Ladies and gentlemen, good day and welcome to the earnings conference call for JM Financial Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. 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 now hand the conference over to Mr. Vishal Kampani. Thank you, and over to you, sir. Thank you. On behalf of JM Financial, we extend a very warm welcome to all of you to our news conference call to discuss our financial results for the quarter ended June 2026. You would have seen our results presentation and press release on the stock exchanges and the website. I hope you've had a chance to go through the same. On the call, we also have Sonia, MD & CEO of Investment Banking, Anuj, Head of our Private Wealth, Manish, MD and CEO of our Home Loans Business, and Nishit, our Group CFO. I will give the key updates and hand over to Nishit, who will take you all through the numbers. Quarter one results demonstrate the strength of our diversified business model, pleased to report that the private market segment provided very strong cushion to the earnings amidst volatility in capital markets. We have always maintained that private markets business can be a strong counter-cyclical force to the volatility in capital markets, our Q1 results validate the same. Net revenue for us increased 13% YoY to INR 883 crore. Pre-provision operating profit increased by 21% year-on-year to INR 469 crore. PAT ex-provision before minorities increased by 24% YoY to INR 379 crore. In private markets, we witnessed one of the best quarters for our ARC business, with very strong resolutions in distressed credit assets during the quarter, where we collected over INR 2,000 crore and the group share of that cash flow was over INR 1,200 crore. Corporate advisory and capital markets had a slow quarter, primarily because of lack of IPO issuance and primary market activity. However, our pipeline of transactions extremely strong, with almost INR 220,000 crore of pipeline on the IPO front. The INR 220,000 crore number includes filings of NSE as well as Jio Platforms Limited. Even if you were to exclude those two large IPOs, we've seen a decent growth, the pipeline is at INR 150,000 crore. We are witnessing early signs of recovery in capital markets, which will help us execute, hopefully, majority of our pipeline in the rest of the year. The month of July, our revenues on the transaction side in corporate advisory and capital markets for the month of July already exceed what we have done in June, which is a very positive sign. We've also seen the reversal of FPI flows to becoming net buyers from being net sellers. If that trend were to continue or even remain stable, we are hopeful that we should be able to pull through with a significant amount of our pipeline. In Wealth Management, performance was a little subdued because of weak transactional business, which is related to the markets and also the primary market issuance, but the recurring AUM and loans have shown good traction. In Asset Management, we're increasing bouquet of mutual fund products and recently launched JM Multi Asset Allocation Fund. On the AIF front, we launched our JM Pre-IPO Fund as well as our JM Credit Fund. We're expecting very good numbers in most of these funds. We continue to invest in the Asset Management business. We have outlined INR 150 crore investment further into Asset Management over the next two years. On affordable housing business, it reported a strong YoY growth in disbursements of 87% and a 28% YoY growth in AUM. That business is now on a solid foothold. Again, we focus on listing that separately, in a span of two to three years. With this brief update, I'm handing over the call to Nishit to take you through the financials in detail. Thank you, Vishal. On the financial numbers for Q1 FY 2027, net revenue increased by 13% year-on-year to INR 883 crore, pre-provision operating profit increased by 21%. Profit after tax ex-provision before minority interest increased by 24% to INR 379 crore. Profit after tax ex-provision and after minorities stood flat at INR 302 crore for the quarter. Reported profit after tax after minority was INR 292 crore, resulting in an annualized ROE at approximately 11%. The consolidated net worth, excluding minority interest, stood at INR 10,900 crore, translating to a book value of approximately INR 114 per share. The leverage is one time. On to the business segments. Ladies and gentlemen, we have the management line disconnected. Please stay connected while we reconnect the management. Ladies and gentlemen, we have the management line reconnected. Sir, you may please proceed. I'll just repeat for the benefit of everyone. For quarter 1one FY 2027, net revenue increased by 13% YoY to INR 883 crore, and pre-provision operating profit increased by 21%. Profit after tax ex-provision before minority interest increased by 24% to INR 379 crore. Profit after tax ex-provision after minority stood flat at INR 302 crore. Reported PAT for the quarter stood at INR 292 crore, resulting in an annualized ROE of approximately 11%. The consolidated net worth stood at INR 10,900 crore, translating to a book value of approximately INR 114 per share. The leverage is one time. Onto the business segments, Corporate Advisory and Capital Markets. This includes the Investment Banking and the Institutional Equities business. We closed nine capital market transactions aggregating to approximately INR 22,000 crore in Q1 FY 2027. In addition, we have filed documents for 60 IPOs aggregating to an issue size of approximately INR 150,000 crore. The pipeline of transactions is increasing. That pipeline does not include IPO transactions of Jio Platforms Limited and National Stock Exchange. For