UTI AMC Performance Analyzed

UTI Asset Management Company (UTI AMC) shares dropped significantly on October 18, 2025, reflecting disappointing financial results for the second quarter of fiscal year 2026 (Q2FY26). The stock price fell by 9.9% and 7.33% at different points during the day. This decline contrasts with a rise in the broader BSE Sensex market.

Key Points

• UTI AMC profits fell sharply – 53% compared to the previous year.
• Revenue decreased by 22% due to lower investment income.
• Total expenses increased, driven by higher operating costs.
• Assets under management (AUM) remain substantial at ₹22.42 trillion.
• Equity investments make up 69% of the company’s total AUM.
• Brokerages have differing views: Buy (Nuvama) vs. Reduce (JM Financial).

The company reported a significant drop in profit, with earnings declining by 53% year-over-year. This translated to a net profit of ₹113 crore, a considerable decrease from the previous ₹239 crore. This drop was driven by lower revenue.

Revenue also suffered a 22% decline, falling to ₹419 crore compared to ₹538 crore in the previous quarter. This reflects challenges in generating investment income and attracting new funds. The company’s overall financial performance was below expectations.

Expenses increased by 26% to ₹257 crore, primarily due to higher operating costs. This contributed to the reduced profitability. The company’s ability to control costs appears to be an area of concern.

Despite the financial results, UTI AMC still manages a large pool of assets. The total group AUM stands at ₹22,41,837 crore, and the quarterly average assets under management (QAAUM) are ₹3,78,413 crore. This demonstrates the company’s scale but doesn’t address the recent performance issues.

Brokerage recommendations differ. Nuvama Institutional Equities maintains a ‘Buy’ rating and raised the target price to ₹1,650, believing the temporary impacts of a retirement scheme will fade. JM Financial Institutional Equities, however, downgraded the stock to ‘Reduce’, citing continued losses in systematic investment plan (SIP) inflows and stock equity AUM.

“A cautious approach is warranted given the underlying trends impacting UTI AMC’s financial health.”