UTI Asset Management Company (UTIAM IN) – Q1FY27 Result Update – Opex stability and equity performance key to re-rating – HOLD
Published on 24 Jul 2026
UTIAM saw a good quarter as quarter as core income beat PLe by 18.7% led by 2% beat on revenue and 7.7% lower opex. Blended MF yield was flat QoQ at 30.5bps (expected decline) suggesting that impact of TER change was passed to intermediaries. Staff cost normalized in Q1’27 post declaration of VRS in H2’26. Employee cost guidance is INR 1.3bn per quarter for the consol entity while other opex may rise by 8-10% YoY in FY27 with no major IT expenses expected. Company expects to maintain a dividend payout ratio of >95% (standalone). We keep multiple of 13x on Mar’28 core EPS and maintain TP at INR 975. Retain ‘HOLD’ rating.
