JM Financial (523405) Q1 24/25 earnings summary

Executive summary

• Strategic pivot from on-balance sheet wholesale lending to off-balance sheet syndication, consolidating private credit expertise and focusing on wealth management, asset management, capital markets, and corporate advisory.

• Group completed significant internal restructuring, increasing stake in JM Financial Credit Solutions and divesting majority stake in Asset Reconstruction.

• Achieved key milestones: wealth management AUM crossed INR 1 lakh crore; mutual fund AUM reached INR 10,000 crore, with INR 7,500 crore in equity.

• Unaudited consolidated and standalone financial results for Q1 FY25 were reviewed and approved by the Board, with unmodified reports from statutory auditors.

• Allotment of 146,491 equity shares to employees under stock options, increasing paid-up equity capital to Rs. 95.57 crore.

Financial highlights

• Q1 FY25 consolidated revenue at INR 1,094 crore, up 1.2% year-on-year; net profit after tax at INR 171 crore, up 2.9% year-on-year.

• Consolidated total income for Q1 FY25 was Rs. 1,093.87 crore, with net profit after tax and share in profit of associate at Rs. 186.98 crore.

• Retail mortgage loan book grew 61% year-on-year to INR 3,267 crore; non-retail loan book declined 37% year-on-year to INR 8,666 crore.

• Segment revenue: Investment Bank Rs. 395.14 crore, Mortgage Lending Rs. 361.15 crore, Alternative & Distressed Credit Rs. 65.50 crore, Platform AWS Rs. 283.28 crore.

• SEBI margin financing loan book more than doubled to INR 1,806 crore.

Outlook and guidance

• Surplus capital expected from loan book rundown, with plans to repay debt and increase payouts after two years.

• Proposed acquisition of a 48.96% stake in JM Financial Credit Solutions and sale of a 71.79% stake in JM Financial Asset Reconstruction Company, with net cash outflow of Rs. 426 crore.

• Focus on building global distribution for India credit products, expanding AIF-led syndication, and continued investment in digital broking and asset management.

• Home loans targeted to grow at 35%, corporate advisory/capital markets in high teens, and wealth management at 25–30%.

• Strong tailwinds expected in affordable home loans.