More Stories

Informist, Friday, Oct. 17, 2025

By Eshitva Prakash

MUMBAI – UTI Asset Management Co. is expected to report a substantial quarter-on-quarter decline in its net profit for the September quarter due to a large decline in other income. The decline in other income will offset gains from higher core revenue, growth in its assets under management and improved operational efficiency, according to analysts tracking the company

The asset management company is expected to report a net profit of INR 1.74 billion for the September quarter, down almost 20% on quarter and down over 13% on year, according to the average of estimates from six brokerages. Kotak Securities has the lowest estimate for net profit at INR 1.34 billion while the highest estimate of INR 2.09 billion is from Nuvama Wealth Management Ltd.

UTI AMC's net sales are expected at INR 3.97 billion, down over 9% on quarter and down almost 5% on year. The lowest estimate for net sales is INR 3.91 billion from Prabhudas Lilladher Pvt. Ltd. and the highest estimate of INR 4.05 billion net sales is from Nuvama.

The company's other income is expected to fall due to adverse mark-to-market losses for equity investments and lower yields. Nuvama had the most aggressive estimate for the company's other income decline and projected a near 87% on-quarter and a similar on-year fall. Despite expectation of a stable on-quarter growth in core earnings, this severe impact from the decline in other income will likely lead to a decline in the company's bottom line. "While operational performance remains resilient, the decline in other income will weigh on reported profitability," JM Financial Institutional Securities Pvt. Ltd. said in its report.

UTI's September quarter core revenue is projected to rise moderately on a sequential basis. The core revenue for asset management companies is the asset management fee these companies charge from their clients. Motilal Oswal and JM Financial both estimate core revenue growth to be between 3% and 6% on quarter. YES Securities (India) expects a 5.2% on quarter growth in AUM, largely led by stable equity flows. The company's assets under management were INR 21.93 trillion as of Jun. 30. Of this, 65% was under portfolio management schemes.

"Overall AUM for UTIAMC grew 4.8% as of August 2025 compared with June 2025. Equity AUM grew by 4.8% over the same period leading to a stable share of pure equity AUM on quarter (excluding Balanced and Arbitrage Funds)," YES Securities said.

Operating performance is expected to show signs of improvement, supported by higher AUM and better cost control. Motilal Oswal expects the fund manager's earnings before interest, tax, depreciation, and amortisation margin will rise on the back of better operational efficiency. YES Securities also expects the company's EBITDA margin to expand sequentially.

The company will report its earnings for the September quarter Saturday. Investors will look for the management's focus on cost control and the company's ability to grow its AUM market share. Further, investors will be keen to hear from the new chief executive officer.

Of the eight brokerage reports on the company available with Informist, six have a ‘buy' recommendation with an average target price of INR 1,477. One brokerage has a 'hold' recommendation on the stock and another has a 'sell' recommendation.

Friday, shares of UTI AMC closed at INR 1,401.80 on the National Stock Exchange, up 1.7%. The stock has risen over 3% since the announcement of the June quarter earnings on Jul. 24. 

Following are the Jul-Sept earnings estimates for UTI Asset Management Co., in INR million, from six broking firms in descending order of net profit estimates:

End

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

Edited by Akul Nishant Akhoury

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

Send comments to feedback@informistmedia.com

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