SBI Funds Management shares fall 7% to record low of 433.55 rupees
Key Facts
SBI Funds Management shares fell 7% on October 26 to a new low of 433.55 rupees after the company announced its second-quarter fiscal 2027 results, according to a Business Standard report. The report said the stock was trading 24% below its 574-rupee IPO price, amid elevated trading volumes. The move followed the company’s announcement of consolidated net profit of 701.24 crore rupees for the quarter. According to Business Standard’s quarterly results table, profit fell 20.34% from the previous quarter, when it was 880.26 crore rupees. The report also recorded a 17.39% year-over-year decline in net profit.
In a market snapshot at 12:32 p.m. on October 26, the stock was trading at 445.65 rupees, down 4% on the Bombay Stock Exchange, while the Sensex rose 0.15%, according to Business Standard. Combined trading volume on the NSE and Bombay Stock Exchange reached 2.52 million shares. The snapshot shows the stock had pared some losses from the 433.55-rupee low cited later in the report. But the price at that level remained below the 574-rupee IPO price. The report described trading volume in the stock as nearly doubling.
Consolidated revenue was 1,192.67 crore rupees in the second quarter, up 3.46% from 1,152.73 crore rupees in the first quarter, according to results data cited by Business Standard. Year over year, revenue rose 19.15% from the corresponding period of the previous fiscal year. Consolidated expenses, meanwhile, were 279.98 crore rupees, compared with 213.63 crore rupees in the second quarter of fiscal 2026, a year-over-year increase of 31.06%. Consolidated operating profit was 912.69 crore rupees, up 15.93% year over year. It fell 1.11% from the previous quarter, when it was 922.94 crore rupees.
Business Standard quoted analysts at Equirus Securities as saying the company’s second-quarter profit after tax, which they estimated at 701 crore rupees, came in below their forecast of 766 crore rupees. The analysts attributed the gap to operating expenses of 301 crore rupees, up 24.3% year over year. These figures differ from the consolidated results table published by Business Standard, which reports total expenses of 279.98 crore rupees, up 31.06% from the year-earlier period. Equirus’s net profit estimate of 701 crore rupees is also rounded, while the results table records 701.24 crore rupees. Equirus maintained its “Long” rating on the stock and set a target price of 540 rupees, citing expectations for 13% annual growth in mutual fund average assets under management and 10% annual growth in EBITDA during fiscal 2026 to 2029.
In a separate assessment cited by Business Standard, Motilal Oswal Financial Services said increased investment in technology is expected to boost productivity. The firm added that it kept its estimates largely unchanged after judging second-quarter operating performance to be in line with its expectations. Its analysts reiterated a “Buy” recommendation and set a target price of 590 rupees for the stock. These assessments place research firms’ expectations alongside the quarter’s results and the stock’s move on October 26. The assets-under-management and earnings growth figures in Equirus’s assessment cover fiscal 2026 to fiscal 2029.