JM Financial Charts Growth Path Ahead

Ashwin Thakker

— 2 min read

Key Facts on Outlook:

  • Sales Outlook:
    • Targets INR5,000 crore home loan book in 2 years, INR10,000 crore by FY'30.
    • Robust INR1 lakh crore IPO pipeline, with execution expected in the next 12 months.
    • Corporate Advisory & Capital Markets sales aiming for 20% growth, potentially reaching INR900-1,000 crore.
    • Real estate loan book is stable and projected to grow 15-20% year-on-year for the next 2-3 years, focusing on cash flow-backed loans.
    • Wealth Management segment is set for continuous year-on-year growth, with a strong focus on recurring Assets Under Management (AUM).
  • Margin & Profit Outlook:
    • Targeting recovery of INR250-300 crore annually from provisions for the next 3 years.
    • Wealth Management margins are expected to improve due to operating leverage; the net yield on equity AUM aims to cross 30 basis points in 6-12 months.

JM Financial reported its highest ever operating PAT of INR454 crores for Q1 FY26, signaling strong operational momentum. The company’s earnings call highlighted strategic investments and a robust forward-looking guidance, emphasizing sustained growth across its core business segments. Expect insights into ambitious loan book targets, capital market opportunities, and enhanced profitability.

Unlocking Future Growth: Strategic Investments

JM Financial's Q1 FY26 results underscore a strategic pivot towards sustained expansion. Vishal Kampani, CEO, noted,

"all of our business units have done extremely well and have posted stellar results and growth."

This growth is backed by aggressive investments in wealth management, where the company targets continuous year-on-year AUM growth, bolstering recurring revenue. The firm's corporate advisory and capital markets businesses also show significant momentum, with a robust INR1 lakh crore IPO pipeline. Management is confident of executing these opportunities, potentially translating into INR900-1,000 crore in sales, reflecting a targeted 20% growth. This broad-based strength is foundational for future profitability and market leadership.

Resilient Lending & Clear Asset Strategy

The company has successfully stabilized its real estate loan book at INR2,000 crores, emphasizing a shift to cash flow-backed lending. Vishal Kampani stated,

"you can comfortably assume that real estate should be able to grow at a 15% to 20% loan book growth on cash flow backed comfortably year-on-year for the next 2 to 3 years."

This strategic clarity is complemented by strong asset recovery efforts, targeting INR250-300 crores annually from provisions over the next three years. For affordable home loans, the ambitious target remains INR5,000 crores in two years and INR10,000 crores by FY'30, with a potential IPO around 2028-2029. This focus ensures quality growth while leveraging market opportunities.

JM Financial's Q1 FY26 earnings call painted a clear picture of a company poised for significant future growth. Driven by strategic investments in wealth management, a strong capital markets pipeline, and a disciplined approach to lending, the company is set to capitalize on India's economic trajectory. The focus on robust execution and disciplined risk management positions JM Financial for sustained financial performance in the coming years.

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