 lakh new SIPs which have been registered in this first half of the year, out of which 75% have come through the digital channel.

Addresses analyst concern about declining SIP market share, providing context on MoM growth and digital channel contribution, indicating strategic focus.

Asked by Prayesh Jain

UTI International Business Decline Direct
So the AUM decline that has happened over there is primarily because of two funds. One is UTI Phoenix Fund, which is similar to a FMP kind of a category, which has matured and some redemption and mark-to-market impact on our UTI India Dynamic Equity Fund and UTI Innovation Fund, where we lost close to around Rs. 2,000 crores, primarily because of mark-to-market impact only.

Explains the specific reasons for the decline in international AUM, attributing it to fund maturity and mark-to-market impacts rather than broader operational issues.

Asked by Mohit Mangal

Strategy for Hybrid Category Flows Direct
So that remains actually our focus in terms of the hybrid strategies and that is just a function of where we think the market is both in terms of valuations of both equity and fixed income, which is why we think this is a sort of more appropriate part. There has been perhaps some churning of portfolios, but we are just doubling down on the push in terms of hybrid products.

Clarifies management's strategic focus on hybrid funds, indicating a deliberate approach based on market valuations despite recent flow challenges.

Asked by Mohit Mangal

New MD & CEO's Strategic Focus Areas Direct
So if you look at it in terms of, I think, what the strategic priorities are... workforce rejuvenation is a very key component... brand visibility and the brand connect... we need to have best-in-class digital assets... continuously raising the SIP market share.

Provides a comprehensive overview of the incoming MD & CEO's strategic priorities, covering key areas like talent, brand, digital, and core business growth.

Asked by Madhukar Ladha

Lead Time for Flows Post Performance Improvement Direct
So if you see in the past and even if you refer to our data of 2021-22, you will see that typically, it is somewhere in the second year after you start to get good performance in some of your schemes is where the flow numbers start to pick up quite significantly. So you will see that very much in our flow data in 2020-21 and 2021-22... So I would say 2-3 is the sweet spot.

Offers insight into the typical lag between improved fund performance and subsequent inflow generation, providing a realistic expectation for investors.

Asked by Madhukar Ladha

New SIF Product Strategy Partial
Challenges: distribution requires new certification for sales team/partners. Limited ability currently. Training people, finalizing separate brand. Market appetite for long-short products not well understood. Need to launch when distribution architecture is prepared.

Highlights the challenges and strategic considerations for launching new, complex products like SIFs, emphasizing the need for distribution readiness and market education.

Asked by Swarnabh Mukherjee

Digital Onboarding and Competition Direct
89% of our total gross sales in the quarter came from the digital platform. And in the last 4 quarters, an average of around 92% of the gross sales are coming through the digital channel... So you can see that digital channels are taking shape through the existing distributors as well as from the Fin-tech platform.

Demonstrates the company's strong digital adoption and strategy to leverage digital channels and partnerships to maintain competitiveness in a rapidly evolving market.

Asked by Meghna Luthra

2 min read 6 chapters

Detailed narrative

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.

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.

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.

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.

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 impacts.

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.

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