Q1 FY 2027, net revenue for the segment stood at INR 115 crore as against INR 182 crore. PAT stood at INR 32 crore. The performance for the quarter was impacted by lack of primary issuances. Wealth and Asset Management. On Wealth Management, our sales and RM strength is over 1,000 professionals with 71 branches and approximately 870 franchisees. Wealth loan book grew by 43% year-on-year to INR 2,417 crore, and recurring AUM of our wealth business grew to approximately INR 33,400 crore. The proportion of recurring to total AUM has now increased to 30%. On a YoY basis, net revenue stood at INR 185 crore as against INR 211 crore. PAT stood at INR 19 crore. The performance for the quarter was impacted by slow transaction business. In the mutual fund space, the closing AUM from non-liquid funds showed signs of recovery and stood at approximately INR 10,900 crore, up 16% on a quarter-on-quarter basis. The employee strength in the Asset Management business has increased by 10% year-on-year to 222 employees. For our Asset Management business, management fees from mutual funds for quarter one increased by 62% to INR 13 crore. Loss after minority interest was flat at INR 5 crore. Private Markets. This business comprises of Private Credit, that is Corporate Bespoke Real Estate and Distressed Credit, and investments which include private equity funds, REITs, AIFs, et cetera. Private Markets is a very unique platform with a focus on providing differentiated solutions to our clients. Private Markets witnessed significant recoveries in Distressed Credit assets. Gross resolutions were over INR 2,000 crore, of which group share of cash flows was over INR 1,200 crore. Net revenue for quarter one FY 2027 doubled to INR 462 crore. Pre-provision operating profit grew almost 2.3 x to INR 375 crore. The segment profit after minority interest stood at INR 228 crore for Q1 FY 2027. Affordable Home Loans. This business includes our Home Loans business focused on the affordable segment. We have a branch network of 151 branches and a customer base of close to 36,000. AUM increased by 28% year-on-year to INR 3,715 crore. For Q1 FY 2027, revenue increased by 22% YoY to INR 123 crore, and profit after tax and minority interest grew by 16% year-on-year to INR 17 crore. With this brief update, I would like to hand over the call to the moderator and open the floor for questions. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Digant Haria from GreenEdge Wealth. Please go ahead. Hi. Thank you for the opportunity. My question is, on the cyclicality that we see. This quarter, IPO transactions were weak. The corporate advisory capital markets division not doing well is kind of expected. We see a very similar kind of weakness flowing in the wealth business, and even the private credit where the loan growth, the buildup has still not started. Vishal, if you can just say that, how does this cyclicality break, what timeline should we think about in terms of wealth scaling up on its own without a lot of transactions in the corporate advisory business? When does private credit also pick up? I see recoveries are there, but when does that organic growth start? Let me address the private credit question first. If you see this page 13 on our investor presentation, I think the bespoke book that we have, which includes loan against shares as well as the work we do on our corporate, is on a five-quarter high. In fact, if you see, it went down to almost INR 2,700 crore, and right now is at INR 3,000 crore. What we had guided at the end of quarter four was this book should see at least a 15%-20% growth YoY. I think we have almost done half of that growth in the first quarter. We are hoping that that trajectory will continue. I think the growth has already started. This is without a lot of syndication. That itself will grow the book 15%-20% quite comfortably till the end of the year. You are seeing the overall book being flattish because it's just a real estate book which is de-growing, as well as the non-core book, which obviously will keep de-growing. The idea is just to focus on bespoke where the growth is coming, and at some point in time, when we get comfortable on the risk-adjusted returns for real estate, as I mentioned earlier as well on my calls, we will start lending in real estate. We are still not sure whether the time is right. The growth in private markets on the credit side has already started. Even on the ARC front, we are seeing some very interesting transactions. We were able to do our largest transaction even last quarter. It's a very interesting time where we are seeing some retail assets where there are decent returns, which we are able to close and do some transactions. There'll be some syndication that may happen on the ARC side as well. ARC, as you know, Digant, the recovery resolution is a lumpy business. Obviously, we've seen a phenomenal quarter in June quarter. I think even the next few quarters this year should be pretty decent from an ARC perspective. All in all, I think private markets is in good shape, and we should be able to meet our guidance in the private market side. On the wealth side, as I've maintained that the investments have all been made. Our teams are in place. This year is a focus in terms of productivity. There is a good sort of feedback on the client side. We are adding clients. Our recurring AUM is growing. Of course, we were a transactional-heavy firm, and last year as well as last to last year, there were a lot of transactions done on the private side. That transaction activity on the private side, which as a market participant you will know, has not been as encouraging in the last six months. It's really a drop on that