SBI Funds Management Limited reported a decline in standalone net profit for the second quarter of FY27, even as revenue from operations recorded healthy year-on-year growth. Higher expenses and lower other income weighed on profitability during the quarter ended September 30, 2026.
The asset management company reported standalone profit after tax (PAT) of ₹693.54 crore, down 6.38% from ₹740.78 crore in the corresponding quarter of the previous financial year. Revenue from operations increased 8.81% year-on-year to ₹1,187.40 crore.
SBI Funds Management Q2 Results : Key Financial Highlights
- Net profit (standalone): ₹693.54 crore, down 6.38% year-on-year from ₹740.78 crore.
- Revenue from operations (standalone): ₹1,187.40 crore, up 8.81% year-on-year.
- Total income (standalone): ₹1,230.06 crore, up 2.85% year-on-year.
- Total expenses (standalone): Approximately ₹297.13 crore, up around 24% year-on-year.
- Consolidated net profit: ₹701.24 crore, down approximately 5.99% year-on-year from ₹745.93 crore.
- Mutual fund quarterly average assets under management (QAAUM): Approximately ₹13.14 lakh crore, with a 15% market share.
Higher Expenses and Lower Other Income Weigh on Profit
SBI Funds Management’s standalone total income increased 2.85% year-on-year to ₹1,230.06 crore in Q2 FY27, compared with ₹1,195.97 crore in Q2 FY26.
However, total expenses rose to ₹297.13 crore from approximately ₹239.19 crore a year earlier. Other income declined to ₹42.67 crore from ₹104.70 crore in the corresponding quarter of the previous financial year.
The increase in expenses and reduction in other income contributed to the decline in quarterly net profit, despite growth in revenue from operations.
Consolidated Results Also Show a Profit Decline
On a consolidated basis, SBI Funds Management reported revenue from operations of ₹1,192.67 crore for Q2 FY27, compared with ₹1,095.10 crore in the year-ago quarter, representing growth of approximately 8.91%.
Consolidated net profit declined to ₹701.24 crore from ₹745.93 crore, a fall of approximately 5.99% year-on-year. The consolidated figures reflect the performance of the company and its subsidiaries, and are therefore distinct from its standalone results.
Mutual Fund Assets Under Management Rise 10%
SBI Funds Management continued to report growth in its mutual fund business. Its mutual fund QAAUM reached approximately ₹13.14 lakh crore, representing a market share of 15% as of September 2026.
Key business highlights included:
- Actively managed equity QAAUM: Approximately ₹8.99 lakh crore, up 9% year-on-year.
- Passive QAAUM: Approximately ₹4.15 lakh crore, with a 27.4% market share.
- SIP assets under management: Approximately ₹2.07 lakh crore.
- Unique investors: Approximately 1.85 crore.
- Live SIPs: Approximately 1.62 crore.
These figures highlight the scale of the company’s asset management operations and the continued participation of investors through systematic investment plans.
H1 FY27 Performance: Revenue Grows 12%
For the first half of FY27, SBI Funds Management reported standalone revenue from operations of approximately ₹2,336.07 crore, up 11.85% year-on-year from ₹2,088.66 crore in H1 FY26.
However, standalone net profit declined approximately 1.23% to ₹1,566.3 crore from ₹1,585.8 crore in the corresponding six-month period of the previous financial year. Total income increased approximately 3.74% year-on-year to ₹2,614.89 crore.
What to Watch Next
Going forward, key factors to monitor include growth in assets under management, equity and passive fund flows, SIP contributions, changes in the mix of assets managed, and operating expenses. The company’s ability to convert revenue growth into higher profitability will also remain an important measure of its financial performance.
Conclusion
SBI Funds Management reported a 6.38% year-on-year decline in standalone net profit to ₹693.54 crore in Q2 FY27, despite an 8.81% increase in revenue from operations. Higher expenses and lower other income weighed on earnings, while the company’s mutual fund QAAUM continued to expand.
The company’s performance in upcoming quarters will depend on asset growth, investor flows, the composition of assets under management and its ability to manage costs.
Source: SBI Funds Management’s Q2 and H1 FY27 financial results, investor presentation, and financial reporting by Fortune India and ICICI Direct.
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