Canara Robeco Asset Management Company Ltd Management Discussions

Global Economic Overview

FY 2025-26 was characterised by a volatile yet resilient
global macroeconomic environment, marked by
geopolitical tensions, trade disruptions, and policy shifts,
alongside strong financial market performance and monetary
support.

Global markets experienced intermittent volatility in early
2026, extending the pressures from 2025, primarily driven by
escalating trade tensions following tariff measures introduced
by the current US administration. Broad-based tariff hikes
and retaliatory actions, particularly from China, led to supply
chain disruptions, inflationary pressures, and heightened
uncertainty. These developments triggered risk-off sentiment
globally, resulting in sharp market corrections during certain
periods and significant foreign institutional investor (FII)
outflows from emerging markets, including India.

Geopolitical risks remained elevated, with ongoing conflicts
such as the Russia-Ukraine War and renewed tensions in the
Middle East including the Gaza Conflict escalation, US-Israel
strikes on Iran, and direct confrontations involving regional
powers. Additional flashpoints across Asia and other regions
further contributed to global risk aversion. These
developments led to increased volatility in commodity prices,
particularly crude oil, and supported safe-haven asset
classes such as gold, while weighing on risk assets. Additional
disruptions from natural disasters and policy uncertainties,
including a temporary U.S. government shutdown, further
impacted global growth sentiment and market stability.

Despite these headwinds, global financial markets
demonstrated notable resilience. Equity markets delivered
strong returns, supported by robust corporate earnings and
liquidity conditions, with indices such as the MSCI ACWI
recording healthy gains. Equity Market performance also
highlighted the benefits of geographic diversification, with
non-U.S. and emerging markets outperforming during parts
of the year.

A key supportive factor was the shift in monetary policy by
the Federal Reserve and other central banks, which pivoted
towards rate cuts in the latter part of the year. Easing
monetary conditions led to softer bond yields, improved
liquidity, and renewed investor interest in risk assets. Fixed
income markets benefitted from this shift, supporting returns
across debt and hybrid asset classes.

Structural growth drivers, particularly in technology,
remained robust. Continued investments in artificial
intelligence, digital infrastructure, and innovation-led sectors
supported equity market performance, especially in growth-
oriented segments, despite periodic valuation concerns.
While geopolitical tensions persisted, selective progress in
diplomatic engagements provided intermittent stability to
markets. However, the overall environment remained
uncertain, reinforcing the need for prudent asset allocation.

Indian Economic Overview

The Indian economy in FY 2025-26 was characterised by a
resilient and policy-supported environment, underpinned
by an accommodative monetary policy, benign inflation, fiscal
prudence, and strong domestic growth momentum. Indias
GDP growth exceeded 7% for FY 2025-26, including a strong
8.2% recorded in Q2 FY 2025-26, indicating sustained
economic expansion. Structural reforms, including tax
rationalisation, infrastructure push, and liberalisation
measures, further strengthened the medium-term growth
outlook and reinforced Indias position as a high-growth
economy.

Although global developments led to temporary downward
revisions in growth expectations during the early part of 2026,
strong domestic fundamentals and policy support resulted in
subsequent upward revisions, reflecting the underlying
resilience of the Indian economy.

Indias external sector remained stable, with the current
account deficit narrowing to approximately 0.2% of GDP in
Q1 FY 2025-26, supported by strong services exports and
controlled import growth. Foreign exchange reserves
remained at comfortable levels, providing a buffer against
external shocks. These factors collectively created a
favourable backdrop for capital markets and the mutual fund
industry, despite intermittent volatility arising from external
pressures.

A key highlight of FY 2025-26 was the decisive and front-
loaded monetary easing cycle undertaken by the Reserve
Bank of India, which implemented cumulative repo rate cuts
of 125 basis points, bringing the policy rate down to 5.25%
by December 2025, one of the lowest levels in recent years.
The RBI maintained the rate at this level through the February
and April 2026 MPC meetings, adopting a neutral stance amid
rising global uncertainties.

This easing cycle was complemented by significant liquidity-
enhancing measures, including open market operations of
approximately 8.8 Trillion and USD/INR swap interventions
of around USD 20 Billion. The resulting environment was
conducive to growth, with improved transmission of lower
interest rates leading to reduced borrowing costs, enhanced
credit demand, and improved investor sentiment. This
supported strong inflows into debt, hybrid, and passive
investment strategies, while also providing resilience to equity
markets.

Inflation dynamics evolved from exceptionally benign levels
in 2025 to a modest normalisation in early 2026. Headline CPI
inflation reached multi-decade lows of ~0.25% in October
2025 and remained subdued through December, with core
inflation anchored at 4.0%-4.4%. However, it rose to 3.21% in
February 2026 and further to 3.40% in March 2026, driven by
food inflation pickup and initial pass-through from elevated
global crude oil prices following West Asian escalations. Full-
year FY 2025-26 inflation projections were revised downward

\

earlier but stabilised around 4.0%-4.6% for FY 2026-27, with
the RBI retaining flexibility within its target band.

Indias macroeconomic stability was further reinforced by
sovereign credit rating upgrades, with the country being
upgraded to investment grade by major global agencies,
marking a significant milestone after nearly two decades. This
was accompanied by continued fiscal discipline, with the
fiscal deficit contained at approximately 4.4% of GDP in
FY 2025-26, better than the budgeted target, and a projected
glide path towards 4.3% in FY 2026-27. These developments
enhanced investor confidence, supported capital inflows, and
strengthened bond market sentiment.

