UTI AMC

UTI AMC demonstrated strong growth in its asset base, with the total group AUM reaching Rs 23.42 lakh crores as of March 31, 2026. The mutual fund AUM specifically increased by 14.45% year-on-year to Rs 3.88 lakh crores. Retail investor participation remained a key driver, with 7.16 lakh new investors (PANs) added in FY26, expanding the total folio base to 1.38 crores. Monthly SIP contributions were robust, hitting Rs 32,087 crores in March 2026, contributing to a total SIP AUM of Rs 15 lakh crores.

The company's strategic investments in digital infrastructure and technology yielded substantial operational efficiencies and revenue growth. Digital business initiatives led to a remarkable 234% increase in revenue and a 33% rise in transactions. Concurrently, these efforts achieved a 31% reduction in cost per transaction. The launch of an AI-powered contact center, VAANI, automated 59% of inbound calls, and an in-app WhatsApp payment facility further enhanced customer experience and service delivery.

CEO Vetri Subramaniam articulated 'growth' as the paramount strategic priority, aiming to leverage the company's existing capacity and technological advancements. A core element of this strategy is to disproportionately grow the SIP book, which is considered vital for sustainable AUM, particularly in active equity. The company is also focused on significantly increasing new customer acquisition through PANs, utilizing digital channels and salesforce automation for cross-selling and upselling opportunities.

Standalone employee costs for FY26 amounted to Rs 437 crores, which included a Rs 25 crore one-off^📎 provision for family pension revision. Excluding this, the normalized standalone employee cost was Rs 412 crores. For FY27, management guided for a quarterly standalone employee cost run rate of Rs 90-95 crores and a consolidated run rate of Rs 125-130 crores, attributing the YoY increase to additional variable pay, quarterly incentives, and strategic recruitment across business lines.

UTI AMC plans to expand its product offerings by filing multiple passive funds, including various NIFTY and BSE index funds, and aims to launch one fund in the SIF (Structured Investment Fund) category during FY27. While a 1-2 basis point dilution in overall yield is anticipated for FY27 due to a shift towards lower-yielding ETF/Index funds, management emphasized that the primary goal is overall revenue growth and product diversification, rather than solely optimizing for yield.

The international business segment faced significant challenges, primarily due to global investors withdrawing an estimated $40 billion from India during Calendar '25 and Q1 '26, exacerbated by currency depreciation. Management acknowledged these external factors as a major headwind, stating the current focus is on 'holding ground' and diversifying the international AUM through new products like government bond ETFs and attracting institutional clients to alternative offerings.

The company maintains a substantial cash and investment balance of Rs 4,000-4,500 crores on its consolidated book, which management views as sufficient for corporate optionality, including potential M&A. UTI AMC declared a final dividend of Rs 40 per share for FY25-26, reflecting a payout ratio of approximately 95% of profits. This aligns with the company's established policy of returning most generated profits to shareholders, indicating no immediate plans to significantly alter its cash reserves.