DAM Capital FY26 PAT Falls 30% to ₹72.69 Cr
DAM Capital Advisors Limited announced its audited standalone and consolidated financial results for FY26, reporting a 30% YoY decline in consolidated PAT to ₹72.69 crore and a drop in total income to ₹237.14 crore. The company published these results in newspapers on May 24, 2026, and noted a challenging capital market environment, though it maintained a debt-free structure and recommended a final dividend of Re. 1 per share.
*this image is generated using AI for illustrative purposes only.
DAM Capital Advisors Limited announced its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The Board of Directors approved the results during a meeting held on May 22, 2026. The company has published the audited financial results in "The Financial Express" (English) and "Mumbai Lakshadeep" (Marathi) newspapers on May 24, 2026, pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
For FY26, the company reported a consolidated net profit after tax (PAT) of ₹72.69 crore, down 30% year-on-year from ₹103.78 crore in FY25, while total income stood at ₹237.14 crore compared to ₹250.21 crore in the prior year. Net cash available as on March 31, 2026, stood at ₹311 crore, up from ₹242 crore as on March 31, 2025. Statutory auditors M/s. KKC & Associates LLP issued an unmodified audit opinion on both the standalone and consolidated financial results.
Financial Performance
The company's consolidated profit before tax for the year ended March 31, 2026, was ₹97.61 crore, lower than ₹136.98 crore in the previous year. Total expenses rose to ₹139.53 crore from ₹113.23 crore, driven by higher employee costs, increased depreciation and amortisation following a move to a new office premise, elevated finance costs under Ind AS 116, and certain one-time other expenses. On a standalone basis, net profit for FY26 was ₹72.51 crore against ₹103.64 crore in FY25, with standalone revenue from operations at ₹236.91 crore. The PAT margin for FY26 stood at 30.7%, and Return on Equity (RoE) was 24.4%, declining from 48.7% in FY25 due to the increase in net cash available.
The following table presents the consolidated quarterly and full-year financial highlights:
| Metric: | Q4FY26 | Q3FY26 | Q4FY25 | FY26 | FY25 | YoY Change |
|---|---|---|---|---|---|---|
| Total Income (₹ Cr): | 29.27 | 69.94 | 36.61 | 237.14 | 250.21 | (5.20%) |
| Profit After Tax (₹ Cr): | 0.25 | 20.06 | 8.50 | 72.69 | 103.78 | (29.96%) |
| PAT Margin (%): | 0.85% | 28.70% | 23.20% | 30.65% | 41.50% | — |
| Merchant Banking Revenue (₹ Cr): | 7.43 | 48.46 | 15.60 | 151.15 | 155.20 | (2.60%) |
| Broking Revenue (₹ Cr): | 17.67 | 17.62 | 17.44 | 70.67 | 81.08 | (12.80%) |
| Return on Equity (%): | — | — | — | 24.4% | 48.7% | — |
The detailed P&L breakdown for FY26 is as follows:
| P&L Item: | FY26 (₹ Cr) | FY25 (₹ Cr) | YoY Change |
|---|---|---|---|
| Merchant Banking Revenue: | 151.15 | 155.20 | (2.6%) |
| Stock Broking Revenue: | 70.67 | 81.08 | (12.8%) |
| Other Income: | 0.03 | 1.86 | — |
| Total Income: | 237.14 | 250.21 | (5.2%) |
| Employee Benefit Expenses: | 89.72 | 85.46 | 5.0% |
| Depreciation and Amortisation: | 14.26 | 7.03 | 102.8% |
| Finance Cost: | 8.94 | 2.48 | 260.5% |
| Other Expenses: | 17.84 | 11.27 | 58.3% |
| Total Expenses: | 139.53 | 113.23 | 23.2% |
| PAT: | 72.69 | 103.78 | (30.0%) |
Merchant banking revenue moderated as there were no IPO launches in Q4 FY26 amid ongoing geopolitical uncertainties and tariffs impacting deal execution timelines. Broking revenue declined due to volatile markets, though the segment continued to provide business model diversification and stability. Employee strength increased to 130 as of March 31, 2026, from 125 as of March 31, 2025.
