SBI Funds Management shares hit a new low of ₹433.55, falling 7% on Monday's trading session following the announcement of Q2 FY27 results. The stock quoted at its lowest level since listing on July 21, 2026, currently trading 24% lower against its issue price of ₹574 per share. According to Business Standard, the stock traded 4% lower at ₹445.65 at 12:32 PM, compared to a 0.15% rise in the BSE Sensex. The average trading volume nearly doubled with a combined 2.52 million equity shares changing hands on NSE and BSE, indicating heavy investor interest amid the results announcement.
SBI Funds Management reported a 6% year-on-year decline in net profit to ₹701 crore for Q2 FY27, compared with ₹746 crore in the same period last year. According to The Hindu BusinessLine, revenue rose 9% to ₹1,193 crore from ₹1,095 crore, but this growth was insufficient to offset the profit decline. The company faced significant pressure from other income plunging 57% to ₹45 crore from ₹105 crore in the previous year. Overall expenses surged 28% to ₹301 crore from ₹242 crore, driven by higher employee benefits at ₹131 crore and other expenses at ₹139 crore. As per Equirus Securities, the Q2FY27 profit after tax of ₹701 crore fell short of estimates of ₹766 crore, weighed down by operating expenses of ₹301 crore.
The company's quarterly average assets under management (QAAUM) in mutual funds stood at ₹13.14 lakh crore, representing a 10% year-on-year increase from ₹11.99 lakh crore. As reported by The Hindu BusinessLine, equity assets under management rose 11% year-on-year to ₹6.22 lakh crore from ₹5.58 lakh crore. However, according to Equirus Securities, equity QAAUM grew 5.6% quarter-on-quarter, trailing the industry's 6.6% growth, lowering market share by 12 bps QoQ to 12.53%. The company maintained its market leadership with a market share of 15% in the mutual fund segment. Passive QAAUM increased 11% to ₹4.15 lakh crore with a market share of 27.4%, while debt-oriented assets declined 10% to ₹1.56 lakh crore. Liquid AUM increased 31% to ₹1.20 lakh crore from ₹91,800 crore.
SBI Funds Management's customer base continued to grow significantly, with 1.85 crore unique customers as of September 30, up 10% year-on-year. According to The Hindu BusinessLine, the number of live folios rose 12% to 2.3 crore. The company's assets under management in SIPs stood at ₹2.07 lakh crore, up 15% year-on-year from ₹1.81 lakh crore, with a market share of 12.3%. Systematic Investment Plan inflows increased 3% to ₹3,900 crore from ₹3,800 crore, while SIF assets rose 26% quarter-on-quarter to ₹4,400 crore with a market share of 16%. As per Equirus Securities, monthly systematic-flow market share declined further to 12.0% in September 2026 from 12.65% in June 2026, with new SIP additions totaling 1.9 million in Q2FY27 and market share at 9.94% vs 10.6% in Q1FY27.
Despite the quarterly challenges, analysts remain optimistic about SBI Funds Management's long-term prospects. Equirus Securities maintains a 'Long' rating with a target price of ₹540 per share, citing the company's franchise strength, wide distribution network, and expansion in alternatives. Motilal Oswal Financial Services reiterates a 'Buy' rating with a target price of ₹590, based on a valuation of 38x FY28E core P/E. The company's AIF QAAUM rose 27% year-on-year to about ₹7,437 crore, while assets under management across alternative investments stood at ₹13.3 lakh crore. The brokerage firms project a 13% MF AQAAUM compound annual growth rate (CAGR) and 10% earnings before interest, taxes, depreciation, and amortization (EBITDA) CAGR over FY26-FY29E. The mutual fund business remains strong with continued growth in AUM, resilient SIP flows, and a robust SBI-backed distribution network.
For the first half of FY27, operating revenue rose 12% year-on-year to ₹2,336 crore, while operating profit increased 11% to ₹1,797 crore. According to the company's earnings announcement, profit after tax stood at ₹1,566 crore for H1 FY27. SBI Funds Management shares fell 1.84% to ₹463 on October 23, ahead of the earnings announcement, reflecting investor concerns about the sequential profit decline despite revenue growth. Revenue yield eased 0.6 bps quarter-on-quarter to 36.1 bps, with non-mutual fund yields, excluding advisory, standing at 35-40 bps.
