Geojit Fin. Ser.

Geojit is undergoing a 'Geojit 2.0' transformation, shifting from a transaction-led broking model to a stable, scalable, and annuity-driven wealth and distribution franchise. This involves aggressive focus on recurring income streams like mutual fund distribution, advisory, PMS, and insurance. The company invested INR10 crores in IT transformation in FY26 and plans to spend INR30 crores over the next 3 years for further IT enhancements. Additionally, INR54 crores in expenses were booked in FY26 towards this transformation, impacting profitability and reducing ROE.

The distribution business showed strong traction, with distribution income growing 10% during FY26. The net inflow market share in equities for mutual funds improved from 0.33 to 0.40. The monthly SIP book reached INR151 crores in March, reflecting sustained retail participation. As of March 31st, AUM stood at INR23,230 crores, and total customer assets were INR97,000 crores. The company added approximately 1.5 lakh clients during the year, with legacy clients (7+ years) contributing 58-60% of total income.

The new DIFC entity, focused on private banking and external asset management, received all licenses and started operations in February. Client onboarding is expected to begin by the end of May. However, geopolitical tensions in West Asia are causing client apprehension and delaying financial decisions. The company manages INR12,000-13,000 crores in assets for NRIs, generating an income of INR90 crores in FY26. The long-term target for DIFC is to gather INR20,000 crores in assets and advisory over the next 2-3 years.

The Private Wealth business saw its AUM grow approximately 40% last year, reaching INR2,400 crores as of March 31st. The team currently has 55 relationship managers and plans to hire an additional 25-30 this financial year, focusing on talent acquisition and productivity. The PMS AUM grew from INR450 crores in FY23 to INR1,450 crores in FY26. The company also plans to launch one AIF through the GIFT City route and 1-2 more PMS schemes this financial year.

Geojit is actively improving operational efficiency through sales force training, incentive schemes, and leveraging technology. The IT transformation focuses on integrated systems, automation, and AI to minimize manual interventions, improve customer experience, and streamline front-end systems. The company aims to ensure smooth client onboarding and efficient handling of customer support queries using AI technology.

The company added around 700 employees during FY26, with 650 in sales, bringing the total employee base to 3,768. However, a temporary hiring freeze for field staff has been implemented due to the West Asia crisis, with current focus on training existing hires. The expected payback period for new salespeople is 12-18 months, depending on the product mix and market conditions, with insurance offering quicker returns during stock market downturns.