Key Ratios and Operational Highlights
DAM Capital reported a revenue CAGR of 40.8% and a PAT CAGR of 103.1% over FY23–FY26. The company maintained a debt-free structure with minimal capital requirements. The following table captures key financial and operating indicators across periods:
| Particulars: | Q4FY26 | Q3FY26 | Q4FY25 | FY26 | FY25 | FY24 |
|---|---|---|---|---|---|---|
| Total Income (₹ Cr): | 29.27 | 69.94 | 36.61 | 237.14 | 250.21 | 182.0 |
| Merchant Banking Revenue (₹ Cr): | 7.43 | 48.46 | 15.60 | 151.15 | 155.20 | 122.4 |
| Broking Revenue (₹ Cr): | 17.67 | 17.62 | 17.44 | 70.67 | 81.08 | 51.5 |
| Employee Cost (₹ Cr): | 17.18 | 29.75 | 19.30 | 89.72 | 85.46 | 65.3 |
| Profit After Tax (₹ Cr): | 0.25 | 20.06 | 8.50 | 72.69 | 103.78 | 70.5 |
| PAT Margin (%): | 0.9% | 28.7% | 23.2% | 30.7% | 41.5% | 38.8% |
| Total Employees: | 130 | 126 | 125 | 130 | 125 | 111 |
| Stocks Covered by Research: | 187 | 209 | 197 | 187 | 197 | 168 |
| Sectors Covered by Research: | 21 | 24 | 23 | 21 | 23 | 19 |
Merchant Banking Segment
DAM Capital executed 18 ECM transactions and 1 M&A advisory in FY26, raising ₹19,000+ Cr. Since its acquisition in November 2019 through March 2026, the company has completed 96 ECM transactions amounting to ₹1,61,000+ Cr and 27 advisory transactions including M&A, PE, and structured finance advisory. The company held a 10% market share in the number of IPOs executed in FY26, having executed 11 out of 112 IPOs. Merchant banking revenue has grown from ₹51 Cr in FY23 to ₹151 Cr in FY26.
The ECM transaction track record by fiscal year is summarised below:
| Fiscal Year: | No. of ECM Deals | Value of Deals (₹ Cr) | Merchant Banking Revenue (₹ Cr) |
|---|---|---|---|
| FY23: | 14 | 5,066 | 51 |
| FY24: | 22 | 22,710 | 122 |
| FY25: | 15 | 20,912 | 155 |
| FY26: | 18 | 18,611 | 151 |
Select notable FY26 transactions included the JSW Cement IPO (₹3,600 Cr, Sole Banker), CG Power QIP (₹3,000 Cr, Sole Banker), Park Medi World IPO + Pre-IPO (₹1,145 Cr, Sole Banker), Anant Raj QIP (₹1,100 Cr, Left Lead), and Syrma SGS Technology QIP (₹1,000 Cr, Sole Banker), among others.
IPO Pipeline
As of March 31, 2026, DAM Capital had 25 IPOs in its pipeline, with 4 new IPOs added in Q4 FY26. Of these, 13 are transactions where DAM Capital is the Left Lead Banker and 6 are Sole Banker IPOs. The pipeline spans 16 sectors, including Services (4), Metals & Mining (2), Consumer Durables (2), Automobile and Auto Components (2), Realty (2), Construction & Construction Materials (2), and Financial Services (2), among others. Additionally, 14 DRHPs have been filed by DAM Capital, of which 12 have been approved by SEBI, out of a total industry pipeline of 186 IPO/FPO filings with an estimated issue amount of ₹1,90,000+ Cr.
