Mumbai, India – Shares of SBI Funds Management Ltd. experienced a notable downturn on Monday, falling 7% to a session low of Rs 433.55 apiece. This decline came after the mutual fund management company announced its financial results for the second quarter of fiscal year 2027 (Q2 FY27), revealing a 6% year-on-year (YoY) decrease in profit after tax (PAT).
Despite the dip in share price and profitability, SBI Funds Management reported a robust 9% YoY increase in revenue from operations, reaching Rs 1,187.4 crore for the September quarter, up from Rs 1,091.3 crore in the corresponding period of the previous fiscal year. However, profit after tax stood at Rs 693.5 crore, a decline from Rs 740.8 crore in Q2 FY26, according to the company’s investor presentation.
Q2 FY27 Financial Highlights
The company’s total income, which includes other income, saw a 3% YoY rise, amounting to Rs 1,230.1 crore compared to Rs 1,196 crore. Operating profit also improved, increasing 4% YoY to Rs 890.2 crore from Rs 852.1 crore.
Assets Under Management and Customer Growth
SBI Funds Management continued to demonstrate strong growth in its assets under management (AUM). The quarterly average assets under management (QAAUM) in mutual funds reached Rs 13.14 lakh crore as of September 30, 2026, marking a 10% YoY increase. The company maintained a mutual fund market share of 15%.
Systematic Investment Plan (SIP) assets under management surged 15% YoY to Rs 2.07 lakh crore, securing a market share of 12.3%. Actively managed equity QAAUM grew approximately 9% YoY to Rs 9 lakh crore, while passive QAAUM increased 11% to Rs 4.2 lakh crore.
Customer acquisition also showed positive momentum, with 1.85 crore unique customers as of September 30, 2026, representing a 10% YoY rise. Total investor folios expanded by 12% to 2.27 crore.
Half-Yearly Performance (H1 FY27)
For the first half of FY27, SBI Funds Management reported a 12% YoY increase in revenue from operations, reaching Rs 2,336.1 crore from Rs 2,088.7 crore. Operating profit for the period rose 11% to Rs 1,797.2 crore from Rs 1,625.7 crore. However, profit after tax for H1 FY27 saw a slight decline of 1% YoY, standing at Rs 1,566.3 crore compared to Rs 1,585.8 crore.
The company’s management attributed its performance to continued SIP momentum, increased retail participation, and strategic investments in technology and human capital during the quarter.