SBI Funds Management Limited (SBIMF) has announced its financial results for the second quarter of Fiscal Year 2027 (Q2 FY27). The company reported a significant increase in quarterly average Assets Under Management (AUM) to ₹13.14 lakh crores, marking a 10% year-on-year growth. Operating revenue saw a 12% rise to ₹2,336 crores, with profit after tax increasing to ₹1,566 crores.
SBI Funds Management Reports Strong Q2 FY27 Performance
SBI Funds Management Limited (SBIMF) has declared robust financial results for the second quarter ended September 30, 2026. The company sustained its leadership in the industry, with its mutual fund quarterly average AUM reaching ₹13.14 lakh crores, representing a healthy 10% year-on-year growth from ₹12 lakh crores in the same quarter of the previous year.
Key Financial Highlights
For the half-year ended FY27, SBIMF’s operating revenue reached ₹2,336 crores, an increase of 12% compared to ₹2,089 crores in the same period last year. Operating profit rose by 11% to ₹1,797 crores, with the profit after tax standing at ₹1,566 crores. The company’s strong net worth of ₹7,270 crores as of September 30, 2026, continues to underpin strategic investments in scale and capabilities.
Industry and Company Performance Metrics
The mutual fund industry saw quarterly average AUM expand by 13% year-on-year to ₹87.5 trillion. Monthly Systematic Investment Plan (SIP) inflows reached an all-time high of ₹32,490 crores in September 2026. SBIMF’s active quarterly average AUM stood at ₹8.99 lakh crores, a 9% year-on-year increase, with a 5-year CAGR of 17%. The passive AUM grew by 11% year-on-year to ₹4.15 lakh crore.
The company’s unique customer count increased by 10% to 1.85 crores. SIP AUM saw a 15% year-on-year increase, reaching ₹2.07 lakh crores, with steady monthly SIP inflows of approximately ₹3,900 crores. SBIMF maintained a strong distribution network of nearly 136,000 partners, enabling reach across over 98% of pin codes in the country.
Strategic Focus and Product Launches
SBIMF launched five new products during the quarter, including one SIF, enhancing its product suite. The company also continues to focus on scaling its GIFT City franchise and strengthening its digital capabilities, with 94% of transactions now conducted digitally. The newly launched tech platform, Aarambh, aims to simplify digital onboarding for first-time investors.
Cost and Yield Commentary
The company acknowledged a sequential increase in expenses due to investments in technology, human resources, cloud infrastructure, and AI-driven systems, with a new business head appointed for the alternatives platform. These costs are expected to be moderated in subsequent quarters. On yields, management indicated a marginal dip from Q1 to Q2, but stated that equity yields remain strong, with debt and liquid yields competitive. Year-on-year, the overall yield has seen a slight increase of 1 bps.
Outlook and Strategy
SBIMF’s strategy for the future is centered around four key pillars: democratizing wealth creation, accelerating digital delivery, strengthening investment performance, and building new growth engines. The company aims to deliver consistent outcomes for investors and build a strong, technology-driven franchise.
Source: BSE
