JM Financial Q2 FY27 Earnings Call: Rs. 1.3 Lakh Cr IPO Pipeline Filed, Guides 20% Growth Through FY32 (JMFINANCIL)

JM Financial Ltd held its Q2 FY27 earnings call on November 04, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Advisory-Led Quarter; H1 Revenue Up 7%

• Q2 FY27 consolidated net revenue of Rs.712 Cr — PAT after non-controlling interest at Rs.240 Cr; H1 FY27 net revenue grew 7% YoY to ~Rs.1,600 Cr with PAT after NCI of Rs.531 Cr.
• Interest income up 12% YoY to Rs.437 Cr — standard loan book across private markets, wealth and affordable home loans rose 23% YoY to Rs.10,270 Cr; fees, commission and brokerage income jumped 38% QoQ to Rs.520 Cr.
• Balance sheet remains conservative — consolidated net worth (ex-NCI) ~Rs.11,000 Cr, book value Rs.115/share, gross leverage at 1x as of Q2 FY27.
• Interim dividend raised 10% to Rs.1.65/share — cumulative payout of Rs.7.6/share over the last six quarters, aggregating Rs.727 Cr.
• Revenue mix is majority recurring — Group CFO Nishith Shah noted ~50% of revenues are recurring, with sticky brokerage adding 12-15% for a 62-65% recurring bucket; the transactional remainder (investment banking, MTM swings, ARC recoveries) can be volatile.

#1 Rank in IPOs/QIPs, but Deal-Size Slippage Cost Fees

• Rs.83,000 Cr of transactions closed in Q2 FY27 — JM Financial ranked #1 across IPOs and QIPs; corporate advisory & capital markets net revenue grew 2.5x QoQ to Rs.286 Cr, PAT up 4x QoQ to Rs.127 Cr, annualized segment ROE ~36%.
• Rs.1,30,000 Cr pipeline filed with the regulator — to be executed over the next 12 months (into FY 2027-2028), with more filings expected in Q3 and Q4 FY 2026-2027; mandate wins described as "best in class".
• ~Rs.40-50 Cr of fee loss in Q2 FY27 — launched deal sizes came in ~Rs.10,000 Cr below regulator-filed amounts (~40-50 bps of fee loss), on top of an estimated ~Rs.45-50 Cr of revenue lost to the difficult environment; management also flagged a reduction in deal values in some transactions.
• Primary-market revival began June 2026 — demand is broad-based (mutual funds, domestic family offices, FPIs); if momentum continues, management expects to significantly complete a large part of the pipeline over the next ~5-6 months (through ~Q1 FY 2027-2028).
• ~15% growth a reasonable assumption for the remainder of FY27 — Vishal Kampani noted April-May 2026 saw virtually no deals with activity restarting in June 2026; longer term, segment profitability is expected to compound at 15-20% peak-to-peak with a new peak every 4-5 years.
• Sentiment inflection post-US election — Kampani said foreign-investor negativity (crude, tariffs, Middle East war, AI-boom concentration) turned "pro India" within the last 24 hours after the market lift and US election results.

Headline Dip Masks 63% H1 Underlying Growth; Releveraging Ahead

• Private credit net revenue dipped YoY to ~Rs.120 Cr in Q2 FY27 — vs ~Rs.124 Cr in Q2 FY26, despite yields rising QoQ and standard loans growing 22% YoY to Rs.4,748 Cr; management attributed the dip to ~Rs.10-15 Cr of ARC mark-to-market swings (including Gokaldas shares) and a tougher H1 FY26 base.
• H1 FY27 net revenue of Rs.582 Cr, up 63% YoY — excluding write-backs, management pegged underlying H1 operating PBT growth at almost 60% (write-backs were Rs.231 Cr in H1 FY26 vs Rs.15 Cr in H1 FY27).
• Rs.250 Cr of impairment write-backs for FY27 reaffirmed — on track to close by March 31, 2027, with additional write-backs expected over the next 6-9 months (running into H1 FY28).
• ARC resolution momentum — one very large account received final NCLT approval in October 2026, expected to yield ~Rs.330-340 Cr of liquidity before the close of Q3 FY27; ~Rs.2,000 Cr of SR investments remain, targeted for cash-backed resolution over the next 18 months to 2 years, with returns usually modeled at ~16-18%.
• Balance sheet to releverage — cash fell from Rs.3,077 Cr (June 2026) to Rs.1,691 Cr (September 2026); debt-equity bottomed at 0.8x with limits up to 4x, and management expects to likely begin borrowing from Q4 FY 2026-2027 to fund Q3-onward disbursements.
• Real estate pricing is a challenge — no stress seen in top metros, but real estate must be priced at least 200-300 bps above corporate lending for the model to work; the Gokaldas Exports position has suffered from tariffs placed by the US government, though management wants to stay invested.

