Canara Robeco Q2 FY27 Results (NSE: CRAMC)
Signal: Margin expansion
The read
The underlying fee business remains on an improving trajectory, with Q2 revenue up 16.99% YoY and cost-to-income at 37.65%, but reported margin momentum is volatile: EBITDA margin fell to 67.47% from 87.62% in Q1 as fair-value gains dropped to ₹638.15 lakh from ₹2,917.32 lakh. H1 revenue grew 18.32% YoY to ₹23,779.03 lakh and H1 PAT grew 22.88% to ₹13,478.97 lakh, supporting a positive underlying trend despite quarterly normalization.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹121.59 Cr | +16.99% | +4.64% |
| EBIT | ₹80.56 Cr | +21.04% | |
| Net profit | ₹59.19 Cr | +21.49% | |
| EPS | ₹2.97 | +21.72% | |
| EBIT margin | 67.47% |
P&L walk
Standalone-only filing: Q2 revenue grew 16.99% YoY and PAT grew 21.49%, with EBITDA margin improving 219bps YoY but falling 2,015bps sequentially as fair-value gains normalized.
Key positives
- Revenue from operations reached ₹12,158.89 lakh, up 16.99% YoY and 4.64% QoQ, extending the fee-growth trajectory.
- EBITDA margin improved 219bps YoY to 67.47% because employee and other operating expenses grew 14.56%, below revenue growth of 16.99%.
- H1 operating cash flow increased 44.47% YoY to ₹10,407.93 lakh, while trade receivables declined to ₹3,965.93 lakh from ₹4,487.28 lakh.
- Equity-oriented QAAUM rose 5.04% YoY to ₹1,131.96 billion and represented 90.99% of mutual-fund QAAUM.
Key concerns
- Sequential EBITDA margin fell 2,015bps to 67.47% as total other income declined 77.89% QoQ to ₹655.38 lakh, highlighting sensitivity to market-linked fair-value gains.
- Outstanding SIP accounts declined to 1.96 million from 2.13 million in the comparable KPI period, while SIP monthly contribution fell to ₹6.76 billion from ₹7.68 billion.
- Direct-plan MAAUM share was 28.00%, down from 28.12% in the comparable KPI period, keeping channel mix and fee yield important to monitor.
Research and educational content only. Not investment advice.