💰 Financial Performance

Revenue Growth by Segment

Core Revenue from Sale of Services grew 8% YoY to INR 769 Cr in H1 FY26. However, Total Revenue from Operations declined 10% YoY to INR 965 Cr, primarily driven by a 50% decrease in Net Gain on fair value changes (M2M gains) which fell from INR 332 Cr to INR 167 Cr. Interest and Dividend income grew 16% YoY to INR 22 Cr.

Geographic Revenue Split

UTI AMC has a presence in 698 districts in India. A significant focus is on B30 (Beyond Top 30) cities, where 205 out of 255 UTI Financial Centres (80%) are located. International revenue is supported by offices in Singapore, London, Paris, Dubai, and New York.

Profitability Margins

PAT Margins compressed significantly to 27% in Q2 FY26 compared to 44% in Q2 FY25. This was caused by a 38% YoY surge in Employee Benefit Expenses (INR 159 Cr in Q2 FY26) and a 91% drop in M2M gains for the quarter. H1 FY26 PAT Margin stood at 36% vs 46% in H1 FY25.

EBITDA Margin

Core EBITDA (excluding M2M and non-operating income) declined 6% YoY in H1 FY26. Consolidated EBITDA declined 26% YoY due to higher operating expenses and lower treasury gains. Core PAT for H1 FY26 was INR 228 Cr, down 8% YoY, though normalized Core PAT (adjusting for one-offs) grew 1% YoY to INR 248 Cr.

Capital Expenditure

Not explicitly disclosed as a single INR Cr figure, but the company is investing in digital transformation, evidenced by a 17.97% increase in digital purchase transactions to 52.74 lakh and the expansion of the New York and DIFC offices.

Credit Rating & Borrowing

UTI AMC maintains a superior liquidity position with access to sanctioned bank facilities of INR 15,525 Cr, including INR 4,000 Cr fund-based and INR 11,450 Cr intraday facilities. It utilizes TREPS for overnight borrowing to manage temporary mismatches.

⚙️ Operational Drivers

Raw Materials

Human Capital (Employee Costs) represents the primary 'raw material' cost, accounting for 29.8% of total H1 FY26 revenue (INR 288 Cr).

Import Sources

Not applicable as UTI AMC is a financial services firm; however, it sources global investment advisory talent through its offices in the USA, UK, UAE, and Singapore.

Key Suppliers

Not applicable; primary dependencies are on ~75,000 distributors and digital platform providers for fund distribution.

Capacity Expansion

Total Group AUM stood at INR 22,41,837 Cr as of September 30, 2025, growing 11.18% YoY. UTI MF QAAUM reached INR 3,78,413 Cr, a 10.47% YoY increase. The company is expanding its 'Alternatives' capacity with the launch of SDOF IV in August 2025.

Raw Material Costs

Employee Benefit Expenses rose 26% YoY in H1 FY26 to INR 288 Cr. This increase is driven by a one-time INR 25 Cr charge for VRS/family pension revisions and regular increments to retain the investment team.

Manufacturing Efficiency

Digital adoption efficiency: 95.11% of total transactions are now digital. Folio count stands at 1.36 crore, reflecting high retail reach efficiency.

Logistics & Distribution

Distribution is handled via 255 Financial Centres and 81 District Associates. Fee and Commission expenses remained stable at INR 2 Cr for H1 FY26.

📈 Strategic Growth

Expected Growth Rate

10-15%

Growth Strategy

Growth will be achieved through: 1) Deepening penetration in B30 cities (Tier 2/3) where 80% of centers are located. 2) Scaling the Alternatives business (SDOF series). 3) Leveraging the Pension Fund subsidiary which holds a 24.62% NPS market share. 4) New product launches like the Multi Cap Fund which added INR 1,576 Cr to AUM within months of launch.

Products & Services

Equity Mutual Funds (UTI Mastershare), Debt Mutual Funds, Liquid Funds, Retirement Solutions (NPS), Alternative Investment Funds (SDOF IV), Portfolio Management Services (PMS) for EPFO/CMPFO, and Offshore Funds.

Brand Portfolio

UTI Mutual Fund, UTI Mastershare, UTI Swatantra, UTI Multi Cap Fund, UTI Alternatives, UTI Pension Fund.

New Products/Services

UTI Multi Cap Fund (launched May 2025) contributed INR 1,576 Cr to AUM. Structured Debt Opportunities Fund IV (SDOF IV) launched in August 2025 to grow the private credit business.

Market Expansion

Expanding cross-border advisory through the New York office and seeking regulatory approvals in DIFC (Dubai) to capture global investor interest in Indian equities.

Market Share & Ranking

UTI AMC is among the top 10 AMCs in India. UTI Pension Fund manages 24.62% of the NPS Industry AUM.

Strategic Alliances

Collaborations with major banks (HDFC, Axis) and digital platforms to enhance distribution reach.

🌍 External Factors

Industry Trends

The industry is shifting toward digital-first transactions (95% for UTI) and B30 city participation. Passive funds and Multi-asset categories are growing, while the industry SIP stoppage ratio has increased to 76.27%.

Competitive Landscape

Competes with bank-backed AMCs (SBI, HDFC, ICICI) and new-age digital AMCs. UTI differentiates through its strong presence in the Pension and Alternative segments.

Competitive Moat

Moat is built on being the 'Oldest Mutual Fund in India' with high brand trust and a massive distribution network of 75,000 partners. Sustainability is driven by the sticky nature of SIP AUM (INR 42,267 Cr).

Macro Economic Sensitivity

Highly sensitive to capital market performance and retail sentiment. Industry SIP contributions reached a record INR 29,361 Cr in September 2025, supporting UTI's INR 2,338 Cr quarterly SIP inflow.

Consumer Behavior

Increasing preference for Systematic Investment Plans (SIPs) and digital transaction modes (17.97% YoY growth in digital purchases).

Geopolitical Risks

Global expansion in London, Paris, and New York exposes the firm to international regulatory shifts and cross-border capital flow restrictions.

⚖️ Regulatory & Governance

Industry Regulations

Governed by SEBI (Mutual Funds) Regulations, SEBI (Portfolio Managers) Regulations, and PFRDA for pension funds. New certification requirements for SIF (Specialist Investment Funds) distribution impact sales training.

Environmental Compliance

ESG principles are being embedded across the firm; UTI SDOF II & III have well-defined ESG policies. Specific compliance costs not disclosed.

Taxation Policy Impact

Effective tax rate is standard corporate rate; a deferred tax asset may be created due to the 5-year amortization of VRS costs under the Income Tax Act.

Legal Contingencies

A one-time financial impact of INR 25 Cr was accounted for in Q2 FY26 related to the revision of family pension benefits under the VRS package.

⚠️ Risk Analysis

Key Uncertainties

Market risk on treasury investments (INR 3,860 Cr) and AUM-linked fee income. A significant market correction could impact PAT by over 20% due to the high equity mix (69%).

Geographic Concentration Risk

Domestic-heavy, but diversified across 698 districts. No single region concentration disclosed.

Third Party Dependencies

High dependency on independent financial advisors and national distributors for the INR 2,338 Cr quarterly SIP mobilization.

Technology Obsolescence Risk

Mitigated by high digital adoption (95% of transactions) and a dedicated Digital Transformation Committee.

Credit & Counterparty Risk

Exposure in debt schemes is monitored via a dedicated Risk Management Team; one passive breach in a debt scheme (10% limit) was recently rebalanced within SEBI timelines.