JM Financial Eyes Multi-Segment Expansion and Recovery

Ashwin Thakker

— 2 min read

Key Facts:

  • Home Loan Book Growth: Target INR5,000 crores in 2 years, INR10,000 crores by FY30.
  • Real Estate Loan Book Growth: Expected 15-20% annual growth for next 2-3 years, focusing on cash flow-backed assets.
  • Corporate Advisory & Capital Markets Sales: Aim for 20% year-on-year growth this year (INR900-1,000 crores).
  • IPO Pipeline: INR1 lakh crore worth of transactions filed, expected to contribute significantly to revenue in next 12 months.
  • NPA Recovery: Expects INR250-300 crores in annual recoveries for the next 3 years.
  • Wealth Management Margins: Anticipated to improve as operating leverage kicks in from new hires.
  • Asset Management Yield: Targets net yield on equity AUM to cross 30 basis points within 6-12 months.
  • Strategic IPO: Home Loan business IPO planned for 2028-2029.

JM Financial delivered a stellar Q1 FY26, reporting its highest-ever operating PAT and net worth exceeding INR10,000 crores. This robust performance sets the stage for an ambitious forward-looking strategy. The company is actively pursuing multi-segment expansion, aiming for significant loan book growth, enhanced profitability, and continued recovery, reinforcing its market position through strategic investments and operational efficiency.

Strategic Lending Growth and Capital Markets

JM Financial has charted ambitious growth for its lending segments. The Home Loan business targets a loan book of INR5,000 crores in two years, escalating to INR10,000 crores by FY30. An IPO for this unit is planned around 2028-2029. The real estate loan book, having stabilized at INR2,000 crores, is projected to grow by 15-20% annually for the next 2-3 years, prioritizing high-quality, cash flow-backed assets. This disciplined approach underscores a commitment to sustainable expansion and improved asset quality, moving past earlier challenges in the real estate portfolio.

Wealth Management, Asset Recovery, and Profitability

Beyond lending, JM Financial is aggressively building out its Wealth and Asset Management capabilities. The recurring AUM in Wealth Management grew 37% year-on-year, with continued investment in talent expected to drive rapid future growth, albeit with initial costs impacting margins. Profitability is anticipated to improve as operating leverage kicks in. The Asset Management business aims to increase its net yield on equity AUM to 30 basis points within 6-12 months. The company also expects to recover INR250-300 crores annually from its non-performing assets over the next three years, reinforcing its balance sheet. This multi-pronged strategy emphasizes long-term value creation and market leadership.

JM Financial's Q1 FY26 performance lays a strong foundation for its ambitious forward-looking agenda. The company is strategically focused on expanding its home loan and real estate lending books, capitalizing on a robust IPO pipeline, and enhancing its wealth management footprint. With clear targets for asset recovery and improving profitability, JM Financial is committed to sustained growth and disciplined execution across its diverse financial services portfolio, signaling confidence in its long-term market position.

Read more