JM Financial Asset Management AIF AUM triples to Rs 1,063 crore

JM Financial Asset Management’s alternative investment fund, or AIF, assets under management including commitments rose 3.2 times year on year to Rs 1,063 crore in Q2FY27, driven by Rs 700 crore secured at the first close of its maiden Pre-IPO fund. Mutual-fund average assets under management fell to Rs 13,500 crore from Rs 14,902 crore.

How did Asset Management’s AIF assets change?

Asset Management’s AIF assets under management, or AUM, increased by Rs 732 crore to Rs 1,063 crore in Q2FY27 from Rs 331 crore in Q2FY26. The presentation states that the AIF AUM measure includes commitments, meaning the Rs 700 crore first close of the Pre-IPO fund forms part of the reported total.

The change came from a new equity allocation. AIF AUM in Q2FY26 consisted of Rs 331 crore in debt strategies, while Q2FY27 comprised Rs 700 crore in equity and Rs 363 crore in debt. The equity component represented about two-thirds of the Q2FY27 total, whereas no equity AIF AUM was reported a year earlier.

Debt AIF AUM also rose, by Rs 32 crore from Rs 331 crore to Rs 363 crore, but contributed less than the Pre-IPO fund to the Rs 732 crore total increase. Asset Management lists equity and debt AIFs among its offerings and says it aims to channel wholesale expertise into the AIF platform.

Why did Asset Management’s mutual-fund AUM fall?

Asset Management’s mutual-fund average AUM, or MF AAUM, declined by Rs 1,402 crore, or about 9%, to Rs 13,500 crore in Q2FY27 from Rs 14,902 crore in Q2FY26. Equity schemes accounted for Rs 834 crore of the reduction, while liquid and other schemes accounted for Rs 533 crore.

Debt MF AAUM fell by Rs 35 crore to Rs 387 crore in Q2FY27 from Rs 422 crore a year earlier. Equity MF AAUM declined to Rs 10,856 crore from Rs 11,690 crore, and liquid and other MF AAUM fell to Rs 2,257 crore from Rs 2,790 crore.

Mutual-fund folios fell to 8.5 lakh in Q2FY27 from 9.3 lakh in Q2FY26. The monthly systematic investment plan, or SIP, book was Rs 87 crore in Q2FY27, compared with Rs 90 crore in Q1FY27, a sequential decline of Rs 3 crore.

How did lower MF AAUM affect Asset Management’s fees and revenue?

Asset Management’s MF management fees rose to Rs 12 crore in Q2FY27 from Rs 10 crore in Q2FY26, a 24% increase, despite the Rs 1,402 crore decline in MF AAUM. Equity MF yield increased to 0.44% from 0.29%, which the presentation describes as a 50% increase.

Segment revenue rose 41% to Rs 16 crore in Q2FY27 from Rs 12 crore in Q2FY26. Revenue for H1FY27 was Rs 37 crore, compared with Rs 27 crore in H1FY26, while FY26 revenue was Rs 56 crore after Rs 43 crore in FY25 and Rs 29 crore in FY24.

Operating profit before tax remained a loss of Rs 17 crore in both Q2FY27 and Q2FY26. Operating profit after tax was also a loss of Rs 10 crore in each quarter, while the H1FY27 operating profit after tax loss was Rs 14 crore.

The annual revenue trend from Rs 29 crore in FY24 to Rs 56 crore in FY26 contrasts with widening annual operating profit after tax losses, from Rs 17 crore to Rs 30 crore over the same period. FY26 profit figures were adjusted for a Rs 2 crore pre-tax and non-controlling-interest impact of new labour codes and a Rs 1 crore post-tax and non-controlling-interest impact.

What is Asset Management planning after the Pre-IPO fund close?

Asset Management expects the first close of its second performing credit fund before the end of the financial year. This is the stated next fund milestone after the Rs 700 crore first close of the maiden Pre-IPO fund in Q2FY27.

Management’s listed priorities include building scale and engagement, active equity mutual-fund management, adding AIF and mutual-fund products, and using wholesale expertise in the AIF platform. These plans coincide with a 9% increase in active partners to 6,239 in Q2FY27 from 5,712 in Q2FY26.

Employee count increased by eight to 219 over the same year-on-year comparison, from 211. The presentation does not disclose a target size, final-close date or deployment schedule for the Rs 700 crore Pre-IPO fund, and it provides no target for MF AAUM, folios or the Rs 87 crore monthly SIP book.

Conclusion

Asset Management’s Q2FY27 data show a shift in the mix of its reported assets: the Rs 700 crore Pre-IPO fund commitment created an equity AIF component and lifted total AIF AUM to Rs 1,063 crore, while MF AAUM declined by Rs 1,402 crore. Revenue increased to Rs 16 crore and MF fees rose to Rs 12 crore, but quarterly operating profit after tax remained a Rs 10 crore loss.

The next disclosed milestone is management’s expected first close of a second performing credit fund before financial year-end. Results to watch include the size and timing of that close, changes in the Rs 13,500 crore MF AAUM and Rs 87 crore monthly SIP book, and whether higher management fees affect the reported operating loss.