Ladies and gentlemen, good day, welcome to the earnings conference call of JM Financial Limited. As a reminder, all participant lines will remain in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing star then zero on your touch-tone telephone. Kindly note that any forward-looking statements made on this call are based on the management's current expectations. However, the actual results may vary significantly. Therefore, the accuracy and completeness of this expectation cannot be guaranteed. Please note that this conference is being recorded. I will now hand the conference over to Mr. Vishal Kampani for opening remarks. Thank you. Over to you. Thank you. On behalf of JM Financial, we extend a very warm welcome to all of you to the earnings conference call to discuss our financial results for year ended March 2026 and the quarter ended March 2026. On the call, we also have Sonia, Chirag, Manish, Amitabh, and Nishit. I will like to discuss our two-year update on this call. In May 2024, we had guided on the strategic pivot for the business, and I'm happy to report that the pivot has done extremely well so far and is in the right direction. Ladies and gentlemen, we have lost the line of the management. Please stay connected while I reconnect the management. Thank you. Ladies and gentlemen, we have the management line reconnected. Sir, please proceed. Thank you all for joining our quarterly and annual call to discuss our quarter- and year-end March 2026 results. On the call, I have Sonia, Chirag, Manish, Amitabh, and Nishit, our senior management team. I wanted to start by giving a two-year update. We had announced our strategic pivot sometime in May 2024. I just want to talk about the pivot and how we fared in the last two years. I'll start with the first segment, which is our Corporate Advisory and Capital Markets segment. We've seen a revenue growth of 26% for the two years in that business. Our revenues have moved from INR 592 to almost INR 946 crores. We've seen our operating profit before tax grow from INR 328 crore -INR 452 crore and a healthy margin of 48%. Despite escalated geopolitical tensions and market volatility, our total fees, commission, and brokerage business, which CACM is a large part of, and so is wealth management, has seen a decent 10% year-on-year growth as well to almost INR 1,753 crores. On the IPO front, our pipeline is at INR 140,000 crores. There is a little bit of volatility in the markets that we continue to see, which was there in Q1 and Q2 of current Q4 and Q1 of this financial year as well, we're seeing some volatility. Till the FPI selling continues, it's becoming increasingly difficult to get IPOs done. Having said that, very happy to report that our pipeline remains strong. Even the non-IPO pipeline in terms of QIPs and blocks and other kinds of transactions on the M&A and private equity side is building up very well. As I said, that execution may be slow, even in quarter one of this year. We need for this business a clear seven to eight months visibility of the year to be able to push a large part of the pipeline through. We are hoping that for this year, the second half will be better than the first half. Coming to Private Markets. In May 2024, we had guided INR 250-300 crore of recovery in each of the years FY 2026, FY 2027, and FY 2028. We've achieved close to INR 280 crore in FY 2026, and we seem to be pretty much on target to be between the INR 250-300 number for FY 2027. The business obviously has reported a decent PAT of INR 540 crore for this year. There has been a significant amount of de-risking on the balance sheet with a lot of repayments on the real estate side. Incrementally this year, we'll see a lot of repayments on the distressed credit side. Focus now will be on origination to syndicate, and that anyway, we have made very decent progress last year, and we continue to believe that this year we will grow more. If the equity markets are going to be a little slow. We will see more incremental activity happening on the credit side. On the wealth management side, we've expanded the talent base in the business. A lot of these costs have been up fronted, and now we are focused on improving productivity in the business. Last two years, the revenue growth in this business has been close to 17% and the profit growth has been over 40%. As I said, bulk of the talent base has been expanded, and we will hope that we are able to increase profitability this year. On the asset management side, again, we've had almost 37% of revenue growth and we've expanded our equity funds. We are currently marketing a pre-IPO fund as well as a credit fund. There is a decent amount of excitement despite the volatility in the markets for both of these products. We are hoping that by the end of the year, we will have a significant close announced for both these AIF products. On the mutual fund side, we'll be expanding more of the products on the equity side to have a fuller basket of products for distribution. Affordable home loans, we've seen a very strong AUM growth of 3,500 crores of AUM now and almost a revenue growth of, again, 37%- 38% in the last two years. The profit growth in this business has been over 75% in the last two years. Collection efficiencies remain at close to 99% levels and gross NPA in the business is less than 1%. Overall, very satisfied last two years with the performance of all of the operating businesses. As I said, yes, we are in the midst of some volatility, but we continue heads down to focus on execution and keep building the pipeline. As soon as markets become more receptive, I think some of our businesses like CACM and private markets will see much more execution. With that, I will hand over the call to Nishit to take you through our numbers. Thank you. Thank you, Vishal. For FY 2026, reported PAT and minority interest increased by 46% year-on-year to INR 1,202 crores, which implies a ROE of 11.7%. As you may be aware, in the third quarter of this financial year, there was an income on account of receipt of interest on income tax refund aggregating to around INR 113 crores and statutory impact of new labor codes amounting to approximately INR 22 crores. Operating PAT adjusted for such impact stood at INR 1,133 crores, which is a year-on-year increase of 38%. The consolidated net worth, excluding the minority interest, stood at INR 10,605 crores, translating to a book value of approximately INR 111 per share. In line with our earlier guidance, we have increased the dividend to shareholders. Over the last four quarters, an aggregate of approximately INR 5.95 per share of dividend has