SBI Funds Management shares ended Monday's session 0.17% lower at ₹588.15, declining 4% so far this year following the company's first quarterly earnings announcement. The stock had traded marginally lower on Monday, August 3, ahead of the results, with SBI Funds Management shares trading at ₹587.70, down ₹1.45, or 0.25%, on the National Stock Exchange (NSE) at around 2:25 pm. The stock is currently trading around 2.4% above its IPO issue price of ₹574, having debuted at ₹613.30 per share on the NSE, a premium of 6.85% over the issue price. However, the stock witnessed sharp volatility after listing, briefly slipping below its IPO price last week and falling nearly 8% from its listing price before recovering in recent sessions. The ₹9,812.91 crore initial public offering comprised an offer for sale (OFS) of 17.09 crore equity shares by promoters State Bank of India and Amundi India Holding, with the IPO being subscribed 41.66 times across investor categories. Shares of SBI Funds Management will be in focus on Tuesday after the asset management company reported its first quarterly results since listing last month.
SBI Funds Management delivered robust quarterly results for Q1 FY27, marking its first earnings since its public listing in July 2026. The company posted a standalone net profit of ₹873 crore, representing a 3.3% year-on-year growth from ₹845 crore in Q1 FY26. However, net profit received a boost from mark-to-market gains, with other income swinging to a profit of ₹237 crore from a loss of ₹46 crore in the previous quarter. Revenue from operations grew 15.2% to ₹1,146 crore from ₹995 crore a year earlier, with operating profit coming in at ₹907 crore, marking a 17% increase from the year-ago period. Sequential growth was even stronger, with profit after tax growing 37% during the quarter. Revenue grew 1.3% quarter-on-quarter to ₹1,154 crore, with the company reporting a slight improvement in yields, supported by a better product mix. The improvement in yields eased concerns over potential pressure following the total expense ratio (TER) rationalisation, with management successfully passing on the impact of TER changes to distributors, leaving the company in a neutral to marginally positive position. Operating margins remained robust at above 80%.
SBI Funds Management retained its position as India's largest asset management company with a market share of 15.1% as of June 30, 2026. However, the company's QAAUM rose 0.8% sequentially to ₹12.61 lakh crore, slightly below the industry average, resulting in a market share decline of around 20 basis points. The equity AUM increased 2% during the quarter, while systematic investment plan (SIP) inflows declined 2.4% compared with the previous quarter. In the actively managed equity segment, QAAUM reached ₹8.6 trillion, growing 10% year-on-year and giving the company a market share of 12.5%. The passive QAAUM increased 12% year-on-year to ₹4 trillion, maintaining the company's number one position in the segment with a 27.4% market share. The SIP AUM hit ₹2 trillion, up 15% year-on-year, with 17 million triggered monthly transactions. Including portfolio management services and alternative investment mandates, the company oversaw total QAAUM of ₹29.46 lakh crore at the end of fiscal year 2026. The company's alternative assets under management (AUM) comprising AIF, PMS, advisory, and offshore funds stood at ₹16.5 trillion during the quarter, with Alternative Investment Fund (AIF) QAAUM rising 29% YoY to around ₹6,800 crore.
The company's investor base continued to expand during the quarter, with 18.2 million unique investors, 16 million live systematic investment plans (SIPs) and 22.3 million mutual fund investor folios. The number of individual investors from beyond the top 30 (B-30) cities stood at 12.7 million, highlighting the growing contribution from smaller cities. As of the end of the quarter, SBI Funds Management offered 122 mutual fund schemes, including 35 equity-oriented schemes, 36 debt schemes and 43 exchange-traded funds (ETFs) and index fund schemes. The company also launched six new schemes during the first quarter of FY27, demonstrating continued innovation in its product portfolio. The Systematic Investment Plan (SIP) AUM increased 15% year-on-year to ₹2 trillion with a market share of 12.3%. Digital platforms processed nearly 13 lakh transactions monthly, with 94% of investor transactions routed digitally. The faster growth in passive AUM (12% YoY) compared to active equity AUM (10% YoY) underscores a continued shift towards low-cost investment options among investors, aligning with broader market trends favoring index-based products.
On August 3, 2026, the Board of Directors approved strategic initiatives including a ₹25 crore investment in its wholly owned subsidiary, SBI Funds International (IFSC) Limited, and amendments to the Articles of Association to grant special rights to State Bank of India (SBI) and Amundi India Holding (AIH). The amendments include board nomination privileges and joint placement rights for matters concerning annual financial plans and debt availing exceeding 10% of net asset value. These changes stem from a Waiver Cum Amendment Agreement dated March 19, 2026. The Board appointed M/s. N. L. Bhatia & Associates as Secretarial Auditor for five consecutive years from FY2027 to FY2031, subject to shareholder approval via postal ballot. Shareholders will also vote on the ratification of the Employees' Stock Option Plan 2018 and its extension to subsidiary employees.
