JM Financial Limited — Q3 FY26 earnings call

Call held 6 Feb 2026

Management summary

JM Financial reported a strong Q3 FY26, with consolidated PAT increasing 50% year-on-year to INR313 crores, driven by robust fees and commission income growth of 32% and significant recoveries in Private Markets. Adjusted operating PAT for the quarter rose 17% to INR244 crores. The company continues its investment phase in Wealth and Asset Management, expanding its RM base and branch network, while the Affordable Home Loans segment demonstrated calibrated AUM growth of 23%. Management expressed confidence in India's long-term growth trajectory and the company's strategic positioning across its diverse financial services businesses, despite short-term market volatility.

Highlights

  • Consolidated PAT for 9 months FY26 crossed INR1,000 crores.

  • Operating PAT for Q3 FY26 increased 17% Y-o-Y to INR244 crores.

  • Fees and commission income grew 32% Y-o-Y to INR306 crores.

  • IPO deals worth over INR120,000 crores filed as of December 31, 2025.

  • Affordable Housing AUM grew 23% Y-o-Y to approximately INR3,200 crores.

  • Private Markets operating profit after tax after minority interest surged 82% Y-o-Y to INR111 crores in Q3 FY26.

  • Consolidated net worth (excluding minority interest) stood at INR10,418 crores, with book value per share of approx INR109.

  • Q3 FY26 consolidated PAT was INR313 crores, including INR113 crores from income tax refund and INR21 crores from new labour codes impact.

Key financials

  1. Consolidated PAT ₹313 Cr +50%YoY
  2. Adjusted Operating PAT ₹244 Cr +17%YoY
  3. Fees & Commission Income ₹306 Cr +32%YoY
  4. Consolidated Net Worth ₹10,418 Cr
  5. Book Value per Share ₹109
  6. Cash & Cash Equivalents ₹2,900 Cr

What they filed

Q1 FY27: revenue up 8.1%, net profit down 19.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,191 1,106 1,004 1,111 1,031 −13%999 −10%949 −5%1,201 +8%
EBITDA491 607 578 850 605 +23%563 −7%491 −15%700 −18%
Net profit144 207 235 459 262 +82%318 +54%162 −31%369 −20%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Corporate Advisory & Capital Markets
    ₹210 Cr Net Revenue (Q3 FY26)₹89 Cr Operating Profit after Tax (Q3 FY26)₹670 Cr Net Revenue (9 months FY26)₹308 Cr Operating Profit after Tax (9 months FY26)
  • Wealth & Asset Management
    ₹33,100 Cr Recurring AUM₹181 Cr Net Revenue (Q3 FY26)₹19 Cr Operating Profit after Tax (Q3 FY26)₹581 Cr Net Revenue (9 months FY26)₹93 Cr Operating Profit after Tax (9 months FY26)₹12,000 Cr Asset Management AUM (non-liquid)₹9 Cr Asset Management Loss after Minority Interest (Q3 FY26)
  • Private Markets
    ₹111 Cr Operating Profit after Tax after Minority Interest (Q3 FY26)₹624 Cr Operating Profit before Tax (9 months FY26)₹466 Cr Operating Profit after Tax after Minority Interest (9 months FY26)₹4,000 Cr Focus Loan Book₹1,000 Cr Real Estate Loan Book
  • Affordable Home Loans
    ₹3,200 Cr AUM₹118 Cr Revenue (Q3 FY26)₹22 Cr Operating Profit after Tax after Minority Interest (Q3 FY26)₹328 Cr Revenue (9 months FY26)₹49 Cr Operating Profit after Tax after Minority Interest (9 months FY26)0.26% Gross NPA35% Provision Coverage Ratio

Guidance & targets

Investment

  • Wealth & Asset Management Investment Phase Completion Investment · next 1 year or 2 years · Medium confidence shortly in the next 1 year or 2 years
    The investment phase, sort of, will complete shortly in the next 1 year or 2 years.

    — Vishal Kampani

Profitability

  • Wealth Management ROE Profitability · 2026, 2027, 2028 and 2029 · High confidence mid-teens ROE
    And then with the gains in productivity and the sheer revenue growth, we're hoping that, that business gets to a mid-teens ROE. So that is kind of a plan for 2026, 2027, 2028 and 2029.

    — Vishal Kampani

  • Private Markets ROE Profitability · 2 to 3 years · Medium confidence close to a 12% to 13% ROE
    So the question is only on the Private Markets business, how we can scale and how we can get that business close to a 12% to 13% ROE. But that will take 2 to 3 years.