External pressures intensified in the first quarter of 2026. The
Indian rupee depreciated further, breaching record lows past
94/USD in March 2026, reflecting cumulative fiscal-year
weakness of over 5-11% in parts amid global energy
disruptions and dollar strength. Foreign institutional investor
(FII) outflows accelerated sharply, with March 2026 recording
the highest single-month sell-off on record (over 1.14 Trillion
or ~USD 12.3 Billion), pushing calendar-year 2026 equity
outflows significantly higher. These were largely triggered by
the late-February 2026 escalation in West Asia (US-Israel
strikes on Iran and retaliatory actions), which spiked oil prices,
heightened inflation risks, and amplified risk aversion.
Domestic institutional investors (DIIs) continued to provide a
strong counterbalance, cushioning markets and supporting
mutual fund resilience.

The domestic bond market also witnessed significant
deepening during the year, with record corporate bond
issuances of approximately 10.48 Trillion, driven by lower
borrowing costs, improved liquidity, and a shift by corporates
towards market-based funding. Increased primary issuance
and secondary market activity created opportunities for fixed
income and credit-oriented strategies, supporting growth in
debt and hybrid mutual fund categories.

Overall, the combination of accommodative monetary policy,
low inflation, strong growth momentum, and fiscal prudence
created a supportive environment for financial markets and
the mutual fund industry. While currency volatility and foreign
outflows introduced intermittent challenges, strong domestic
liquidity and policy agility ensured overall stability.

Mutual Fund Industry Overview

The Indian mutual fund industry continues to demonstrate
strong structural growth momentum, with assets under
management (AUM) expanding 12.2% YoY to 73.73 Trillion as
on March 31, 2026 from 65.74 Trillion as on March 31, 2025. This
growth has been driven by a combination of robust inflows -
especially in equity schemes, economic indicators, and
sustained retail participation through record SIP contribution,
reinforcing the industrys position as a key conduit for household
financial savings.

Strong AUM Expansion across Categories

The growth in AUM during the year was broad-based across
asset classes, reflecting increasing investor preference for
diversification:

Passive strategies

AUM growth of ~23% YoY to 14.12 Trillion, with gold ETFs
witnessing exceptional growth, reaching ~1.71 Trillion.

By the end of March 2026, equity-oriented schemes
accounted for ~43% of industry AUM (~73.73 Trillion),
followed by debt (~22%), passive/others (~20%+) and hybrid
(~14%), indicating a well-diversified industry structure.

SIP Flows - The Core Growth Engine

Systematic Investment Plans (SIPs) continued to anchor
industry growth, with annual SIP inflows reaching
~2.89 Trillion in FY 2024-25, up from 1.99 Trillion in
FY 2023-24. The momentum carried forward into FY 2025-26,
with cumulative SIP inflows for the full fiscal year exceeding
3.49 Trillion.

y Monthly SIP inflows achieved milestone of crossing
300 Billion in December 2025, followed by a new all-time
high of 320.87 Billion in March 2026.

y SIP AUM stood at ~15.11 Trillion as on March 31, 2026,
contributing ~20.5% of total industry AUM.

- Active SIP accounts stood at ~97.2 Million, reflecting
strong investor engagement.

SIPs played a critical role as a stabiliser, supporting consistent

inflows despite market volatility and external shocks.

Retail Participation and Folio Growth

Retail participation continued to deepen significantly:

Total folios increased to ~273.9 Million by March 2026.

- 39.4 Million new folios were added during the financial
year despite volatile market conditions and sharp market
corrections in the beginning of 2026.

- Individual investors accounted for ~60% of total MAAUM,
maintaining strong YoY growth in individual holdings
even after the March mark-to-market adjustment.

Growth was driven by:

Increasing penetration in B30 cities, with MAAUM share
standing at ~18.2%.

- Increasing participation from younger investors and
women.

- Continued digital adoption and expansion of distribution
network.

Domestic Liquidity Driving Market Stability

Domestic Institutional Investors (DIIs), including mutual

funds, emerged as a dominant force in capital markets:

This strong domestic liquidity:

- Prevented deeper market corrections.

- Supported sustained equity mutual fund inflows
(5.02 Trillion for FY 2025-26).

- Reinforced the structural shift towards domestic flow-
driven markets.

Favourable Policy and Liquidity Environment

The Reserve Bank of India implemented a cumulative
-125 basis points rate cut cycle during 2025, reducing the
policy rate to -5.25%, along with liquidity-enhancing
measures.

This resulted in:

- Improved liquidity conditions

- Increased attractiveness of debt and hybrid strategies

- Strong growth in shorter-duration debt categories

Support for overall investor risk appetite

Additionally, the Union Budget 2025 introduced:

- Tax relief measures (including benefits up to 12 lakh
income).

- Increase in TDS exemption on MF income to 10,000.

- Simplification of KYC processes.

These measures are expected to further support incremental
retail flows and SIP growth.

Evolving Product Landscape and Regulatory Support

Regulatory initiatives by the Securities and Exchange
Board of India have accelerated industry evolution:

- Introduction of MF-Lite framework for passive funds.

- New product categories (including multi-asset, sectoral,
and passive structures).

- Reduction in exit load caps (from 5% to 2%).
y Enhanced cost transparency and TER-related disclosures.
These changes are expected to:

- Increase investor confidence.

- Drive product innovation.

- Improve cost efficiency.

However, they may also lead to higher compliance costs and
margin pressures for AMCs.

Near-Term Headwinds

Despite strong structural tailwinds, certain challenges
persist:

- Equity inflow moderation during parts of the year with
recovery coming in March 2026 with record inflows of
404.50 Billion.

- Debt funds witnessed -1.32 Trillion outflows in December
and sharp seasonal outflows of 2.95 Trillion in March
2026 due to tax and liquidity factors.

- Limited bond rally in certain segments despite rate cuts.

- Increased competition from new AMC entrants and rising
product proliferation.

