JM Financial Wealth Management recurring AUM rises 17% in H1FY27

JM Financial Wealth Management's recurring assets under management, including loans, rose 17% year-on-year to Rs. 39,596 crore in H1FY27, while wealth relationship managers fell to 177 from 211 at FY26. Wealth Management also reported a 20% year-on-year increase in Q2FY27 recurring revenue to Rs. 216 crore.

How did Wealth Management's recurring assets change?

Wealth Management's recurring AUM including loans reached Rs. 39,596 crore in H1FY27, up 17% year-on-year, while recurring AUM excluding loans rose 16% to Rs. 37,038 crore. The Rs. 2,558 crore loan book, which increased 30% year-on-year, accounts for the difference between the two recurring-AUM measures. Assets under management, or AUM, comprise distribution, custody and advisory assets across channels, as applicable.

Q2FY27 recurring revenue was Rs. 216 crore, up 20% year-on-year from Rs. 149 crore in Q2FY26. Total wealth AUM was Rs. 1,13,522 crore in H1FY27, compared with Rs. 1,06,148 crore at FY26 and Rs. 1,09,580 crore at FY25. Recurring AUM excluding loans increased by Rs. 6,200 crore from the Rs. 30,838 crore reported at FY26.

Why did Wealth Management reduce its frontline workforce?

Management identifies productivity as a business priority, and Wealth Management reported 177 wealth relationship managers, or RMs, in H1FY27 versus 211 at FY26. Sales employees fell to 771 from 835, while the branch network declined by one branch to 71. The reductions followed expansion through FY26, when RMs had risen from 89 in FY24 and sales employees from 563.

The presentation's figures imply a larger recurring-AUM base per RM in H1FY27 than at FY26. Recurring AUM excluding loans was Rs. 37,038 crore across 177 RMs in H1FY27, compared with Rs. 30,838 crore across 211 RMs at FY26. This is an analytical comparison of disclosed figures, rather than a management-reported productivity measure, and does not establish client loads, staff departures or compensation.

The internal branch count was broadly stable at 71 in H1FY27 against 72 at FY26, while the franchisee network increased to 898 from 874. The franchisee count was also higher than 852 in FY25 and 801 in FY24. The 24-member increase in the franchisee network from FY26 occurred alongside lower internal RM and sales-employee counts.

What happened to Wealth Management's revenue mix?

Wealth Management's Q2FY27 revenue rose 7% year-on-year to Rs. 353 crore, as recurring revenue increased 20% to Rs. 216 crore and transactional, brokerage and other revenue declined to Rs. 137 crore from Rs. 180 crore. Based on the disclosed figures, recurring revenue represented about 61% of Q2FY27 revenue, compared with about 45% in Q2FY26. The change is consistent with management's stated priority of expanding recurring revenue streams.

H1FY27 revenue was Rs. 703 crore, comprising Rs. 420 crore of recurring revenue and Rs. 283 crore of transactional, brokerage and other income. The half-year recurring revenue was more than half of FY26 recurring revenue of Rs. 741 crore, while H1FY27 total revenue was about half of FY26 total revenue of Rs. 1,403 crore. The presentation provides no FY27 revenue target.

Over FY24 to FY26, total revenue increased from Rs. 1,022 crore to Rs. 1,403 crore, representing a stated compound annual growth rate, or CAGR, of 17%. Recurring revenue rose from Rs. 458 crore to Rs. 741 crore, while transactional, brokerage and other income grew from Rs. 564 crore to Rs. 663 crore. The recurring component therefore added Rs. 283 crore over the two years, versus Rs. 99 crore for the transactional component.

Did higher recurring revenue translate into higher profit?

Wealth Management's Q2FY27 operating profit before tax, or PBT, was Rs. 39 crore, up from Rs. 37 crore in Q2FY26, while operating profit after tax remained Rs. 30 crore in both quarters. Revenue rose by Rs. 24 crore year-on-year in Q2FY27, but PBT increased by Rs. 2 crore. The presentation does not disclose the expense movements behind this difference.

For H1FY27, operating PBT was Rs. 64 crore, equivalent to a 9.1% margin on Rs. 703 crore revenue, and operating profit after tax was Rs. 49 crore. Return on equity, or RoE, was 8.3% in H1FY27, compared with operating PBT of Rs. 165 crore, an 11.8% margin, and RoE of 12.0% in FY26. As a half-year and a full year are different reporting periods, those figures are not like-for-like earnings comparisons.

FY26 profit figures were adjusted for the statutory impact of new labour codes, amounting to Rs. 12 crore before tax and non-controlling interests and Rs. 9 crore after tax and non-controlling interests. On the presentation's stated basis, operating PBT rose from Rs. 91 crore in FY24 to Rs. 165 crore in FY26, a 35% FY24-FY26 CAGR. The H1FY27 staffing reductions followed that two-year expansion in reported operating profit.

Conclusion

The H1FY27 data point to a wealth strategy built around a larger recurring asset and revenue base alongside fewer internal frontline employees. Recurring AUM excluding loans rose to Rs. 37,038 crore and Q2FY27 recurring revenue reached Rs. 216 crore, while the franchisee network grew to 898 even as the RM count declined to 177.

The next disclosures can show how management's plans for new asset and client acquisition, India and international scale, recurring-revenue expansion, and digital readiness affect results. Key reported measures to monitor are the Rs. 2,558 crore loan book, the 9.1% H1FY27 operating PBT margin, and whether recurring AUM continues to grow after the Rs. 6,200 crore increase from FY26.