been paid or proposed, resulting in a distribution of approximately INR 570 crore as dividend. Coming to our business segments, Corporate Advisory and Capital Markets. This segment includes the investment banking and institutional equities business. We closed 41 capital market transactions aggregating to approximately INR 95,000 crore in FY 2026. In addition, we have filed documents for 55 IPOs aggregating to an issue size of approximately INR 140,000 crore, and the pipeline of transactions is increasing. On a year-on-year basis, net revenue for FY 2026 increased by 11% to approximately INR 789 crore, and operating profit after tax increased to INR 347 crore. The capital employed in the business stood at INR 829 crore, implying a return of equity of approximately 47%. The segment profit after tax stood at INR 39 crore for quarter ending March 2026. The performance for the quarter ending March 2026 was impacted by lack of primary issuances amidst headwinds emerging from geopolitical issues. On Private Markets, the business of Private Markets comprises of Private Credit, primarily corporate bespoke real estate and distressed credit and investments which include private equity funds, REITs, et cetera. Private Markets is a very unique platform with a focus on providing differentiated solutions to our clients. Private Markets has witnessed significant organic reduction in balance sheet backed by strong repayments and prepayments as well as recoveries in the ARC business. Operating profit before tax for FY 2026 grew 3.5x to INR 742 crores, and operating profit after tax after minority interest grew almost 3.6x to INR 543 crores. The capital employed stood at approximately INR 6,600 crore. The segment profit after minority interest stood at INR 78 crores for quarter ending March 2026. Wealth and Asset Management. First, I would like to update on wealth management. Our sales and RM strength has increased by 30% year-on-year to 1,046 employees. On physical expansion on a year-on-year basis, branches have increased by 10 branches- 72 branches and franchisees have increased to 874. The recurring AUM of all our wealth businesses grew by 10% year-on-year to approximately INR 31,000 crore. The proportion of recurring to total AUM has also increased to 29%. On a year-on-year basis, net revenue for FY 2026 increased by 9% to INR 775 crore and operating profit after tax stood at INR 132 crore. The performance for the quarter ended March 2026 was impacted by market volatility. The segment profit for the quarter stood at INR 39 crore. The capital employed in the business stood at INR 1,150 crore, implying a ROE of 12%. On the mutual fund side, the average AUM from non-liquid mutual funds stood at approximately 10,500 crores. The employee strength in the asset management business has increased 17% year-on-year to 217 employees. The pipeline of launch of alternative funds is strong. For the asset management business, the management fees for mutual fund for FY 2026 has increased by 65% to approximately INR 44 crore. The loss after minority interest stood at approximately INR 30 crores for FY 2026. The segment loss after minority interest stood at INR 5 crores for quarter ended March 2026. Affordable home loans. This business includes our home loans business in the affordable segment. We have expanded to a branch network of 151, and the customer base has crossed 33,000. AUM increased by 22% year-on-year to approximately INR 3,460 crores. For FY 2026, revenue increased by 25% year-on-year to INR 455 crores, and operating profit after tax after minority interest increased by 45% to INR 74 crores. The capital employed in the business stood at approximately INR 833 crores. The segment profit after minority interest stood at INR 25 crores for quarter ended March 2026. The gross NPA stood at 0.5%, and collection efficiency stood at 99.4% for March 31st, 2026. With this brief update, I will hand it over to the moderator for questions. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Digant Haria from GreenEdge Wealth. Please go ahead. Yeah. Hi, thank you for the opportunity. The first question is in the CACM division. That, see, now it's almost four or five months where the FII selling has been extremely intense and, in this environment, getting big blocks and QIPs and IPOs is difficult. What kind of conversations? I think, see, we had a very good deal pipeline until, say, January, probably the best ever. What's happening? If you can just give some flavor, are these companies trimming down their valuation expectations, or is everybody just waiting out that this war gets over and currency stabilizes and FIIs come back? Any sense you can give on this part, Vishal or Sonia? Yeah, sure. I'll take that. Like a macro question, Digant. Thank you. I think one is, if you just look at the global theme, the biggest global theme right now is AI, and just the amount of capital spending that is happening on AI globally. A lot of the other markets are very attractive and all the markets that all of you guys know, Korea, Taiwan, which have done extremely well. A large part of the S&P, which has done very well is led by tech and AI stocks. It's really attractiveness of some of the other markets, which is driving FPI flow to those markets. On top of that, a concern about India when you have the West Asia crisis and you have oil prices which are almost at even INR 90-INR 92 today, but have been elevated at upwards of INR 100 for a while in the last three months. I think in January, February itself, there was a bit of a slowdown, which of course, went to almost no deal activity in March and April, and we've seen some revival mid-April. Still, we are not seeing a huge active participation of FIIs. Secondly, we are seeing domestic mutual funds being very conservative when it comes to pricing of IPOs and transactions. At the same time, I think there is a wait and watch approach all the issuers are taking. The pipeline is still becoming stronger and stronger. Flows on the SIP front and mutual funds still remain strong. I think we just have to wait for the right time to be able to push our pipeline through. The good part is that the way we see filings over the next couple of months, I think our pipeline year-on-year, from say June, July last year to around September, October this year, would have almost doubled. When we get the quality time to actually push transactions through, I think those will be absolutely exceptional quarters. We are just building on the pipeline. At the same time, we are working closely with all of our clients to see if there are other solutions that we can provide