Financial Performance Summary

Standalone Performance (Q1 FY27)

  • Core Revenue (Sale of Services): Rs 308 crores (stable YoY, +1% QoQ)
  • Core EBITDA: Rs 171 crores (+1% YoY, +20% QoQ)
  • Core Profit After Tax: Rs 119 crores (+1% YoY, +72% QoQ)

Consolidated Performance (Q1 FY27)

  • Core Revenue (Sale of Services): Rs 379 crores (stable YoY, +1% QoQ)
  • Core EBITDA: Rs 178 crores (+3% YoY, +21% QoQ)
  • Core Profit After Tax: Rs 129 crores (+6% YoY, +31% QoQ)

Dividend Declaration

Shareholders approved a final dividend of Rs 40 per equity share at the AGM held on 21st July 2026, representing a 95% payout ratio.

Operational and Business Metrics

Mutual Fund Business

  • Quarterly Average AUM: Rs 3,92,691 crores (approaching Rs 4,00,000 crore milestone)
  • Equity Assets Mix: 70% of average mutual fund AUM (vs industry ratio of 62:38)
  • Folio Growth: Added approximately 3.89 lakh folios, taking total live folio base to 1.42 crores
  • New Investors: Added 2.51 lakh new investors (measured by PAN) as of 30th June 2026
  • Distribution Reach: Presence in 699 districts across India

SIP Performance

  • Gross SIP Inflows: Rs 2,502 crores during the quarter
  • SIP AUM: Rs 45,595 crores (+8.05% YoY)

Digital Adoption

  • Digital Purchase Transactions: 60.9 lakh in June 2026 (from 49.14 lakh in June 2025, +23.93% YoY)
  • AI-powered voice assistant VAANI handles over 60% of inbound calls
  • Digital marketing partnership with Google reached over 10 crores unique individuals in past 9 months

Yield Metrics (Disclosed in Q&A)

  • Equity and Hybrid Funds: ~72-73 basis points
  • ETF and Index Funds: ~8 basis points
  • Cash and Arbitrage Funds: ~12 basis points
  • Fixed Income Funds: ~20 basis points

Subsidiary Performance

UTI Pension Fund Limited (100% subsidiary)

  • AUM: Rs 4.31 lakh crores as of 30th June 2026 (+13% YoY from Rs 3.81 lakh crores)
  • Market Share: 24.16% of NPS industry AUM (vs 24.67% in Q1 FY26)
  • Industry-first MoU with farmer producer organization signed during quarter
  • Expanding MSME ecosystem partnerships and rural outreach

UTI International

  • AUM: USD 1.48 billion (Rs 14,027 crores) as of 30th June 2026
  • Client Base: Spread across more than 30 countries (institutions, pensions, insurance companies, banks, asset managers)
  • Flagship India Dynamic Equity Fund (Ireland domiciled): USD 511.56 million (Rs 4,839 crores) AUM

UTI Alternatives

  • Total Commitment AUM: Rs 3,843 crores (increase from ~Rs 2,679 crores in June 2025)
  • GIFT City AUM: USD 206 million across two pooled vehicles (India Opportunity Fund I and II)
  • Manages six active funds across performing credit and multi-strategy themes

Specific Fund Details (UTI Alternatives):

  • UTI Structured Debt Opportunities Fund III: Rs 609 crores AUM (investing stage)
  • UTI SDOF IV: Rs 887 crores AUM (planned Rs 1,500 crores fund with Rs 500 crores Greenshoe)
  • UTI Multi Opportunities Fund I: Rs 1,599 crores AUM (investing stage)
  • UTI Multi Opportunities Fund II: Rs 321 crores AUM (planned Rs 1,000 crores fund with Rs 1,000 crores Greenshoe)
  • UTI Real Estate Opportunity Fund I: Rs 189 crores (fundraising and investing stage)

Other AUM

  • PMS AUM: Rs 12,15,000 crores (declined Rs 3,16,000 crores QoQ due to EPFO mandate transfer)
  • EPFO AUM: Rs 10,63,000 crores

Strategic Initiatives & Progress

Mission 2031 Strategy

Focus on five key priorities: accelerating AUM growth, strengthening SIP franchise, expanding distribution reach, deepening digital capabilities, and delivering better investor outcomes.

Product Development

  • Expanding passive investment franchise with pipeline of index and ETF offerings
  • Received regulatory approval for UTI Nifty 500 ETF and index fund, UTI BSE Index Sector Leaders ETF
  • Planning balanced hybrid fund and sectoral debt funds (subject to regulatory approvals)
  • GIFT City outbound product initiatives and emerging markets strategy in development

International Expansion

  • First US institutional roadshow conducted to showcase private credit capabilities
  • Global product pipeline advancement for emerging markets strategy
  • Engagement with global asset managers, distribution platforms, and thematic ETF providers

Alternatives Business

  • Appointment of dedicated head of private equity
  • Second multi-opportunities fund (MOF II) launched
  • Strong investor interest in Structured Debt Opportunities Fund 4 (~Rs 900 crores commitments)

Organizational Efficiency

  • Leaner and more agile operating model implemented
  • VRS benefits reflected in employee cost reduction
  • Headcount guidance: Standalone entity ~Rs 95 crores/quarter, Consolidated ~Rs 130 crores/quarter
  • Employee demographics: Gen Z increased from 5% in 2021 to 39% currently; Gen Z and Gen Y represent 80% of sales team

Management Commentary & Outlook

Market Environment

  • Resilient domestic economy despite global uncertainty
  • Mutual fund industry average AUM reached Rs 84,18,486 crores in June 2026 (+12.6% YoY)
  • Industry investor folio base expanded to nearly 28 crores
  • Sustained SIP contributions and financialization of household savings

Investment Performance

  • Fixed income franchise delivered consistent performance with resilient credit portfolio (no rating downgrades)
  • Liquid fund reached new AUM milestone
  • Acknowledged challenges in flagship equity scheme performance

Growth Strategy

  • Focus on diversifying beyond top 2-3 equity and hybrid funds
  • Targeting younger investor cohorts (18-25 age group saw 18.6% QoQ growth in SIP registrations)
  • Digital-first approach to engage younger investors
  • Long-term focus on building sustainable market share rather than quarterly optimization

Q&A Session Highlights

Financial Metrics

  • Non-controlling interest became zero due to consolidation changes in AIF funds (SDOF II returned money, SDOF III stake sale)
  • TER change impact (5 bps exit load) passed to intermediaries with no margin dilution

Business Performance

  • Net sales pressure in flexi cap category, but positive inflows in large & mid-cap funds
  • SIP inflows encouraging even in challenged strategies
  • PMS fee impact from EPFO transfer described as "very marginal"

Capital Allocation

  • No buyback plans currently under consideration
  • Maintaining cash buffer for potential M&A opportunities (bolt-on businesses in AMC, alternatives, or international space)
  • No active acquisition talks currently

Cost Structure

  • Employee cost run rate: Standalone Rs 95 crores/quarter, Consolidated Rs 130 crores/quarter
  • Other expenses guidance: 8-10% increase over FY26 number
  • Major IT/digital initiatives completed (cloud infrastructure, salesforce automation, data lake)

Subsidiary Investments

  • Pension fund: Focus on growth over margin exploitation, attractive long-term money characteristics
  • International business: Headcount stable after 2024 US expansion, focusing on alliance-based growth
  • Pension fund headcount to more than double over next 18 months (sales and business development roles)

Market Share

  • Acknowledged market share decline due to redemption pressures in flagship strategies
  • Strategy focused on improving flow market share to exceed stock market share over time
  • Performance improvement key to reversing redemption trends