Industry Trends Shaping the Outlook

Key structural trends expected to drive future growth

include:

Continued expansion of SIP-led flows (-3.49 Trillion
annual run-rate).

>? Increasing share of passive assets (-14.12 Trillion AUM).

y Hybrid funds as a whole showed strong interest earlier in
the year, with multi-asset allocation funds consistently
leading inflows.

y Rising contribution from B30 markets (-18% MAAUM
share).

Increasing dominance of domestic flows over foreign
capital.

Industry Outlook

The Indian mutual fund industry is expected to maintain
a strong medium- to long-term growth trajectory,
supported by structural drivers such as rising
financialisation, favourable demographics, and policy
support.

Despite near-term volatility, the industrys
fundamentals remain robust, with:

• Sustained retail participation.

• Strong SIP inflows.

• Increasing domestic institutional support.

The industry is well-positioned to scale significantly,
with long-term projections indicating the potential to
exceed USD33 Trillion AUM by 2047 driven by continued
penetration and investor participation.

Overall, FY 2025-26 reinforces the mutual fund industrys
evolution into a resilient, retail-driven, and structurally

expanding ecosystem, with disciplined investing,
diversification, and asset allocation emerging as key
pillars of long-term wealth creation.

The performance of Indias equity and debt markets in
2025 provided a mixed yet supportive backdrop for the
asset management industry. While equity markets
delivered modest but resilient gains amid significant
volatility and foreign outflows, the debt market benefited
from monetary easing, fostering opportunities in fixed-
income and hybrid products. These dynamics directly
influenced mutual fund inflows, AUM composition,
scheme returns, and investor behaviour, with domestic
retail and institutional participation (including through
AMCs) playing a pivotal counterbalancing role.

Market Environment - Equity and Debt Markets in India.

Equity Market

Summary of the Market Events and A broad
market trend

Indian equity markets concluded CY2025 with their tenth
consecutive year of positive returns, reflecting underlying
resilience despite a challenging global backdrop characterised
by trade tensions, geopolitical risks, elevated valuations, and
record foreign institutional investor (FII) outflows.

Major Events & Drivers

Market volatility remained elevated during the year, with
equities navigating a "wall of worry" that included global trade
disruptions, currency depreciation, and brief geopolitical
tensions. However, the second half of the year witnessed
improved sentiment, supported by monetary easing by the
Reserve Bank of India, consumption-focused measures in the
Union Budget 2025, tax and policy reforms, and regulatory
initiatives by the Securities and Exchange Board of India.
Primary market activity also remained healthy, with continued
IPO momentum contributing to overall wealth creation.

Corporate Earnings and Growth Trend

Corporate Indias earnings trajectory in FY 2025-26 reflected
resilience amid a "wall of worry"—global tariffs, geopolitical
tensions, and initial demand softness were offset by strong
domestic engines (RBI easing, capex push, consumption
recovery) and margin discipline. The shift to double-digit PAT
growth in H2 underscored improving sectoral breadth and
operating leverage benefits as input costs moderated.

Revenue growth remained modest for much of the year but
accelerated sharply in the final quarter, signalling a
sustainable upcycle. This earnings environment provided a
supportive backdrop for equity markets and reinforced the
value of active fund management in capturing cyclical
opportunities while navigating divergences across sectors.
For the mutual fund industry, the trend validated the resilience
of diversified equity portfolios, thematic exposure (financials,
metals, infra), and the role of domestic institutional flows in
cushioning volatility.

FII & DII Flow Trend

Despite global headwinds, overall market capitalisation
remained strong, building on levels of approximately USD 4.4
Trillion, supported by robust domestic liquidity. Domestic
institutional investors (DIIs), including mutual funds, played
a pivotal role, with record inflows of approximately 8.5
Trillion, more than offsetting FII outflows of ~1.6 Trillion. This
strong domestic participation helped prevent deeper market
corrections and ensured continued net inflows into equity
mutual funds across most months.

Benchmark Performance (Market Cap wise Top &

Bottom performers)

Benchmark indices delivered steady, albeit moderated,
returns during the year. The Nifty 50 Index declined by
approximately 5%, to close near 22,331 in March 2026, after
touching a record high of ~26,373. Similarly, the BSE Sensex
declined by ~7%. Broader market performance, however,
remained mixed, with sectoral and market-cap divergences
clearly visible.

Benchmark Performance (Sectoral Top & Bottom
Performers)

Banking and PSU banking indices outperformed significantly,
delivering returns in the range of ~12% to 25%, supported by
strong earnings growth, regulatory support, and infrastructure-
led themes. Metal and auto sectors also recorded robust gains
of ~15%-22%. In contrast, mid-cap indices posted relatively
modest returns of ~6%, while small-cap indices declined by
~5.6%, reflecting valuation corrections and risk aversion.
Sectors such as IT, media, and real estate underperformed,
registering declines in the range of ~15% to 25%.

Brief Outlook (For Broader Equity Markets, Market-cap
based Views and Sectoral Views)

From a mutual fund industry perspective, the equity market
environment remained broadly supportive during the year.
Equity-oriented schemes continued to form a significant
share of overall industry assets, underpinned by steady net
inflows. Systematic Investment Plans (SIPs) and robust
domestic institutional participation emerged as key
stabilising forces, helping the industry sustain consistent
inflows across market cycles.

While periods of market volatility posed challenges for
investor sentiment, particularly within pure equity strategies,
they also highlighted the importance of diversification. This
led to continued relevance and adoption of hybrid and
passive investment solutions within investor portfolios.

Summary of the Market

The Indian debt market experienced a supportive yet dynamic
year, driven by accommodative monetary policy, strong
liquidity conditions, and robust corporate bond issuance,
albeit with intermittent volatility.

