JMFINANCIL - JM Financial

📊 NSE: JMFINANCIL 🏢 Finance & Investments 📅 Last Updated: 12/14/2025 8:40

💰 Financial Performance

Revenue Growth by Segment

Fees and commission income grew 20% YoY to INR 341 Cr in Q2 FY26. For H1 FY26, it increased 21% YoY to INR 573 Cr. Segment revenue contributions in H1 FY25 were: Investment Bank (41%), Mortgage Lending (30%), Platform AWS (26%), and Alternative/Distressed Credit (3%).

Geographic Revenue Split

Not disclosed as specific percentages, but the group operates pan-India with a branch network of 134 for affordable home loans and 15 strategic locations for Mutual Fund distribution.

Profitability Margins

Consolidated PAT for Q2 FY26 was INR 270 Cr, up 16% YoY. Adjusted for a one-time tax credit, the YoY PAT increase was 40% (INR 193 Cr). Standalone PAT for FY25 grew 74.01% YoY to INR 538.74 Cr. Annualized ROE for H1 FY26 stood at 14.4%.

EBITDA Margin

The Cost to Net Total Income Ratio was 49.32% in FY25, up from 40.28% in FY24, reflecting increased investments in the business pivot and a 21.1% increase in employee benefits expense to INR 963.30 Cr.

Capital Expenditure

Total Capital Employed was INR 10,178.01 Cr as of March 31, 2025, down from INR 11,003.59 Cr in FY24 as the group transitions to an asset-light model. Mortgage lending capital employed was reduced to INR 3,888.55 Cr (38.21% of total).

Credit Rating & Borrowing

Maintained a short-term rating of A1+. Consolidated gearing was 1.2x as of September 30, 2024. Finance costs for FY25 were INR 1,304.93 Cr, a 16.4% decrease from INR 1,561.52 Cr in FY24.

⚙️ Operational Drivers

Raw Materials

As a financial services firm, the primary cost is capital. Finance costs (interest expense) represented 37.7% of total expenses in FY25 at INR 1,304.93 Cr.

Import Sources

Not applicable; capital is sourced from domestic and international financial markets.

Key Suppliers

Not applicable; the group maintains diversified borrowing sources to reduce dependence on any single lender or source.

Capacity Expansion

Affordable Home Loan branch network expanded to 134 locations. Mutual Fund distribution now operates out of 15 locations pan-India to support distributors.

Raw Material Costs

Finance costs decreased 16.4% YoY to INR 1,304.93 Cr in FY25. Fees and commission expenses rose 16.6% to INR 343.08 Cr.

Manufacturing Efficiency

Mutual Fund Average AUM increased 168% YoY to INR 11,665 Cr in FY25. Folio count grew 242% YoY to 9.03 lakh.

Logistics & Distribution

Not applicable; distribution is handled via digital platforms and a network of Mutual Fund Distributors (MFDs).

📈 Strategic Growth

Expected Growth Rate

14.40%

Growth Strategy

Pivoting to a fee-based model focusing on four verticals: Investment Banking, Platform AWS, Private Markets, and Affordable Home Loans. Growth is driven by scaling the SIP book (up 3x to INR 120 Cr/month) and a pipeline of 56 IPOs worth INR 120,000 Cr.

Products & Services

IPO Lead Management, M&A Advisory, Institutional Equities, Wealth Management, Broking, PMS, Mutual Funds, and Affordable Home Loans (average ticket size < INR 10 lakhs).

Brand Portfolio

JM Financial, JM Financial Mutual Fund, JM Financial Credit Opportunities Fund.

New Products/Services

Expansion into 'manufacturing' of financial products within the AWS segment and bespoke private market solutions to improve risk-adjusted returns.

Market Expansion

Increasing Wealth Management Relationship Managers (RMs) by 2x YoY and sales employees by 34% YoY to capture retail and HNI market share.

Market Share & Ranking

Ranked #1 in IPOs for the quarter in terms of value.

Strategic Alliances

A transaction with Bajaj Allianz Life Insurance pegged the value of the affordable home loan business at ~INR 3,100 Cr.

🌍 External Factors

Industry Trends

Increasing financialization of Indian household savings is driving a shift toward equity; Equity AUM of JM Financial Mutual Fund increased 158% YoY to INR 9,968 Cr.

Competitive Landscape

Intense competition across the industry creates downward pressure on yields, fees, and commissions.

Competitive Moat

Durable advantages include multi-decadal relationships and a leadership position in IPOs. The pivot to an asset-light model (gearing 1.2x) reduces balance sheet risk while maintaining fee income.

Macro Economic Sensitivity

Highly sensitive to interest rate volatility (impacting borrowing costs) and capital market sentiment (impacting fee-based income).

Consumer Behavior

Shift toward Systematic Investment Plans (SIPs); SIP folio count surged 5x to ~355,000 in FY25.

Geopolitical Risks

Global economic threats and geopolitical tensions are cited as risks that could impact liquidity and the capital market environment.

⚖️ Regulatory & Governance

Industry Regulations

RBI lifted restrictions on financing against shares/debentures for JMFPL on October 18, 2024. SEBI voluntary settlement involves refraining from lead managing public debt issues until March 2025.

Environmental Compliance

Commitment to ESG research including climate finance and sustainability through the Pune International Centre.

Taxation Policy Impact

Effective tax rate was impacted by a one-time credit of INR 39 Cr in the previous year due to a change in tax rates.

Legal Contingencies

Ongoing settlement process with SEBI regarding public debt issuance; the final settlement amount remains unknown.

⚠️ Risk Analysis

Key Uncertainties

Vulnerability of asset quality to slippages in the wholesale lending business and market risk in the investment-cum-trading book which could be eroded by sharp market corrections.