1. Opening Hook
In a quarter when markets behaved like a caffeinated squirrel, JM Financial strutted in with ₹270 crore PAT and the swagger of an IPO rainmaker. Vishal Kampani sounded more like a marathon coach than a banker—steady, strategic, and always “on track.” The firm’s balance sheet has been through more detox than a wellness retreat, and yet, the IPO pipeline is fatter than ever at ₹1.2 lakh crore. But between digital burn and ARC recoveries, the big question remains: can JM convert all this noise into net worth? Keep reading — this call had dividends, drama, and digital dreams that may or may not pay off. 💸
2. At a Glance
- PAT ₹270 crore:Management calls it “strong”; analysts call it “finally.”
- Fees & Commission ₹341 crore:Highest ever — IPO season clearly sponsored by JM.
- Interim Dividend ₹1.5/share:First the market, now the shareholders get wooed.
- Wealth AUM ₹32,000 crore:Sales team up 43%, clients still catching up.
- Affordable Housing AUM ₹3,031 crore:From metros to mofussil, home loans booming.
- Private Markets PAT ₹77 crore:ARC recoveries now doubling as profit generators.
- ROE 14.4%:Respectable, though not exactly champagne-worthy. 🍾
3. Management’s Key Commentary
“Our pipeline of IPOs stands at ₹1.2 lakh crore.”(Translation: We basically own the primary market now. 🎯)
“We are #1 in IPO rankings for the quarter.”(A humblebrag wrapped in a performance metric.)
“We’ve added 1,000 salespeople in wealth management.”(Also known as: adding cost before contribution.)
“Asset Management is still in investment phase.”(A polite way to say: losses are planned, not accidental.)
“Recoveries from the ARC have crossed ₹1,273 crore.”(That’s banker-speak for ‘our old mistakes are finally paying us back.’)
“No toxic assets remain.”(He’s been saying that for six quarters, but hey — seventh time’s the charm.)
“We will look at a demerger at the appropriate scale.”(Read: Once valuations stop making us cry.) 😏
4. Numbers Decoded
| Segment | Revenue / PAT | YoY Change | Commentary |
|---|---|---|---|
| Consolidated PAT | ₹270 cr | +16% | Adjusted growth 40% excl. tax credit |
| Fees & Commission | ₹341 cr | +20% | Highest ever; IPOs did the heavy lifting |
| Corporate Advisory & Capital Markets | ₹142 cr PAT | +41% | 15 deals worth ₹28,000 cr closed |
| Wealth Management | ₹30 cr PAT | ↓ from ₹35 cr | Expanding faster than it’s earning |
| Asset Management | ₹10 cr loss | — | “Investing phase” = euphemism for red ink |
| Private Markets | ₹77 cr PAT | from ₹11 cr | Recoveries fueling profit |
| Affordable Housing | ₹13 cr PAT | +100% | AUM ₹3,031 cr, ROA ~2.1% |
| Book Value | ₹107/share | — | Net worth ₹10,241 crore |
Decoded:JM is a financial supermarket — half the counters are booming, the rest under renovation.
5. Analyst Questions
Q:Wealth profits look muted despite expansion?A:“We’re taking cost now; contribution will come later.” (A classic delayed gratification model.)
Q:Digital business losses?A:“Burn is reducing; breakeven by FY27.” (Or when unicorns fly.)
Q:Private markets toxic assets?A:“None left.” (Same line, new year.)
Q:IPO commissions?A:“2–3%, split among bankers.” (Everyone eats, some more equally than others.)
Q:Affordable housing risks?A:“20% bounce rate, but they all pay eventually.” (Financial discipline via guilt.)
Q:AMC losses despite AUM growth?A:“Opex buildup phase.” (They’re hiring optimism too.)
6. Guidance & Outlook
The management is betting on a golden decade forcapital markets and wealth management, claiming the “next decade belongs to India’s savings shift.” IPO momentum remains robust — 56 deals filed worth ₹1.2 lakh crore. Affordable housing will keep growing
