Canara Robeco Asset Management Company Ltd (CRAMC) Q2FY27 Concall Transcript - Sep-2026 Qtr
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Moderator: Ladies and gentlemen, good
Moderator: and welcome to Q2 and H1 FY '27 earnings conference call of Canara Robeco Asset Management Company Limited. Before we begin, I would like to point out that this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectation of the company as on date of this call. These statements are not the guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing "*" then "0" on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vatsal Shah from Adfactors PR. Thank you, and over to you, Vatsal.
Vatsal Shah (Adfactors PR): Good morning, everyone, and thank you for joining us on the Q2 and H1 FY '27 earnings conference call for Canara Robeco Asset Management Company Limited. Today, we are joined by Mr. Rajnish Narula, Managing Director and Chief Executive Officer; Mr. Ashwin Purohit, Chief Financial Officer; Mr. Gaurav Goyal, Chief Business Officer; and Mr. Atit Turakhia, Head of Corporate Development and MIS. We'll begin the call with the opening commentary by the management, followed by a Q&A session. I would now like to invite Mr. Rajnish Narula, Managing Director and Chief Executive Officer for Canara Robeco Asset Management Company Limited, to give his opening remarks. Over to you, sir.
Rajnish Narula (Canara Robeco Asset Management Company Ltd): Well, thank you, and good morning, and thank you for joining us today. I hope you've had an opportunity to go through the investor presentation. Let me start by setting the context for the quarter first, with a brief perspective on the broader industry environment, and then with a closer look at our performance for the first half of the year. On the industry and market environment, the first half of FY '27 was characterized by global and domestic volatility, due to geopolitical developments and macroeconomic uncertainty shaping the market environment. September was particularly challenging. The NIFTY 50 declined by approximately 6% during the month, erasing the gains accumulated in the first two months of the quarter, and closing nearly 14% below its 52-week high. Indian equities faced pressure from elevated US bond yields, a strengthening US dollar, foreign portfolio outflows, geopolitical tensions in West Asia, and concerns around crude oil prices. Despite these headwinds, one of the key positives was the resilience of the domestic investor participation. Domestic institutional investors more than offset foreign selling, recording net purchases. More importantly, SIP flows continue to provide a structural anchor for the mutual fund industry. Monthly SIP contributions crossed Rs. 32,000 crores, while the number of SIP accounts are above the 10 crore mark. The domestic retail investor base has matured significantly and is increasingly becoming a steady, long-term, and relatively price-agnostic source of capital. In my view, this resilience of domestic flows is one of the most important developments shaping the Indian mutual fund industry today. We come to the company operational highlights. On the operational front, our closing AUM as of September 30, 2026, stood at 1.17 lakh crore. Our September 2026 quarterly average AUM saw a growth of 4% on a year-on-year basis. As of September 30, 2026, our investor folios stand at 50.1 lakh, reflecting the continued trust of our investors across the country. Individual investors contribute over 86% of our AUM. Contributions from systematic plan was Rs. 676 crores in September, across 19.6 lakh active SIP accounts. B30 strength: the monthly average AUM from beyond the top 30 cities was 28,944 crore, which reflects 23.6% of our total AUM. Our distribution network has expanded to over 57,186 empanelled partners, and we have 29 branches. We are looking to expand our product offering and targeting to come out with a couple of NFOs this financial year, subject, of course, to regulatory approvals. With this, I would like to now hand over to Mr. Ashwin Purohit, our CFO, who will take you through our financial performance for Q2 and H1 FY '27 in detail. Over to you, Ashwin.
Ashwin Purohit (Canara Robeco Asset Management Company Ltd): Thank you, sir. Good morning, everyone. For financial performance for the quarter and half year ended 30th September 2026. Financial highlights: Q2 FY '27 performance. Revenue from operations stood at 121.6 crore for the quarter, compared to 103.9 crore in Q2 FY '26, registering a YoY growth of 17%.
Ashwin Purohit (Canara Robeco Asset Management Company Ltd): Total income stood at 128.1 crore compared to 108.00 crore registered for Q2 FY26 representing a YoY growth of 19%. On profitability front, PAT stood at 59.2 crore compared to 48.7 crore in Q2 FY26, registering a YoY growth of 21%. Now I am moving to our H1 FY27 performance. Revenue from operations stood at 237.8 crore compared to 201.0 crore in H1 FY26 registering a YoY growth of 18%. Total income stood at 274 crore compared to 229.3 crore in H1 FY26 representing a YoY growth of 19%. Our H1 FY27 PAT stood at ₹134.8 crore compared to 109.7 crore of H1 FY26, registering a YoY growth of 23%. We are also pleased to announce that Board of Directors has declared an interim dividend of ₹2 per equity share for FY26-27 equivalent to 20% of our face value at ₹10 per share. With this, I will open the floor for the question. Thank you very much.
Moderator: Thank you, sir. Ladies and gentlemen, we will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. A reminder to all the participant, you may press star and one to ask a question. Thank you. Our first question comes from the line of Sukrit D Patil from ISec Fintrade Private Limited. Please go ahead.
Sukrit D Patil (ISec Fintrade Private Limited): Yeah, good morning to the team. I have two questions. First question is just want to understand a forward-looking guidance. Beyond the regular outlook, what are the top two to three execution priorities you are focusing on the next few quarters primarily to drive growth across the SIP franchise and the main and then holdings? And alongside that, what do you see as a key risk from market volatility changing investors' point of view or competitive pressures, and how are you preparing to manage them while strengthening the company's position in the market? Thank you. That's my first question. I'll ask my second question after this. Thank you.
Rajnish Narula (Canara Robeco Asset Management Company Ltd): Okay, thank you very much. I think it's a very good question. So in terms of execution priorities for the next 6 to 12 months for us is of course focusing on new products which I had mentioned earlier as well. And also looking at perhaps a new line of business. We are evaluating a few new lines of businesses that we can choose from. So there are passives, there is SIF, AIF, and GIFT City. We will choose one of them to go ahead over the next 6 to 12 months. So those are are the initiatives that we plan. On the SIP agenda in particular, we have you know, renewed focus on SIPs and we are working with selected partners on increasing our our market share on SIPs as well. So those are initiatives that the company and looking is looking at, and and maybe Gaurav who's the CBO, will elaborate a bit more on the SIP initiative.
Gaurav Goyal (Canara Robeco Asset Management Company Ltd): Sure. So I think from our SIP perspective, as Rajnish said, you did that okay we are working with our channel partners and anchoring, you know, different strategies, particularly you know, when you look at channel partners like Canara Bank which have a large network. So our SIP strategy is focused in terms of how we can harness the potential there and can work with our bank partners, can how we can work with our MFDs and NDs and digital partners to anchor it. What we have seen is of course as you see that we were early once in terms of our SIP journey, and therefore some of our vintage funds where we have seen that maturity of the SIPs which are happening. But at the same time
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