JM Financial Ltd

Acquisition details

• Target: JM Financial Asset Reconstruction Company Limited (JMFARC), India-based asset reconstruction company.
• AUM ₹11,853 crore; turnover ₹223.95 crore as of 31 March 2026.
• Not a related party transaction; rights issue pro rata to all shareholders.
• Industry: Financial Services.
• Objects: meet working capital, fund growth, and general corporate purposes.
• Post-issue holding rises to 84.87% from 81.77%.
• Completion: equity shares allotted on 28 September 2026.
• Consideration: cash.
• Price: ₹162.59 crore for 16,25,85,928 shares.
• Number of shares: 16,25,85,928; percentage stake now 84.87%.
• Background: RBI-registered asset reconstruction company; incorporated 19 September 2007; operates in India.
• Turnover history: 2025-26 ₹223.95 crore; 2024-25 ₹204.49 crore; 2023-24 ₹358.37 crore.

JM Financial Limited — Closure of trading window from Thursday, October 1, 2026; re-open 48 hours after the Unaudited Standalone and Consolidated Financial Results for the second quarter and half year ending on September 30, 2026 are publicly announced/declared.

Subsidiary dissolution

• Delaware-incorporated JM Financial Private Wealth, Inc. has been dissolved after completing required processes.

ESG rating update

• NSE Sustainability assigned ESG score 76 in 'Leader' category for FY2025-26 on Sep 2, 2026.
• JM Financial did not engage NSE Sustainability; rating based on publicly available information.
• Intimation uploaded on the company website for dissemination to exchanges.

Credit rating actions

• CRISIL reaffirmed long-term bank loan facility of ₹100 crore as AA/Stable.
• NCDs ₹100 crore rated AA/Stable by CRISIL (new rating assignment).
• Commercial Paper ₹100 crore reaffirmed rating A1+ by CRISIL.

ESG rating update

• Rating assigned on August 24, 2026 to JM Financial Limited (JMFINANCIL) by Crisil ESG Ratings.
• Crisil ESG rating: 66 (Strong); Core ESG rating: 74; both derived from public-domain data.
• Company confirms it did not engage Crisil; rating was assigned independently.
• Intimation uploaded on JM Financial website and to be disseminated by exchanges.

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.