    — Vishal Kampani

AUM Growth

  • Affordable Housing AUM Growth AUM Growth · next 3 years · High confidence over 25%
    And we expect that we should be able to grow this business on a Y-o-Y basis for the next 3 years at over 25%.

    — Vishal Kampani

  • Affordable Housing AUM Growth AUM Growth · next year as well · High confidence calibrated 23% growth
    Answer is that, to my mind, it is not a stellar growth. It is a calibrated 23% growth, and this is what I think we are going to maintain.

    — Manish Sheth

Loan Book Growth

  • Private Credit Loan Book Growth Loan Book Growth · next 3 years · Medium confidence 20% Y-o-Y growth (range 10-25%)
    So as I said that from where the loan book stands today, I think 20% Y-o-Y growth is something for the next 3 years we are comfortable in terms of building. But don't hold me to it. It could be 15%. It could be 10%. It could be even 25%.

    — Vishal Kampani

Syndication Volume

  • Private Credit Syndication Volume Increase Syndication Volume · High confidence 30% to 40% increase
    And therefore, our modelling is roughly a 15%, 20% growth in loan book, but maybe a 30% to 40% increase in syndication volumes.

    — Vishal Kampani

Recoveries

  • Private Markets Recoveries (ARC & additional) Recoveries · next 5 quarters · High confidence INR700 crores to INR750 crores
    Our expectation over the next, say, 5 quarters could be between the ARC as well as the additional recoveries, we should expect another INR700 crores to INR750 crores of further cash release in terms of these assets getting resolved.

    — Vishal Kampani

Revenue Growth

  • Capital Markets Revenue Growth Revenue Growth · longer-term, 5 to 7 year period · High confidence 13% to 15% kind of revenue growth
    So, I think, I would broadly put over a longer-term, 5 to 7 year period, you should see anywhere between 13% to 15% kind of revenue growth.

    — Vishal Kampani

Profitability Growth

  • Capital Markets Profitability Growth Profitability Growth · longer-term, 5 to 7 year period · High confidence high teens
    But the profitability growth should be anywhere in the high teens for this business because as we scale, as deals get larger and as more and more new products are introduced where you have better margins, all the capital markets, corporate advisory, wealth management businesses will get bigger and more profitable.

    — Vishal Kampani

Risks & concerns

  • Market Volatility impacting deal execution

    medium

    Volatility due to geopolitics, FPI selling, US trade deal, gold/silver prices makes it hard to get transactions done.

    Management acknowledged

  • Talent pool limitations and cost explosion

    medium

    Getting the right quality talent at appropriate compensation levels is difficult, leading to an explosion of costs on the talent side.

    Management acknowledged

  • Real estate market normalization and potential job losses in IT services

    medium

    Analyst raises concerns about AI-related job losses and the end of the 'rosy picture' for real estate, potentially impacting IT hubs. Management acknowledges normalization but expects other sectors to offset job losses.

    Analyst acknowledged

Q&A highlights

2 direct
Profitability trough in Wealth and Capital Markets divisions Partial
So it's just better to see how we perform on this business in larger gaps and from a peak-to-peak perspective than looking at it purely from a quarter-on-quarter. So you're right. We had a very strong Q2. And you may have a very strong Q4, you may have a good Q1 and Q3. But overall, if we track our internal budgets in the business, we are actually ahead of our budgets in this business.

Analyst asks about a profitability trough, management acknowledges volatility but emphasizes long-term performance and being ahead of internal budgets, not directly confirming a trough.

Asked by Digant Haria

Reasons for slow IPO execution despite strong pipeline Direct
No, it's purely market conditions. I think SEBI is doing a great job better than ever in terms of getting approvals out for companies that want to list. It's only market conditions. When you have a lot of volatility, because of the pending U.S. trade deal, the sudden increase in prices of gold and silver and some FPI selling, then it's hard in volatility to get transactions done. So it's purely market conditions. As soon as the market conditions get better and stabilize, the deal activity will come back.

Clarifies that the bottleneck for IPO execution is market volatility and not regulatory approvals, providing insight into the external environment affecting their Capital Markets business.

Asked by Dhruv Zobalia

Decline in Wealth Management profitability Q3 vs Q2 despite growth in sales employees and branches Direct
So, it's a combination of multiple things. One is the transactional revenue itself is lower in this quarter compared to the second quarter of FY 2026. And as we continue, you will see that we've done a big part of the build-out in terms of hiring RMs. You will see some volatility on a quarter-on-quarter basis as we now go out and launch the funds as well. Once we have all of this in place, I think a lot of this settles down.

