JM Financial Ltd

ESG rating update

• External ESG Risk.ai assigned JM Financial an ESG score of 69 (Strong) for FY 2025-26.
• JM Financial did not engage ESG Risk.ai; rating based on public-domain information.
• Intimation uploaded on the company's website; QR code provided for access.

Financial Performance

• Net revenue up 13% YoY to INR 883 crores.
• Pre-provision operating profit up 21% YoY to INR 469 crores.
• PAT (ex-provisions) before minorities up 24% YoY to INR 379 crores.
• PAT after minority flat at INR 302 crores; reported PAT INR 292 crores.
• ROE ~11%; consolidated net worth INR 10,900 crores; book value INR 114 per share.
• Leverage at 1x.

Segment Update

• Corporate Advisory & Capital Markets: 9 transactions totaling INR 22,000 crores in Q1 FY27.
• IPO pipeline: 60 filings aggregating INR 150,000 crores; NSE/Jio Platforms excluded.
• Private Markets: net revenue INR 462 crores; PPOP INR 375 crores; PBIT after minority INR 228 crores.
• Wealth Management: 1,000+ RMs, 71 branches; recurring AUM INR 33,400 crores.
• Affordable Home Loans: AUM INR 3,715 crores; Q1 revenue INR 123 crores; PAT INR 17 crores.

Q&A Highlights

• Private Markets bespoke book around INR 3,000 crores; guidance 15–20% YoY.
• ARC returns: wholesale 18–22%; retail 15–18%; overall 16–18% IRR.
• ARC to be debt-free in 6 months via cash flows.
• Q1 net flows around INR 2,000 crores; full-year target at least INR 6,000 crores.
• Demerger possible later; depends on profitability and tax implications.
• July revenue better than June; July likely higher.
• AI yields early efficiencies; sell-side adoption awaiting buy-side acceptance.

Guidance and Outlook

• Wealth and Asset Management investments to yield profitability in 2–3 years.
• Debt-to-equity currently 0.8x; target ~2x in 2–3 years via syndication.
• ROE target ~15% long-term; near-term in teens.
• NBFC payout cap is 50% of PAT.
• Plan to invest INR 150 crores more in AM over 2 years.

Risks and Watchpoints

• Cyclicality in capital markets affects wealth and AM results.
• Regulatory payout limits constrain NBFC distributions.
• ARC is lumpy; quarterly profitability depends on resolutions.

Meeting Details

• Board meeting on Aug 3, 2026 to consider unaudited Q1 standalone/consolidated results (June 30, 2026).

Other Notes

• Trading window remains closed until results are announced, reopening 48 hours after the announcement.

Dematerialisation status

• Details of dematerialisation/rematerialisation during the period furnished to all stock exchanges.
• Security certificates/confirmations for dematerialisation were confirmed/rejected; mutilated and cancelled after verification.
• Depository's name substituted as registered owner in the register of members within prescribed timelines.

AGM notice and access

• AGM on Aug 3, 2026 at Ravindra Natya Mandir, Mumbai.
• Remote e-voting from Jul 30, 2026, 9:00 AM to Aug 2, 2026, 5:00 PM.
• Cut-off date for voting eligibility: Jul 27, 2026.
• Notice and Annual Report accessible at jmfl.com/annual-report and stock exchanges.
• NSDL e-voting platform for AGM: evoting.nsdl.com.
• Mandatory KYC forms ISR-1, ISR-2, SH-13; submit to RTA or via email.
• Dividend payments for physical folios will be electronic.
• Demat holders should update email address and KYC with their DP.
• Attendees should bring attendance slip and include Client ID and DP ID.

Overview

• Standalone BRSR for FY2025-26 covers JM Financial Limited, a financial services company.
• Reporting boundary is standalone, relating to JMFL only unless specified.
• Main activities include investment banking, PMS, and holding company services.
• Assurance provided by SGS India Private Limited for BRSR Core indicators.
• Exports accounted for about 0.66% of FY2025-26 turnover.
• Six national offices serve JMFL's operations in the financial services sector.

Key ESG Risks & Opportunities

• Waste management risk due to e-waste and paper waste generation.
• Approximately 6.73 MT of paper waste recycled during the year.
• Digital transformation offers efficiency gains via STP and online investor platforms.
• ESG policy applied to Private Equity with due diligence and portfolio monitoring.
• Customer experience improved by client-first approach and structured grievance redressal.
• Employee learning and development through LMS and ongoing compliance training.
• Thrive wellbeing program provides EAP and mental health support.
• Data privacy and cybersecurity with ISO 27001 alignment and multiple controls.
• Regulatory compliance risk mitigated by structured framework and monitoring tools.
• Climate risk assessment completed; plan to raise green energy share by 20%.
• Long-term targets include moving Tier 1 offices to renewable power.
• Governance strengthened by six new policies on ABAC, HR, and stakeholder engagement.

