This article first appeared on GuruFocus .
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Consolidated PAT for 9 months:INR1,037 crore, a 69% increase year-on-year.
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Operating PAT for the quarter:INR244 crore, a 17% increase year-on-year.
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Fees and Commission Income:INR306 crore, a 32% increase year-on-year.
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Affordable Housing AUM:INR3,200 crore, a 23% increase year-on-year.
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Corporate Advisory and Capital Markets Revenue:INR210 crore for Q3, a 30% increase year-on-year.
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Wealth Management Employee Growth:41% increase to 1,057 employees.
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Wealth Management Branches:Increased by 11 to 73 branches.
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Recurring AUM in Wealth Businesses:INR33,100 crore, a 33% increase year-on-year.
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Private Markets Operating Profit After Tax:INR111 crore, an 82% increase year-on-year.
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Affordable Home Loans Revenue for Q3:INR118 crore, a 27% increase year-on-year.
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Release Date: February 06, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Consolidated profit after tax increased by 50% year-on-year to INR313 crore, indicating strong financial performance.
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Fees and commission income grew by 32% year-on-year, reflecting a positive environment for dealmaking and wealth management.
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The affordable housing business saw a 23% year-on-year growth in AUM, with a customer base exceeding 30,000.
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The company received approval for two alternative funds, a real estate fund and a pre-IPO fund, which are expected to contribute to AUM growth.
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The wealth management business expanded its sales and relationship manager strength by 41% year-on-year, enhancing distribution capabilities.
Negative Points
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The wealth and asset management segment's profitability was impacted by increased investments in talent and infrastructure.
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The real estate loan book contracted by 90%, reducing from INR10,000 crore to INR1,000 crore, affecting income from this segment.
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The operating profit after tax for the wealth management segment decreased due to lower transactional revenue and market volatility.
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The mutual fund business reported a loss after minority interest for the quarter, indicating challenges in achieving profitability.
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The cash and cash equivalents decreased significantly from INR5,800 crore to INR3,200 crore, primarily due to the purchase of a minority stake in JM Financial Credit Solutions.
Q & A Highlights
Q: Given the weak market conditions in Q3 and increased operational expenses in the wealth and capital markets divisions, have we reached a trough in profitability for these segments? A: Vishal Kampani, Non-Executive Vice Chairman, explained that while both divisions are influenced by capital market activity, they operate differently. The Capital Markets and Corporate Advisory business is deal-related, and despite market volatility, the pipeline remains strong. The Wealth and Asset Management business is in a growth phase, with investments in distribution and client touchpoints. Profitability may fluctuate, but the long-term outlook is positive.
Q: When will the Private Credit division's loan book start growing, and how does this affect income? A: Vishal Kampani stated that a 20% year-on-year growth in the loan book is targeted over the next three years. The focus is on syndication, which can increase fee income. The real estate book has significantly reduced, but the credit pipeline is strong, and activity in the Private Credit space is expected to increase.
Q: Can you provide insights into the growth and revenue composition of the Wealth Management division? A: Chirag Negandhi, Managing Director, noted that the division is expanding its RM base and distribution to support new products. The recurring revenue component is approximately 50%, with the rest from broking and transaction-related income. AUM per RM is expected to grow by over 25% annually in the next 2-3 years.
Q: What is the outlook for the Affordable Housing segment, and how does it compare to industry trends? A: Manish Sheth, Director, reported a 23% year-on-year growth in AUM, primarily from Gujarat and Maharashtra. Despite industry slowdowns in some regions, JM Financial's growth is expected to continue, supported by improved collection efficiency and controlled NPAs.
Q: How is the merchant banking pipeline progressing, and what factors affect IPO execution? A: Vishal Kampani explained that market conditions, not SEBI approvals, are the primary factor affecting IPO execution. Of the 54 IPOs in the pipeline, around 30 have SEBI approval. Market volatility has delayed some transactions, but activity is expected to resume as conditions stabilize.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
