Synopsis: A BFSI firm with 70 percent profit CAGR and 49 percent ROE has raised Rs 9,200+ crore in IPOs for its clients in H1FY26, and showcases strong growth, rising deal flow, and a high-potential presence in India’s capital markets.
A BFSI firm delivering a robust 70 percent profit CAGR and maintains a 49 percent ROE, has emerged as a major player in equity fundraising, by having raised over Rs 9,200 crore through IPOs for its clients, supported by its expanding merchant banking capabilities and strong institutional reach, backed by accelerating profitability, rising deal flow, and a growing pipeline of mandates, the firm is positioning itself as a high-growth, under-recognized opportunity in the BFSI space.
With a market cap of Rs 1,526 Cr Dam Capital Advisors Ltd is currently one of the most affordable stocks in the Financial Services sector with a PE of 13.61, while the Industry PE stood at 20.7.
Business Overview
DAM Capital Advisors Ltd (DAMCL), incorporated in 1993 and headquartered in Mumbai, is one of the leading investment banks in India, providing comprehensive financial advisory and capital market solutions. The firm specializes in equity capital markets, mergers and acquisitions, private equity, and structured finance advisory. With 296 active clients across India, the US, UK, Europe, Hong Kong, and Singapore, DAMCL holds an 18 percent market share in the number of IPOs executed in Q2FY26. Since November 2019, the company has successfully executed 92 ECM transactions, including 39 IPOs, 21 QIPs, 8 preferential issues, and 7 OFS.
Financial Overview
In the latest quarter, DAMCL reported a 69.8 percent YoY revenue growth, rising from Rs 63 Cr in Q2FY25 to Rs 107 Cr in Q2FY26 where 80 percent came from Investment Banking business and 16.2 percent came from stock broking,
In the QoQ revenue growth the investment banking business saw a 844 percent revenue growth, while the overall QoQ revenue surged by 245 percent from Rs 31 Cr in Q1FY26.
The Net profit saw a 141 percent YoY growth, going from Rs 22 Cr in Q2FY25 to Rs 52 Cr in Q2FY26, while the QoQ growth surged by 22,508 percent from Rs 0.23 Cr in Q1FY26.
The company also saw its Merchant Banking Revenue go up by 129 percent from 38Cr in Q2FY25 to Rs 86 Cr in Q2FY26, And a QoQ growth of 855 percent from Rs 9 Cr in Q1FY26
The Company saw its Institutional Equities Revenue stand at Rs 17Cr for Q2FY26, which is a 24 percent YoY fall from Rs 23 Cr in Q2FY25, while the QoQ fall was at 5.5 percent from Rs 189 Cr in Q1FY26
In just the H1FY26 company has executed 14 Equity Capital Market deals valued at Rs 14501 Cr that is 70 percent of all the EMC deal values executed in FY25. And out of these 12 ECM transactions were executed in Q2 FY26, by raising Rs 13,600 plus Cr, which includes 9 IPOs that captured 18 percent of the IPO market share in the latest quarter.
Net Cash available has also increased to INR 287 Cr (as of 30th September 2025), 56 percent more compared to INR 184 Cr in Q2FY25. The company has also significantly reduced its debt in the past 5 years. DAMCL had a 36.5 percent ROE in H1FY26. For FY22 to FY25, the company had a revenue CAGR of 38.3 percent and a PAT CAGR of 68 percent.
Over the past three years, the company has achieved remarkable growth across its asset management businesses. Its Mutual Fund AUM doubled to Rs 75 lakh crore as of September 30, 2025, while PMS assets surged 1.8x to Rs 9.2 lakh crore, and AIFs also doubled to Rs 5.7 lakh crore as of September 20, 2025.
-Adithya Menon
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