Emkay Q4 FY26: Capital Markets Surge, Asset Management Scales, Wealth Stays Mixed

Emkay Global Financial Services ended FY26 with a sharp fourth-quarter bounce in operating momentum, even as full-year profitability stayed well below last year’s levels. Consolidated revenue for FY26 rose 10 percent year on year to INR 3,963 million. Q4 FY26 revenue came in at INR 1,532 million, up strongly from INR 918 million in Q3 FY26, reflecting the inherently cyclical nature of market-facing financial services.

Profitability, however, did not mirror the revenue improvement for the year. FY26 profit before tax stood at INR 212 million and profit after tax at INR 152 million. The presentation also reports ROE of 4.45 percent as of 31 March 2026, underscoring that earnings in FY26 were meaningfully lower than in FY25.

Management contextualised the year as one that tested conviction in capital markets. It pointed to global trade disruptions, sustained foreign investor outflows, earnings moderation, and geopolitical tensions in the Middle East that fed into energy market uncertainty and crude price risk. Against that backdrop, Emkay’s message was consistent: stay anchored to research, client relationships, and disciplined execution.

Q4 strength came from Capital Markets

The clearest driver of the Q4 jump was Capital Markets. In Q4 FY26, Capital Markets revenue was INR 1,095 million versus INR 506 million in Q3 FY26 and INR 447 million in Q4 FY25. For the full year, Capital Markets revenue stood at INR 2,412 million compared with INR 1,965 million in FY25.

Emkay also highlighted continued execution in Investment Banking. During FY26, it completed five ECM transactions aggregating INR 41,781.5 million. The deals included IPO mandates for Innovision Limited (INR 3,192.52 million) and Amirchand Jagdish Kumar Exports Limited (INR 4,530 million), QIPs for Anant Raj Limited (INR 11,000 million) and Indian Renewable Energy Development Agency Limited (INR 20,058.98 million), and a buyback for eClerx Limited (INR 3,000 million).

On forward visibility, the company stated that the 2026-27 pipeline remained reasonably active, with visible revenue pipeline above INR 500 million. It also noted that, compared to the same point last year, sentiment was weaker and clients were taking more cautious calls on timing.

Management’s market commentary flagged two risks that could shape capital markets activity: the geopolitical situation in the Middle East, including the US-Iran monitorable, and global flows remaining concentrated in AI-linked large-cap opportunities where India has limited representation.

Asset Management delivered strong AUM growth

Asset Management was a relative bright spot in FY26, with clear commentary on AUM expansion and distribution traction. The company reported that its overall AUM grew about 30 percent and crossed the INR 15,500 million milestone. PMS and AIF AUM for FY26 was reported at INR 15,953 million, up from INR 12,259 million.

FY26 Asset Management revenue was INR 271 million, up from INR 197 million in FY25. Management discussed inflows of about INR 5,600 million for the year, with Q4 alone contributing about INR 1,500 million. It also pointed to Tier-2 and Tier-3 cities becoming more meaningful, contributing about 15 percent of total inflows.

Strategy traction was described across products. Emkay Capital Builder PMS was positioned as the anchor strategy. Emkay SMIDCap Growth, launched in June 2025, was stated to represent roughly 10 percent of overall AUM. On the AIF side, the company highlighted the launch of Emkay Emerging Stars Series VII in December 2025, with an investment approach spanning listed and unlisted opportunities, including pre-IPO and late-stage unlisted businesses.

For FY27, the company’s direction of travel was framed around deepening Tier-2 and Tier-3 presence, strengthening relationships with MFDs and national distributors, developing white-labelling partnerships, and continuing advisory mandates as a scaling lever.

Wealth Management stayed challenged, but advisory mix improved

Wealth Management performance in FY26 was described as challenging, with pressure on AUM and overall revenues versus the prior year. Wealth AUM declined 14 percent year on year to INR 154,583 million, compared to INR 179,781 million in FY25.

Revenue for Wealth Management in FY26 was INR 730 million, down from INR 949 million in FY25. Within that, the company stated that advisory revenue grew 24 percent year on year to INR 225 million, while transactional revenue declined 34 percent to INR 505 million. This indicates a shift toward more stable advisory-led income even as transaction-led activity softened in volatile market conditions.

The company also described Tier-2 and Tier-3 expansion in wealth as still early-stage. It said the FY26 focus was on building local teams and onboarding experienced relationship managers, with more meaningful contribution expected over the next 3 to 4 quarters.

Financial summary and segment mix

Emkay’s FY26 revenue mix shows the business remains primarily driven by Capital Markets, with Wealth Management and Asset Management adding meaningful but smaller contributions.

Note: Segment revenues are as disclosed in the presentation’s revenue mix section.

Technology investments and operating backbone

A key operating theme for FY26 was building infrastructure for responsible scaling. The presentation disclosed technology-related capex of INR 77 million in FY26. Initiatives highlighted included a multi-layer trading ecosystem integrating third-party and proprietary systems with FIX connectivity, security enhancements through a multi-layer cybersecurity framework, automated risk monitoring with a centralized risk governance structure, and workflow digitisation with selective AI-led initiatives aligned with regulatory expectations.

Management also emphasised investments in risk management, compliance, and clearing systems. The stated intent was to scale in a more regulated and technology-driven market environment, with industry changes seen as directionally positive for long-term participants.

What to track into FY27

The FY26 presentation makes three things clear. First, earnings were pressured despite revenue growth, reflected in a lower ROE and weaker full-year profitability versus FY25. Second, business momentum was not uniform. Capital Markets delivered a strong Q4, and Asset Management showed sustained AUM growth with expanding distribution. Wealth, while resilient in client engagement, saw AUM and revenue pressure, with advisory improving but transactional revenue declining.

Third, management’s FY27 view leans on execution and distribution rather than aggressive expansion. The company highlighted an ECM pipeline with visible revenue above INR 500 million, plans to deepen Tier-2 and Tier-3 presence for both asset and wealth platforms, and continued investment in technology and governance.

The immediate swing factors remain external. The company repeatedly flagged Middle East geopolitical risk and crude prices as key monitorables for market sentiment and foreign flows. For investors, the key question into FY27 is whether the stronger quarters in Capital Markets and the scaling momentum in Asset Management can offset the softer wealth environment, while profitability stabilises from FY26 levels.