SBI MF outruns peers on growth, powered by B30 surge and distribution edge

Distribution has remained a key enabler, with access to over 20,000 bank branches, a wide distributor network and digital channels covering nearly 98% of India’s pin codes.

• SBI Mutual Fund files for 10% equity offer-for-sale listing
• Revenue and profit surged, driven by expansion beyond top cities
• SBI MF leads in passive products and B30 locations market share

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SBI Mutual Fund, India’s largest asset manager, has outpaced its two largest listed peers across revenue, profitability and retail-led segments over the past three years, with growth increasingly driven by expansion beyond top cities, according to its draft red herring prospectus. The fund filed its document with the capital market regulator for a 10% equity offer-for-sale on Thursday, March 19. SBI MF will be the 6th AMC to be listed after HDFC AMC, Nippon AMC, UTI AMC, Aditya Birla Sun Life AMC, and Canara Robeco AMC.

 Big just got bigger

Revenue from operations rose 66% to Rs 3,598 crore in FY25 from Rs 2,162 crore in FY23, and stood at Rs 3,251 crore in the nine months ended December 2025. This compares with a 32% increase at HDFC Asset Management Company to Rs 3,498 crore (Rs 3,071 crore in 9M FY26), and a 28% rise at ICICI Prudential AMC to Rs 4,688 crore (Rs 4,248 crore in the same period).

Profit after tax rose 90% to Rs 2,540 crore in FY25 from Rs 1,340 crore in FY23, and was at Rs 2,433 crore in the nine months ended December 2025. In comparison, HDFC AMC reported a 30% increase to Rs 1,923 crore during the same period (Rs 1,822 crore in 9M FY26), while ICICI Prudential AMC posted a 37% rise to Rs 1,895 crore (Rs 1,695 crore in 9M FY26), indicating stronger operating leverage at SBI Mutual Fund.

Assets under management rose 40% to Rs 26.27 lakh crore in FY25 from Rs 18.73 lakh crore in FY23, and further to Rs 29.04 lakh crore in the nine months ended December 2025, translating into a 15.4% market share. The fund house also leads in passive products with a 29.6% share, while maintaining dominant positions in alternatives through its SIF platform (61% share) and in PMS (39%).

Return on equity improved to 34% in FY25 from 32% in FY23, compared with around 32% for HDFC AMC and about 82% for ICICI Prudential AMC. Operating margins remained stable at around 25%, excluding passive products, indicating consistent profitability alongside faster growth.

Analysts said a part of SBI Mutual Fund’s strong AUM growth comes from large institutional and quasi-government mandates, where only a few fund houses are selected to manage such funds. This gives the company a steady source of scale and an advantage in building assets.

However, these mandates typically come with lower yields, as they are largely passive or low-cost in nature. This means that even if AUM grows quickly, revenue does not rise at the same pace, since passive products earn lower fees than actively managed funds. As the share of passive assets increases, overall yields tend to decline, but absolute earnings can still grow because costs do not rise proportionately. This results in operating leverage, where profits increase despite lower margins.

Small cities grow big

Distribution has remained a key enabler, with access to over 20,000 bank branches, a wide distributor network and digital channels covering nearly 98% of India’s pin codes.

A key growth driver has been expansion beyond top cities. SBI Mutual Fund is the largest player in B30 locations, with a 19.3% share of industry B30 AUM. Its B30 assets rose 67% to Rs 2.45 lakh crore in FY25 from Rs 1.46 lakh crore in FY23, and further to around Rs 2.92 lakh crore in the nine months ended December 2025, outpacing T30 growth of 46%, which stood at Rs 8.17 lakh crore.

The relatively slower growth in T30 reflects a higher base, with incremental flows increasingly coming from beyond top cities. In contrast, peers have seen stronger traction in T30 regions, with ICICI Prudential AMC’s T30 assets rising 76% and HDFC AMC’s growing 69% over the same period. Their B30 growth stood at 80% and 83%, respectively, albeit on a lower base.

Retail participation has also strengthened. SIP AUM rose 68% to Rs 3,252 crore in FY25 from Rs 1,938 crore in FY23, and further to Rs 3,964 crore in the nine months ended December 2025. The investor base expanded to 14.7 million in FY25 from 8.6 million in FY23.