front. It doesn't take away anything from the business that we are building. Even in terms of the wealth broking accounts that we've been able to open, the number of loans we've been able to grow on the margin side and the last side for most of these customers has been very encouraging. I think it's just about continuing to focus on the execution and fairly confident at some point in time we'll see very encouraging sort of stats and numbers on the wealth business, as said. You're asking me for a timeline. I've always maintained that it's a two to three year build-out. The recruitment phase is sort of completed last 18 months to 2 years, hopefully this year and next year is the time where we should see good sort of returns from that business. Anything you want to add to the same, Anuj? Please go ahead, or it's all covered? Yeah. I think as Vishal mentioned, the recurring AUM is building up very well. We are focusing on increasing the share of our recurring business in the overall AUM and revenues. As Vishal mentioned, the build-out has happened. We've penetrated into 21 cities into India, built out offshore as well. Really the focus is on productivity and enhancing that, especially for the new relationship managers we've hired over the last 12-18 months. Okay. Thanks for these details. Second question is that this quarter was very good for ARC recoveries and, Vishal, as you said, it's a lumpy business. Maybe this quarter saw very good recovery. If you can just give some color on what happened and what more to expect. That will be useful because this is a pretty heavy quarter on that division. Yeah. Digant, most of the resolutions which we have done in the ARC last quarter have all been from the new book. When I say new book is it's all the new underwriting that has happened post-COVID. In fact, largely in 2023, 2024 and 2025. The returns have been fairly decent. I think our overall IRRs have been 18%+ in all of those transactions. We have completely moved away, as you know, from taking any sort of turnaround risk ourselves in the ARC. These are all well-structured transactions where we share significant portion of the upside with the sort of originator of the deal. I think it's all in all looking good. As I said, we've deployed a bit also last quarter at the ARC level. We expect returns to be similar in that space. ARC wholesale returns are around 18%-22%, and at the retail asset levels, the returns are around 15%-18%. All in all, on average, we're able to clock anywhere between 16%-18%. That should continue. We also have two or three large resolutions, which are still pending from the pre-COVID book. There has been a lot of encouraging sort of movement on all of those in the last one year as well. I talked a bit about it in the last call that I think this year we'll see very good cash flow and recovery from the ARC, and it's already visible in terms of Q1. I think there will be some more, fingers crossed, over the next nine months as well. Okay. This doesn't include any of the write-backs that we expect on the provisions we've made on our real estate book. There is not much of that in Q1. There's progress being made on that front as well, which again, hopefully we should be able to report in the next nine months. Okay. Great. Vishal, in this ARC part, you said that retail is 15%-16%, wholesale is maybe around 22%. What portion of the INR 12,000 crore of capital employed in this division, debt plus equity, what portion would earn this kind of yield? Like would it be the one that. INR 12,000 crore is the value of SR. It's not our capital deployed. Right. Yeah. If you, again, if you focus on just page. You're talking about the ROEs, right? What you were saying was the ROEs, right? The 15%. Yeah. I'm saying the IRR to us. I'll explain to you. It's easy. Okay. Perfect. When you see page 13, you see our distressed credit portfolio was INR 3,665 crore at the end of Q4 2026, which is now INR 3,114 crore. This includes almost INR 1,200 crore of recovery and INR 600 crore of new transactions done, and the movement over here is roughly INR 500 crore-INR 600 crore. Okay. That is our capital deployed. The SRs are where we have syndication and where we have partners also holding the SRs, whether in the form of banks or hedge funds internationally or other large HNIs who are partnering with us. That return belongs to them. Our investment in the INR 12,000 is INR 3,114. When I talk about returns for us, now in this INR 3,114, some book is the old book and some book is the new book. A lot of the new book already has got paid. The old book we are waiting on certain resolutions to happen. Assume the book is roughly 50/50. On the new book, which is roughly almost half of the book, INR 1,600 crore, we should be expecting close to 16%-18% average sort of IRR. That's the way to model it out. Perfect. Then once these old ARC transactions, they get resolved, money comes, we deploy it in a similar way so that itself increase our return on yields in the coming year. Yeah. I'm happy to report that with this kind of cash that we've generated and the expected cash flows, over the next six months, our ARC will be debt-free. I mean, it's been like a 7-year cycle. Seven years back, we were at peak debt to equity of almost 3x in the ARC, and we will be debt-free. If we generate all of this cash, then not only are we debt-free, but just the cash should be able to generate going forward safely 16%-18% IRR. I think they are in a very good position. A lot of hard work done by the ARC team and we're very happy with the outcome. Okay. All right. Vishal, lastly, if I can just squeeze in, on this syndication, I think there was a good fee income also this quarter. Sorry