# 1. Financial Performance ## A. Key Figures * **Revenue (9M FY2026):** **₹670 Cr** segment (+30%) · **₹581 Cr** net (+10%) · **₹328 Cr** Affordable Home Loans (+24%) * **Operating Profit After Tax (9M FY2026):** **₹308 Cr** segment (+39%) · **₹93 Cr** net (flat) · **₹49 Cr** Affordable Home Loans (+32%) * **Consolidated PAT:** **₹1,037 Cr** (9M, +69%) · **₹313 Cr** (Q3, +50%) * **Adjusted Op PAT:** **₹968 Cr** (9M, +58%) · **₹244 Cr** (Q3, +17%) * **Op PAT after MI (Private Markets):** **₹466 Cr** (9M, ~4x) · **₹111 Cr** (Q3, +82%) * **Balance Sheet:** **₹10,418 Cr** net worth (ex-MI) · **₹2,900 Cr** liquid investments · **₹109** book value per share ## B. Revenue Growth * **Strong Segment Momentum:** Revenue and operating profit growth in key segments reflect robust demand and scaling, particularly in Affordable Home Loans and Private Markets. * **Q3 Net Revenue Growth Moderated:** 7% YoY increase in Q3 net revenue amid strategic investments in infrastructure and talent, which pressured near-term profitability. * **Non-Recurring Additions:** Q3 results included **₹113 Cr** in tax refund interest income and **₹21 Cr** statutory impact from new labor codes, boosting reported figures. ## C. Profitability Trends * **Outsize Earnings Expansion:** Consolidated and adjusted profits grew at a significantly faster pace than revenue, indicating operating leverage and margin improvement in core operations. * **Private Markets Surge:** Profitability in Private Markets exploded year-on-year, with operating profit before tax increasing **5x** over nine months, signaling high-margin business model execution. ## D. Balance Sheet Strength * **Resilient Capital Base:** Strong net worth and **₹2,900 Cr** in liquid investments provide financial flexibility despite declining cash balances. ## E. Cash Flow Position * **Capital Deployment Accelerating:** Cash and equivalents declined to **₹3,200 Cr** from **₹5,800 Cr**, driven by minority buyout in JM Financial Credit Solutions and shift toward loan book deployment. * **Private Markets as Capital Sink:** Surplus capital is being actively redeployed into the loan book, with Private Markets holding a significant portion of available capital for growth. --- # 2. Fee & Transaction Income ## A. Key Figures * **Fee and Commission Income:** **₹306 Cr** (+32% YoY) * **Recurring Revenue Mix:** **~50%** of total revenue * **Syndication Transaction Size:** **₹3,300 Cr** closed in the quarter ## B. Capital Markets Revenue * **Sustained Momentum:** Fee income growth reflects **strong deal activity** and a robust pipeline, with **three consecutive quarters of over 20% YoY growth** signaling durable momentum. * **Volatility & Outlook:** Transactional revenue remains **subject to market-driven fluctuations**, but a strong pipeline supports confidence in **multi-year performance visibility**. ## C. Wealth Management Fees * **Strategic Revenue Mix Shift:** Growth achieved despite lower treasury income, highlighting a **deliberate pivot toward operationally driven, client-activity-based revenues**. * **Balanced Income Model:** Revenue base is **evenly split between recurring streams and transactional broking**, reinforcing business model resilience and client engagement depth. ## D. Syndication & Deal Fees * **Fee-First Strategy:** Prioritization of **syndication fee income over balance sheet expansion** is evident in selective asset uptake and deal structuring, supporting margin efficiency. * **Diversified Growth Platform:** Syndication spans **real estate, distressed credit, private equity, and corporate lending**, with potential for **near-term balance sheet growth of 20%** across segments. * **High-Value Deal Execution:** Selective focus on **strategically efficient, high-fee mandates**—exemplified by the Vodafone bond syndication—enhances profitability amid competitive deal environments. --- # 3. Loan Book & Asset Quality ## A. Key Figures * **Focus Loan Book:** **₹4,200 Cr** (stable) * **Private Credit Income (9M):** **₹600 Cr** interest (NBFCs) · **₹75 Cr** fees/commissions * **NPA Recovery (9M):** **₹250–260 Cr** realized · **₹270–280 Cr** expected by year-end * **ARC Cash Released:** **₹260–270 Cr** post NCLT approvals * **Real Estate Book:** Reduced from **₹10,000 Cr** to **₹1,000 Cr** (90% contraction) ## B. Private Credit Portfolio * **Income Recovery:** Private Credit income turned positive after prolonged weakness, driven by stabilization in the focus book and fee growth from syndications. * **Strategic Refocus:** Deliberate downsizing of non-core assets (FI Financing, MSME) has reshaped the portfolio toward **Real Estate** and **Bespoke** lending with higher risk-adjusted return potential. * **Growth Outlook:** Management targets **15–20% annual loan book growth** and **30–40% higher syndication volumes**, prioritizing fee income and capital efficiency. * **Balance Sheet Allocation:** A **significant portion** of the **₹24,000 Cr** balance sheet is tied to legacy Private Markets activities, including regulated land financing via NBFCs. ## C. NPA Reduction Progress * **Active Recovery Cycle:** ₹1,000 Cr provision in Private Markets is being recouped through