Canara Robeco AMC Q2 FY26 results reported a subdued performance, with earnings and margins contracting sequentially, triggering a sharp 11% fall in its share price a day after the results were announced. The newly listed asset manager, which made its market debut on 16 October 2025, was trading at INR 343 per share on the NSE after touching an intraday low of INR 311.10.
Canara Robeco AMC Q2 FY26: Financial Highlights
| Particulars | Q2FY26 | Q1FY26 | QoQ Change | Q2FY25 | YoY Change |
|---|---|---|---|---|---|
| Revenue from Operations | 107.65 | 121.06 | ▼11% | 104.47 | ▲3% |
| EBITDA | 17.00 | 20.50 | ▼17% | — | — |
| EBITDA Margin | 63 | 68 | ▼440 bps | — | — |
| Net Profit | 48.71 | 60.97 | ▼20% | 50.05 | ▼2.7% |
| EPS (INR) | 2.44 | 3.06 | ▼20% | 2.51 | ▼2.8% |
Canara Robeco AMC Q2 FY26 total income stood at INR 108.0 crore compared to INR 121.3 crore in the June quarter, while total expenses increased to INR 41.96 crore from INR 41.46 crore. Higher employee and administrative costs eroded profitability.
Net profit fell 20% sequentially to INR 48.7 crore, while on a year-on-year basis, it slipped marginally by 2.7%. Profit before tax came in at INR 66.05 crore, almost flat compared to the same quarter last year but down sharply quarter-on-quarter.
Canara Robeco AMC H1 FY26:
For the first half of FY26, Canara Robeco AMC reported:
- Revenue: INR 229.3 crore, up 11% YoY from INR 206.4 crore in H1FY25
- Profit After Tax: INR 109.7 crore vs INR 101.1 crore in H1FY25 (▲8.5% YoY)
- Total Comprehensive Income: INR 108.8 crore vs INR 100.6 crore in H1FY25
The company’s cash flow from operations remained robust at INR 70.3 crore, supported by lower working capital requirements.
Balance Sheet Position
As of 30 September 2025:
- Total Assets: INR 750.70 crore (vs INR 674.03 crore in March 2025)
- Investments: INR 659.25 crore, indicating a strong treasury base
- Total Equity: INR 678.97 crore, with reserves of INR 479.55 crore
- Liabilities: INR 47.7 crore (down from INR 53.1 crore in March 2025)
The balance sheet reflects improved liquidity and capital adequacy despite the margin squeeze.
Corporate Actions and Developments
- ESOP Ratification: The Board approved ratification of the CRAMCL Employee Stock Option Scheme 2025, subject to shareholder approval.
- New Fund Launch Plans:
Canara Robeco plans to launch two thematic schemes —- Canara Robeco Innovation Fund
- Canara Robeco Banking and Financial Services Fund
These will be introduced subject to SEBI and other regulatory approvals and favorable market conditions.
- Dividend Update: The company had earlier declared a final dividend of INR 1.50 per share for FY25, paid post shareholder approval in July 2025.
- IPO Milestone: The company completed its IPO (Offer for Sale of 4.98 crore shares) and listed on NSE & BSE on 16 October 2025. The issue price was INR 266 per share, and the stock listed at INR 280.25, marking a ~5% premium.
Following the earnings announcement, shares of Canara Robeco AMC fell up to 11% intraday on October 28, 2025, to ₹311 on the NSE.
Verdict: Margins Under Pressure, But Long-Term Story Intact
While Canara Robeco AMC’s sequential decline in revenue and profits reflects cost inflation and margin compression, analysts point out that:
- The AMC continues to benefit from industry-wide inflows and rising retail participation in mutual funds.
- The company’s AUM stood at INR 1.17 lakh crore, indicating consistent scale.
- The partnership between Canara Bank and Orix Corporation Europe N.V. gives it a stable institutional backing and a wide distribution network.
However, the near-term outlook remains cautious as operational costs rise and competition intensifies in the AMC sector.
Conclusion
Canara Robeco AMC Q2 FY26 report as a listed entity was met with investor disappointment due to margin pressures and sequentially weaker profitability. While the company maintains a sound balance sheet and continues to expand its fund portfolio, sustaining profitability growth amid cost pressures will be key in the upcoming quarters.
The management’s planned fund launches and ESOP initiatives signal a focus on growth and employee retention, but the market will be watching closely for improvement in cost efficiency and revenue momentum in H2FY26.
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