Governance & Policy Highlights

• RM and ESG Committee oversees ESG; Board provides governance oversight.
• Six new policies approved: ABAC, Tax, Stakeholder Engagement, Human Rights, DE&I, Health & Safety.
• Whistleblower policy and Code of Conduct support integrity and accountability.
• Data Protection Officer appointed; privacy policy formalized.
• Code of Conduct for Vendors extends to value chain; vendor confirmations tracked.
• ISO 27001-aligned information security framework; CISO oversees cybersecurity.
• SGS provided reasonable assurance on BRSR Core indicators.
• SEBI settlement: payment of 1.56 crore and disgorgement of 1.22 crore; 3-month debarment; no admission.
• Policy reviews are annual; Board reviews revisions; Big Four assisted policy work.

Social Responsibility & Workforce

• Total employees at March 31, 2026: 258; 252 permanent, 6 other than permanent.
• Gender mix: 66% male, 34% female; board female representation 11.11% (1 of 9).
• Turnover: permanent employees 12% overall; 14% male, 8% female.
• LTIFR 0; no employee fatalities or injuries reported.
• Thrive wellbeing program with EAP and mental health support; extensive wellness activities.
• All employees covered by iLearn; ESG training completed by about 35%.
• Median remuneration: BoD male ₹32.45 lakh; BoD female ₹37.20 lakh; employees male ₹38.25 lakh; female ₹23.00 lakh.
• Return-to-work rate is 100% for both genders; retention rate about 80%.
• Accessible workplaces with ramps, lifts, and accessible restrooms; DE&I and HR policies in place.

Environmental Performance

• Total energy consumption 2318.39 GJ; renewable share 3.1% at Cnergy office.
• Scope 1 emissions 16.24 tCO2e; Scope 2 388.90 tCO2e; total 405.14 tCO2e.
• Emissions intensity: 0.34 tCO2e per INR crore turnover.
• Water: third‑party 2879.28 KL; consumption 575.86 KL; discharge 2303.42 KL.
• Waste: total 6.98 MT; paper 6.59 MT recycled; e-waste 0.06 MT; disposed 0.25 MT.
• Zero liquid discharge not applicable; water conservation via aerators and UV purification.
• ZLD not applicable; Cloud migration to reduce emissions; CRA completed.

Stakeholder Engagement & Complaints

• Stakeholders include employees, shareholders, customers, vendors, regulators, communities; multiple engagement channels.
• Shareholders: 9 complaints filed in FY2025-26; 1 pending at year-end.
• Customers: no data privacy or advertising complaints; cyber-security complaints: none.
• Grievance mechanisms: RM & ESG Committee oversight; investor grievance channels and GRM at JMFF.
• Community CSR grievances addressed through JM Financial Foundation's GRM and multi-channel access.

Other Notable Metrics

• 38 ESG-aligned portfolio companies; PMS holds about 25% of portfolio value in NSE 100 ESG Index.
• Portfolio includes ESG-focused initiatives in Zoff Spices, Balwaan Krishi, Energy Beverages, etc.
• Shiksha Samarthan: 31,278 scholarships; 7,981 children supported across multiple states/UTs.
• Shri Vardhman Nidan Seva: 24,767 OPDs; 11,000+ preventive health participants; anaemia and malnutrition focus.
• 11 trade association memberships; active industry participation in policy development.
• Independent assurance by SGS on BRSR core indicators; some policy reviews aided by Big Four.

AGM Details and Dividend

• AGM on 3 August 2026 at 4:00 PM in-person at Ravindra Natya Mandir, Mumbai.
• Record date for dividend and AGM: 12 June 2026.
• Interim dividend ₹1.50 already declared.
• Final dividend ₹1.75 per share; total ₹3.25; payment 4 August 2026.
• Aggregate dividend outflow ₹310.81 crore.

ESOS, Related Party Transactions, and RPT Governance

• ESOS Series 20: 2,50,000 options at ₹1; vesting 100%; 7-year expiry.
• ESOS Series 20: fair value ₹93.76 per option.
• Material related party transactions with JM Financial Services Limited.
• RPTs between subsidiaries conducted at arm's length.