Canara Robeco Asset Management Company Limited delivered strong financial performance in its Q3 and nine months FY26 earnings call held on January 27, 2026, demonstrating resilience amid market volatility and sustained growth across key operational metrics.

Financial Performance Highlights

The company reported robust revenue growth for the nine-month period ended December 31, 2025, with comprehensive financial metrics showing strong year-on-year improvements.

*Adjusted figures exclude one-time employee benefit expenditure of INR10.15 crores

CFO Ashwin Purohit highlighted that the company accounted for a one-time employee benefit expenditure of INR10.15 crores in 9M FY26, primarily due to new labor laws and IPO-related expenses. The adjusted profit before tax demonstrated a robust 14% year-on-year growth.

Assets Under Management and Operational Metrics

Canara Robeco's AUM performance reflected strong underlying business fundamentals despite challenging market conditions. As of December 31, 2025, the company's closing AUM stood at INR1.2 lakh crores, representing approximately 12% year-on-year growth.

The company maintained a healthy equity-to-debt mix of 90% equity and 10% debt, with individual investors contributing 87% and institutional investors contributing 13% of total assets.

Market Environment and Industry Context

Managing Director and CEO Rajnish Narula noted that Indian markets experienced elevated volatility amid geopolitical developments and global trade uncertainties during Q3. However, the asset and wealth management industry demonstrated strong resilience, supported by sustained regional participation and increasing investor preference for diversified investment products.

The industry AUM stood at INR80.2 lakh crores as of December 31, 2025, while Q3 FY26 quarterly average AUM was approximately INR81 lakh crores, reflecting 18.1% year-on-year growth and 5% quarter-on-quarter growth. The NSE 500 Index rose 5% on a closing basis during Q3, providing moderate mark-to-market benefits to industry AUM.

Distribution Network and B30 Expansion

Canara Robeco strengthened its distribution ecosystem significantly, supported by robust infrastructure expansion and strategic partnerships.

The company's B30 presence strengthened meaningfully, with monthly average AUM from beyond the top 30 cities increasing from INR261 crores in December 2024 to INR289 crores in December 2025, reflecting growing reach across emerging India.

Strategic Outlook and Management Commentary

During the earnings call, management outlined key strategic priorities focusing on sustainable growth and operational efficiency. Narula emphasized maintaining a cost-to-income ratio around 40% while investing in technology and distribution capabilities.

The company expects to launch new fund offerings, with regulatory approvals in progress for NFO launches potentially in Q4 FY26. Management expressed confidence in maintaining targeted growth rates of approximately 20% annually, driven by:

• Consistent investment performance and long-term track record building
• Strategic product launches and portfolio gap filling
• Continued branch expansion and distribution partnerships
• Enhanced SIP strategies and B30 market penetration
• Technology investments for operational efficiency

Regarding yield management, the company reported equity yields in the region of 35-36 basis points, fixed income yields around 28-29 basis points, and overall yields of 33-34 basis points. Management indicated efforts to optimize yield structures while maintaining competitive positioning.

Regulatory Environment and Future Positioning

The company addressed recent regulatory changes, including SEBI's restructured expense ratio framework effective April 1, 2026. Management views these changes as industry-wide impacts focused on bringing more efficiency and lower-cost products to investors, with clearer GST segregation from TER providing better transparency.

Canara Robeco maintains its equity-focused positioning as a boutique asset manager rather than a supermarket approach, leveraging the strong Canara Bank brand particularly in southern India markets. The company's strategy emphasizes disciplined fund management, retail and B30 market deepening, and technology-led enhancements to improve investor experience while building a future-ready organization anchored in trust and long-term sustainability.

Canara Robeco Asset Management Company Limited announced its unaudited financial results for the quarter ended December 31, 2025, showcasing robust growth across key financial metrics. The asset management company demonstrated strong operational performance with significant improvements in revenue and profitability.

Financial Performance Overview

The company's financial performance for Q3FY26 reflected strong growth momentum across all major parameters:

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the company maintained its growth trajectory with revenue from operations reaching ₹3,107.41 crores compared to ₹2,632.89 crores in the corresponding period of the previous year, representing an 18.0% increase. Profit after tax for the nine-month period stood at ₹1,624.43 crores, up from ₹1,489.76 crores, marking a 9.0% year-on-year growth.

Other Income and Fair Value Changes

The company reported significant other income of ₹116.94 crores in Q3FY26, primarily driven by net gain on fair value changes of ₹115.51 crores compared to ₹6.20 crores in Q3FY25. This substantial increase in fair value gains contributed meaningfully to the overall income growth during the quarter.

Expense Management

Total expenses for Q3FY26 increased to ₹509.77 crores from ₹323.50 crores in Q3FY25, primarily due to higher employee benefits expenses which rose to ₹327.94 crores from ₹198.30 crores. Other expenses also increased to ₹157.11 crores from ₹108.05 crores, reflecting the company's expansion and growth investments.

Board Decisions and Corporate Actions

The Board of Directors, in its meeting held on January 20, 2026, approved several important decisions:

The company also revised its definition of "Revenue from Operations" in Financial Key Performance Indicators to provide enhanced clarity to investors, now including revenue from PMS/Advisory services and interest/rental income.

Dividend Distribution

During the period ended December 31, 2025, the company declared and paid a final dividend of ₹1.50 per equity share for FY25, approved by the Board on May 5, 2025. Additionally, an interim dividend of ₹1.50 per equity share for FY26 was declared by the Board on December 16, 2025.

Market Listing and Public Offering

The company successfully completed its Initial Public Offering during Q3FY26, with 4,98,54,357 equity shares listed on both NSE and BSE on October 16, 2025. The paid-up equity share capital remained stable at ₹1,994.17 crores with a face value of ₹10 per share.