Shares of UTI Asset Management Company Ltd. declined 10% on Friday, April 24, reacting to their fourth quarter earnings. According to reports from CNBC TV18, this represents the biggest single-day fall the stock has seen since its Dalal Street debut back in 2020. The stock hit an intraday low of ₹935.25 per share, with the stock declining 16.2% this year so far. Recent market reports indicate the stock has continued to face pressure, with latest data showing it trading at ₹930.00 with a decline of 105.66 points.
For the March quarter, the company's total revenue from operations declined by 25% from the previous quarter to ₹390 crore. As reported by CNBC TV18, the company reported a net loss of ₹67 crore this time, compared to a net profit of ₹121 crore in the previous quarter. The loss was led by an 81% increase in total expenses, mostly due to a net loss on fair value changes. According to Emkay Global's latest analysis, revenue at ₹375 crore fell about 5% q-o-q on dip in revenue yields to 39.1bps driven by shift in mix towards passive funds.
The company continued to lose market share with market-to-market losses dragging it to a net loss, compared to a profit in the previous quarter. According to CNBC TV18, Group AUM at the end of the March quarter stood ₹23.42 lakh crore from ₹23.14 lakh crore last quarter, showing marginal growth despite operational challenges. Emkay Global reports that UTI AMC delivered a largely stable MF QAAUM (quarterly average asset under management) in Q4-FY26 at ₹3.9 lakh crore (-1.4% q-o-q) despite market volatilities. Despite the challenging quarter, recent market reports suggest that brokerages remain selective, with Motilal Oswal maintaining a bullish stance on UTI AMC and Aditya Birla Sun Life AMC, citing steady AUM growth and SIP inflows.
During FY26, the company undertook multiple initiatives—including expanding geographic presence, investments in technology, strengthening the sales force, and deepening distributor relationships—while maintaining focus on cost. As reported by Emkay Global, growing the MF AUM remains the single-line strategic priority of the management, with growing the SIP book remaining the core agenda and key metric for the sales team. The management emphasised that investments in digital capabilities are likely to drive new SIP registrations, led by the young cohort. With growth in AUM, the management remains focused on managing costs and increasing efficiency. Emkay Global maintains an Add rating on UTI AMC while raising the March 2027 target price by 9% to ₹1,200 (from ₹1,100), implying FY28E P/E of 18x.
