Canara Robeco Asset Management Company Limited — Q3 FY26 earnings call

Call held 27 Jan 2026

Management summary

Canara Robeco Asset Management Company Limited reported strong Q3 and 9M FY26 results, with AUM growing 12-13% YoY and revenue up 18% YoY, despite market volatility and one-time expenses. The company continues to focus on mutual funds, SIPs, B30 expansion, and digital adoption, while managing costs and anticipating regulatory changes. Management reaffirmed its confidence in achieving 20% compounded AUM growth and outlined plans for NFO launches and an evolving payout policy.

Highlights

  • Closing AUM close to INR1.2 lakh crores, up almost 12% YoY.

  • Quarterly average AUM grew approximately 13% YoY to INR1.22 lakh crores.

  • Total revenue for 9M FY26 stood at INR310.7 crores, representing an 18% YoY growth.

  • Adjusted PBT for 9M FY26 was INR226.5 crores, representing a 14% YoY growth.

  • Robust distribution ecosystem with over 55,191 in-panel partners and 29 branches.

Concerns

  • Indian markets experienced elevated volatility amid geopolitical developments and global trade uncertainties.

  • Fall in number of folios/SIP accounts quarter-on-quarter, attributed to market volatility and digital cancellation definitions.

  • One-time employee benefit expenditure of INR10.15 crores in 9M FY26 due to new labor laws and IPO-related expenses.

  • Opex increased 3% Q-on-Q due to technology, compliance, and regulatory expenses.

Key financials

2 periods

Headline

  • Closing AUM
    ₹1.2 lakh Cr
    YoY +12%
  • Quarterly Average AUM
    ₹1.22 lakh Cr
    YoY +13%
  • Cost to Income Ratio
    38%

9M FY26

  • Total Revenue
    ₹310.7 Cr
    YoY +18%
  • Adjusted PBT
    ₹226.5 Cr
    YoY +14%
  • Adjusted PAT
    ₹170 Cr
    YoY +14%

What they filed

Q1 FY27: revenue up 19.8%, net profit up 24.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue104 97 101 121 108 +4%121 +25%104 +3%145 +20%
EBITDA68 66 60 82 68 +0%73 +11%60 +0%102 +24%
Net profit50 48 42 61 49 −2%53 +10%41 −2%76 +25%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

AUM Growth

  • AUM Growth AUM Growth · 5 years' time · High confidence 20% compounded
    Well, all I can say is that we like to outpace the industry. And if you look at, if our internal targets year-on-year are benchmarked at 20% at a minimum, you can calculate yourself in 5 years' time where that will take you if you grow that 20% compounded. Okay.

    — Rajnish Narula

Cost Management

  • Cost to Income Ratio Cost Management · High confidence around 40
    So, I think the measure that we'd like to look at is cost to income ratio. So we like to believe that the cost to income ratio should be somewhere between around 40 or hovering around the 40 mark is where we are comfortable at.

    — Rajnish Narula

Product Launch

  • New Fund Offerings (NFOs) Product Launch · over the next two to three months · High confidence one
    Okay. On the NFO, we are in the process of the regulatory approvals. We are, you know, quite close to launching one. So I think over the next two to three months, we will have an NFO out as well.

    — Rajnish Narula

Shareholder Returns

  • PAT Payout Ratio Shareholder Returns · next couple of years · High confidence 40% to 50%
    So clearly, we want to balance that and we are gradually moving towards. Right now just more from a guidance perspective, something between the range of 40% to 50% of our PAT is what we're looking at over the next couple of years. And then we will move it upwards as the business continues to grow.

    — Rajnish Narula

Distribution Expansion

  • New Branches Distribution Expansion · a year · High confidence 3 to 5 branches
    Over the last 2 years, we have roughly opened about 5 new branches per year. And that's the rate we see ourselves growing, 3 to 5 branches a year from here on as well.

    — Rajnish Narula

Strategy Implementation

  • B30 Strategy Strategy Implementation · next 6 to 12 months · Medium confidence play out
    And plus, like I said, we're also building another strategy on the B30. We're making some investments in that strategy, which will play out in the next 6 to 12 months.

