SBI Funds Management Limited reported a standalone net profit of ₹8,728 million for the quarter ended June 30, 2026 (Q1FY27), marking a 3% year-on-year increase from ₹8,450 million in the corresponding period of the previous year. The asset manager’s quarterly average assets under management (QAAUM) reached ₹12.6 trillion, an 11% growth driven by strong inflows in passive funds and systematic investment plans (SIPs). This performance underscores the company's ability to sustain profitability amidst market volatility, benefiting shareholders through stable earnings growth despite a significant decline in non-operating income.

On August 03, 2026, the Board of Directors approved these unaudited financial results alongside strategic initiatives. These include a ₹25 crore investment in its wholly owned subsidiary, SBI Funds International (IFSC) Limited, and amendments to its Articles of Association to grant special rights to State Bank of India (SBI) and Amundi India Holding (AIH). The statutory auditors, Kirtane & Pandit LLP, issued a limited review report on the results in compliance with Regulation 33 of the SEBI Listing Regulations. The trading window for designated persons remains closed until August 05, 2026.

Financial Performance

Standalone net profit after tax stood at ₹8,728 million compared to ₹8,450 million in Q1FY26. Consolidated net profit was ₹8,803 million. Revenue from operations for the standalone entity was ₹11,487 million, up from ₹9,974 million year-on-year. Other income dropped significantly to ₹2,363 million from ₹3,274 million. Total expenses were ₹2,419 million, with employee benefit expenses remaining stable at ₹1,043 million.

Operational Highlights

SBI Funds Management’s total MF QAAUM stood at ₹12,609 billion, maintaining its position as the industry leader with a 15.1% market share. Passive QAAUM grew 12% year-on-year to ₹4,032 billion, capturing a 27.4% market share in the passive segment. Actively managed equity QAAUM reached ₹5,898 billion. SIP AUM hit ₹2.0 trillion, up 15% year-on-year, with 17 million triggered monthly transactions. The unique customer count rose 12% to 18.2 million, and total live folios increased 14% to 22 million. Digital platforms processed nearly 13 lakh transactions monthly, with 94% of investor transactions routed digitally.

Governance and Strategic Approvals

The Board appointed M/s. N. L. Bhatia & Associates as Secretarial Auditor for five consecutive years, from FY2027 to FY2031, subject to shareholder approval via postal ballot. Shareholders will also vote on the ratification of the Employees' Stock Option Plan 2018 and its extension to subsidiary employees. Additionally, the Board approved amended Articles of Association to grant special rights to SBI and AIH, including board nomination privileges and joint placement rights for matters concerning annual financial plans and debt availing exceeding 10% of net asset value. These changes stem from a Waiver Cum Amendment Agreement dated March 19, 2026.

What the Numbers Show

While revenue growth remained robust at 15%, the sharp decline in other income indicates that profit growth is increasingly driven by core operational revenues rather than non-operating gains. The operating margin excluding passives improved to 0.39% from 0.37% in the previous quarter, signaling enhanced efficiency in active fund management. The faster growth in passive AUM (12% YoY) compared to active equity AUM (10% YoY) underscores a continued shift towards low-cost investment options among investors, aligning with broader market trends favoring index-based products.

SBI Funds Management has appointed Manish Mehta as Chief Business Officer, effective August 5, 2026. The appointment aims to strengthen the company’s business development and strategic partnerships capabilities by leveraging Mehta’s extensive experience in the banking, financial services, and insurance (BFSI) sector. This leadership addition is designed to drive growth across marketing, digital transformation, and customer acquisition fronts.

The Board of Directors approved the appointment on August 5, 2026, based on the recommendation of the Nomination and Remuneration Committee. The move complies with Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Disclosure of information was also made as required under Regulation 30 of the SEBI Listing Regulations read with the SEBI Master Circular dated January 30, 2026.

Appointment Details

Mehta joins SBI Funds Management as a Senior Management Personnel. His term of appointment is not specified as applicable in the regulatory filing. The intimation was issued on August 5, 2026, and is available on the company’s website in compliance with Regulation 46 of the SEBI Listing Regulations.

Professional Background

Manish Mehta brings over three decades of experience in the BFSI sector. His expertise spans business development, planning, strategic partnerships, marketing, digital transformation, customer experience, and customer acquisition. Prior to joining SBI Funds Management, he served as Co-Founder and Chief Executive Officer at Cap Alpha Investment Managers Private Limited from September 2025 to August 2026.

His earlier career includes significant tenures at Kotak Mahindra Asset Management Company Limited, where he served as Joint President and Head of Sales, Marketing and Digital Business from November 2014 to August 2025. He also held the position of President and CEO at Kotak Mahindra Inc. from September 2012 to November 2014, having previously served as Vice President from November 2010 to August 2012. Additionally, Mehta was Head Sales at AIG Investments India from November 2006 to March 2010 and at Kotak Mahindra Asset Management Company Limited from July 1999 to October 2006.

What the Numbers Show

The appointment reflects a strategic focus on senior leadership with deep industry roots. With over 30 years of experience, Mehta’s background suggests an emphasis on consolidating sales and marketing functions through established networks in the asset management space. His previous role as CEO at Cap Alpha Investment Managers indicates recent executive-level operational experience, which may influence the firm’s approach to strategic partnerships and digital business initiatives.