Institutional Equities Segment
The institutional equities business services clients across India, the US, the UK, Europe, Hong Kong, Singapore, and the Middle East through a 31-member broking team with average work experience of 23+ years. Total active clients grew from 187 in FY23 to 298 in FY26. Net broking revenue declined to ₹71 Cr in FY26 from ₹81 Cr in FY25, reflecting volatile market conditions. Top 10 client concentration improved to 40% in FY26 from 45% in FY22. The research team covers 187 stocks across 21 sectors as of March 31, 2026, supported by a 30-member research team including 10 lead analysts with average work experience of 14+ years.
Leadership Commentary
Dharmesh Mehta, Managing Director & CEO, said: "In FY26, the capital markets environment was challenging amid the global tariff concerns, heightened geopolitical tensions and the on-going war related uncertainties, which resulted in elevated market volatility and cautious investor sentiment. Fund-raising activity across the market remained muted, with IPO launches in the last quarter of FY26 at one of the lowest levels seen in recent periods, reflecting the broader slowdown in the equity capital markets activity."
Mehta added that the institutional equities business was also impacted due to market volatility, while the company continues efforts to scale up the business and increase market share through strong client relationships and depth of research. He noted that several large marquee mandates were won during the quarter, reinforcing DAM Capital's leadership position in the Indian capital markets ecosystem. He further stated that the company continues to explore avenues to diversify revenue streams by expanding into additional fee-based businesses, intended to complement existing capital markets and institutional equities platforms.
Dividend Declaration and Board Changes
The Board of Directors has recommended a final dividend of Re. 1 per equity share (50% on face value of Rs. 2 each) for the financial year ended March 31, 2026, subject to shareholder approval at the ensuing Annual General Meeting. The record date will be intimated separately, and payment is expected within 30 days from the date of declaration. The Board also approved the re-appointment of Mr. Dharmesh Anil Mehta as Managing Director and Chief Executive Officer for five years with effect from June 10, 2026. Mr. Jateen Doshi, Whole Time Director, will complete his tenure on June 9, 2026, and has expressed his desire not to seek re-appointment, though he will continue as Head of Institutional Equities and Business Development. The Board also approved the amendment to the existing Pre-IPO ESOP Scheme, namely "DAM Capital Employee Stock Option Scheme 2024", subject to shareholders' approval. M/s. PricewaterhouseCoopers Services LLP was appointed as Internal Auditor for FY26-27.
ESOP Scheme Details
The DAM Capital Employee Stock Option Scheme 2024 covers a total of 35,34,300 options. Before listing, the company had granted 5,30,145 options, of which 1,47,000 were forfeited. As on March 31, 2026, 3,83,145 options remained outstanding and 31,51,155 options are yet to be granted. The exercise price per option shall be up to 25% discount to market price as on the date of grant, and the exercise period for vested options shall be a maximum of 6 years from the date of each vesting.
Shareholding Pattern
As of March 31, 2026, the shareholding pattern of DAM Capital was as follows:
| Shareholder Category: | Holding (%) |
|---|---|
| Promoter & Promoter Group: | 40.00% |
| Resident Individuals: | 38.59% |
| Bodies Corporate: | 6.07% |
| Alternate Investment Funds: | 5.10% |
| Others: | 2.61% |
| Foreign Portfolio Investors (Cat I + II): | 2.19% |
| Insurance Companies: | 1.87% |
| Foreign Companies: | 1.42% |
| Mutual Funds: | 1.09% |
| NRIs: | 1.06% |
Historical Stock Returns for DAM Capital Advisors
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.07% | +2.63% | -2.87% | -32.69% | -43.70% | -63.18% |
With 25 IPOs in the pipeline and geopolitical uncertainties easing, how quickly could DAM Capital's merchant banking revenue recover in FY27, and which sectors in its pipeline are most likely to launch first?
Given DAM Capital's stated intent to diversify into additional fee-based businesses, what specific segments such as debt capital markets or wealth management could it realistically expand into, and how might that impact its revenue mix?
As Jateen Doshi steps down as Whole Time Director while retaining his role as Head of Institutional Equities, what leadership or strategic risks could this transition pose to the broking segment's client relationships and growth targets?
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