    — Rajnish Narula

  • SIP Strategy Strategy Implementation · over the next 12 months · Medium confidence play out
    Well, SIPs continues to be a focus for us. So it is, we are building certain strategies around SIPs at the moment. And we are investing in those strategies for SIPs. So you will see that playing out over the next 12 months.

    — Rajnish Narula

What to watch in Q4 FY26

New Fund Offering (NFO) Launch

Next 2-3 months
Current In regulatory approval process
Target One NFO launched

Why it matters

NFOs are key for AUM growth and product diversification.

So I think over the next two to three months, we will have an NFO out as well.

Risks & concerns

  • Market Volatility and Geopolitical Developments

    medium

    Indian markets experienced elevated volatility amid geopolitical developments and global trade uncertainties, impacting SIP discontinuations.

    Management acknowledged

  • Regulatory Changes (New Labor Laws)

    medium

    One-time employee benefit expenditure of INR10.15 crores due to new labor codes (gratuity recalibration) impacting 9M FY26 financials.

    Management acknowledged

  • Regulatory Changes (Expense Ratios, GST, Exit Load)

    medium

    SEBI restructured overall expense ratio, changes effective April 1, 2026, impacting the entire industry. Management believes it brings more clarity (GST segregation) and will evaluate exit load impact.

    Management acknowledged

  • Competition from larger AMCs / Brand Value

    low

    Analyst questioned how Canara Robeco competes with larger, more trusted AMCs. Management highlighted its own distribution franchise, 50 lakh folios, mid-sized AMC status, and the strong Canara Bank brand, especially in the south.

    Analyst downplayed

Q&A highlights

8 direct
Product mix evolution (AIFs, passives, ESG) Direct
But going forward, we will continue to focus on mutual fund because we believe that is still very underpenetrated and that's the core of our business. So we do not want to lose sight of the core. But we will clearly evaluate what should be the next steps in the next 6-12 months as to whether we should do AIFs, whether we should get into, say, GIFT City or passives.

Clarifies the company's core focus on mutual funds while exploring new product avenues for future growth.

Asked by Sucrit D. Patil

Sustaining margins, regulatory compliance, operating costs (cost-to-income) Direct
So, I think the measure that we'd like to look at is cost to income ratio. So we like to believe that the cost to income ratio should be somewhere between around 40 or hovering around the 40 mark is where we are comfortable at.

Provides a key profitability metric and management's target range for it, indicating cost discipline.

Asked by Sucrit D. Patil

Fall in number of folios/SIP accounts Direct
We are still analyzing data. But from what we can see from a preliminary investigation of the data that we find that people are discontinuing SIPs a lot more. And I guess it's got to do with the volatility in the market.

Acknowledges a negative trend in investor base/SIPs and attributes it to market volatility, indicating a potential industry-wide challenge.

Asked by Adarsh

One-time employee benefit expenditure Direct
So employee expenses hit because of two things. One is new labor codes, which has effective from the month of November... And that is the one-time impact of the new labor codes. And that impact also is on a Y2D basis up to 31st of December, sir.

Explains a specific one-time expense impacting profitability, clarifying that it's due to regulatory changes (new labor codes) and not ongoing operational issues.

Asked by Adarsh

NFO launch timeline Direct
On the NFO, we are in the process of the regulatory approvals. We are, you know, quite close to launching one. So I think over the next two to three months, we will have an NFO out as well.

Provides a concrete timeline for a new product launch, which is a key growth driver for AMCs.

Asked by Ankit Dharamshi

Confidence in 20% AUM growth target Direct
Yes, this year has been muted. And you very rightly said it is because of the volatility in the market and mainly because of global geopolitics that all of us are aware of. We do expect that to settle over the next one year. And we are very confident of maintaining our growth of the indicated number you mentioned going forward.

Reaffirms the company's confidence in achieving its ambitious AUM growth target despite recent market challenges.

Asked by Ankit Dharamshi

Payout policy Direct
So clearly, we want to balance that and we are gradually moving towards. Right now just more from a guidance perspective, something between the range of 40% to 50% of our PAT is what we're looking at over the next couple of years. And then we will move it upwards as the business continues to grow.

Provides clarity on the company's evolving shareholder return strategy post-listing, indicating a future increase in payout ratio.