Addresses a specific concern about segment profitability, explaining it's due to lower transactional revenue and ongoing investments in expansion, indicating a temporary impact rather than a fundamental issue.

Asked by Akshay Jawahar

3 min read 6 chapters

Detailed narrative

Overall Performance & Strategic Progress

JM Financial reported a strong Q3 FY26, with consolidated profit after tax (PAT) increasing 50% year-on-year to INR313 crores. Adjusted for one-time items like an INR113 crore income tax refund and INR21 crore new labour code impact, the operating PAT for Q3 FY26 stood at INR244 crores, a 17% increase year-on-year. For the nine months of FY26, consolidated PAT crossed INR1,000 crores, growing 69% year-on-year to INR1,037 crores, while adjusted operating PAT grew 58% to INR968 crores. The company's consolidated net worth, excluding minority interest, reached INR10,418 crores, translating to a book value per share of approximately INR109.

Capital Markets & Corporate Advisory Outlook

The Corporate Advisory and Capital Markets segment saw its net revenue increase by 30% year-on-year to INR210 crores in Q3 FY26, with operating profit after tax rising 12% to INR89 crores. The company closed 12 capital market transactions aggregating to INR36,000 crores and has 54 IPOs filed, totaling approximately INR121,000 crores, expected to be executed over the next 12 to 18 months. Management indicated that the slow execution of IPOs is due to market volatility rather than regulatory hurdles. Over the longer term (5-7 years), the company targets 13-15% revenue growth and high-teens profitability growth in this segment, driven by India's strong economic trajectory and a robust deal pipeline.

Wealth & Asset Management Investments

The Wealth and Asset Management business continues its rapid expansion, with recurring AUM growing 33% year-on-year to INR33,100 crores. Net revenue for Q3 FY26 increased 7% to INR181 crores, though operating profit after tax declined to INR19 crores from INR30 crores last year, primarily due to significant investments in talent, physical infrastructure (branches increased from 11 to 73, franchisees from 27 to 922), technology, and digital capabilities. The company expects the investment phase to complete in the next 1-2 years, targeting a mid-teens Return on Equity (ROE) for this business by FY26-FY29, with AUM per RM expected to expand upwards of 25% per annum over the next 2-3 years.

Private Markets & Credit Business

The Private Markets segment, encompassing Private Credit and Investments, demonstrated strong performance, with Q3 FY26 operating profit after tax after minority interest surging 82% year-on-year to INR111 crores. For the nine months, operating profit before tax grew fivefold to INR624 crores. The company successfully closed a large syndication transaction of approximately INR3,300 crores during the quarter. The focus loan book remained stable around INR4,000 crores, with a target of 20% year-on-year growth over the next three years, alongside a 30-40% increase in syndication volumes. The real estate loan book has significantly contracted from INR10,000 crores to INR1,000 crores, with management expecting a pickup in activity over the next 2-3 years. The company also expects to recover INR700-750 crores from ARC and additional assets over the next five quarters.

Affordable Home Loans Segment

The Affordable Home Loans business continued its growth trajectory, with AUM increasing 23% year-on-year to approximately INR3,200 crores. Revenue for Q3 FY26 grew 27% year-on-year to INR118 crores, and operating profit after tax after minority interest rose 53% to INR22 crores (from INR14 crores last year). The gross NPA ratio significantly improved from nearly 1% to 0.26% year-on-year, attributed to the sale of INR57 crores worth of gross NPAs without impacting the P&L. Management aims to maintain a calibrated 23% AUM growth and expects the business to achieve early teens ROE soon, supported by its fully capitalized status and healthy ROA.

Capital Allocation Strategy

JM Financial's capital allocation strategy focuses on deploying its INR24,000 crore balance sheet efficiently. A significant portion of capital is in the Private Markets business, partly a legacy from NBFCs, with plans to pay healthy dividends and avoid bloating capital further. The Home Loans business is fully capitalized for its projected 25% AUM growth over the next 3-4 years. Corporate Advisory and Capital Markets, being an extremely high ROE business, requires minimal additional capital. The company's surplus cash reduced year-on-year due to the buyout of minority investors in JM Financial Credit Solutions, and future surplus capital will be deployed on the loan side within the Private Markets space as the loan book grows.

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