to interrupt, Mr. Haria. We are not able to hear you well. Please use a handset while asking your question. Yeah. Can you hear me now? There is a disturbance in- There's a bit of echo. There's some echo. Okay. Is it better now? Yeah, go ahead. No. Okay. Maybe I'll just try to ask if I'm audible. That there was a good amount of fee income from syndication also in this quarter. Anything you would just like to highlight here? That's the last from my side. Thank you. Yeah. On the credit side, we have roughly INR 20 crore of syndication income. I think the numbers will only get better over a longer period of time. All right. Thank you. Thank you. Thank you. The next question is from the line of [Nitin Jain from FairValue Equity Advisors]. Please go ahead. Yeah. Thank you for the opportunity. I would just like to double-click on the wealth business. Although the recurring AUM as a part of the overall AUM has increased over the year, the profitability seems to have dropped sharply in this business. Can you provide some color? What caused this drop? Sure. I think, one of the reasons was highlighted earlier that the fact that the transactional revenue has gone down, that's across the street, the transactional volumes have come down. Secondly, also, we've hired a lot of RMs over the last 18 months, as was highlighted earlier. Now, all the RMs have a certain gestation cycle of getting profitable in the next two to three years time frame. We are going through that period where the focus is outrightly on improving productivity and making sure that they are productive and hence profitable in the coming year as well. That's the reason because we hired massively in the last 18 months. The profitability impact will come in the coming months. Right. Just a follow-up to that. You indicated that the major recruitment phase seems to be behind us. Would it be safe to assume that the employee expenses as percentage of the revenue of this business should decline going forward, right? They would have peaked now, we will not stop hiring, we will hire judiciously and selectively where there are gaps, but most of the hiring is behind us. From a recruitment perspective, we have to understand that wealth is an extremely important channel for us, even from an investment banking perspective, purely from a distribution of deals, both on the private as well as the capital markets side. Secondly, it's a very important channel for us from marketing our AIFs and marketing some of our Asset Management products. There needs to be a certain critical size that we need to have. You need to reach that critical size, make that productive, and then after a year to 18 months, again, start reinvesting. That is the journey that we have. We have a five-year plan which was cleared by the board last year, we are following that as closely as we can. Okay. That's helpful. My last question is how are we implementing AI across the firm? Just for example, if you look at the IB division While the number of companies under research coverage, they have increased from around 300 to 360. The employee count also has increased proportionately. Are we not seeing any efficiencies from implementation of AI here? Well, we're seeing very early efficiencies, but unfortunately for us, an AI-driven robot on the sell side is not yet acceptable to buy-side analysts. The day that starts happening, we'll see a tremendous amount of AI efficiency. Yes, in terms of analysis, scraping annual reports, giving you data, doing comparable company analysis, all of that, yes, is being implemented. Also, we have to be mindful on the regulatory side in terms of what we can do and what we can't do, what kind of disclosures we need to give while we are using AI for a lot of the analysis. A lot of work happening. Can we say that we are on completely top of maximizing the AI potential right now? We are not. When will we get there? Frankly, we don't even know. We're still learning ourselves. A lot of the AI you talk about are developments that have happened only in the last six months. As you aggressively start using AI, the token cost can go up like crazy. Let's wait and watch. We are very open to implementing a lot of AI, and we know that at some point in time, we necessarily will have to. I think this is a better question suited for maybe a year to 18 months down the line in terms of what have you been able to achieve and implement in terms of AI. I think on the analysis side, on the risk side, you can do a lot, but front office is still limited here. Yeah, that's all from my side. Thank you. Thank you. The next question is from the line of Kanishk Gupta from SS Family Office. Please go ahead. Yeah. Hello, very good evening. I would like to ask on the Asset Management side of the business, the AUM has largely been flat, the partners were gone up and SIP book was down 30%. What's being done on that side of the business to get it back on track and keep it growing? Hi, this is Nishit here. If you look at it on a quarter-on-quarter basis, there has been an increase in the AUM by almost 16% as far as the non-liquid schemes are concerned. Your observation is valid in terms of the SIP book coming down. Having said that, we've engaged with a lot of our channel partners. The performance of the schemes, et cetera, has also seen improvement, especially some of the schemes like small cap funds, et cetera. Hopefully that kind of fall will be arrested, especially when we are looking at data in the month of July, et cetera. I think one thing that we had a concentration of more small and mid-cap schemes. Flexi Cap also had a concentration, which was largely in small and midcaps. When the small and midcap space corrected