JM Financial (523405) Q3 24/25 earnings summary

Executive summary

• Strategic pivot from on-balance sheet wholesale credit to syndication and high-ROE businesses, reducing the wholesale loan book by 45% over nine months to INR 4,200 crores, with increased focus on capital markets, wealth, asset management, and affordable home loans.

• Unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board and auditors, with unmodified opinions issued.

• Results include JM Financial Limited, 16 subsidiaries, and one associate, reflecting the Group's diversified financial services operations.

• Strong deal pipeline in investment banking, with leadership in QIP deals and robust DRHP filings.

• Aggressive talent acquisition and branch expansion, especially in tier 2/3 cities, supporting future growth.

Financial highlights

• Q3 FY25 revenue at INR 1,121 crores; profit after tax (PAT) at INR 209 crores; nine-month revenue at INR 3,426 crores; PAT at INR 612 crores.

• Consolidated total income for Q3 FY25 was ₹1,120.54 crore, down from ₹1,260.96 crore in Q3 FY24; nine-month income was ₹3,425.62 crore, down from ₹3,556.04 crore year-over-year.

• Net profit after tax and share in associate for Q3 FY25 was ₹207.39 crore, compared to ₹322.35 crore in Q3 FY24; nine-month net profit was ₹538.57 crore, down from ₹704.85 crore year-over-year.

• Cash and cash equivalents increased to INR 5,840 crores; group borrowing reduced to INR 12,143 crores.

• Consolidated net worth at INR 8,874 crores; book value per share at INR 92.8.

Outlook and guidance

• Expectation of above-industry average growth in asset management and wealth businesses, with continued focus on high-ROE and off-balance sheet models.

• Investments in digital, wealth, and asset management infrastructure to continue over the next 12–24 months.

• Affordable home loans and digital broking expected to drive future growth.

• Syndication business targeted to maintain a steady-state book of INR 3,000 crores, with 400-500 bps spread.

• Anticipated write-backs from high provision coverage in wholesale credit as resolutions occur.