Inflation Trends

Inflation in India during 2025 entered an extraordinary
disinflationary phase, creating a highly supportive
environment for the debt market and fixed-income mutual
fund categories. Headline CPI fell to historic lows, touching
0.25% YoY in October 2025, after already declining to an eight-
year low of 1.55% in July. Food inflation was a key driver,
turning negative due to strong supply conditions and a
favourable monsoon. Despite a slight uptick to 0.71% in
November, inflation remained below the RBIs 2-6% target
band for three consecutive months.

In the first quarter of 2026, inflation began normalising.
Headline CPI rose to 3.21% in February 2026 and further to
3.40% in March 2026, driven by a pickup in food inflation to
3.87% and initial passthrough from elevated global crude oil
prices following West Asian geopolitical escalations. Core
inflation remained stable at 4.0-4.4%, indicating controlled
underlying demand pressures.

The RBI cut the repo rate by 125 basis points, bringing it to
5.25%, alongside liquidity measures such as CRR cuts and
OMOs, resulting in surplus systemic liquidity and improved
transmission. Bond markets responded positively, with 10-
year G-Sec yields moderating to ~6.2-6.3% range, before
facing upward pressure in Q1 2026, ending the quarter at
above 7%. Yield compression and a favourable yield curve
supported duration strategies. Lower borrowing costs and
ample liquidity led to strong corporate bond issuance,
reaching 9.9-10.67 Trillion, while tighter spreads and
institutional demand deepened the market.

RBI Policies and Repo Rate Trends

The Reserve Bank of India implemented cumulative policy
rate cuts of 125 basis points during 2025, bringing the repo
rate down to approximately 5.25%, alongside liquidity-
enhancing measures such as CRR adjustments and open
market operations. This shift in policy stance supported
borrowing costs and improved overall liquidity conditions.

Yield Curve and Yield Movements for Major Maturities
such as 1Y, 2Y, 5Y & 10Y and Maturity Spread
(10Y - 2Y Trend)

Government bond yields exhibited a moderating trend during
the year with a mild moderation in beginning of 2025 The
10-year G-sec yield averaged ~6.79%, declining to intra-year
lows of around ~6.2% following policy easing, before ending
the year in the range of ~6.75%-6.80%. However, yield
movements remained sensitive to external factors such as
crude oil prices and government borrowing programmes.

Corporate Bond Segment Yields and Credit Spread

Corporate AAA bond spread remained attractive, typically in
the range of 40-100 basis points over benchmark yields at
various maturities, supporting investor demand.

Systemic Liquidity

The domestic bond market continued its structural
expansion, with total market size building on approximately
226 Trillion. Corporate bond issuance reached record
levels of over 10.48 Trillion during FY 2025-26 driven by
lower interest rates, improved liquidity, and a shift towards
market-based borrowing. Primary issuances were
particularly strong in the early part of the year, with private
placements witnessing significant traction, while secondary
market activity remained supported by institutional
participation.

Cash reserve ratio trends, the RBI implemented a 100
basis point phased reduction in CRR to inject durable
liquidity and support growth amid easing. This calibrated
move released an estimated 2.5 Trillion of primary liquidity
into the banking system by end-2025, enhancing banks
lending capacity and reducing reliance on costlier short-
term funding. It complemented the 125 basis points repo
rate cuts and helped maintain surplus conditions, directly
aiding debt fund inflows and corporate bond
market deepening.

Open Market Operations

The RBI conducted large-scale OMO purchases (outright
G-Sec buys) throughout 2025 to provide durable liquidity,
often in response to tightness from FX interventions and tax
outflows. Cumulative OMO purchases in 2025 exceeded
7 Trillion.

Net LAF Position

The banking system faced liquidity deficit pressures
(e.g., average deficit of ~1.24 Trillion in March 2025 for parts
of the system), driven by forex interventions, advance tax
outflows, and seasonal factors. From April 2025 onward,
liquidity turned into a persistent surplus and remained so
through the year, reversing the earlier tightness. Average daily
net LAF surplus reached ~1.6 Trillion initially, then nearly
doubled to 3 Trillion by August 2025. By late 2025, daily
average surplus moderated but stayed positive. The surplus
strengthened further in early 2026, averaging
~2.5 Trillion between February and mid-March 2026. Net
durable liquidity as on March 31, 2026 stood at a surplus of
5.07 Trillion, reflecting the RBIs proactive liquidity
management even amid seasonal outflows and global
uncertainties.

Brief Outlook

From an investment perspective, the rate-cut cycle supported
demand for shorter-duration and corporate bond strategies,
while liquid and ultra-short duration categories saw strong
inflows during periods of uncertainty. At the same time, the
market experienced intermittent pressures, including yield
volatility and late-year outflows driven by tax-related and
liquidity considerations.

For the mutual fund industry, the debt market environment remained constructive. Debt-oriented schemes witnessed improved
traction, with AUM reaching approximately 18.10 Trillion by the end of 2025. However, by March 31, 2026, debt-oriented AUM
moderated to 16.52 Trillion, primarily due to sharp seasonal outflows of 2.95 Trillion in March 2026. Strong flows into money market
and low-duration categories supported overall growth, while hybrid and multi-asset strategies benefitted from improved fixed-income
returns. However, episodic outflows, including approximately 1.32 Trillion in December and significant
2.95 Trillion in March 2026, highlighted the importance of active liquidity and duration management.

Overall Impact on the Mutual Fund Industry

The equity and debt market dynamics in 2025 collectively
reinforced the structural shift towards a domestically
driven mutual fund ecosystem. While equity markets
delivered moderate yet resilient returns amid global
volatility, the debt market benefitted from policy support
and liquidity easing, providing a stable foundation for
diversified investment strategies.

