JM Financial Q1 profit zooms 166% YoY to Rs 454 crore; shares react

JM Financial Ltd on Monday said it recorded its highest-ever quarterly operating profit after tax (PAT) of Rs 454 crore for the first quarter of FY26, reflecting a 166 per cent year-on-year (YoY) growth.

The company's net worth crossed Rs 10,000 crore during the period, with book value per share at around Rs 106.4. Net revenue rose 22 per cent YoY to Rs 779 crore, while pre-provisioning operating profit also recorded a 22 per cent YoY growth to Rs 389 crore.

The real estate loan book declined 56 per cent YoY to Rs 2,063 crore, even as recoveries at JM Financial Asset Reconstruction Company Ltd stood at Rs 1,368 crore over the last 12 months. The company reported a net reversal of impairment on financial instruments of Rs 204 crore and reduced borrowings by about Rs 4,300 crore in the past year.

During the quarter, JM Financial increased its shareholding in JM Financial Credit Solutions to 100 per cent. In addition, Bajaj Allianz Life Insurance Company Ltd will acquire a 2.1 per cent stake in JM Financial Home Loans for Rs 65.5 crore, valuing the business at Rs 3,120 crore.

The company continued to strengthen its wealth management segment, adding 13 branches YoY, while sales and wealth relationship managers grew 45 per cent to 947. Recurring assets under management (AUM) in this segment rose 37 per cent YoY to Rs 31,180 crore. Its mutual fund AUM jumped 49 per cent YoY to Rs 13,901 crore, with systematic investment plan (SIP) inflows of around Rs 120 crore per month. Affordable home loans AUM grew 29 per cent YoY to Rs 2,911 crore.

JM Financial also stated it maintained a leadership position in the equity capital markets, ranking first in Q1 FY26 with 10 marquee transactions. The company has a robust pipeline of 45 filed IPOs aggregating to about Rs 1,00,000 crore, with additional issues expected to be filed in the coming months.

Meanwhile, shares of JM Financial climbed 3.36 per cent to close at Rs 160.15.