Recurring Revenue Up 20%; Break-Even Slips to FY28

• Wealth recurring revenues up 20% YoY to Rs.216 Cr in Q2 FY27 — PAT up 57% QoQ to Rs.30 Cr; recurring AUM up 16% YoY to Rs.37,000 Cr, with recurring AUM plus loans at ~Rs.40,000 Cr (+17% YoY).
• Standalone wealth business broke even in September 2026 — management targets full-year profitability in FY 2027-2028, a slippage of roughly 3-4 quarters versus earlier guidance of break-even in FY27, attributed to transactional income volatility over the last 6-9 months.
• RM headcount decline is management-actioned — 948 sales/RMs, 71 branches and 898 franchises as of Q2 FY27; the rationalization was "purely on productivity basis", with recruiting to resume by end of FY 2026-2027 / early FY 2027-2028; net new money per RM is ~Rs.75 Cr for the mature cohort and roughly half that for the new cohort.
• Yield trajectory supportive — gross yield of 51 bps and net yield of 35 bps on the recurring book; new recurring assets are being added at yields north of 60 bps, which should lift blended yields as assets scale.
• AMC: pre-IPO fund first close of Rs.700 Cr+ — AIF AUM including commitments at Rs.1,063 Cr; mutual fund management fees up 24% to Rs.12 Cr in Q2 FY27; the AMC still posted losses after minority interest of Rs.10 Cr in Q2 FY27, with the mutual fund book's break-even taking longer amid rising competition (SIP book down from Rs.90 Cr to Rs.87 Cr).
• SIF launch targeted for early FY 2027-2028 — the Singapore VCC platform has scaled from zero 18 months ago to over $225 million AUM with quarterly net additions of $30-40 million; a Gift City entity is a medium-term initiative.

Weighted ~20% Growth Through FY 2031-2032; Mid-Teens ROE by ~FY 2030

• Weighted-average ~20% YoY growth guided for at least the next 5 years — i.e., through ~FY 2031-2032, with investments expected to yield "very decent profitability".
• 15-20% revenue growth should translate into 20-25% profit growth — Kampani's guidance as operating scale builds, responding to the 20% blended growth target across divisions over the next 3-5 years (≈ FY 2027-2028 to FY 2031-2032).
• Segment-level multi-year guidance — corporate advisory & capital markets at 15-20% over the next 3-5 years (through ~FY 2031-2032); private markets ~20% loan book and ~15% investment-side growth over the same horizon; wealth management 20-25% AUM growth, subject to mark-to-market (period unspecified); asset management 15-20% (period unspecified); home loans 25-30% AUM growth (period unspecified).
• Mid-teens ROE targeted in ~3 years from the call (≈ FY 2029-2030) — framed as the company's "endeavor", toward the end of the investment cycle of many businesses.
• Historical compounding cited — management noted each business has doubled in size every 4-5 years when looking back 8-10 years, and momentum is already visible.

Buyback Blocked Until NSE Lockup Expires 27 March 2027

• Buyback constrained by two liquidity factors — Kampani cited (1) significant liquidity inside the NBFCs that cannot be extracted without a holding-company tax hit, and (2) holding-company liquidity in NSE shares, recently listed and subject to a 6-month lockup expiring 27 March 2027 (FY 2026-2027).
• Deployment decision in April-May 2027 (FY 2027-2028) — management affirmed it would pursue a buyback once liquidity is available; the promoter family crept up 1% in Q2 FY 2026-2027, with Kampani acknowledging the stock is at attractive levels.
• Demerger considered but deprioritized — management emphasized the "flywheel" of synergies across capital markets, corporate advisory, private markets, wealth management and alternatives, and may consider spinning off wealth/asset management only once those businesses become larger; execution and scaling are currently prioritized.
• Capital markets exposure is the key risk — Kampani called it "the joker in the pack" due to inherent volatility; management also noted ARC and private markets are typically counter-cyclical to equity capital markets, while the ARC retail asset side is completely uncorrelated (driven by NBFCs selling bad loans).
• Segment cyclicality acknowledged — responding to Nilesh Doshi's observation that private markets and corporate advisory have not performed strongly in the same quarter over six quarters, Kampani attributed private markets volatility to the investment book (SR income booked only on realization, plus MTM swings), and expects volatility to reduce considerably as the loan book grows at 20% (period unspecified) and retail assets in the ARC increase.