SBI Funds Management Achieves Profit Jump in First Post-IPO Earnings, Driven by Strong Domestic Inflows

SBI Funds Management Achieves Profit Jump in First Post-IPO Earnings, Driven by Strong Domestic Inflows​

SBI Funds Management (SFM) reported robust financial results for the June quarter, posting its first earnings announcement since its stock market debut in July. The asset manager saw a 3.7% year-on-year rise in consolidated net profit, primarily buoyed by sustained and strong domestic participation across mutual funds. This marks a positive start following the company's public listing.

Profit Surge Driven by Domestic Investor Confidence​

SFM reported a consolidated net profit of Rs 880 crore for the quarter ending June 30, up from Rs 849 crore in the previous year. Operating profits climbed significantly at a rate of 17% year-on-year, reaching Rs 907 crore during the period.

However, while the company saw consolidated revenue from operations rise nearly 15% year-on-year to Rs 1,153 crore, the growth was partially offset by a sharp decline in other income to Rs 237 crore from a year prior. Despite this, profit after tax saw a sequential jump of 37%, arriving at Rs 873 crore.

Asset Management Under Management Grows Across Segments​

The company's operational strength was clearly reflected in its growing asset base. Average assets under management (QAAUM) for the mutual fund business rose by 11% year-on-year, reaching a substantial Rs 12.6 lakh crore. This performance cemented SFM’s position as the country's largest mutual fund manager, holding a 15.1% market share.

The growth was balanced across various fund types. Actively managed equity QAAUM increased by 10%, standing at Rs 8.6 lakh crore. Furthermore, passive QAAUM expanded by 12% to Rs 4 lakh crore, giving SFM an industry-leading 27.4% share in the passive funds segment.

Retail Participation and AIF Performance Shine​

The steady retail participation was a key driver supporting investor confidence during the quarter. The company’s SIP AUM (Systematic Investment Plan) increased by 15% year-on-year, totaling Rs 2 lakh crore, representing a 12.3% market share as of June 30.

On the customer front, SFM expanded its reach, with its customer base growing by 12% to 1.82 crore. The total live folios also saw growth of 14%, reaching 2.2 crore.

Meanwhile, performance in alternative assets remained strong. Alternate assets under management (AUM), which encompass AIFs, PMS, advisory and offshore funds, stood at Rs 16.5 lakh crore. Specifically, AIF QAAUM rose a robust 29% year-on-year to approximately Rs 6,800 crore.