JM Financial (523405) Q2 25/26 earnings summary

Executive summary

• Reported strong operating profit and PAT of INR 270 crores for Q2 FY26, with robust growth across key business segments and focus on high-growth, high-ROE areas like corporate advisory, wealth and asset management, private markets, and affordable home loans.

• Interim dividend of INR 1.5 per share declared, reflecting commitment to shareholder returns, with payout after November 27, 2025.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY26 were approved and released, with financials reviewed by the Audit Committee and unmodified limited review reports from statutory auditors.

• Fees and commission income reached a record INR 341 crores, up 20% year-over-year for two consecutive quarters.

• Significant expansion in wealth management and affordable housing, with AUM milestones achieved and increased payout to shareholders.

Financial highlights

• Q2 FY26 net profit rose 16.3% YoY to INR 270 crores; H1 FY26 net profit up 79.7% to INR 724 crores; consolidated Q2 FY26 net profit after tax and share in profit of associates was INR 261.89 crores; H1 FY26 net profit was INR 720.66 crores.

• Q2 FY26 profit before tax at INR 344 crores, up 124.2% YoY, driven by lower impairment charges; Q2 FY26 net revenue declined 9.3% YoY to INR 708 crores; H1 FY26 net revenue up 5% to INR 1,488 crores.

• Fees and commission income for Q2 FY26 rose 20% YoY to INR 341 crores; half-yearly figure up 21% YoY to INR 573 crores.

• Basic EPS for Q2 FY26 was INR 2.82 (consolidated), compared to INR 2.43 in Q2 FY25; H1 FY26 EPS was INR 7.57, up from INR 4.22 year-over-year.

• Gross D/E ratio at 1.1x as of Sep 30, 2025, compared to 1.2x a year ago.

Outlook and guidance

• Strong IPO pipeline with documents filed for INR 120,000 crores in deals, expected to execute over the next 6–12 months.

• Wealth and asset management businesses expected to continue rapid expansion, with recurring AUM and new fund launches planned.

• Non-core loan book expected to substantially run down in the next 9–12 months.

• Private markets focus on recoveries and syndication, with a strategy to achieve mid-teens ROE over the next 18 months.

• Asset management AUM targeted to double in the next 2–3 years, with profitability expected as scale is reached.