JM Financial Wealth Management Recurring AUM Rises 20% in H1FY27

JM Financial Wealth Management increased recurring assets under management, excluding loans, by about 20% from FY26 to Rs 37,038 crore in H1FY27, even as wealth relationship managers fell to 177 from 211. The presentation also reported Rs 2,558 crore of loans and Rs 216 crore of recurring revenue in Q2FY27.

How did Wealth Management's recurring assets change in H1FY27?

Wealth Management's recurring assets under management (AUM), excluding loans, increased by Rs 6,200 crore from FY26 to Rs 37,038 crore in H1FY27. The presentation separately describes the Q2FY27 level as a 16% year-on-year increase, while the movement from the FY26 closing level of Rs 30,838 crore to H1FY27 was about 20%. Recurring AUM had increased from Rs 20,315 crore in FY24 to Rs 27,919 crore in FY25 and Rs 30,838 crore in FY26.

Total wealth AUM reached Rs 1,13,522 crore in H1FY27, compared with Rs 1,06,148 crore at FY26-end and Rs 1,09,580 crore in FY25. Wealth Management defines total AUM as distribution, custody and advisory assets across channels, as applicable. The Rs 7,374 crore increase in total AUM from FY26 was accompanied by a Rs 6,200 crore increase in recurring AUM excluding loans.

Did Wealth Management reduce its relationship-manager and sales workforce?

Yes. Wealth Management had 177 wealth relationship managers (RMs) in H1FY27, down by 34 from 211 at FY26-end. The RM count had risen from 89 in FY24 to 131 in FY25 and 211 in FY26 before the H1FY27 reduction. The presentation identifies productivity as a business priority and reports the lower RM count alongside the increase in recurring AUM to Rs 37,038 crore.

Sales employees declined to 771 in H1FY27 from 835 in FY26, a reduction of 64, while the branch network moved to 71 from 72. In contrast, the franchisee network increased to 898 from 874 over the same interval. The reported changes therefore combined lower direct RM, sales and branch counts with a 24-member increase in the franchisee network.

The data show recurring AUM excluding loans rose by Rs 6,200 crore despite 34 fewer wealth RMs and 64 fewer sales employees than at FY26-end. They do not establish AUM or revenue per employee because the presentation does not disclose the timing of workforce changes or assets assigned to individual employees. Management's stated priorities include productivity, new asset and client acquisition, expansion of recurring revenue streams, scale and digital readiness.

How did loans and recurring revenue contribute to H1FY27?

Wealth Management's loans reached Rs 2,558 crore in H1FY27, compared with Rs 2,028 crore in FY26, an increase of Rs 530 crore. The Q2FY27 highlights describe loans as 30% higher year on year. Recurring AUM including loans was Rs 39,596 crore in Q2FY27, which the presentation says was 17% higher year on year.

Recurring revenue was Rs 216 crore in Q2FY27, 20% above Rs 180 crore in Q2FY26. Transaction, brokerage and other revenue declined to Rs 137 crore from Rs 149 crore in the same comparison. Total Q2 revenue nevertheless increased 7% to Rs 353 crore from Rs 329 crore, as the Rs 36 crore increase in recurring revenue exceeded the Rs 12 crore decline in transaction-related and other revenue.

For H1FY27, recurring revenue was Rs 420 crore and transaction, brokerage and other revenue were Rs 283 crore, producing total revenue of Rs 703 crore. Full-year revenue increased from Rs 1,022 crore in FY24 to Rs 1,317 crore in FY25 and Rs 1,403 crore in FY26, representing a 17% compound annual growth rate (CAGR) from FY24 to FY26, according to the presentation. The recurring revenue stream rose from Rs 458 crore in FY24 to Rs 741 crore in FY26.

What happened to Wealth Management profitability and market share?

Wealth Management reported operating profit before tax of Rs 39 crore in Q2FY27, compared with Rs 37 crore in Q2FY26, while operating profit after tax was unchanged at Rs 30 crore. For H1FY27, operating profit before tax was Rs 64 crore and operating profit after tax was Rs 49 crore. The FY26 figures were adjusted for a Rs 12 crore pre-tax and non-controlling-interest impact from new labour codes and a Rs 9 crore post-tax and non-controlling-interest impact.

The operating profit before tax margin was 9.1% in H1FY27, compared with 11.8% in FY26 and 12.9% in FY25. Return on equity (RoE) was 8.3% in H1FY27, against 12.0% in FY26 and 13.3% in FY25. H1FY27 is a partial-year period while FY25 and FY26 are full-year periods, so the presentation does not provide a like-for-like full-year margin or RoE comparison for FY27.

Cash market share rose to 3.0% in H1FY27 from 2.6% in FY26, although it remained below 3.8% in FY24 and above the 2.9% reported in FY25. Wealth Management serves ultra-high-net-worth and high-net-worth clients, mass affluent clients, institutions, family offices and retail clients. Its listed products and services include distribution, securities broking, portfolio management services, advisory and loans.

Conclusion

Wealth Management's H1FY27 figures show recurring assets and loans increasing while direct wealth staffing, sales staffing and branches were lower than at FY26-end. Recurring AUM excluding loans reached Rs 37,038 crore, total wealth AUM reached Rs 1,13,522 crore and Q2FY27 recurring revenue increased to Rs 216 crore, while transaction, brokerage and other Q2 revenue declined to Rs 137 crore.

The next disclosed measures to watch are management's execution on productivity, scale, recurring revenue expansion, new asset and client acquisition, and digital readiness. The franchisee network increased to 898 in H1FY27 from 874 in FY26, while cash market share rose to 3.0% from 2.6%; subsequent disclosures can show whether those changes accompany further growth in recurring AUM and revenue.