earlier this year and late last year, that was a time when there was some loss of AUM. What Nishit is saying is that a large part of that AUM loss has been corrected. We did not stop engaging with distributors. In fact, we went on the front foot. We engaged more with distributors. We added even more channels of marketing at that point in time. When the revival, which has already happened in the last three months in terms of performance happens, then we can look forward and add more AUM and add more clients on the mutual fund side. Hopefully we should be back on track, both on the SIP book as well as AUM growth very quickly over the next couple of quarters. Some kinds of quantitative targets that you can provide so that will help investors track the progress better. Yeah, we can provide them separately. Okay. My next question would be on the ROE front. You had guided towards a 15% ROE over time. Can you explicitly break it down? What would you consider a steady state ROE through a normalized cycle, excluding market tailwinds or peak capital market conditions? Yeah. If you look at the ROE of last year, we were almost at 11.5%. We've paid a significant amount of the profit out as dividend. As you know that we cannot pay more dividend or give capital back because of restrictions we have in our NBFCs in terms of payout ratios by the regulator. You can't pay more than 50% of your profit in the NBFCs. That actually constrains the amount of capital we can give back. Having said that, this year, I think we should be in a similar range or maybe even better in terms of ROE. As the Wealth Management business becomes more profitable and scales and the losses in Asset Management reduce, and we attain operating leverage in the AMC business, which is probably two years out, that's when I think you'll see a stronger kicker in ROE. Now, again, the CACM business, the Corporate Advisory and Capital Market business, over a longer cycle is a very, very high ROE business. Despite the subdued markets, they are at 15% ROE for last quarter. In effect, they're actually a 35%-40% ROE business. The only place where we could have a ROE lag, which is below the teens, is going to be the private market space over the long term. That is where we want to push on much more syndication income and make that a much larger platform to generate ROEs. That probably is going to be, again, three to four years away. Having said that, the initial traction in the business has been very good. This June quarter has been very good in terms of ARC. We also have a lot of recovery and resolution income, which even in the meanwhile will be able to generate healthy ROEs. Which of these levers is most dependent on market conditions versus purely execution-led? No. Capital markets and corporate advisory is completely driven by market conditions. Again, as I said, even market conditions being weak, the business has generated 15% return on equity. I don't worry about base ROE in that business. Execution is completely on the wealth and Asset Management business. That is where we have to execute, and we have to make sure that we're able to push ROEs into the mid to high teens. Got it. My last question would be on that you had rightly emphasized continued investment in Wealth Management and Asset Management. Could you help us understand what objective milestones or return thresholds you internally use to evaluate whether these investments are creating shareholder value differently? Yeah. Can you present that? For example, let me give you a short example of our mutual fund business. I think so far we've invested INR 150 crore in our mutual fund business in the last three years when we started the journey to build it out. When we started the journey to build it out, our equity AUM was less than INR 500 crore. Today, our equity AUM is almost INR 10,500 crore. By any extent of any comparable valuation that you take, most mutual funds are able to exit at close to 6%-8% of equity AUM at the minimum. Even if I take a number of 7% on average, it means that the value of the stake we have in the AMC is worth INR 750 crore odd, while the investment that we've put in the AMC is INR 150 crore. As I said that we're going to be investing another INR 150 crore over the next two to three years in our AMC. If that is able to take our AUMs in the AMC to INR 25,000 crore, and if you use a similar metric of, say, 7%-8% of AUM, that means INR 300 crore of investment that we have made in the five years, two years, two and a half years forward, has actually created value of over INR 2,000 crore for us. I think because the business is not making profitability today, it's not accretive to ROE and earnings. You're not able to see the value, but the underlying value is being created every year as we keep focusing on the execution. Similar example we can give to you to our High Net Worth margin trade financing business. Our margin trade financing book five years ago was less than INR 400 crore. The business is today, that book is almost INR 2,400-INR 2,500 crore. The combined yield between interest rates as well as the broking yields that we make on this book is almost 13.5%. It's turned out to be a very liquid, relatively safe book to grow. We see that we can easily grow this book again at 15% year-on-year for the next three years. I think there are some very interesting businesses that have already been built, scaled, and grown, and value has already been created tremendously. We are not short of capital or not even short of talent, so we'll continue investing. Our horizon is much more long-term. We are not a private equity house which needs to exit in the next three to four years. We'll keep building this business