UTI AMC shares drop 5% after Q4 loss; 29% upside

Stock slides after quarterly numbers

Shares of UTI Asset Management Company (UTI AMC) fell more than 5% in early trade after the company reported a loss for Q4FY26. The stock opened flat at ₹1,037.50 on the NSE and then declined sharply. It hit an intraday low of ₹980.85 soon after the open. At 9:30 AM, the stock was down 5% at ₹982.85. The move came as investors reacted to a swing in quarterly profitability despite a rise in operating revenue. The results also renewed focus on how treasury and mark-to-market movements can influence reported earnings for asset managers.

What the market saw on the screen

The early decline was visible within minutes of the opening bell. The price action was notable because the stock started the day without a gap down and only turned weaker as trades built up. The intraday low of ₹980.85 came after the initial flat open at ₹1,037.50, indicating selling pressure post results. By 9:30 AM, the stock remained in the red at ₹982.85. Separately, the stock was also quoted at ₹951.60, down ₹84.05 or 8.12% (NSE: UTIAMC), at 11:29:56 on Friday, 24-Apr-2026, as per the data shared in the material.

Q4FY26 swings to loss despite revenue growth

UTI AMC reported a consolidated net loss of ₹51.4 crore in Q4FY26. This compares with a net profit of ₹102 crore in the same quarter last year. The key hit came from mark-to-market (MTM) losses that pulled “other income” into the red. The company reported negative other income of ₹163 crore due to MTM losses, as stated in the report. The result highlights how non-operating line items can dominate the bottom line in a quarter even when the core operating trend remains positive.

Operating revenue rises; AUM expands

While the quarter ended with a loss, consolidated revenue from operations increased 4% year-on-year to ₹390 crore. In the year-ago quarter, revenue from operations was ₹370 crore. The mutual fund business reported assets under management (AUM) of ₹3.88 lakh crore, up 14% year-on-year. UTI AMC also said all categories witnessed growth in performance on a year-on-year basis. These operating metrics were central to the more constructive commentary from some brokerages even as the headline profit number disappointed.

Brokerages: focus on other income drag, not operations

JM Financial said the result was “fine at operating level” but earnings were dragged by a higher-than-expected fall in other income. The brokerage maintained an ‘Add’ rating and raised its target price to ₹1,100 from ₹1,050. It valued the stock at 14x FY27E EPS of ₹78, versus the earlier basis of 13x FY28E EPS of ₹82. JM Financial said FY26 was a weak year, impacted by volatile markets and one-off costs related to VRS and the labour code. Based on the targets and commentary cited, the brokerage expectation was framed around an earnings recovery from a weaker base.

Motilal Oswal’s target implies 29% upside

Motilal Oswal Financial Services reiterated a ‘Buy’ rating with a target price of ₹1,270. The target implied an upside of around 29% from the prevailing market price referenced in the report. The brokerage said core AMC operations experienced consistent growth in AUM, supported by a diversified product mix. It also pointed to a strong tilt toward equity, healthy SIP inflows, and robust retail traction, as per the text provided. The report’s disclaimer noted that broker views are their own and were not endorsed by the publisher.

Dividend announcement adds another data point

Alongside the results, UTI AMC’s board announced a dividend of ₹40 per share. The company said it recommended a final dividend of ₹40 per equity share for the financial year ended 31 March 2026. The dividend is subject to shareholder approval at the ensuing Annual General Meeting. For shareholders, this becomes an additional near-term event to track, independent of the quarterly profitability swing caused by market-linked MTM movement.

Estimates context: what brokerages had expected earlier

A separate pre-results note in the provided material said brokerages expected UTI AMC’s March-quarter profit to decline due to market share pressure and low treasury income. It also cited higher costs as a possible drag. The average estimate from eight brokerages was net profit of ₹99.163 crore for the March quarter, with the lowest estimate at ₹49 crore and the highest at ₹130 crore. Average net sales were estimated at ₹376.525 crore for the March quarter, up 19% year-on-year but down 11% quarter-on-quarter, according to that note. The same note also highlighted market conditions, including the Nifty 50 falling nearly 15% in the March quarter and the 10-year benchmark government bond yield rising 45 basis points.

Key numbers at a glance

Why the quarter matters for investors

The quarter underlined how reported earnings for AMCs can diverge from operating momentum when treasury or MTM movements swing sharply. In this case, revenue from operations rose and AUM expanded, but negative other income of ₹163 crore pushed the company into a quarterly loss. For investors, the split between operating performance and market-linked income becomes important when reading quarterly releases. The brokerage notes in the material also keep attention on management and distribution actions, referencing a new CEO and salesforce rejuvenation, while simultaneously flagging that FY26 had been affected by volatile markets and one-off costs.

Conclusion

UTI AMC’s stock reaction followed a Q4FY26 loss of ₹51.4 crore driven by MTM-linked negative other income, even as operating revenue rose to ₹390 crore and AUM grew to ₹3.88 lakh crore. Brokerages cited in the material maintained positive stances, with targets of ₹1,100 and ₹1,270. The company’s recommended final dividend of ₹40 per share, subject to shareholder approval at the AGM, is the next declared corporate action for investors to track.