JM Financial Ltd Q4 FY26 Earnings Call: IPO Pipeline Crosses Rs. 1,40,000 Crores, PAT Jumps 46% to Rs. 1,202 Crores

JM Financial Ltd held its Q4 FY26 earnings call on May 29, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

FY26 Financial Highlights Across Segments

• Reported PAT of Rs.1,202 croresfor FY 2025-2026, up 46% YoY, implying ROE of 11.7%; adjusted for one-offs (tax refund Rs.113 Cr, labour code impact Rs.22 Cr), operating PAT stood at Rs.1,133 Cr, up 38% YoY.
• Consolidated net worth of Rs.10,605 crores(ex-minority), book value of ~Rs.111 per share; aggregate dividend of ~Rs.5.95 per share (Rs.570 Cr total) paid/proposed over the last four quarters.
• CACM FY26 net revenue of Rs.789 crores(+11% YoY), operating PAT Rs.347 Cr, ROE 47% (capital employed Rs.829 Cr). Q4 FY26 segment PAT Rs.39 Cr, impacted by lack of primary issuances due to geopolitical headwinds.
• Private Markets FY26 operating PBT grew 3.5x to Rs.742 Cr; operating PAT (post minority) Rs.543 Cr, up 3.6x. Segment PAT for Q4 FY26 Rs.78 Cr. Capital employed ~Rs.6,600 Cr.
• Wealth FY26 net revenue of Rs.775 crores(+9% YoY), operating PAT Rs.132 Cr, Q4 segment PAT Rs.39 Cr, ROE 12% (capital employed Rs.1,150 Cr). RM/sales headcount up 30% to 1,046; branches up 10 to 72.
• Affordable Home Loans FY26 revenue of Rs.455 crores(+25% YoY), operating PAT (post minority) Rs.74 Cr (+45%). AUM ~Rs.3,460 Cr (+22%). Gross NPA 0.5%, collection efficiency 99.4% as of March 31, 2026.

Two-Year Transformation Performance (FY24–FY26)

• CACM posted 26% revenue growth over two years(FY24–FY26), rising from Rs.592 Cr (FY24 base) to ~Rs.946 Cr (FY25-26), with operating profit before tax of Rs.452 Cr (margin 48%).
• Total fees, commission & brokerage (ex-private markets) grew 10% YoYto ~Rs.1,753 Cr in FY25-26, despite geopolitical tensions and market volatility.
• Private Markets: Rs.280 crores of recoveries achieved in FY25-26, in line with the guided range of Rs.250–Rs.300 Cr per year for FY26, FY27, and FY28. Guidance for FY26-27 is Rs.250–Rs.300 Cr.
• Wealth management revenue grew 17% and profit >40%over the two years ending FY25-26. Talent expansion front-loaded; management targets improved productivity and profitability in FY26-27.
• Asset management revenue grew 37%over the two years ending FY25-26. Marketing a pre-IPO fund and a credit fund; targeting significant close on both AIF products by end of FY26-27.
• Affordable home loans AUM reached ~Rs.3,500 crores, with revenue growth of 37–38% and profit growth >75% over the two years ending FY25-26. Collection efficiency ~99%, gross NPA <1%.

CACM Strength, IPO Backlog and Market Dynamics

• IPO pipeline stands at Rs.1,40,000 crores; execution remains challenging due to continued FPI selling. Management expects slow execution in Q1 FY26-27, with H2 likely better than H1.
• Pipeline for CACM has nearly doubled YoYfrom June-July FY25-26 to September-October FY26-27; management expects exceptionally strong quarters once market windows open.
• Management targets a pipeline of Rs.2 lakh crores by October FY26-27, up from ~Rs.1,40,000 Cr currently. The corporate advisory pipeline expanded from ~Rs.45,000–50,000 Cr in FY23.
• FPI ownership in India fell from 19% to 15%(from a historical high); domestic ownership rose from 8% to 18% over 20 years. FPI selling driven by global AI capex pull and oil concerns.
• Employee costs in CACM increased by Rs.100 crores(Rs.165 Cr to Rs.265 Cr) between FY24 and FY26, reflecting front-loaded hiring to execute the larger pipeline, build an institutional derivatives business, and achieve coverage of 400 stocks actively and 150 stocks with soft coverage.
• Market volatility over Q4 FY25-26 prevented an estimated Rs.30,000–40,000 croresin potential transactions; management ranks itself number one, number two, or number three across products.