with a perspective which is almost a decade or more. Got it. Thank you very much and all the very best for the future. Thank you. Thank you. Participants who wish to ask questions may press star and one at this time. The next question is from the line of [Umang Adatia] an individual investor. Please go ahead. Sir, first of all, great set of results. I want to ask one question about private markets. Sir, since you mentioned to one of the fellow participant in the call that private market ROE would remain in the teens for next few years. Sir, my question is that so much of the capital is employed in private market, whether management is thinking of any capital mix in the coming time, because as you can see, 60%-65% of the capital employed is in the private market, and you know that private market is literally dragging ROE down of the overall group. Any comment on that? Yeah. That's a very good observation, and we are acutely aware of it. See, as I explained to you, that bulk of our net worth is in our two large NBFCs, JM Financial Credit Solutions and JM Financial Products. As I said that these NBFCs also have debt. Our leverage is 1: 1, and we have debt which is payable nicely over the next six to seven years. It's well distributed. In the business, we are generating good profit from interest income as well as investments. The point is, as per RBI rules, we cannot distribute more than 50% of our PAT out as per their rules. If private markets, for example, has made a profit of say, INR 250 crore. I cannot this quarter distribute more than INR 125 crore of it. That means 50% of this net worth is actually getting plowed back into business because of regulatory reasons. Therefore, we have to have growth both on the syndication side as well as the loan book side, as well as the investment side, such that we are able to make adequate returns. I would imagine that our current debt equity, which has reached 0.8 x, we are almost at a low. Going forward over the next two to three years, our debt equity will climb back. If you look at page 13 again, debt equity in FY 2024 was 1.9x and it's come down to 0.8x and that's another reason why the ROE is hurting. The business is immensely profitable. It's just that we are not taking in enough of transactions today, and therefore, we don't have a need for leverage. As the syndication business starts ramping, the picture will change, and I see us within a period of three years being back to 2 x debt equity. Therefore, the ROEs will substantially improve. The point I was trying to make is that we have a lot of resolutions in our ARC, and sort of the recoveries on the provided book in real estate, which will be able to add profit in the next eight quarters, giving you a decent ROE despite the pickup in the book taking two to three years. We are kind of hedged in a way. When we reach that 2: 1 debt equity kind of milestone over the next three years with syndication income flowing through, you will see a healthy sort of teens income. Inherently with syndication, the ROE of the business needs to be rich enough that you don't need to lever to 4x-5x to make that kind of returns. Again, that is the reason why when you see the investment side on page 13, it's a very well-diversified book. We target 16%-18% on the distressed credit book, right? The cash unfortunately is sitting at 6% and we have INR 3,000 crore of cash, which hopefully we should be able to deploy, as I said. We've increased our allocation to alternatives to almost INR 500 odd crore, which used to be a INR 300 crore number. The two public equities, we've kept the number at INR 970 crore. It's been in the INR 900 crore range for the last five quarters. If we see a market correction, if we see that there are returns to be made in public equities on a risk-adjusted basis of 15%-16%, we will deploy more in public equities. On the loan book side, we have Bespoke, we have real estate. The combination of bespoke and real estate, we target a return of roughly 13%-14%. That is the kind of strategy for what returns we want from our standard loans and our investments in the private market space. The mix also over time will change. If you look at FY 2024, right, our standard loans were INR 10,000 crore, our investments, including distressed credit, were roughly INR 8,500 crore. While the investment ratio number has remained the same at around INR 8,000, the standard loan has decreased from INR 10,000 to INR 4,000, largely because the real estate and the non-core book came down, right? This INR 4,000 crore number, as I explained to Digant, will start increasing at 15%-20% every year. In the next three years, you potentially will see that number close to INR 7,000 to INR 7,500 to INR 8,000. It'll be a good one is to one kind of mix between investments and standard loans. You will have recovery income and therefore the profitability will go up even faster. What we've maintained is that because of the capital that we have, we should be able to use a lot of the profits we earn from these NBFCs, and almost 50% of that is allowed from a regulatory perspective, will be given back as dividend and paid out to shareholders. Okay, sir. [I will join back the queue]. Yeah. Thank you. The next question is from the line of [Parth] from DAM Capital. Please go ahead. Hi. Thank you for the opportunity. Am I audible? Yes, go ahead. I have a very similar question to a previous participant on the wealth side of it. Sir, I understand that till we achieve a certain scale, there would be certain cyclicality built to the business because of transactional revenues. I just want to get a sense on how kind of we are focusing on getting the ARR numbers better, and what are the kind