SBI Funds Management saw its net profit slide 20.3% quarter‑on‑quarter to ₹701.2 crore, while revenue edged up 3.4% to ₹1,193 crore. The share price slipped 1.84% to ₹463 on October 23, ahead of the earnings release.
Total expenses surged 24.4% to ₹301.17 crore from ₹242.21 crore, driven by higher employee benefit costs, depreciation, amortisation and finance charges. The spike in costs ate into earnings, pushing the EBITDA margin down to 77% from 80.1%.
EBITDA fell 1.2% to ₹913 crore from ₹923.8, tightening the margin to 77% versus the sector average of roughly 78%. The company’s filing noted that healthy equity and passive flows helped cushion the impact of the expense rise.
AUM in mutual funds topped ₹13.1 lakh crore, up 10% YoY, securing a 15% market share. Actively managed equity AUM rose 9% YoY to ₹9 lakh crore, while passive AUM climbed 11% to ₹4.2 lakh crore.
Unique customers hit 1.85 crore, a 10% rise, and live folios climbed 12% to 2.3 crore. SIP AUM hit ₹2.07 lakh crore, up 15% YoY, underscoring growing retail participation.
With operating revenue up 12% YoY to ₹2,336 crore in H1 FY27 and operating profit at ₹1,797 crore, the firm may tighten cost controls to shore up margins. Investors are watching for a potential margin rebound in Q3.