Asked by Saket Mehrotra

Sustaining active large-cap flows on SIP side Direct
On the SIP side, like I said, we are investing in a new strategy on the SIP side within the company... So you will see results, like I mentioned earlier, for that over the next 6 to 12 months, but clearly it's a focus area for us.

Highlights a specific strategy to counter passive adoption and maintain active flows, with a timeline for results.

Asked by Vaibhav Gupta

3 min read 7 chapters

Detailed narrative

Q3 & 9M FY26 Performance Overview

Canara Robeco Asset Management Company Limited reported robust financial performance for Q3 and nine months ended December 31, 2025. The company's closing AUM reached close to INR1.2 lakh crores, marking an almost 12% year-on-year growth, while the quarterly average AUM grew approximately 13% year-on-year to INR1.22 lakh crores. For the nine-month period, total revenue stood at INR310.7 crores, an 18% increase year-on-year, and adjusted Profit Before Tax (PBT) grew 14% year-on-year to INR226.5 crores, reflecting sustained profitable growth despite market volatility.

Mutual Fund Industry Landscape

The broader Indian mutual fund industry demonstrated strong resilience, with industry AUM reaching INR80.2 lakh crores as of December 31, 2025, and quarterly average AUM at approximately INR81 lakh crores, reflecting an 18.1% year-on-year growth. This growth was primarily driven by steady SIP flows and moderate market appreciation, with equity-oriented AUM contributing INR56.6 lakh crores. However, the market experienced elevated volatility due to geopolitical developments and global trade uncertainties, which also impacted investor behavior.

Operational Highlights and Growth Drivers

The company's growth was well-rounded, characterized by a healthy 90% equity and 10% debt mix, and a balanced investor base with 87% individual investors. SIPs remain a key strength, with over 21 lakh active SIP accounts contributing INR755 crores monthly. Canara Robeco also significantly strengthened its B30 presence, with monthly average AUM from beyond the top 30 cities increasing from INR261 crores in December 2024 to INR289 crores in December 2025, supported by a robust distribution ecosystem of over 55,191 partners and 29 branches. Digital platform adoption further enhanced investor engagement and operational efficiency.

Financial Performance and One-time Expenses

For the nine months ended FY26, total revenue was INR310.7 crores, up 18% from INR263.3 crores in the prior year. PBT stood at INR216.4 crores, a 9% increase from INR199.33 crores. Notably, the company incurred a one-time employee benefit expenditure of INR10.15 crores, largely due to new labor laws (gratuity recalibration) and IPO-related expenses. Adjusting for this, the PBT would have been INR226.5 crores, reflecting a 14% growth, and adjusted PAT would be INR170 crores, also a 14% growth. The cost-to-income ratio is currently 38%, with a target to maintain it around 40%.

Product Strategy and Future Growth

Canara Robeco remains focused on the mutual fund space, which it believes is still underpenetrated, and plans to launch one to two products annually, with one NFO expected in the next two to three months. The company aims for a 20% compounded AUM growth, driven by continued investment in SIP strategies and B30 market expansion, with results expected to play out over the next 6-12 months. The strategy emphasizes consistent investment performance, expanding distribution, and leveraging digital platforms for seamless investor engagement, while also evaluating opportunities in AIFs, GIFT City, or passives.

Cost Management and Regulatory Environment

Management highlighted its focus on maintaining a cost-to-income ratio around 40%, currently at 38%. The company acknowledges increased operating expenses (up 3% QoQ) due to investments in technology, compliance, and regulatory requirements. They also discussed the impact of SEBI's restructured expense ratio, effective April 1, 2026, which is expected to affect the entire industry by bringing more clarity to GST segregation and exit load. The new labor codes also led to a one-time employee benefit expenditure of INR10.15 crores.

Shareholder Returns and Payout Policy

Post-listing, the company is evolving its payout policy. While no specific dividend was declared this quarter, management indicated a gradual move towards a payout ratio of 40% to 50% of PAT over the next couple of years, with potential for further increases as the business grows. This approach aims to balance shareholder returns with the need to strengthen the balance sheet for long-term resilience, ensuring the company can cope with any unforeseen events without needing to revert to shareholders for capital.

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