1. At a Glance
DAM Capital Advisors Ltd walked into Dalal Street in December 2024 wearing a crisp investment-banker suit and carrying a fat deal tombstone book. Fast forward to Feb 2026, the stock is down ~40% from its highs, trading around ₹172, while fundamentals are still flexing six-pack abs: ROE ~49%, ROCE ~65%, OPM ~52%, and a near-zero debt balance sheet.
But markets are moody creatures. Q3 FY26 numbers came in softer YoY and QoQ, revenues dipped ~33% QoQ, PAT fell ~61% QoQ, and suddenly the Street remembered that investment banking is not a pani-puri stall with daily predictable cash flows.
Market cap sits near ₹1,214 cr, P/E ~15x, dividend yield ~0.6%, promoter holding steady at 40%, and institutional interest… well, cooling faster than post-IPO coffee.
So what exactly happened here? Is DAM Capital just experiencing a cyclical hangover after blockbuster IPO years, or is this the beginning of a longer digestion phase? Let’s open the books — auditor style, with a raised eyebrow.
2. Introduction – Welcome to the Volatile World of Deal-Making
If you’re looking for a smooth, FMCG-style revenue graph, congratulations — you’re in the wrong stock. DAM Capital lives in the adrenaline-pumped world of ECM deals, IPO pipelines, block trades, and M&A advisory, where one quarter you’re minting money and the next you’re waiting for SEBI approvals like a student waiting for exam results.
Founded in 1993, DAM Capital isn’t some fly-by-night banker that discovered IPOs in 2021. This firm has survived multiple market cycles, dot-com bubbles, global financial crises, and Indian bull-bear mood swings. Its sweet spot? Mid-market ECM, IPO advisory, and institutional equities — basically the plumbing behind India’s capital markets boom.
FY24–FY25 were euphoric years. IPOs everywhere. QIPs flying off shelves. Promoters ringing bankers like wedding planners. DAM Capital benefitted handsomely, delivering eye-popping margins and profit growth. Then came FY26… where markets cooled, volatility spiked, and deal closures
slowed.
Question for you: Do you judge an investment bank by one slow quarter, or by its ability to survive cycles?
3. Business Model – WTF Do They Even Do?
Imagine DAM Capital as the shaadi ka pandit of Dalal Street. They don’t own the bride (company) or the groom (investors), but without them, the marriage (IPO / deal) doesn’t happen.
Two Core Engines:
a) Investment Banking
This is the money printer — when markets cooperate.
- Equity Capital Markets: IPOs, QIPs, OFS, rights issues, buybacks.
- M&A Advisory: Strategic sales, acquisitions, structured deals.
- Private Equity Advisory: Matching capital with hungry promoters.
As of Oct 31, 2024:
- 72 ECM transactions executed
- 27 IPOs
- 16 QIPs
- Plus OFS, buybacks, rights issues, open offers
- Advisory roles in marquee deals like Nirma–Glenmark Lifesciences (~₹5,650 cr)
b) Institutional Equities
This is the bread-and-butter recurring engine.
- Broking
- Research
- Institutional client servicing
They serviced 263 active institutional clients globally, including FPIs across the US, Europe, Asia, and Middle East. Less glamorous than IPO headlines, but crucial for steady cash flow.
Lazy-investor explanation: One division spikes profits, the other keeps the lights on.
4. Financials Overview – Numbers Don’t Lie, But They Do Smirk
Quarterly Comparison Table (₹ Cr, Standalone)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 69.9 | 104.0 | 107.0 | -32.8% | -34.7% |
| EBITDA | 33.0 | 71.0 | 76.0 | -53.5% | -56.6% |
| PAT | 20.0 | 51.0 | 52.0 | -61.2% | -61.5% |
| EPS (₹) | 2.83 | 7.28 | 7.37 | -61.1% | -61.6% |
