UTI AMC Q1 FY27 Results (NSE: UTIAMC)
Signal: Margins at cyclical peak
The read
Consolidated PAT growth of 15.8% YoY is entirely from a surge in net fair value gains (+88.5% YoY) at the subsidiary level; the core asset management fee (sale of services) was flat (-0.1% YoY). Standalone PAT was nearly unchanged (+0.8% YoY), confirming that the group's bottom-line momentum is investment-performance-driven, not operational. The trajectory since the Q4FY26 consolidated loss (-₹66.71 Cr attributable) shows a strong sequential recovery, but the volatility in fair value gains (swing from -₹174.80 Cr net loss in Q4FY26 to +₹187.13 Cr gain in Q1FY27) underscores earnings fragility tied to market movements.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹583.51 Cr | 6.7% | 49.5% |
| EBIT | ₹367.94 Cr | 12.9% | |
| Net profit | ₹293.86 Cr | 15.8% | |
| EPS | ₹22.86 | 23.6% | |
| EBIT margin | 63.1% |
P&L walk
Revenue flat at ₹583.51 Cr (+6.7% YoY) on stable sale of services (₹378.74 Cr, -0.1% YoY) but sharply higher net gains on fair value changes (₹187.13 Cr, +88.5% YoY). Employee cost fell 5.8% YoY to ₹121.63 Cr while other expenses rose just 1.5% YoY, creating operating leverage that pushed profit before exceptional items up 12.9% YoY to ₹367.94 Cr. PAT grew 15.8% YoY to ₹293.86 Cr, aided by a lower effective tax rate (25.2% vs 26.6% in Q1FY26).
Segments
Sale of services was flat at ₹378.74 Cr (-0.1% YoY), with the domestic segment edging up 2.3% YoY to ₹353.33 Cr, while the international segment fell 25.0% YoY to ₹25.41 Cr. The PAT growth came entirely from the steep rise in net gains on fair value changes (₹187.13 Cr, +88.5% YoY) which are largely driven by subsidiaries' investment performance.
Key positives
- Employee cost fell 5.8% YoY (₹121.63 Cr vs ₹129.16 Cr) despite flat revenue — cost discipline evident.
- Consolidated PAT recovered sharply from a loss of ₹51.44 Cr in Q4FY26 to a profit of ₹293.86 Cr.
- P/E at 22.23x remains well below the industry P/E of 37.92x, suggesting valuation discount.
- Dividend yield of 4.36% provides a strong income floor.
Key concerns
- Core asset management revenue (sale of services) was flat YoY at ₹378.74 Cr — no organic fee growth.
- Net fair value gains (₹187.13 Cr) represent 32% of total revenue, making earnings highly volatile and market-dependent.
- International segment revenue declined 25.0% YoY to ₹25.41 Cr, a continued drag.
- Standalone PAT grew just 0.8% YoY — group growth is entirely subsidiary-driven and non-operational.
Research and educational content only. Not investment advice.