them. If there are companies that need primary capital, can we raise primary capital from private equity sources, from sovereign sources, from structured credit sources? We're working on all of those very actively. If the markets continue to remain in a similar situation for a while, then I am pretty sure that many of the active issuers will change from trying to do an IPO to actually fund their balance sheets with other sources of capital, which again, will be a good opportunity for us to get transactions through. This is sort of the overview on what's happening in the space. What I feel, somewhere that, FPI ownership in India is now down to 15%. Its high was around 19%. If you look at a 20-year chart, domestic ownership has gone from 8% to almost 18%, and FPI is down from Actually, FPI was at close to 12, 13%, went as high as 19%, is down to 15% now. The market cap increase overall in India has been quite substantial. Even a 1% or 2% or 3% addition from FPIs and FPIs come back will be a excellent time for a lot of the large issues to go through. I must tell you that a lot of the companies that are going public or trying to raise capital, all are very high-quality companies. They are backed by private equity. They have good growth plans. These are very interesting assets for investors to own, whether it's domestic mutual funds or FPIs. We really like our pipeline a lot. It's quite broad-based across many sectors. I think, as I said, the second half of this year, I feel, will be very different. We've seen this play out before where India is a favorite and Korea is not, and Taiwan's not, and now Korea and Taiwan or China are favorites and India is not. These things from an FPI perspective take turns. We'll wait for that window to open. I feel confidently this time it will be a good window of almost 12 months- 18 months, and we've got a very healthy pipeline to be able to again post solid profit growth over the next two years. All right. Perfect. Thanks for that detailed answer, Vishal. Second question is, till that happens, till the markets, the flow is revised. We were thinking that can private markets as a sector take up a little bit of heavy lifting and because if FY 2026, we have seen that at least on the provisioning part, there have been good amount of write-backs. FY 2027, can we see a little bit of revenue growth also in this sector? Yeah our loan books? Yeah. Yeah. Yeah. No, I get the question. I think, yes, we are already, as I said, we started six months ago to start focusing on growth in private markets. I must say that the risk-adjusted returns in real estate still are not attractive enough for us to deploy money into real estate, so we're going slow. The corporate side has picked up very well. There have been a couple of distressed situations that we've participated in, which a few of them have actually closed in the June quarter. You will see results of those in the June quarter itself. I feel private markets will see good amount of loan book growth this year, as well as I expect, as I said, around INR 250- INR 300 crores of further recovery for ourselves to be on target to again have good profit growth in that segment this year. Having said that, as I've told you, Digant, that we don't want to be I've told all of you that we don't want to be at more than a certain debt equity ratio in the private market space of more than 2:3:1. We are not trying to build an institutional lending balance sheet business, but we want to be more a liquidity provider and a syndicator of business. Our business model will evolve to be more fee-based, more fee-generative and syndication-led. These things take time to build, but the progress has been commendable and personally, I'm very happy with the progress and happy to note that you will start seeing that progress in actual numbers. I mean, you've already started last six months. You will see more of it over the next two years. Got it. Vishal, just to clarify that on the balance sheet part, our loan book currently is INR 4,000 crore. Maybe that does not go much beyond INR 5,000 crore eventually, but at least the transaction phase, it improves the net revenue or the fee income will start showing up, right? Yeah. No, no. See, if you look in FY 2024, we were at INR 10,000 crore of loan book, just 2024. 2025 came down to around INR 5, and 2026 has come down to INR 4. Significant repayment in this book has been real estate, right? Real estate saw a tremendous cycle right from 2022, 2023, 2024, 2025, and now finally I'm seeing early signs of slowdown. To build that book back on the corporate side and more diversified, you will not jump to INR 10,000, but the loan book will not remain at INR 4 - INR 5. Our idea is just based on the capital that we have, this loan book will grow, and I've said this six months ago as well in one of our calls, that our target is to grow the loan book at 15%-20% year on year. Got it. Okay. That's perfect. It will naturally grow because when we are syndicating also, we are taking stuff on our balance sheet as well, right? We are participating in the syndication. Right. It's not that we are not going to be having interest income. It's just that interest income has degrown in the last two years. That's why when you look at the combined consolidated revenue, you see a revenue fall. Therefore, when you break up the piece, that's why in my opening remarks, I was highlighting the revenue growth of CACM, the revenue growth of wealth management, the revenue growth of asset management, the revenue growth of affordable home loans. Each and every segment which we have decided to focus on, pivot to and grow, the revenue growth is very healthy. Now we will add on top of that next two years' revenue growth in Private Markets ourselves. You can model out on a consult basis where the business will go two years from now. We did not expect this volatility in CACM, which has come from last quarter, which of course adds some vol in the business. As I mentioned before as well, we look at the CACM business from a peak-to-peak perspective, and we are quite confident that we double the business every four to five years. Right. That's perfect. No, thanks, Vishal. My last question is in this wealth piece that. Sorry, can I go ahead? Yeah, please. In this wealth business, I just wanted to know that, are there any cost levers which are available to us in the next 12 months? If capital markets remain slow and we have a lot of new joinees who joined this business, so maybe productivity takes a little bit more of time. Are there any cost levers available for this year, which is FY 2027? Yeah, I'll