Stock Crash: Canara Robeco AMC Faces Sharp Fall After Q2 Results
Canara Robeco AMC shares witnessed a major stock crash on Tuesday, October 28, as the stock plunged up to 11% in early trade. The fall came after the Canara Robeco AMC Q2 results were released on Monday post-market hours, disappointing investors.
Revenue and Profit Decline
According to the company’s Q2 report, Canara Robeco AMC recorded a 11% drop in revenue, which declined to ₹107.7 crore compared to the previous quarter. The company’s EBITDA also fell sharply by 17%, signaling rising operational pressure.
Furthermore, the EBITDA margin slipped by 440 basis points, dropping from 68% in the June quarter to 63% in Q2. The Canara Robeco AMC net profit also took a hit, plunging 20% quarter-on-quarter due to higher expenses and reduced margins.
New Fund Launch Plans
Despite weak results, Canara Robeco AMC announced plans to launch two new mutual fund schemes — Canara Robeco Innovation Fund and Canara Robeco Banking and Financial Services Fund.
However, the company clarified that the fund launch will depend on SEBI approvals and favorable market conditions.
Company Background
Canara Robeco AMC, established in 1993, traces its roots back to Canbank Mutual Fund (1987). It is a joint venture between Canara Bank and Orix Corporation Europe N.V., formed in 2007.
As of the June quarter, the company reported total assets under management (AUM) of ₹1.17 lakh crore, with a revenue of ₹121.3 crore and a net profit of ₹61 crore.
Stock Performance
Following the weak earnings, Canara Robeco AMC shares dropped 10.5%, trading at ₹313.95 in early sessions on Tuesday. The sudden correction reflects investor disappointment and cautious sentiment toward the company’s short-term outlook.
Conclusion
The Canara Robeco AMC stock crash highlights the impact of weak quarterly performance and falling margins. While the company plans to expand with new schemes, investors may remain watchful until growth stabilizes.
DISCLAIMER
This article is for educational and informational purposes only. It is not intended as investment advice, and should not be considered a recommendation to buy, sell, or hold any securities. All information provided is based on publicly available data. Before making any investment decision, please consult with a qualified financial advisor and conduct your own research. Market risks and uncertainties may impact stock performance.