These conditions enabled the mutual fund industry to
expand AUM to approximately 73.73 Trillion, reflecting
~12.2% year-on-year growth, with equity and passive
segments driving growth and hybrid strategies providing

stability. Strong domestic participation, particularly
through SIPs and institutional flows, continued to anchor
the industry despite external headwinds.

Overall, the market environment validated the importance
of diversification, disciplined investing, and active asset
allocation, while reinforcing the role of mutual funds as a
key vehicle for long-term wealth creation. Looking ahead,
continued earnings growth, policy support, and further
deepening of capital markets are expected to provide
sustained tailwinds for the industry.

Company Overview

About the Company

Canara Robeco Asset Management Company Limited
("CRAMC" or "the Company") is one of Indias most
established asset management companies, with over three
decades of operational track record. As the investment
manager to Canara Robeco Mutual Fund, the Company has
built a strong reputation for delivering consistent, risk-
adjusted returns through a disciplined investment
philosophy that combines domestic market insight with
global best practices.

Promoters and Ownership Structure

CRAMC is promoted by two well-established financial
institutions. Canara Bank holds a 38% stake and brings a
legacy of over 118 years, an extensive network of 9,800+
branches, and a customer base exceeding 89 Million,
providing strong distribution reach and retail connectivity.
The second promoter, ORIX Corporation Europe N.V., holds

a 37% stake and is a wholly-owned subsidiary of ORIX
Corporation, a globally diversified financial services group
listed on the Tokyo and New York Stock Exchanges.

This partnership integrates deep domestic distribution
strength with global asset management expertise,

including advanced investment processes, ESG integration,
and strong fiduciary standards.

Scale and Market Position

CRAMC manages 27 schemes across equity, debt, and
hybrid categories and services a growing base of 5.08
Million investor folios. The Company has a strong retail-
focused franchise, with individual investors accounting for
86% of MAAUM. Additionally, geographic diversification
remains a key strength, with B-30 cities contributing
~23.2% of MAAUM (262 Billion), reflecting continued
penetration beyond top urban centres.

Operational Performance and Growth Metrics

The Company delivered robust, retail-led growth during
FY 2025-26, with strong performance across key operating
metrics:

The Companys Quarterly Average Assets Under Management
(QAAUM) for the quarter ended March 2026 stood at
1,175 Billion, nearly doubling since March 2023, implying a CAGR
of 23.42%. The portfolio continues to be strongly equity-oriented,
with equity AUM increasing from 553 Billion to 1,069 Billion
over the same period. Consequently, the equity mix improved by
256 basis points to 91%, with equity assets at 1,069 Billion
(91.0%) and debt-oriented assets at 106 Billion (9.0%) reinforcing
the Companys positioning as a high-equity AMC. (Show the data
on QAAUM).

The SIP franchise emerged as a key growth driver, with
SIP month-end AUM reaching 359 Billion, accounting
for 33.7% of total AUM. This segment recorded a strong
32.59% CAGR, with SIP AUM to total AUM increasing by
9.1 percentage points since March 2023.

Monthly SIP contributions (including STPs) were
7.27 Billion in March 2026, reflecting strong retail
engagement and disciplined investing behaviour.

Investor folios increased to 5.08 Million, representing a 1.2x
growth since March 2023, driven by sustained retail
onboarding and increased participation through systematic
investment routes.

Distribution and Digital Capabilities

CRAMC has built a well-diversified, multi-channel
distribution network, which expanded to 56,231 empanelled
distributors, up from 50,935 in the previous year. The
Company also strengthened its physical presence, increasing
its branch network to 29 locations.

The share of direct distribution increased to 28% of
MAAUM, supported by growing digital adoption and efficient
customer acquisition strategies.

Digital transformation remains a key strategic pillar. The
Companys investor-facing mobile application, CR Smart
Investor, offering seamless onboarding, transaction
execution, and portfolio tracking. The distributor platform, CR
Smart Partner, enables real-time servicing and transaction
monitoring. These initiatives, combined with multi-channel
digital engagement across WhatsApp, email, and social
platforms, have significantly enhanced customer experience
and engagement.

Governance and Leadership

The Company is governed by a diverse and experienced Board, comprising independent directors, promoter representatives,
and professionals with expertise across banking and global asset management.

At the executive level, the Company is led by Rajnish Narula, Managing Director & CEO, who brings over four decades of
industry experience. He is supported by a seasoned senior management team with extensive experience across functions,
including:

Mr. Edwin (Eduard) Van der Burg	Mr. Shridatta Bhandwaldar	Mr. Avnish Jain
COO	CIO - Equities	CIO - Fixed Income
Experience - 19 years	Experience - -19 years	Experience - -27 years
Driving day-to-day operations including	Driving the Companys equity	Overseeing debt portfolios with a
registrar and transfer agent, fund processing, investor servicing and compliance	investment strategy	strong credit and duration framework
Mr. Gaurav Goyal	Mr. Ashwin Purohit	Ms. Hemangi Patil
CBO	CFO	CS & Compliance Officer
Experience - -24 years	Experience - -27 years	Experience - -19 years
Leading the development and	Responsible in ensuring financial	Ensuring regulatory adherence and
execution of strategic objectives	discipline and implement financial, budgeting and strategies for the Company	governance compliance

This leadership team has been instrumental in scaling the Companys AUM, strengthening its retail franchise, and navigating
volatile market cycles, while maintaining a disciplined approach to risk management. This diverse composition also ensures
independent oversight, strategic guidance, and adherence to high standards of corporate governance.