let Chirag answer that question. Yeah, Digant. Look, it isn't necessary that the productivity takes that much longer for us. With these people that have the team that we have built up, the 80-odd people that we've added during the year have come in at different times of the year or different months of the year as well. We are expecting that a lot of the productivity gains will now start kicking in over the next three to six months. There is a lot of investment also that is going in towards the digital experience. That, to my mind, while we are building this out, that productivity gain or that cost saving from that will still take some time, but those will show in also. For this year, our focus is going to be on getting out the productivity that we now expect to get from the teams that we have built up. Okay. Chirag, when you say productivity can even come in this year itself, FY 2027, that would get reflected in probably higher AUMs and higher fees, right? The higher recurring AUM and higher fees. Is that right? Higher recurring AUM, higher fees. You'll see this in multiple more products being distributed better, both internal and external, which reflects both on the recurring as well as on the transactional fees. Okay. When you refer to that digital investment, you said BlinkX and the digital broking piece, right? Where we are making INR 40 crore-INR 50 crore kind of investments every year. That is what you were saying? That's right, yeah. We're taming those down. We're cutting those down significantly. You'll hear more about the plans around BlinkX once But you will see that number go down significantly. Okay over the next three to six months itself. We are not talking about a futuristic number here. In the next quarter itself, you'll start seeing some savings coming. That is very good to know. Yeah, I think that is it from my side. Thank you, Chirag, Vishal, and team. Thank you, and all the best. Thank you. Thank you. We take the next question from the line of Vinit Thakur from Plus91 Asset Management. Please go ahead. Yeah. Hi, sir. Most of the questions are already answered. I just want to know on the Bajaj Allianz valuation that you have mentioned for your business. Could you just shed some light on that? Yeah. Manish will give you the detail. This was last year, June, I think Bajaj Allianz picked up 2.1% shares of JM Financial Home Loans Limited at INR 48 per share valuation, which benchmark our valuation to INR 3,100 crores. They invested INR 65 crore. Okay, sir. What is the AUM number for alternatives platform, if you could give it for private markets? Sorry, I missed the question. Can you repeat that? What is the AUM number for the alternatives platform? AUM number? Yes. Amitabh? We have got a committed amount of around INR 347 crores for our first performing credit fund, and we are one deal away from full deployment. We have had multiple exits and multiple payouts to our investors, so a very good track record has been built there. We are right now doing our road shows for the second performing credit, which is our select credit fund and our pre-IPO fund from the AIF platform. Okay. Thank you. Just to add to what Amitabh said, we are very close to our first close on the pre-IPO fund as well. Our expectation on the total raise over there is north of INR 1,000 crores. That will, of course, not be the first close, but the total close will be upwards of INR 1,000 crores. Immediately after, we will also see the launch of the PE fund, where we expect to raise at least INR 1,000 crores. Thank you, sir. Thank you so much. Thank you. Thank you. We take the next question from the line of Kanishk Gupta from SS Family Office. Please go ahead. Yes, sir. Very good afternoon to you. My question would be that over the past couple of years, management has communicated quite consistently that the transitioning away from the Private Credit book was a central task, but by most measures, a significant proportion of that transition now appears to be behind you. As investors begin to look through the other side, I want to understand specifically, not directionally, how you think about the end state of JM Financial over a five-year horizon. Yeah, good question. From a five-year perspective, you will see JM Financial much more in the fees commission and brokerage space. That will be a much larger percentage of our total revenues compared to what you have seen in the last five years, if I were to take a cumulative average of past five years versus next five years. When we talk about de-risking of the Private Credit book, it's de-risking the balance sheet from having any concentration risk of real estate and ARC exposures, which is, I would say, almost completely done with last to last year itself. The pivot really is to build a much bigger wealth management, asset management, and of course, a much more profitable investment bank, which covers our Corporate Advisory and Capital Markets as well as Private Markets piece. It's quite simple and quite straightforward. Affordable Home Loans, our target, as I've said, is to IPO the business by 2028-2029. The business has done very well. It's at INR 3,500 crore of AUM, and we expect to grow AUM at 25% year-on-year. Sir, as that book continues to release cash, which single business will receive the highest allocation of this freed-up capital over the next couple of years to drive your five-year growth? Wealth and asset management, followed by affordable home loans. For the CACM and private market space, we do not need any new capital. In fact, the profits of those business will continue to fund the growth in wealth management, asset management, and affordable home loans. Sir, your wealth management currently has a healthy AUM of over INR 1 lakh crore, but yields just a 12% ROE. If that is the long-term anchor, what structural changes are being made to push that specific segment's ROE past your current group cost of capital? Yeah. The ROE has been subdued because of a lot of investment made in the last three years. As we mentioned earlier that this year we're going to focus a lot on increasing the productivity. Our idea is invest two to three years, harness your infrastructure for a year and a half, make it profitable, and as soon as we see the productivity kick in and stabilize, we will again go back into investment mode. We see from a five to 10-year cycle, there is a lot of growth in the space, and it'll require continuous investment. At the same time, you can't continuously keep investing and not focus on productivity and returns. It'll be a combination of two. Sir, lastly on, as transformation in financial