JM Financial reported a robust Q3 FY26, with consolidated Profit After Tax (PAT) surging 50% YoY to INR313 crores. Operating PAT (adjusted) grew 17% YoY to INR244 crores, signaling strong underlying performance. The company noted healthy growth across deal-making and wealth management, with significant expansion underway in the RM base and new fund approvals boosting future prospects despite high investment costs.
Financial Performance Overview (Q3 FY26 & 9M FY26)
JM Financial announced excellent consolidated results for the quarter ended December 2025. Consolidated Profit After Tax (PAT) after minority interest increased by 50% YoY to INR313 crores for Q3 FY 2026. For the nine months ended FY ’26, PAT rose by 69% YoY to INR1,037 crores.
Operating profit after tax, adjusted for the INR113 crore interest income from tax refunds and exceptional impacts, stood at INR244 crores for Q3 FY 2026, marking a 17% YoY increase. For the nine months, adjusted operating PAT reached INR968 crores, reflecting 58% YoY growth. Consolidated net worth stands at INR10,418 crores, leading to a book value per share of approximately INR109.
Segment Highlights and Strategic Progress
Corporate Advisory and Capital Markets (CACM)
This segment demonstrated significant activity. During Q3, 12 capital market transactions aggregating approximately INR36,000 crores were closed. Documents for 54 IPOs, with an issue size of about INR121,000 crores, have been filed. Net revenue for Q3 FY 2026 increased 30% YoY to INR210 crores, while operating profit after tax grew 12% YoY to INR89 crores.
Wealth and Asset Management Expansion
The wealth management business is rapidly expanding. The strength of relationship managers (RMs) and sales employees grew 41% YoY to 1,057. Physical expansion is notable, with branches increasing from 62 to 73 year-on-year. Recurring Assets Under Management (AUM) across wealth businesses grew 33% YoY to INR33,100 crores. Profitability for the quarter was impacted by investments in talent and digital infrastructure.
In Asset Management, the average AUM from non-liquid funds increased 15% YoY to approximately INR12,000 crores. The company received approval for two new funds—a real estate fund and a pre-IPO fund—expected to launch strongly this year.
Private Markets Strength
The Private Markets segment, covering Private Credit (Corporate, Bespoke, Real Estate, Distressed), saw strong progress. A large syndication transaction of approximately INR3,300 crores was closed during the quarter. Operating profit after tax (post-minority interest) for Q3 FY 2026 jumped 82% YoY to INR111 crores. For nine months, operating profit after tax grew almost 4x to INR466 crores.
Affordable Home Loans Stability
The AUM in Affordable Home Loans increased 23% YoY to approximately INR3,200 crores, supported by a branch network of 135 and a customer base exceeding 30,000. Q3 FY 2026 revenue grew 27% YoY to INR118 crores, with operating profit after tax (post-minority interest) increasing 53% to INR22 crores. Notably, the business sold INR57 crores of gross NPA for the first time in 8 years without impacting the P&L.
Q&A Insights: Pipeline and Future Outlook
IPO Pipeline and Market Conditions
Management confirmed that IPO execution is dictated purely by market conditions, not SEBI approvals. Of the 54 IPOs in the pipeline, over 30+ deals are already SEBI-approved. Volatility due to factors like the U.S. trade deal and FPI selling is causing deal push-outs.
Private Credit Growth Trajectory
While the focused loan book (around INR4,000 crores) remains stable, the business is prioritizing syndication volume for fee income. The target for loan book growth is set around 20% YoY over the next three years, with syndication volumes potentially increasing 30% to 40%.
Long-Term Strategy and Capital Allocation
The firm anticipates solid growth in capital markets over the next 6 to 7 years, driven by a stable economy and increased financial capital flow to markets. The goal for the CACM segment over a 5 to 7-year horizon is 13% to 15% revenue growth, with profitability growing in the high teens due to scaling benefits.
Regarding the INR24,000 crores balance sheet, a significant portion is committed to Private Markets (legacy NBFCs). The Home Loans business is fully capitalized for the next 5 years. Asset Management will continue to receive capital allocation for growth, aiming for a mid-teens ROE by 2026-2029.
Source: BSE
