Mumbai: UTI Asset Management Company Ltd reported a 20.6 percent year-on-year decline in consolidated net profit to Rs 137.8 crore in Q3 FY26, while revenue from operations surged 23.8 percent to Rs 517.1 crore. Compared to Rs 132.2 crore profit in Q2 and Rs 120.97 crore in Q1, the company's bottom line improved sequentially. However, profitability was impacted by one-time costs, despite a strong topline recovery.
Q3 revenue growth robust despite exceptional cost hit
In the third quarter of FY26, UTI AMC posted revenue from operations of Rs 517.1 crore, up from Rs 417.6 crore in Q3 FY25. Net profit declined to Rs 137.8 crore from Rs 173.6 crore YoY, largely due to a Rs 108.85 crore exceptional item related to voluntary retirement scheme (VRS) and labour code transition costs. Sequentially, revenue rose 23.5 percent from Rs 418.6 crore in Q2 FY26, while net profit improved by 4.2 percent from Rs 132.2 crore.
Sequential momentum builds with operating leverage
Total expenses dropped 10.3 percent QoQ to Rs 230.8 crore in Q3, supporting margin expansion. Employee benefit expenses eased to Rs 132.7 crore from Rs 158.8 crore in Q2, aided by VRS-related one-offs being classified separately. Basic earnings per share improved to Rs 9.43 from Rs 8.82 in Q2, though it remained below Rs 11.81 reported in Q3 FY25. Tax expense stood at Rs 40.46 crore, translating to an effective tax rate of ~23.5 percent.
VRS and Labour Code changes weigh on quarterly performance
The company incurred an exceptional cost of Rs 104.28 crore in Q3 towards VRS settlements, gratuity, and pension liabilities. An additional Rs 4.57 crore was booked due to changes arising from the New Labour Codes. Management confirmed these were one-time expenses aimed at long-term structural optimisation. Total comprehensive income attributable to owners stood at Rs 140.6 crore, up from Rs 131.5 crore in Q2.
9M FY26 shows muted trend amid cost restructuring
For the nine-month period, UTI AMC’s consolidated net profit fell 26.3 percent to Rs 523.9 crore from Rs 711 crore in 9M FY25. Revenue from operations was flat at Rs 1,482.6 crore. EPS for the period dropped to Rs 36.74 from Rs 50.54. The muted cumulative performance reflects the cost-heavy restructuring phase, though the company’s topline trajectory indicates a solid operational foundation going into Q4.
Disclaimer: This article is based on the company’s regulatory filing for Q3 FY26. It is for informational purposes only and does not constitute investment advice or a recommendation.