services are frequently declared successful before the proof is in numbers. Five years from now, reviewing this period, setting aside revenue growth and AUM milestone or book quality, what would be the single metric, just one, that you would tell me unambiguously that this restructuring has genuinely created durable shareholder value? Overall, if you ask me, I think if we are able to get to 15% revenue growth and a 15% ROE, that kind of will be fabulous on our capital base, but it will be different at different points in time. For example, when capital markets slow down the way they have last quarter and this quarter, there will be some seasonality in earnings in the capital markets business. Therefore, you have to look at that business from a peak-to-peak perspective. If I were to answer your question, two most important things for us will be 15% revenue growth and 15% return on equity, at the end of the investment cycle for these businesses. I think we're kind of there. I mean, we are investing a lot. If we had not put those investments, then many of those businesses are already there. Affordable Housing, also, if you see our leverage ratios are very low. We front-ended capitalize the business. The ROEs look very healthy. As soon as we add more leverage and grow the business, our ROEs will get there. Similarly, for the wealth management and the equity broking businesses, a lot of investment has been made. There were a lot of costs in digital, which will go down over the next couple of years and will get expensed over a broader base, so we get some operating leverage. I think all the signs in wealth management and Affordable Housing are already there. Asset management will still see a burn for two years as we are scaling and growing the business and making investments. Maybe a slightly longer cycle to the desired ROE. Among the three businesses, Asset Management has the highest operating leverage once you turn the investment cycle into profitability. Our Investment Bank already operates at a very high margin and very high ROE. Private Markets, as soon as the loan book starts expanding with 15%-20% of growth and the syndication engine further kicks in, it will grow very well. We are committed to declaring 50% of that PAT as dividend every year for our shareholders. Therefore, literally in the last 14 months, we have paid INR 570 crore of dividend to our shareholders, and this was a significant amount. You're seeing tons of growth coming in over the next few years, as well as a good amount of cash flow being repaid back to investors. Nishit Ji, would you like to add something to this? Sorry? Nishit Ji. No, I think Vishal. Nishit, would you like to add something to this? I think most of the points were covered by Vishal. Okay. That's it from my side, sir. All the best for the future. Thank you. Thank you. We take the next question from the line on Nilesh Doshi from Prospero Tree AMC. Please go ahead. Hello, am I audible, sir? Yes. Go ahead. Thanks for the opportunity. Sir, is there any chance of segment-wise demerger to unlock the value of the each segment: wealth, AMC, AHF, capital market and PFC? Recently there is one broker is listed and its management company is also listed, and in both the company, investor made a good money. Is there any chance for the JM Financial to unlock the value for the shareholder by demerging? There is always a chance to demerge to unlock shareholder value. Our businesses need to get bigger. We don't want them to list till they are bigger. That's why, while a demerger could make sense. Secondly, we also have to see the applicability, whether from a technical perspective, we are able to do a demerger or not do a demerger. Third, we have a plan to give a lot of stock options in each of these businesses, and people may even prefer listing of these units separately as IPOs. Right now we are very focused on just scaling these businesses. We will come to liquidity in these units and reward for shareholders maybe after a year or two years. As of now, we don't want to distract ourselves with any of these moves. We just want to focus on building scale and scale with profitability. Okay, sir. Sir, my next question is that Digant had asked about primary market, and the primary market, currently it is dull. Many IPOs are not coming. At the same time, the many companies that have announced the buyback proposals. Are we managing the other than the Wipro's buyback proposal? As a merchant banker, are we advising our corporate clients to come out with any buybacks? Yeah, Sonia will answer that question. Yeah. We are always engaged with our clients and wherever there is stock prices attractive and we have enough of liquidity on the balance sheet, we actively engaged with a lot of them. Also, the government has given a very good tax leeway for non-promoter shareholders to be rewarded through buyback. We are engaged on with a lot of them, and you will see some announcements, just as you have seen with some IT companies. Others may also look at that at an opportune time. Okay. Sir, my last question is regarding to Corporate Advisory and Capital Markets. Sir, in FY 2024, our net revenue was around INR 530 crore. For the current year, FY 2026, it is INR 789 crore. The incremental revenue is INR 259 crore. At the same time, employee cost has gone up by the INR 100 crore from INR 165 crore to INR 265 crore. The revenue has gone by INR 259 crore. Employee cost increased by INR 100 crore, and our PAT also increased by INR 100 crore. Are we working on some marginal costing principle or because whatever the company and employee are earning the same amount, the INR 100 crore, our PAT has grown by INR 100 crore and employee cost also increased by INR 100 crore. Please explain. No, that's a good question. I think we are very focused on looking at revenue per employee in this segment. Having said that, the important thing is that our pipeline has expanded so much that we need to have a lot of people to be able to execute the pipeline. This is more forward-thinking and front-loading and having the right teams to be able to originate and execute the business that we have. For example, if you go back to FY 2023, when we were looking at the business to execute for FY 2024 and FY 2025, the pipeline was not even half of the number of INR 140,000 crore. In fact, it was close to INR 45,000 crore-INR 50,000 crore, if I remember correctly. We could potentially see this number by October be at INR 2 lakh crore. Now you tell me if I have to move in execution in four years from INR 40,000-50,000 crore pipeline to INR 2 lakh crore pipeline, it cannot be