of targets our RMs have right now to see that the five-year plan which you have decided for is kind of met. Essentially, I'm trying to get a sense on what kind of earnings taper you are looking at in the next couple of years for us. Some color would be useful here, sir. Sure. Anuj will answer that question. As we mentioned, we hired about 100+ RMs over the last 18 months. The average life of an RM to become profitable is roughly about two and a half to three years. We've split the RM cohort between the old and the new cohorts. The old cohort is very well productive and profitable, and we continue to monitor that profitability and growth in that profitably very, very closely. In the new cohort, the whole focus is on making sure that the productivity enhances and that gets supplemented by a lot of factors with a lot of third-party alliances that we're doing in the market because of the scale that we have achieved now on the distribution side. Secondly, we are doing our own product. As we spoke about some of the AIFs that we have launched on pre-IPO and credit. That distribution gets scaled up with the scale-up that we have in wealth. Thirdly, also with closer collaboration with some of the other divisions within the firm, especially the investment bank and the equities business. All in all, the whole idea is to focus on productivity, enhancing productivity, and making sure that the new cohort of RMs, these 100+ RMs, get to profitability in the next year or so. That's what we are focusing on. We are closely monitoring the net new money additions being made by each and every single RM and the team's profitability is something that we are monitoring. In terms of the revenue growth that we are targeting, just to broadly talk about the industry is going at early to mid-teens. Given the growth that we are targeting, we are targeting in excess of the industry growth that is expected. Got it. That was helpful. Just one thing here. What kind of net inflows are we expecting for this year? Could you give the number for this quarter versus previous quarter? I think the net flows for this quarter is roughly around INR 2,000 crore. As we had guided earlier on the last year's call, we are targeting about INR 6,000 crore at the minimum. Understood. That's it from my side. Thank you so much. Thank you. The next question is from the line of [Siddharth Deshmukh from AMFI]. Please go ahead. Good evening, team. I'd just like to get some clarity on if you have any plans to venture into the gold loan books in your NBFC division. I see that your housing loan segment has seen a very healthy growth. I just want to confirm if you have any plans to enter there and, yeah, that's something. Manish here from JM Financial Home Loans. Basically, there is no plan today to enter any of this non-core business. As of now, we are concentrating more on the home loan business. Yeah, we keep evaluating businesses all the time, as of now, absolutely no interest in entering gold loans. Understood. Thank you. Thank you. The next question is from the line of Vinay, an individual investor. Please go ahead. Hello. Yeah, can you hear me? Yes, please go ahead. Actually, there is a lot of tailwind for capital market businesses that's going on for last four to five years. What I have seen that we are still not able to capitalize on it. Sure, we are doing some acts on it and we have planned last year and you are guiding for the future that we are focusing on it. Still, what kind of a roadmap are you seeing for Wealth Management, for Asset Management? Second part question is that, as an investor in JM Financial, I am holding all of the bunch of businesses. Are you planning any kind of demergers? As you said on the call itself, that your Asset Management business is valuable, having a nice INR 750 crore valuation, it's not reflecting because of losses. Any kind of a demerger kind of things that you are planning like Edelweiss has done for Nuvama Wealth and your IIFL has done for 360 ONE Wealth and broking business also demerger, the value unlocking. I'll answer that. First of all, I think if you break up the capital markets business, you have to see what we do in corporate advisory and capital markets. If you see page 11 of our investor presentation. In FY 2024, our revenue was INR 592 crore. If you take that number back to FY 2022 or FY 2023, the number would have been close to INR 350 crore or INR 400 crore. Even from FY 2024, an INR 592 crore number has grown to INR 946 crore last year. In fact, in the last three years, because of the West Asia war, et cetera, we first time saw a significant slowdown in the last six months in terms of the transaction activity. Otherwise, we are well on course in this business to almost would have hit INR 1,000+ crore this year in terms of combined revenue of our investment banking, ECM, DCM, and institutional equity franchise. I think there has been tremendous growth, and I think we're one of the firms that has capitalized the most on it from a corporate advisory and capital markets business. Even when you look at our Wealth Management business, there has been significant growth on the broking side, as well as if you look at the revenues in FY 2024, which was INR 1,022 crore, FY 2026 resulted in INR 1,400 crore. In two years, there's been a 40% growth in revenues. The reason the profitability has grown from INR 91 to INR 165 is because between Wealth Management, broking, and Asset Management, there has been significant investments being made on the pure Wealth Management and Asset Management. Right? Broking is built out a lot more, and it's a larger business compared to the other two, and is already making a lot of profit. We are rechannelizing