Strategic Positioning and
Outlook

CRAMCs strategic positioning is
anchored on its strong equity
franchise, growing SIP book, strong
retail base, and strengthening
digital capabilities. The Companys
focus on B-30 expansion, multi-
channel distribution, and technology-
led engagement provides a strong
foundation for future growth.

With a retail-centric investor base,
strong domestic macro environment,
and favourable industry tailwinds,
CRAMC is well-positioned to capitalise
on the structural growth of the Indian
mutual fund industry. The Company

remains committed to delivering
superior risk-adjusted returns,
enhancing investor experience, and
maintaining high standards of
governance and fiduciary
responsibility.

Entering FY 2026-27, the Company
remains optimistic, supported by ever
increasing financialisation of savings,
strong regulatory support, and
increasing investor participation in
mutual funds.

Information Technology

During FY 2025-26, we advanced our
technology transformation with
targeted investments in CRM, process

automation, and strengthened
business intelligence (MIS automation)
to improve operational effectiveness.
We implemented a Sales and Customer
Service CRM to deepen partner and
investor engagement and enable data-
driven decision-making. The solution
supports growth of the partner and
investor base through system-
generated nudges that help re-engage
dormant distributors and accelerate
onboarding of newly registered
partners. It also provides a 360-degree
view of partners (MFDs, NDs, banks,
and investors) by mapping key
contacts, recording past and planned
interactions, and capturing milestone
dates such as birthdays and

anniversaries to enable timely
outreach. A performance dashboard
offers quick visibility into distributor
Net-to-Gross, redemptions, and recent
transaction activity (last five
transactions), helping teams drive
more focused conversations and
improved product placement. In
addition, we introduced Distributor
Services to support MFD and ND day-
to-day servicing requirements.

Infrastructure Modernisation and
Cybersecurity Enhancement

We continued to modernise our
infrastructure and reinforce our
cybersecurity posture with new CSCRF
requirements to support Canara
Robeco AMCs evolving business
needs. Key enhancements included
advanced threat protection, HSM, and
strengthened network isolation to
protect systems and data from
emerging risks. We also leveraged
secure, elastic cloud platforms to scale
compute capacity on demand,
improving performance, resilience, and
cost efficiency. Our infrastructure
architecture is designed for high
availability and continuity, enabling
stable operations even during

disruption scenarios. Further, we
strengthened data governance aligned
with DPDP requirements through data
classification and implementation of
controls and tools to secure sensitive
information.

Digital Growth

At Canara Robeco Mutual Fund, digital
transformation continues to be a core
pillar of our growth strategy, shaping
how we engage with investors and
partners in an increasingly dynamic
environment.

During FY 2025-26, we strengthened
our digital ecosystem through a series
of focused initiatives, including the
rollout of an enhanced WhatsApp-
based interface that enables seamless
access to information and transactions,
a comprehensive website revamp
aimed at improving user experience,
and the launch of the smarTPartner
app to empower our partners with
greater mobility and efficiency.

These initiatives are anchored in our
commitment to deliver simplicity,
accessibility, and security, while
enabling stakeholders to engage with

us in a more agile and convenient
manner.

As we look ahead, our vision is to
further scale our digital business by
building more integrated, intelligent,
and future-ready capabilities. We see
significant potential in leveraging
technology to deliver more
personalized and insight-led
experiences, while continuing to
enhance operational efficiency and
resilience.

In FY 2026-27, our focus will be on
deepening digital adoption,
strengthening platform-led
engagement, and embedding
innovation across the value chain. We
remain committed to ensuring that our
digital initiatives not only support
business growth but also reinforce
trust and long-term relationships with
our investors and partners.

Customer Service

During the financial year customer service function remained focused on enhancing experience, strengthening service delivery
frameworks and ensuring regulatory compliance. The department plays a critical role in building investor trust, improving service
efficiency and support overall business growth.

Strategic Highlights

Strengthened Omnichannel Service Capabilities	Digital Enablement - 360-Degree Customer Interaction Visibility	Partner Experience Transformation Introduced a dedicated Virtual
Contact Centre/ Branches/ E-mails and social media). 1	Implemented an integrated CRM platform which has enabled unified view of customer interactions, improving service responsiveness, improving resolution quality and data driven decision making.	Relationship Manager (VRM) desk for partner fraternity, significantly improving engagement quality and service consistency for distributors.
Expanded Service Reach 1	Driving Self-service Adoption to Empower Investors/Partners	Ease of Transactions
Strengthened our physical footprints to		Non-Individual Investors- Enabled
29 branches across India by adding 6 t new Investor Service Centres.	Accelerated digital adoption through . multiple self-service initiatives for nvestor and partners, leading to mproved faster resolution and reduce dependency on assisted channels.	email-based transaction processing for existing non-individual investors, to enhance operational efficiency and improved ease of doing business.
[&?}J 1 Proactive Resolution -	Value added Investor Campaign	Customer Service
Transmission Cases
Shifted from a reactive to a proactive i approach by engaging directly with I claimants and guiding them through documentation and procedural requirements. This approach ensured enabling families and rightful claimants to access financial assets during critical times.	A focused outreach initiative on unclaimed investor assets, Nominee Updation and SIP expired intimation. 1	The Company remains committed to positioning customer service as a key differentiator, scaling digital capabilities empowering investors and distributors to deliver seamless customer experience.

