Strong margins under pressure: growth decelerates as SIP accounts contract

Delivered 12.9% YoY (121.6 Cr vs implied Q2 FY26 base)

Delivered 21.5% YoY (59.2 vs 48.7 Cr)

Q2 yields 37-38 bps overall, equity ~40 bps consistent with prior guidance

SIP AUM 41,000 Cr (34% of total), but accounts declining due to market volatility

Closing AUM 1.17L Cr, 4% quarterly average YoY growth stated

SIP accounts declining due to ELSS tax changes and market volatility; Q2 showed softer momentum vs growth narrative last call.

Management implied 17% growth; delivered result shows 12.9% YoY, missing internal expectations and prior momentum.

35-40 bps reaffirmed; Q2 delivered 37-38 bps. No change vs prior quarter guidance, maintained discipline.

Couple of NFOs planned FY27; at least one equity fund launch before March 2027. Names: passive, SIF, AIF, GIFT City under evaluation.

Yield guidance 35-40 bps maintained unchanged. SIP AUM ~41k Cr at 34% of AUM. Decline driven by ELSS tax law change and market maturities; structural anchor remains stable. Multiple initiatives underway with partners.

Couple of NFOs planned FY27 subject to SEBI approval. New lines under evaluation: Passives, SIF, AIF, GIFT City. Launch decision over next 6-12 months. Selective approach; not a product-launching house.

Market share stable ~2%. Equity AUM now ~91% of total. Canara Bank partnership ongoing for growth avenues. Yield 35-40 bps comfortable range; focus on growth + volumes, not yield compression. Distributor margins built fairly.

Funds go through cycles. Canara Robeco brand strong; investment process disciplined. Strengthening in-house research and analyst capabilities over 2 years. Confident in bounce-back on market cycle turn.

Other income includes debt investment market-to-market (~INR 110 Cr skin in game). Will vary quarter-on-quarter with market volatility, especially for debt. Managed to reflect actual value.

SIP AUM 41k Cr (~1/3 of equity AUM). Average SIP tenure over 3 years. Market SIP growth highly concentrated in few products; CRAMC growth well-diversified across channels and products. Quality matters more than volume.

Focus on specialized products (niches) + fund house philosophy (strength-based). Generic products available but selectivity matters; track record counts. Equity team assessing changes needed.

Can't disclose net inflow details (not in public domain). Equity markets challenged; inflows selective. When markets turn, industry will see better performance. Company focused on growth + volumes.

Management explicit: no FY27 revenue/PAT targets. Strategy is long-term value creation, not quarterly growth chasing.

FY27 cost discipline maintained. Operating margin 62.6%, net margin 46.2% — strong profitability sustained.

No specific capex quantum. Organic expansion through partner network and selective branch growth.

Nifty down 14% from 52-wk high in Q2. FPI outflows, elevated US bond yields, geopolitical tensions. Equity AUM ~91% of total, highly sensitive.

SIP accounts and folios declining. ELSS tax advantage removal and market maturity cited. If sustained, threatens structural growth anchor.

Some funds in different quartiles at different points. Volatility has led to recent underperformance. If equity bull run delayed, redemption risk.

Overlap regulations came through; may curb new product launches in fast-growing hybrid/multi-cap segments. Limits revenue upside.

Market concentrated in 3 categories (65% of flows). New AMCs launching. Passive funds growing. CRAMC growth diversified but margin pressure possible.