the profits of our broking business and building a larger fee and commissions and distribution business and a much larger Asset Management business. I think there is tremendous amount of growth here. It just needs to result in more profitability from the investments already made. Coming to your last question on demerger, I think I've answered it before as well that we still feel that compared to our capital markets, corporate advisory and private markets business, Wealth and Asset Management is still small. We want to make it larger, give it a lot more scale. At that point in time, we will evaluate whether this business needs to go public or needs to be demerged. All of these demergers, etc., need to be seen from a lens of taxation as well. I understand they are shareholder-friendly, it cannot result in any kind of tax sort of leakage for us. We have to be careful while taking those decisions. At the right time, when we are more profitable in wealth and Asset Management, we will evaluate demerger or maybe a separate listing. Okay. Just one question, last question. Where you see your three to five years, the total Wealth Management as an asset base, where basically more on Wealth Management you're focusing or Asset Management? Mutual fund part you are mainly focusing or on the Wealth Management? Where is the main focus actually? No. We are focusing on both. We are focusing on pure Wealth Management. We are focusing on Wealth Management, which is led by broking. We are focused on Asset Management in terms of mutual funds, and we are also focused on alternatives, and we have a credit alternatives fund, and we have a pre-IPO fund, and we'll add more to the AIF basket over time. The idea is to focus on each of these, and there is a very interesting flywheel that operates among these businesses. The larger our Wealth Management gets, the more they can distribute our Asset Management products. That flywheel works very well, yeah. It's a focus on everything. Okay, thank you. Good luck for the future. Thank you. Just one last thing. Thank you. Okay. Bye. Thank you. The next question is from the line of [Akshay Jawas], an individual investor. Please go ahead. Hi, am I audible? Yes. I had a question on the ARC business that we refer to that INR 1,200 crore are shared. Given the lumpy nature of the transaction like you mentioned, I wanted to understand how does this specific transaction impact the net revenue for the private markets in Q1 2027? Because on the face of it, you see a 2x growth in net revenue, but my understanding is that this was not there in Q1 2026. How much of the Q1 2027 is impacted by the single transaction, and like you mentioned that you are expecting some more recoveries from the ARC fee in the balance part of the year. How much would that be that you're expecting? Yeah. I think it's quite simple. Basically, if you look at the, as I explained, the INR 3,000 crore of SR investment that we have- on our private markets balance sheet, we are kind of modeling to make 16%-18% return on that. The 16%-18% return on that is revenues. Obviously, this is funded partly by debt, partly by equity, but the debt will go down substantially. Once the debt goes down substantially by the end of this year, you will see on the remaining SR book, we are targeting 16%-18% return to be generated on the same. What happens is, we don't technically book all of this income every quarter. It's a bit lumpy in nature. Large part of the income is always booked when the resolution of the asset happens. Therefore, you saw a substantial profit that came into the June quarter because the resolution happened, the cash flow was banked by us, and therefore we booked the profit. That is why it's lumpy, but the book growth will not be as lumpy as the profit lumpiness. You will see that we'll keep investing. For example, we got INR 1,200 crore of cash flow, INR 3,665, which was the number in quarter, 20 26, would go down by approximately INR 1,200 crore. Which takes it to around INR 2,400, and then we redeployed INR 600-700 crore in other assets. Therefore, the SR number came back to INR 3,114. Understood. We kind of like the split of the investment book right now. What you will see is that if the equity markets get more attractive from a risk return perspective, we can always allocate more cash to equity, which is only at INR 970 crore today. Equity, we try and model 14%-15% kind of returns. The standard loan book, as I explained earlier, will keep growing. I mean, the bespoke book will keep growing at 15%-20% a year, and that will take leverage to basically grow. We're already at 0.8x gross debt to equity. On a net basis, we are even more. Balance sheet is in extremely good shape already, and now we're just focusing on growth here. Understood. I think on one of the previous call, or the call last time after Q4, you basically estimated that you will take six months for the capital markets fees to recover. Yes. I think at the starting of the call, you mentioned that July has been better than June. Yeah. To our positive surprise, I think July has been a very good month. As I said that most likely the revenues of just the month of July are more than the revenues for the entire quarter of June. Okay. The entire Yeah, it answers my question. I followed only for the month of June. All right. Okay. Yeah, I think that's from my side. Thank you. Thank you. Thank you. As there are no further questions, I would now like to hand the conference over to Mr. Vishal Kampani for closing comments. Yes, thank you very much for logging on to our call, and see you guys next quarter. Thank you. On behalf of JM Financial, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.