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Informist, Tuesday, Jan. 20, 2026

By Reshma Ravi

MUMBAI – UTI Asset Management Co. is expected to report a flat on-year net profit for the December quarter. Earnings are likely to decline sequentially as higher employee costs linked to a voluntary retirement scheme and lower fee yields weigh on core profitability, even as assets under management show steady growth and higher other income from market gains provides some support.

The company is expected to report a net profit of INR 1.43 billion for the December quarter, flat on year and down over 14% on quarter, according to the average of the estimates from seven brokerages. The highest estimate for net profit is INR 1.99 billion from YES Securities (India) Ltd., while the lowest is INR 1.04 billion from Prabhudas Lilladher Pvt. Ltd.

The company is expected to report net sales of INR 4.03 billion for the December quarter, up over 22% on year and over 3% on quarter, according to the average of the estimates. The highest estimate for net sales is INR 4.10 billion from Nuvama Wealth Management Ltd., while the lowest estimate is INR 3.97 billion from Kotak Securities Ltd.

Core profitability is expected to remain under pressure during the quarter. Analysts expect core profit before tax to be weak, led by modest revenue growth of 6% on year and a sharp rise in expenses due to provisions related to the voluntary retirement scheme. "Due to VRS scheme in place, UTI AMC is likely to see a spike in staff costs (+60.0% QoQ) (up 60% on quarter) as against NAM and HDFC," Prabhudas Lilladher said. The brokerage also expects operational expenditure to rise 6% on quarter led by an increase in staff cost on account of the implementation of the new labour code.

UTI Asset Management's revenue is expected to grow about 2% on quarter, broadly in line with its peers. Analysts said fee yields are likely to remain under pressure due to the telescopic structure of total expense ratios, though this impact is expected to be offset by steady fund inflows and mark-to-market gains that help sustain assets under management growth. 

Other income is also likely to rise marginally during the quarter, supported by favourable market movements. Other income is expected to surge 66.4% on year and 138.8% on quarter due to strong equity market to market gains, Nuvama said.

In the September quarter, the company had reported a net profit of INR 1.66 billion, down over 17% on year and over 23% on quarter. Its total revenue fell nearly more than 6% on year and nearly 11% on quarter to INR 3.90 billion.

Of the four brokerage reports on the company available with Informist, three have a 'buy' recommendation with an average target price of INR 1,550. This is nearly 46% higher than the current market price. One brokerage has a 'sell' recommendation on the stock. The company will report its earnings for the December quarter Wednesday.

At 1336 IST, shares of UTI AMC were trading at INR 1,065.20 on the National Stock Exchange, down nearly 3%. The stock has fallen nearly 21% since the announcement of the company's September quarter earnings on Oct. 18. 

Following are the Oct-Dec earnings estimates for UTI Asset Management Co., in INR billion, from seven broking firms in descending order of net profit estimates:

End

US$1 = INR 90.96

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

Edited by Avishek Dutta

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