More Stories

Informist, Tuesday, Jul. 22, 2025

By Udita Jaiswal

MUMBAI – UTI Asset Management Co. is expected to report a substantial increase in its net profit for the June quarter, largely due to the growth in its assets under management. Net sales are estimated to have grown strongly on quarter, according to analysts.

UTI is expected to report a net profit of INR 2.32 billion, up 88% on quarter and 25% higher on year. Centrum Broking Ltd. has the lowest estimate for net profit at INR 1.68 billion while the highest estimate of INR 2.79 billion is by JM Financial Institutional Securities Pvt. Ltd.

Net sales are expected to be INR 3.75 billion, up 18% on quarter but down 3% on year. The lowest estimate for net sales is INR 3.66 billion, which is from Centrum while the highest estimate of INR 3.82 billion is from Nuvama Wealth Management Ltd.

UTI's investment performance has been sub-par, according to analysts. UTI AMC has underperformed in the large-cap equity funds and mid-cap equity funds for the one-year, thee-year, five-year, and 10-year time horizons. In flexi-cap equity funds, UTI AMC has outperformed in the one-year horizon but has underperformed in the three-year horizon.

UTI AMC is expected to sustain its growth by deepening retail participation and expanding its presence in under-penetrated geographies, East India Securities Ltd. said. UTI AMC's earnings before interest, tax, depreciation, and amortisation margin is expected to marginally improve sequentially and other income is expected to be higher sequentially in the latest quarter. Its EBITDA is expected to grow to INR 1.78 billion, up 9% on quarter and 12% on year, YES Securities said.

The growth of UTI's equity assets under management is likely to be down 12.3% on quarter, Nuvama said. The brokerage expects UTI's costs to remain under control, leading to strong EBIT growth.

"Yields on the equity segment are expected to decline at a relatively moderate pace compared to the past couple of years," Motilal Oswal Financial Services Ltd. said. "The decline in overall yields will be protected by a higher share of equities and a mix in debt AUM is likely to move towards longer-duration funds."

The assets under management of UTI's debt mutual funds grew 21% in 2024-25 (Apr-Mar) to INR 15.21 trillion while those of equity mutual funds grew 23% to INR 65.74 trillion. The company will report its earnings for the June quarter on Thursday.

Of the eight brokerage reports on the company available with Informist, six have a "buy" recommendation with an average target price of INR 1,299. One brokerage has a "hold" on the stock and one has a "sell" recommendation.

Tuesday, shares of UTI AMC closed at INR 1,475.40 on the National Stock Exchange, up marginally. The stock has risen nearly 45% since the announcement of the March quarter earnings on Apr. 30. 

Following are the Apr-Jun earnings estimates for UTI Asset Management Co., in INR million, based on reports from six broking firms in descending order of net profit estimates:

END

US$1= 86.36

IST, or Indian Standard Time, is five –and-a-half hours ahead of GMT

Edited by Deepshikha Bhardwaj

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000 /+91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.