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 businesses.

• Interim dividend of INR 1.5 per share declared, reflecting commitment to shareholder returns and increased payout.

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

• Significant IPO pipeline of INR 120,000 crores filed with SEBI, expected to execute over the next 6-12 months.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY2025-26 were approved and released, with financials reviewed by the Audit Committee and unmodified limited review reports from statutory auditors.

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.

• Q2 FY26 consolidated 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 PBT surged 124.2% YoY to INR 344 crores, driven by lower impairment charges.

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

• Q2 FY26 EPS at INR 2.8, up from INR 2.4 in Q2 FY25; book value per share at INR 107.1 as of Sep 30, 2025.

Outlook and guidance

• IPO and capital market transaction pipeline remains strong, with expectations of continued momentum in the next two quarters.

• Wealth and asset management businesses expected to grow at a faster clip, with ongoing investments in talent and new fund launches.

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

• Asset management AUM expected to at least double in the next 2-3 years, with profitability anticipated as scale is achieved.