Book Composition, Recoveries and Growth Targets

• Private markets book of Rs.4,000 crores as of March 31, 2026, comprising corporate loans Rs.2,685 Cr, real estate loans Rs.1,100 Cr, and a non-core MSME/FI book of Rs.228 Cr (to be zero by FY27).
• Distressed credit (interest-earning, structured as security receipts) at Rs.3,665 croreson the investment side. Cash holdings of Rs.3,000 Cr, partly invested in G-secs and AAA bonds; group ICDs of Rs.500 Cr fund internal businesses.
• Standard loan book growth target of ~20% per annum for the next 3–4 years(through FY 2029-2030), with management guiding "standard loan book growth of ~20% per annum for the next 3-4 years (through FY 2029-2030)". Distressed credit growth of ~15% per annum (FY26-27 onwards), equity & alternatives capped at 20% of total asset book of ~Rs.13,000 Cr.
• Private markets core loan book growth target of 15–20% for FY27, with a book target of ~Rs.5,000 Cr by March FY27. Loan book reduced from Rs.10,000 Cr (FY24-25) to Rs.4,000 Cr (FY25-26).
• Expected long-term returns: distressed credit ~18%, standard loan book ~13–14%, equity & alternatives ~15–16%, yielding a blended portfolio return in the teens.
• Real estate lending to be slower than corporate lending; management remains cautious due to cycle risks and seeks higher risk-adjusted returns. Real estate subsumed under standard loans with merged management.

Growth Trajectory, Fund Raises and Productivity Focus

• Wealth management net inflows target of 20% growth on book for FY27, implying ~Rs.6,000 Cr of inflows (excluding mark-to-market). RM/sales headcount reached 1,046 (+30% YoY); branches at 72 (+10), franchisees at 874.
• Wealth management standalone expected to break even in FY27. Management plans to focus on productivity this year; long-term ROE aspiration of 15–18% (period unspecified).
• Broking constitutes ~25–30% of wealth revenue; fees, commissions and transactional income split the remaining 50-50% between recurring and transactional sources as of Q4 FY25-26.
• Bajaj Allianz invested Rs.65 crores for a 2.1% stakein JM Financial Home Loans in early FY25-26 (June 2025), valuing the subsidiary at Rs.3,100 Cr.
• First performing credit fund has committed capital of Rs.347 croresand is one deal away from full deployment, with multiple exits and payouts completed. A pre-IPO fund is being marketed, targeting total raise of ≥Rs.1,000 Cr; a PE fund is expected to follow with a similar target.
• Mutual fund average non-liquid AUM ~Rs.10,500 crores; management fees for FY26 Rs.44 Cr (+65%). AMC segment loss after minority ~Rs.30 Cr for FY26, Q4 loss Rs.5 Cr. Equity product suite to be expanded.

Strategic Priorities, Dividend Policy and Outlook

• Management targets group-level 15% revenue growth and 15% ROEat the end of the investment cycle (period unspecified). The pivot toward wealth management, asset management, investment banking, and affordable home loans is the core strategy.
• Affordable home loans targeting 25% YoY AUM growthand an IPO by FY2028-2029. Current AUM of Rs.3,500 Cr as of Q4 FY25-26. Branch network at 151, customer base >33,000.
• Management committed to distributing 50% of PAT as dividend annually; Rs.570 Cr in dividends paid over the past 14 months.
• Open to segment-wise demergers or IPOsfor wealth, AMC, ARC, capital markets, and NBFC units but only after each business scales sufficiently; potential shareholder liquidity events may occur in one to two years (FY26-27 to FY27-28).
• Digital investment (BlinkX) of Rs.40–50 crores per year is being cut significantly; savings expected to appear from Q1 FY26-27.
• H2 FY27 expected to see growth in corporate credit, private credit, and syndication fees, with management citing a "government-provided tax leeway for non-promoter shareholders" as supportive for buyback advisory activity, and noting that if equity markets slow, credit and private equity placements typically pick up after a 3–6 month lag.