done with the same team size. The revenue pool estimates from the pipeline that we have right now, almost double of the revenue pool estimates we had three to four years ago. It's business planning. Second, we of course introduced the entire derivative business, which has got built on the institutional equity platform last year, which required a lot of people to join us. Third, we have the highest research coverage on The Street. This was a tactical decision taken two years ago and fully executed. We're almost at 400 stocks in terms of active coverage and almost 150 stocks in terms of soft coverage. There is no Tier 1 bank on The Street which has this kind of coverage. This coverage, again, is helping us win a lot of business and differentiate ourselves with a lot of clients. I think it's a very strategic build. As I said, you will see the results of that. We've seen some market volatility. If this market volatility was not there in the last three, four months, we probably would have punched out 30,000-40,000 crores or more transactions here. As a deal house, we are really on top of the game. We are literally number 1, number 2, or number 3 across products, and we continue to add to that momentum here. Okay. Thank you, sir. Thank you. Thank you. Thank you. We take the next question from the line of Prolin Nandu from Edelweiss Public Alternatives. Please go ahead. Yeah. Hi, Vishal and team. A couple of questions from my end. One is, Vishal, historically, you have mentioned that some of the businesses that we have feed into each other. Like even on this call, you mentioned that a weak equity market might become impetus for a credit market to pick up, in a way. Could you help us in such a volatile environment. For the past four months, markets have been quite volatile. For that matter, for 18 odd months now, things have not been rosy. Can you help us with some of the instances where the platform nature of our business where one business maybe feeds into each other or the other businesses? It's not apparent in numbers, but at least there are discussions going on and the strength of the platform is only increasing. At least if you can share a couple of instances that would help us appreciate this part of our business. Yeah. I think, let me just give you some perspective. You are seeing this volatility, but you also have to appreciate that there's significant growth tailwinds in actually each of the businesses. That is the reason why we give actual pipeline numbers out and IPOs which are getting filed actually give you a number in terms of deal activity and people wanting to raise capital. I think CACM has seen tremendous amount of growth. Private Credit is a clear decision we took as a management to de-grow balance sheet for two years, and we stuck to that decision and we still have increased profits from write-backs as well as syndication. You've seen tremendous amount of revenue growth in wealth management, asset management, as well as affordable home loans. Wealth management at almost 18%, asset management and home loans are 37%- 38%. There is tailwinds in each and every business. The reason you see volatility is because as a percentage, CACM and Private Markets are a larger part of the revenue pool. They're bigger businesses today. The growth rates of CACM itself over those two years has been 27%, again, because the tailwinds have been strong. When you see one or two quarters of volatility, you're seeing that volatility in a business that has grown revenue at almost 27% in two years. Therefore the vol looks very sharp. The underlying business actually is growing from strength to strength in terms of the business volume being added. Therefore, again, if you're modeling our business, model capital markets, corporate advisory, Private Markets from a peak-to-peak perspective, and model wealth management, affordable home loans, asset management on a quarter-on-quarter perspective. If you just take a slightly longer-term horizon, you will actually see substantial amount of growth both in revenue and profitability. Now the interlinkage between the two also is important because as Chirag explained earlier, there is a decent amount of transactional revenue we have in our wealth management purely because we are a very active investment bank. When we see transactions, there are family offices, there is a lot of retail distribution through IPOs. There's a lot of profitability our wealth management earns, even though we are focused incrementally more and more on recurring revenue. Today, we don't want to ignore the transactional revenue we are able to generate because of the interplay between our investment bank and wealth management. Again, it is growing from strength to strength because our transactions in investment banking allow us to open many more accounts in our wealth management business. Those wealth management accounts get opened because of transactional revenue, but eventually, when they're serviced well, they convert into recurring revenue. There's a very strong flywheel which operates in the background and which will continue to operate. The number of referrals we are getting now from our wealth management for our investment banking business also has improved, which is a very good sign because there is reverse origination happening in the flywheel as well. I think everything is in the right direction. It's just a few of the businesses face volatility from the market, and we are used to it. We've been seeing it for 54 years, so it's not new to us. Sure. Thank you so much, Vishal, for that. My second question would be, as was earlier discussed in the call, that this is the year where you can reap some of the investments that you have made in the past couple of years. In some sense. How do you internally evaluate the ROIs or returns on some of these investments? Again, maybe from a qualitative perspective, if you can share a couple of instances where, share some of the investment where ROI has been quite large and where probably ROI has not met your internal kind of a benchmark. Yeah. I think let's take an example of the broking business. I think on the physical franchisee as well as the trading business with HNIs on the equity broking side has done extremely well. Our margin trade finance book, which used to be INR 300 crores, INR 400 crores, has ended the year at almost INR 2,000 crores. If I were to segregate just broking operations from Wealth Management, that business probably is at 25%-30% return on equity. That has done very well. Wealth Management, three to four years ago, we were a very small player. We've significantly added to