SBI Funds Management shares hit record low following Q2 profit miss

Shares of SBI Funds Management fell to a record low during intra-day trading following the release of weaker-than-expected earnings for the September quarter. The stock dropped as much as 7 per cent to Rs 433.55 on the BSE, trading approximately 24 per cent below its initial issue price of Rs 574.

Reports indicate that the profit after tax (PAT) for the second quarter of FY27 was Rs 701 crore, representing a 6 per cent year-on-year decline. This shortfall was largely attributed to a 24.3 per cent increase in operating expenses, which rose to Rs 301 crore. Additionally, the company's equity quarterly average assets under management (QAAUM) grew by 5.6 per cent sequentially, trailing the industry growth rate of 6.6 per cent.

While total income rose 3 per cent year-on-year to Rs 1,230.1 crore, the company saw a decline in market share. Its share in monthly systematic investment plan (SIP) inflows fell to 12 per cent in September 2026, down from 12.65 per cent in June.