Canara Robeco AMC shares crash 11% as Q2 net profit slips 20% to Rs 49 crore

Synopsis

Newly listed Canara Robeco AMC shares fell 11.3% to ₹311 after posting muted Q2 results. Net profit dipped 2% to ₹49 crore, while revenue rose 3% to ₹107.7 crore year-on-year.

Shares of newly-listed Canara Robeco Asset Management Company slipped as much as 11.3% to their day’s low of Rs 311 on Tuesday, October 28, after the company reported a muted set of numbers for the quarter ended September 30.

The company’s net profit for the quarter under review stood at Rs 49 crore, down 2% from Rs 50 crore reported in the same quarter of the previous fiscal year. Canara Robeco AMC’s revenue from operations stood at Rs 107.7 crore, up 3% from Rs 104.5 crore in the corresponding quarter of the previous financial year.

Its Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) fell by 17% from June to Rs 17. EBITDA margin for the quarter declined by 440 basis points to 63% from 68% in June.

Sequentially, Canara’s revenue from operations declined 11%, while its net profit 20% due to higher expenses.

Despite today’s decline in the stock price, IPO investors are still sitting on gains as the stock is up 30% from its issue price of Rs 266 per share.

The stock made its primary market debut on October 16, listing at a 5% premium over the issue price. The Rs 1,326-crore IPO was led by QIBs, with a massive 25.9x subscription, while Non-Institutional Investors (NII) subscribed 6.45x and retail investors bid 1.9x their allotted quota.

Domestic brokerage firm Prabhudas Lilladher has given a Buy call on the counter and a target price of Rs 320 per share. Analysts remain optimistic about its business prospects, supported by several tailwinds. First, stronger equity market performance could drive higher net equity flow market share (1.3% in H1FY26), which, in turn, may boost its overall stock market share and support an estimated AAuM CAGR of around 20% over FY26–28E — about 3% higher than the industry average.

Canara Robeco AMC, India’s second-oldest mutual fund house, is a joint venture between Canara Bank and Orix Corporation Europe NV. The company manages a diversified portfolio across equity, debt, and hybrid funds, and is known for its consistent profitability and operational efficiency.

At about 10:45 am, shares of the company were trading at Rs 327, lower by 7% from the last close on the NSE.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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