Financial Performance

	FY 2025-26	FY 2024-25	Y-o-Y %
Revenue from Operations	4,249	3,645	17%
Other Income	297	394	(25%)
Net Gain/Loss On fair value changes	287	391	(27%)
Other Income	10	3	233%
Total Income	4,546	4,039	13%
Finance Cost	20	17	18%
Employee Benefits Expense	1,071	885	21%
Depreciation and Amortization	74	50	48%
Other Expenses	635	511	24%
Total Expenses	1,800	1,463	23%
Profit Before Tax	2,746	2,576	7%
Tax Expense	708	669	6%
Profit After Tax	2,038	1,907	7%

Balance Sheet

	March 31, 2026	March 31, 2025
Share Capital	1,994	1,994
Other Equity	5,464	4,006
Total Equity	7,458	6,000
Financial Liabilities	234	209
Non-Financial Liabilities	494	531
Total Equity & Liabilities	8,186	6,740
Investments	7,352	6,041
Other Financial Assets	540	454
Non-Financial Assets	294	245
Total Assets	8,186	6,740

Investor Education Initiatives

Canara Robeco Asset Management Company Limited
remains deeply committed to advancing financial literacy
and promoting responsible investing among Indian
households. During the year, the Company conducted an
extensive series of Investor Awareness Programmes
(lAPs) across the country, reaching a total of 41,670
investors.

Under its flagship monthly closed-door IAP series, 264
targeted programmes were organised pan-India, primarily
for women, private-sector employees, and government
employees. Of these, 61 programmes were conducted
exclusively for women, reflecting the Companys focused
efforts towards womens financial empowerment. These
sessions collectively benefited 13,761 investors.

Complementing the closed IAPs, the Company partnered
with leading print publications for open investor education
programmes in Uttar Pradesh (with Amar Ujala), Karnataka
(with Prajavani), and West Bengal (with ABP). These
state-level initiatives, which placed special emphasis on
women participants in Uttar Pradesh, engaged an
additional 1,514 investors.

A standout initiative was the Nivesh Bus Yatra, an
innovative on-the-ground outreach programme wherein a
SDeciallv eauiDDed bus. comDlete with audio-visual

facilities and trained faculty, traversed 12 states for 20-22
days each. The Yatra delivered basic mutual fund
investment education directly to the general public in Tier-2
and Tier-3 locations, successfully engaging 26,395
investors.

Human Resources

At Canara Robeco, our Human Resources function is deeply
aligned with our core values of Integrity, Collaboration,
Customer Centricity, Passion for work and Focus on results.
These values form the foundation of a people centric culture
that empowers employees to grow, perform, and contribute
meaningfully to the organizations long - term success.

We are committed to attracting, developing, and retaining top
talent by fostering an inclusive environment where individuals
feel valued, engaged, and empowered to realize their full
potential.

Our HR approach integrates the ethos of conviction,
capability and commitment into every aspect of the employee
lifecycle. At Canara Robeco we not only focus on professional
growth, we also prioritize holistic employee well-being.

Through continuous engagement, transparent processes
and people- first approach, we strive to build a resilient, high
performing workforce that drives sustainable growth while
upholding the legacy and trust associated with Canara
Robeco AMC.

CSR

The Company continues to shape its strategy and action
towards creating a long-term impact within community. We
are committed to empowering the youth by making a positive
impact on the society through our CSR initiatives. Our
corporate social responsibility initiative is focused on
sustainable development in sports & education, with the goal
of enhancing value creation and goodwill.

At Canara Robeco we place youth at the heart of our CSR
vision, believing that empowering youth is key to building a
stronger future. Every year, we distribute Cycles to the
underprivileged students all over India to make a positive
impact in the field of sports & development.

We have distributed over 10,000 cycles in the last 2 years
across India wherein covering various schools in the smallest
towns like Rampur, Hamirpur, Murbad, Dahanu, Cuttak,
Trichur and many more.

We are committed to the communities that we live in. We had
introduced Financial Literacy Program as part of our CSR
initiative for low-income group school children that aims to
empower them with knowledge and skills to manage their
finances effectively. It aligns with the broader goal of
sustainable development by promoting financial
independence, reducing inequalities and fostering economic
stability.

Compliance

We have a dedicated compliance team which monitors our
compliance with the applicable regulations including the
SEBI (Mutual Funds) Regulations and applicable circulars
and notifications issued by SEBI and the various best practice
circulars and guidelines issued by the Association of Mutual
Funds in India ("AMFI") from time to time.

Our compliance team is led by our Chief Compliance Officer
whose primary responsibilities include monitoring
compliance with the applicable regulations, policies and
processes, reporting, creating awareness of regulatory
changes, and safeguarding investor interests through
transparent disclosures. The Chief Compliance Officer

updates our Board and our Audit Committee at their meetings
on various compliance matters. We stay abreast of changes
in regulatory requirements, liaises with the regulator,
business intermediaries, AMFI and industry players, provides
training to the relevant functions and facilitates
implementation of new regulatory requirements. We also
present regular reports to the Board, highlighting regulatory
updates and compliance status.

Furthermore, in accordance with applicable regulations, we
are subject to various audits and inspections such as
statutory audit, internal audit, SEBI inspection, systems audit,
cyber security and cyber resilience audit amongst others.

To comply with applicable statutory requirements, we have
established robust systems and processes and have
implemented several internal policies and procedures. We
have a compliance manual, which lists the applicable
regulatory requirements. We have a Personal Securities
Trading Policy, Policy for leakage or suspected leakage of
Unpublished Price Sensitive Information, Whistle Blowing
Policy, Policy on Institutional Mechanism for identification
and deterrence of potential market abuse and policies such
as Risk Management Policy, Advertisement and Social Media
Policy, Incident Management Policy, Investment Policy,
Valuation Policy, Stewardship Code and Voting Rights Policy,
amongst others. We review and update these policies and
manuals periodically.

We actively monitor changes in regulations/ circulars related
to mutual funds. Once a change is identified, the relevant
teams are informed which assess the potential impact on
processes, products and internal controls. Cross-functional
meetings are held to collaborate and identify necessary
changes and prepare for implementation. Wherever
necessary, training sessions are undertaken to ensure
understanding and compliance with changes in regulatory
requirements. We implement necessary changes and
establish a mechanism to monitor on-going compliance.

