JM Financial (523405) Q4 24/25 earnings summary

Executive summary

• Increased shareholding in Credit Solutions from 47% to 97%, consolidating asset reconstruction and resulting in a net cash outflow of INR 1,500 crore.

• Strategic pivot to high-ROE, asset-light businesses, focusing on private markets, capital markets, wealth, and asset management.

• Board recommended a record dividend of INR 2.7 per share, subject to AGM approval, with a total outflow of INR 258 crore.

• Audited standalone and consolidated financial results for FY25 were approved, with an unmodified audit opinion.

• Board approved the transfer of Private Wealth Business to a subsidiary and appointed a new non-executive director and secretarial auditors.

Financial highlights

• Consolidated total income for FY25 was INR 4,832.16 crore, up from INR 4,452.83 crore in FY24.

• Net profit after tax and share in profit of associate for FY25 was INR 773.59 crore, compared to a net loss of INR 674.10 crore in FY24.

• Q4 FY25 profit after tax at INR 210 crore, flat sequentially; pro forma PAT with consolidation would be INR 238 crore, up 13% quarter-on-quarter.

• Loan book reduced to INR 7,894 crore as of March 31, 2025, from INR 13,106 crore a year earlier.

• Fees, commission, and brokerage income rose 22% quarter-on-quarter to INR 435 crore; full-year growth of 15% to INR 1,407 crore.

Outlook and guidance

• Expectation of normalized and increasing interest income as loan book stabilizes.

• Robust pipeline in M&A and private equity syndication; continued market leadership in advisory.

• Asset management breakeven targeted by FY27.

• Dividend payout ratio expected to remain high, with potential to double dividends in three years if profitability sustains.

• Continued investments in digital and physical infrastructure across wealth and asset management.