the talent pool. Of course, we've ignored ROE in the time being, and this year we want to focus on productivity. Standalone, that business will break even in FY 2027. If I remove the broking revenues from Wealth Management, it breaks even in FY 2027. The idea is make sure that it breaks even in FY 2027, then we see a profitable path to a stronger ROE in 2028, 2029. Having said that, if the break even is achieved and we are seeing a very good productivity in terms of revenue per head improve across the wealth managers, we could in 2028, 2029, looking at the market scenario, again, go into an investment cycle because we want to be a much larger player in wealth management. This is just a rough explanation I'm giving you in terms of how we are looking at the business. I think long term, ROEs and wealth management should be in the mid-teens, between maybe 15% to around 18% for us. Let the investment phase get over, and then maybe sometime next year, we can give you a detailed breakup of how this business is operated and done. Thank you so much, Vishal, and all the very best. Thank you. Thank you. Ladies and gentlemen, in the interest of time and fairness to others, we request you to restrict to three questions per participant. We take the next question from the line of Varun Bahl from Plutus Investment. Please go ahead. Hi, good evening. I have just one question. Could you give some color on the existing INR 4,000 crore Private Markets book and this syndication engine which is going to be driving this 15%-20% growth? What sectors, where are you seeing this growth coming from? Yeah. We've actually pretty much detailed out the whole book on page 13 of our investor presentation. If you look at the year-end March 2026, we have INR 2,685 crore in corporate loans. We have INR 1,100 crore in real estate loans. We have a small non-core book on MSME and financial institutions, which will become zero by the end of the year, which is INR 228 crore. That's the INR 4,000 crore sort of breakup. If you look at the investment side, we've got distressed credit at INR 3,665 crore. These are actually interest earning assets. We are just structured in the form of security receipts because they are say, invest in trust securities. You can actually sort of count that as loan book, but it sits in the investment book. Of course, we have INR 3,000 crores of cash, some of that cash is invested in G-Secs and AAA bonds, to earn higher yields. We have some group ICDs. We use this group ICDs to fund some of our internal businesses, which is around INR 500 crores. We have an equity portfolio and alternative portfolio of INR 971 crores and INR 458 crores respectively. The alternative portfolio includes some REIT investments, some InvIT investments, and investments into some AIFs. The equity portfolio is all public equities, listed equities, all of which can be exited within a few weeks. Yes. Thank you. That's great. This corporate book is divided across sectors, or you see any strong space for the growth book? The corporate book is very well diversified. The corporate book has always been very well diversified because the origination engine there is not focused on one industry like the real estate industry. It has all sorts of sectors and all sorts of companies at different sizes. This breakup of this INR 2,685 crore currently will be a lot in large cap promoters as of now. Syndication is a lot more easier with sort of the large cap. The way we define large cap is above INR 10,000 crore business size. Perfect. That was very helpful. Thank you. Yeah. Thank you. We take the next question from the line of Pawan from Edelweiss. Please go ahead. Sir, thank you for the opportunity. I have three questions. The first question is, what is the net inflows targeted in the wealth management segment in FY 2027? Hello? Yeah. I'll catch your idea. Yeah. Pawan, the outlook for us on an average is to grow the business by 20%-25% for the year. We believe we've made the investments in the people, so I think you'll probably see on a conservative side, you can take 20%. That also includes like the mark to market movement, right? Well, you can't really predict. Our book grows INR 30,000 crore. You can't predict the mark-to-market, this will just be a 20% growth on the book. If the mark-to-market is hard, then it may even impact flows. It's very hard to predict mark-to-market. Are you saying target is about INR 6,000 crores of inflows? Yeah. Correct. Okay. Thank you so much. Second question is on the private markets core loan book, the INR 4,000 crore book. What is the kind of growth target for this year that you are looking at? 15%-20%. You can assume roughly INR 5,000 crores of book target for March 2027. Okay. How much would be coming from real estate? How much from the LAS and the pure Private Credit? Yeah. I think if we had seen decent growth in real estate, the number would've been higher. As I said, we are still not seeing good risk-adjusted returns in real estate lending. Okay. I still want to be more cautious because I think the sunny side of the cycle is over. The next couple of years for real estate still is not going to be as stable as it was last five years. Therefore, if we have to lend in real estate, which usually is a three to five-year loan, then we just need a higher return for the risk that we are underwriting. I would imagine that real estate would be a slower growth, compared to corporate. Having said that, things change and we see interesting risk-adjusted returns in real estate, we'll be happy to deploy the same. All our teams are kind of right size to take care of the opportunity. In fact, real estate for us is just going to become an additional sector as part of the overall loan book because we don't have any plans to organically grow real estate as one space. It will get added to the overall standard loans book that we report here. We will continue reporting what share of real estate is there as part of total book. The management of both those loan books will be merged into one management. Got it. On the syndication side, you said that you are expecting much better flows this year, including the fee income. How recently interest rates have gone up since start of the year. How are you seeing the conversations go? Are you changing any of your guidance? No. On the fixed income side, I would not change my guidance so early. Always remember that if there is a big slowdown on the capital market, especially equity side, with a lag effect usually, which is around six months, you see a lot of pickup in credit and pickup in private equity placements. Both those businesses, if