Furthermore, the policies and manuals of our Company are
reviewed by the respective policy/ manual owners on a
periodical basis. Changes in policies / manuals can stem
from regulatory changes, changes required to improve
processes, amongst others. Relevant departments identify
and propose the need for revision along with justification. The
proposed changes then undergo a formal review and

approval process by the relevant internal committee, followed
by the relevant board level committee and the Board. The
revised policy is then adopted. Wherever necessary, training
sessions are undertaken to ensure that the employees
understand the changes in the policy.

Risks and Concerns

Canara Robeco Asset Management Company Limited ("CRAMC" or "the Company") operates in a market-linked environment
and is exposed to various financial and operational risks. The Company has established a robust, multi-layered risk management
framework aimed at safeguarding investor interests, ensuring portfolio resilience, and maintaining regulatory compliance.

Key Risks
Market Risk	Governance and Accountability Risk
Given the Companys predominantly equity-oriented AUM (~90%), fluctuations in equity and debt markets driven by macroeconomic factors, interest rate movements, and global developments may impact portfolio valuations, investor flows, and revenue.	Enhancing awareness, accountability, and transparency joints to risks associated with weak governance frameworks, ack of ownership, or insufficient oversight in decision- making processes.
Liquidity Risk	Reputational Risk
Liquidity risk arises primarily in debt and hybrid portfolios during periods of market stress or elevated redemptions. The Company mitigates this through active liquidity management, maintaining exposure to liquid instruments, and regular stress testing.	Explicitly mentioned, this relates to the risk of damage to the Companys brand and investor trust due to underperformance, mis-selling, operational lapses, or regulatory breaches.
Operational Risk	Risk Culture and Conduct Risk
Improving process effectiveness, controls, and transparency highlights risks arising from internal failures—such as errors in trade execution, NAV calculation, settlement issues, system failures, or inadequate internal controls.	The emphasis on strengthening risk and control culture indicates exposure to conduct-related risks, including unethical practices, inadequate risk awareness among employees, or failure to adhere to internal policies.
Regulatory Risk	Strategic Risk
The Company operates under the regulatory framework of the Securities and Exchange Board of India. Changes in regulations relating to expense ratios, product structures, and compliance requirements may impact operations and profitability.	mplicitly, managing risks within defined limits while improving jrocesses also addresses the risk of poor strategic decisions that could affect long-term growth, competitiveness, or jroduct positioning.

Risk Management Framework

Canara Robeco AMC has developed a comprehensive Risk
Management Framework (RMF) in line with SEBI regulations
to effectively manage key risks. A separate Risk Management
Department headed by the Chief Risk Officer is in place to
manage the enterprise risk. Risk Management is integrated
with major business processes such as strategic planning,
operational management, and investment decisions to
ensure consistent consideration of risks in all decision-
making.

Risk Management aims to achieve the following key
objectives:

- Reduce the frequency and impact of unexpected losses.

- Increase the awareness, accountability, and transparency
of operational risks.

- Improve the effectiveness of processes and controls.

- Ensure that risks are managed within defined risk limits
as per regulations & internal limits.

- Enhance the risk and control culture.

Protect the Companys reputation.

The RMF provides guidance with respect to management for
all risks relevant for the AMC and the schemes of Canara
Robeco Mutual Fund. To ensure an effective and integrated
Risk Management, the AMC has defined three lines of
defense model, viz. First Line of Defense comprises the
CXOs; Second Line of Defense comprises oversight functions
viz. Risk Management and Compliance; and the Third Line of
Defense is the Internal Auditor.

The Board approved Risk Management Framework details
out our approach to risk management and the roles and
responsibilities of all stakeholders. The Board level Audit
Committee and Risk Management Committee are responsible
for overseeing the risk management framework, reviewing
the key risks and mitigation strategies, and ensuring the
effectiveness of risk management policies and procedures.
The Management also ensures the risk management
framework is effectively implemented within all areas of
respective functions. Our Company continuously adapts to

industry best practices that address regulatory changes,
organizational structure, emerging technologies, dynamic
market conditions, and business growth. The Company also
has a robust business continuity plan which is tested on a
periodic basis to ensure uninterrupted operations. We utilize
various Risk Management Tools such as incident reporting,
risk and control self-assessment (RSCA), Risk Register,
whereby risk owners are involved in the ongoing assessment
and improvement of risk management and controls.
Additionally, internal audit carries out internal control reviews
and provides an independent report to the Audit Committee
on the adequacy and effectiveness of risk management
framework and internal controls of the organization. Our
statutory auditor carries out a review of our internal controls
over financial reporting to the extent of the scope laid out in
their audit plans. All significant audit observations and follow-
up actions thereon are periodically reported to the Audit
Committee and closely monitored for effective
implementation.

Business Continuity Plan

CRAMC has a comprehensive Disaster Recovery (DR) and
Business Continuity Plan (BCP) in place, covering its critical
operations. The policy is designed in accordance with the
guidelines issued by regulatory bodies. The Company
maintains a BCP that enables remote working for employees,
should the need arise in case of pandemic or any other such
situation. The necessary internal controls to facilitate the
same are in place. It also has communication protocols for
local or global disasters. The Company conducts annual BCP
tests and Quarterly DR tests. BCP is integrated into the
governance framework and will be activated in the event of a
local or global disaster. Employees can work from alternate
locations under the BCP, ensuring continuity of critical
services. The Companys DR Data Centre is in Chennai.
Regular reviews are conducted to enhance BCP and DR
plans, ensuring continuous customer support during
emergencies.