structured recoveries, with **three equal tranches** expected and early collections already achieved. * **P&L-Neutral NPA Sale:** JM Financial Home Loans executed first gross NPA sale in 8 years—**₹57 Cr**—via full cash settlement, eliminating balance sheet risk **without P&L impact**. * **Confidence in Coverage:** A **35% provision coverage ratio** has enabled aggressive recovery focus on mid-tier buckets (2 and 3), yielding tangible results and supporting future distressed asset plays. * **Market Share Opportunity:** Rising retail NPAs present a strategic window to deploy capital in distressed asset transactions targeting **decent IRRs**. ## D. Real Estate Exposure * **Portfolio De-risking Complete:** The **90% reduction** in real estate exposure reflects successful exits and strong underwriting, with the book now concentrated in high-quality developers in **Mumbai, Delhi, Pune, and Bangalore**. * **Cautious Re-engagement:** After a pause due to return concerns, Real Estate lending is set to resume, supported by **more attractive financing rates** and anticipated **increased drawdowns on construction finance**. * **Market Inflection:** While the super-cycle has ended, residential demand remains resilient; developers are shifting to active sales mode, creating new lending opportunities over the next 2–3 years. --- # 4. Segment & Business Mix ## A. Key Figures * **CACM Net Revenue:** **₹210 Cr** (+30% YoY) * **CACM Operating Profit after Tax:** **₹89 Cr** (+12% YoY) for Q3 FY26 * **Affordable Home Loans AUM:** **₹3,200 Cr** (+23% YoY) * **Asset Management Loss:** **₹9 Cr** (Q3 FY2026) · **₹25 Cr** (9M FY2026) ## B. CACM Performance * **Strong Revenue Momentum:** Corporate Advisory and Capital Markets delivered robust double-digit revenue growth, underpinned by integrated credit and balance sheet solutions across client segments. * **High ROE, Constrained Margins:** CACM remains a high-return, capital-light business targeting mid-teens ROE by 2026–2029, though margin expansion is structurally limited by people costs and incentive needs. * **Wealth Management Profitability:** Core wealth operations are inherently profitable, generating **~₹200 Cr** pre-investment PBT, enabling self-funded growth despite current strategic investments. * **Private Markets Roadmap:** Private equity and credit syndication build-out will take 2–3 years to reach 12–13% ROE, with capabilities being scaled to unlock returns. ## C. Affordable Home Loans * **Sustainable AUM Growth:** Affordable housing AUM expanded at a calibrated 23% YoY, driven by strong execution in Gujarat and Maharashtra, which contribute 50% of the book. * **Resilient Operations Despite NPA Spike:** Temporary collection challenges have emerged, but disbursement levels and relationship manager productivity remain on track with annual targets. * **Capital Self-Sufficiency:** The home loans business is fully capitalized for the next 5 years and targets 25% annual AUM growth, with ROE expected to reach early teens as leverage scales. ## D. Asset Management Losses * **Strategic Investment Phase:** Asset management losses widened slightly to ₹25 Cr over nine months, reflecting continued investment in distribution, brand alignment, and new funds. * **Funding Commitment Secured:** The business will receive dedicated capital over the next 2 years to support growth initiatives and pre-profitability funding, including real estate and pre-IPO funds. --- # 5. Distribution & Headcount ## A. Key Figures * **Branch Network:** **73** physical branches (+11 YoY) · **922** franchisees (+27 YoY) * **Wealth Management Headcount:** **1,057** employees (+41% YoY) * **Asset Management Headcount:** **211** employees (+15% YoY) ## B. Branch Expansion * **Strategic Distribution Buildout:** Expansion in branches and franchisees has strengthened client touch points and enabled cross-selling, supporting resilient brokerage revenue growth versus peers. * **Infrastructure-Led Growth:** Year-on-year increases in sales personnel and branch footprint reflect deliberate scaling to support future product rollouts and segment expansion. ## C. RM Headcount Growth * **RM Force Doubled:** Relationship manager base in wealth management has doubled, contributing to a broadened client base and reduced reliance on concentrated relationships. * **Hiring Ramp Complete:** Majority of RM recruitment completed over past 18 months; new hires require **12–18 months** to generate meaningful AUM, creating near-term volatility. * **Hiring Moderation Ahead:** RM and sales team expansion to continue gradually, with **no large-scale hiring planned for next 18–24 months**; FY26 growth expected to be **significantly lower** than recent pace. ## D. Sales Team Buildout * **Targeted Investment in Reach:** Company is expanding sales teams across retail broking, primary distribution, and elite wealth segments to deepen market penetration. * **Supporting Capabilities Enhanced:** Increased investment in equity research and key functions to strengthen capital markets foundation and support primary issuances. --- # 6. Client & Deal Pipeline ## A. Key Figures * **IPO Pipeline Size:** **₹120,000 Cr** filed (~₹121,000 Cr across 54 IPOs) * **Capital Market Transactions:** **12 deals** completed (~₹36,000 Cr) in Q3 * **Recurring AUM:** **₹33,100 Cr** (+33% YoY), now **29%** of total AUM * **Non-Liquid Mutual Fund AUM:** **₹12,000 Cr** (+15% YoY) ## B. IPO Pipeline Strength * **Robust IPO Momentum:** Record pipeline of 54 IPOs with over ₹120,000 Cr in filings, reflecting strong issuer appetite and market positioning. * **Execution Pause, Not Pipeline Weakness:** Temporary slowdown in IPO launches (e.g., 1 in January) due solely to market conditions; SEBI approvals remain swift with **over 30 IPOs already cleared**. * **Active CACM Franchise:** Strong deal execution in Q3 across capital markets, supported by a healthy M&A advisory pipeline, underscores franchise strength. ## C. M&A & Private Deals * **Diversifying Deal Flow:** M&A and private markets pipeline expanding, with renewed client interest in credit solutions amid equity volatility. * **Flywheel Effect:** Deep, long-standing client relationships (e.g., Vodafone) enable low-cost origination, highlighting competitive advantage in client coverage. * **Wealth-Led Origination:** Growing wealth management platform expected to organically drive private company mandates over the next 2–3 years without significant hiring. ## D. Recurring AUM Growth * **Accelerating Recurring Revenue Base:** Recurring AUM grew at a strong double-digit pace, now representing nearly **30%** of total AUM, signaling business model maturation. * **Product Expansion Catalyst:** Regulatory greenlight for real estate and pre-IPO funds sets stage for meaningful AUM and distribution growth in 2025. * **Strategic Distribution Buildout:** New RM hires aimed at scaling distribution ahead of product launches, targeting client base and recurring income expansion. * **Macro Tailwinds:** Infrastructure push and GCC growth fuel demand for transactional services, advisory, and asset management, reinforcing sectoral momentum. --- # 7. Risks & Market Volatility ## A. Capital Market Timing * **Deal-Driven Performance:** Capital Markets and Corporate Advisory results are inherently lumpy, requiring evaluation over peak-to-peak cycles due to shifting deal closures amid short-term volatility. * **Long-Term Structural Growth:** India is poised to become a top global capital market over the next **6–7 years**, underpinned by stable macro conditions, vibrant start-ups, and a structural shift from bank to market-based financing. * **Near-Term Headwinds:** IPO execution remains challenged by **FPI selling**, **rising precious metals prices**, and uncertainty around the **B. S. trade deal**, despite regulatory tailwinds. * **Wealth Volatility & Commitment:** Broking volumes and transactional income mix create earnings variability, but the firm continues to prioritize and invest in long-term growth in Wealth. ## B. Talent Quality Pressure * **Growth-Related Investment Drag:** Near-term profitability in Wealth and Asset Management was weighed down by aggressive reinvestment in talent, branches, and digital infrastructure, with such spending set to continue through **2026**. * **Quality Scalability Challenge:** Rapid expansion has intensified pressure on maintaining consistent service and talent quality, even as market share and revenues grow. ## C. Geopolitical Disruptions * **Sectoral Labor Shifts:** Potential IT job losses from AI adoption could dampen real estate demand in tech hubs like **Bangalore**, though offsetting job creation is expected in infrastructure, defense, and manufacturing. --- # 8. Guidance & Outlook ## A. Key Figures * **Revenue Growth Guidance:** **25%+ YoY** for next 3 years · **13–15% annually** over 5–7 years * **Profit Growth Outlook:** **High teens** annual growth over 5–7 years * **AUM Growth Target:** **>25% per annum** over next 2–3 years * **Capital Recovery:** **₹1,500 Cr** expected, pending formalities ## B. Revenue Growth Targets * **Affordable Housing Focus:** Multi-year investment plan underpins **25%+ annual growth** trajectory, aligned with strong underlying demand. * **Capital Markets Momentum:** Division exhibiting **exceptionally strong** activity, expected to outperform budgets over 1–3 years despite volatility. * **Long-Term Revenue Drivers:** Structural tailwinds from **infrastructure, AI, and defense** support India’s 7–8% GDP growth outlook, with capital markets poised to grow **2–5x GDP**. * **Growth Algorithm:** Firm positioned to achieve **15–20% revenue growth** in favorable conditions, driven by deal execution and higher-margin product rollout. ## C. ROE Expansion Path * **Housing Finance Resilience:** Seasonal profitability strength in H2 expected to continue, supporting stable earnings cadence. * **Wealth Management Leverage:** AUM per RM to rise significantly via **>25% annual AUM growth** without RM headcount expansion, enhancing productivity. * **ROE Flywheel:** **Two strong quarters** annually can materially lift ROE due to low incremental costs, highlighting operating leverage. ## D. Dividend & Capital Use * **Capital Discipline:** Legacy recoveries to fund **healthy dividends**; no plans to increase capital allocation to Private Markets.