JM Financial Powers Future Growth and Market Leadership

Ashwin Thakker

— 2 min read
  • Sales Outlook:
    • Corporate Advisory & Capital Markets: Target 20% growth for FY26 (INR900-1,000 crores sales); INR1 lakh crore IPO pipeline, potentially yielding INR500-750 crores revenue.
    • Home Loans: Targeted to reach INR5,000 crores in 2 years, and INR10,000 crores by FY30; IPO planned for 2028-29.
    • Non-core Real Estate: Stabilized at INR2,000 crores, expecting 15-20% annual growth for 2-3 years (cash-flow backed loans).
    • Wealth Management: Anticipates continuous year-on-year growth.
  • Margin Outlook:
    • Wealth Management: Margins expected to improve year-on-year; target net yield on equity AUM greater than 30 basis points within 6-12 months.

JM Financial reported its highest-ever operating PAT, signaling a robust foundation for future endeavors. The company's strategic vision extends across its diverse business segments, emphasizing aggressive growth targets, enhanced profitability, and sustained market leadership. Significant investments in talent and technology are poised to drive long-term value, aligning with India's economic growth trajectory.

Capital Markets & Advisory: Future Growth

JM Financial’s Corporate Advisory and Capital Markets division targets robust growth, aiming for 20% sales increase in FY26, reaching INR900-1,000 crores. This outlook is bolstered by a strong IPO pipeline. Management projects this could yield INR500-750 crores in revenue within 12 months, provided market stability. The firm's "50-year legacy business" and strategic focus on market share are key, driving significant growth in fee and commission income, while maintaining its top ranking in equity capital markets.

"We have also had an INR1 lakh crores worth of filing for IPO transactions. We filed 45 IPO transactions, which aggregate to INR1 lakh crores."

Lending & Wealth Management: Strategic Expansion

JM Financial forecasts substantial growth across its lending and wealth management divisions. The home loan book is targeted to reach INR5,000 crores in two years and INR10,000 crores by FY30, with an IPO planned. The non-core real estate loan book, currently INR2,000 crores, is projected to grow 15-20% annually for the next 2-3 years, focusing on cash flow-backed assets. Wealth Management anticipates continuous year-on-year growth. Margins are expected to improve, targeting a net yield on equity AUM over 30 basis points within 6-12 months.

JM Financial's forward-looking guidance reflects a clear strategy for sustained growth and profitability across its key segments. Strategic investments in talent, technology, and robust pipelines in capital markets, coupled with targeted expansion in lending and wealth management, position the company for strong execution. The focus remains on building long-term value and capitalizing on India's economic growth for continued market leadership.

Read more