JM Financial (523405) Q4 25/26 earnings summary

Executive summary

• Strategic pivot and business diversification since May 2024 have driven strong results, with the highest ever annual consolidated PAT of INR 1,202 crore for FY26, up 46% year-over-year, and an unmodified audit opinion from statutory auditors.

• Focus remains on execution, pipeline building, productivity improvements, and scaling high-growth, high-ROE businesses, including leadership in IPOs, client additions, and expansion in wealth and asset management.

• Shareholder payout increased by 1.6x over two years, with a final dividend of INR 1.75 per share recommended, bringing the FY26 total to INR 3.25 per share, subject to AGM approval.

• Board approved re-appointment of four Independent Directors for a second term, subject to member approval at the AGM.

Financial highlights

• FY26 consolidated PAT and minority interest up 46% year-on-year to INR 1,202 crore; adjusted PAT up 38% to INR 1,133 crore; consolidated net revenue at INR 2,749 crore, down 2% year-over-year.

• Consolidated net worth (ex-minority interest) at INR 10,605 crore as of March 31, 2026; book value per share at INR 110.9.

• Dividend distribution of INR 570 crore (INR 5.95 per share) over the last four quarters; FY26 dividend per share at INR 3.25, up 20% year-over-year.

• Gross D/E ratio stable at 1.1x; consolidated assets at INR 26,537.22 crore, up from INR 24,504.10 crore.

• FY26 EPS at INR 12.6, up from INR 8.6 in FY25; net profit margin and ROE improved to 11.7%.

Outlook and guidance

• Expecting stronger performance in H2 FY27, with continued growth in private markets and wealth management; segment reporting revised from April 1, 2025, to better reflect business activities.

• Targeting 15%-20% annual growth in private markets loan book, 20%-25% in wealth management AUM, and long-term goals of 15% revenue growth and 15% ROE post-investment cycle.

• FY24-26 CAGR guidance: Corporate Advisory & Capital Markets revenue 26%, PAT 20%; Wealth recurring AUM 23%, PAT 42%; MF AAUM 80%, management fees 89%; Affordable Home Loans AUM 24%, PAT 76%.

• Additional investment in overseas subsidiary to support international expansion.