UTI AMC Shares Drop 10% After Q2 Results

UTI AMC Shares Fall 10% After Q2 FY26 Results

Shares of UTI AMC declined nearly 10%, marking their largest single-day fall since listing in 2020, following the release of its second-quarter results for FY26. The stock touched an intraday low of ₹1,263.3 before partially recovering to ₹1,318.5.

Key Financial Highlights

The company's revenue fell 23% sequentially, largely driven by a 91% decline in other market-to-market income. Employee costs rose 23%, primarily due to one-off items such as the voluntary retirement scheme (VRS) settlement. This increase led to a reduction in the EBITDA margin by 1,980 basis points. Consequently, the profit after tax (PAT) stood at ₹132 crore, missing estimates due to weaker margins and lower other income.

The company's average assets under management (AUM) rose 5% sequentially to ₹3.78 lakh crore, but its market share declined across key segments. The SIP stoppage ratio increased from 74.51% in August to 76.27% in September, while other expenses also increased, partly due to CSR expenditure.

Comparison With Industry Peers

UTI AMC’s equity AUM remains 26% of total AUM, significantly lower than HDFC AMC’s 65% and the industry average of 56%. The company’s average AUM market share fell from 3.1% to 2.9%, while HDFC AMC gained 10 basis points to 12.9% in the same quarter.

UTI AMC experienced a drastic 91% drop in market-to-market income, compared to a 59% decline for HDFC AMC. Its adjusted PAT yield decreased to 17 basis points from 26 basis points, remaining the lowest among peers, compared to HDFC AMC’s 30 basis points in Q2.

Management Outlook

The company has indicated uncertainty regarding employee costs in the near term but expects improvement in the second half of FY26 supported by new product launches and improved market sentiment. Guidance for other expenditure growth is set at 7–8% compared to the previous year.

Despite the recent fall, UTI AMC shares have gained 23.3% over the past six months, reflecting investor confidence in the long-term business fundamentals.