equity continues to slow, will pick up even more after a three to six-month lag. Corporates wait for the equity markets to fund them, but they don't keep waiting. When they need that capital for growth, within six months of no sort of equity market visibility, they will start very seriously going down alternative options, which will be credit and private equity. H3, I mean, H2 in third quarter is probably when we see growth in both the Corporate Credit, Private Credit book, and also in the syndication fee. Yeah. See, for us, all three business are very important, right? Yeah. Equity capital markets are very important. Private equity syndication is very important. Credit also is very important. We will try and grow all three, but my bet is India comes back, and India comes back with a bang in the second half of this financial year. I hope I'm right. Having seen emerging market movements in the past, having closely seeing what's going on in AI as well as some of the subsector spaces, I think we'll be on a good wicket second half, and I think we'll see a lot of equity issuance go through as well. Having said that, we are not slowing down on the private market side. Got it. Yeah. That's it. Thank you so much. Thank you. I have no other questions from my end. Thank you. Thank you. We take the next question from the line of Aditya from Gochiran Capital. Please go ahead. Yeah. Thanks for the opportunity. Couple of questions from my end. Firstly, from the capital market side, the mostly the revenue is from the IPOs and mergers. That was my first question. In the wealth management, you alluded that equity broking and all comes under this. I just want a clarification on these two. Sorry, I didn't get your second question. What is your second question? In wealth management, can you bifurcate revenue? How much of revenue comes from the broking you said, right? 25%-30% is broking. Can you just confirm that? No, I said 25%, 30% will be if I were to break down the capital between the two businesses, then broking will have a higher ROE today because investments in wealth management are larger. Your first question is Corporate Advisory and Capital Markets. There are actually six revenue streams. We have IPOs, then we have M&A advisory, and then we have private equity and PE placements. We have QIPs and block trading. We have cash equities, and we have revenue from derivatives. We have six business lines that report in the CACM segment. Your broking revenue percentage, Nishit? Yeah. On the wealth side, we look at it from a recurring and a transactional revenue basis. That is equally split 50/50. Transaction would include broking plus the other transactions that the team does. That is how we look at it. We are looking at it from an overall wealth management perspective and not from a broking and all of that. To answer your question, broking is not more than 50% of that business. 50% of that business is fees, commission, and 50% is roughly broking. The actual number of broking is even lower because of the transactional side revenue, which is also fee and commission revenue, is booked on the transactional side income. Okay, understood. That's helpful. Currently, on the 50% of the wealth management business, how much margins are we making there? How much, sorry? Margins are we making there in the wealth management currently? See, it's more an integrated effort, so it's not right. We don't really break up the margin at the PBT level between transactional as well as recurring revenue because the RM is not incentivized to ignore one over the other. He is doing what's in the best interest of his client. He goes behind recurring revenue, he goes behind transactional revenue, and he's also incentivized to open brokerage accounts for brokerage revenue, and he's also incentivized to basically get margin trade finance clients who want to trade using leverage. He has all of these four products. It's just best to look at the business margin as one, because the salesperson has all these products to sell. Understood. This year, can we expect a margin expansion there in that wealth management total business? That is exactly the focus this year. Understood. Lastly, I have a question on private markets. I understand we went through a great transformation and we are making it asset-light. There are two years where the write-backs will happen. After that, where do you see the steady state of this business and how much profit it can generate going forward? Yeah. I'll be honest, we haven't modeled that beyond two years. We modeled our private markets business only for two years to make sure we get the recoveries in place. I think the simple way to model that is assume a standard loans. On page 13, if you see our standard loans, assume that loan book to grow at around 20% easily for the next three-four years, comfortably year on year. You will see a similar growth on the distressed credit side, which is the INR 3,665 crore number that we have. You can assume a 15% growth there for those assets. I think opportunistically, we will add to equity and alternatives. Compared to some of the other houses in our business, we don't want to have large investments in equity and alternatives. We will try and maintain that if we have a total asset book, which is around INR 13,000 crores over here, which is our net worth and borrowing put together. Ideally, we will not have equity and alternatives cross 20% of that number. We will be more 80% loans and 20% investments. I think if you model that, you will get a decent sort of understanding of where this business can scale to, ex the write-backs. Again, I'll repeat for your benefit, 20% growth on standard loans, close to 15% growth on distressed credit. Equity and alternatives to be not more than 20%. The returns you should expect on distressed credit should be around 18%. The returns on your standard loan book will be around 13%-14%, and the returns we'll model long-term on equity and alternatives will be 15%-16%. The entire book is in the teens ranging from 13%-19%. I've given you the allocations, the broad allocations. That's helpful, sir. Thank you. All the very best. Thank you. Thank you. Ladies and gentlemen, we take that as the last question and conclude the question and answer session. I now hand the conference over to Mr. Vishal Kampani for his closing comments. Thank you very much for attending our call, and I look forward to seeing you again after we report our June quarter. Thank you, everyone. Thank you. On behalf of JM Financial Limited, that concludes this conference call. Thank you for joining us. You may now disconnect your lines.