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Informist, Monday, Jul. 20, 2026

 

By Nandini Sinha

 

MUMBAI - Weak operating performance amid slower growth in assets under management and seasonal outflows is likely to weigh on UTI Asset Management Co. Ltd.'s June-quarter earnings year on year, according to brokerages tracking the company. However, higher treasury income is expected to boost net profit sharply on a sequential basis.

 

UTI Asset Management is likely to post a net profit of INR 2.04 billion for the June quarter, down nearly 6% on year, but up over six times from a quarter ago, according to the average of estimates from 10 brokerages. The company had reported a net profit of nearly INR 338 million for the March quarter. The highest estimate for the net profit is INR 2.43 billion from YES Securities (India) Ltd. and the lowest is INR 1.51 billion from Nuvama Wealth Management Ltd.

 

The sharp sequential rise in the net profit is likely due to strong growth in investment income, Emkay Global Financial Services Ltd. said. "Higher treasury income, aided by favourable MTM (mark-to-market) gains, should support overall profitability," Motilal Oswal Financial Services Ltd. said.

 

While strong redemptions led to weaker inflows in May and June, other income of asset management companies and wealth managers is expected to have rebounded sharply, resulting in sequential profit growth for all players in the industry, according to JM Financial Institutional Securities Pvt. Ltd.

 

The company's revenue from operations for the reporting quarter is expected to be INR 3.99 billion, down nearly 9% on year, but up nearly 26% on quarter. The highest estimate for revenue is INR 5.27 billion from Kotak Securities Ltd. and the lowest is INR 3.70 billion from Prabhudas Lilladher Pvt. Ltd. UTI Asset Management's revenue from operations in the March quarter was INR 3.17 billion.

 

The mutual fund industry's assets under management are expected to grow around 3% sequentially, led by sustained flows in systematic investment plans and mark-to-market gains on account of around 7% movement in the Nifty 50 over the June quarter, Emkay Global Financial Services Ltd. said. Nomura Financial Advisory and Securities (India) Pvt. Ltd. attributed the growth in the mutual fund industry's quarterly average assets under management to a nearly 3% growth in equity quarterly average assets under management and strong market performance.

 

However, UTI AMC's growth is expected to lag that of the industry sequentially at 1% due to outflows in equity assets under management, according to brokerages.

 

UTI Asset Management will announce its earnings for the June quarter on Wednesday. Key focus areas for the company include weak fund performance, net flow market share and reduction in expenses, according to Kotak Securities.

 

The company's shares fell over 10% since it announced the March quarter results on Apr. 23. On Monday, the company's shares closed 1.1% lower at INR 929.85 apiece on the National Stock Exchange.

 

Of the nine brokerage reports on the company available with Informist, six have a 'buy' recommendation on the stock with an average target price of INR 1,167 per share. This is nearly 26% higher than the current market price. Three brokerages have a 'hold' recommendation with an average target price of INR 1,048 per share.

 

The following are the June quarter earnings estimates of UTI Asset Management from 10 brokerages in descending order of the estimate of net profit in INR billion:

 

BROKERAGE NAME	NET SALES	NET PROFIT
YES Securities (India) Ltd.	4.08	2.43
Nomura Financial Advisory and Securities (India) Pvt. Ltd.	3.75	2.35
JM Financial Institutional Securities Pvt. Ltd.	3.90	2.32
Kotak Securities Ltd.	5.27	2.22
Bank of America Global Research	3.86	2.11
Emkay Global Financial Services Ltd.	3.80	1.89
Prabhudas Lilladher Pvt. Ltd.	3.70	1.86
Motilal Oswal Financial Services Ltd.	3.86	1.86
360 ONE Capital Market Pvt. Ltd.	3.84	1.84
Nuvama Wealth Management Ltd.	3.86	1.51
Average	3.99	2.04

 

End

 

Edited by Saji George Titus

 

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