JM Financial’s bespoke loans reach Rs 3,769 crore in Q2FY27

JM Financial’s Private Markets bespoke loans reached Rs 3,769 crore in the second quarter of financial year 2027 (Q2FY27), driving standard loans to Rs 4,748 crore, while management expects the Rs 170 crore non-core book to substantially run down within 9-12 months. Gross debt-to-equity was 0.8x at H1FY27, down from 1.9x in FY24.

What is changing in JM Financial’s Private Markets loan book?

JM Financial is increasing the weight of bespoke loans within Private Markets while non-core and real-estate loan balances have declined. Bespoke loans, including loans against securities, were Rs 3,769 crore of the Rs 4,748 crore standard-loan book at Q2FY27, compared with Rs 170 crore of non-core loans and Rs 809 crore of real-estate loans. Management said the non-core loan book is expected to substantially run down in the next 9-12 months.

The mix changed from Q2FY26, when standard loans totalled Rs 3,878 crore and bespoke loans were Rs 2,251 crore. Bespoke loans increased by Rs 1,518 crore over the year, while non-core loans fell by Rs 221 crore from Rs 391 crore and real-estate loans declined by Rs 427 crore from Rs 1,236 crore. JM Financial said total standard loans increased 22% year on year, backed by growth in the bespoke vertical.

How quickly has JM Financial’s bespoke lending expanded?

JM Financial’s bespoke loan balance rose from Rs 2,251 crore in Q2FY26 to Rs 3,769 crore in Q2FY27, and increased by Rs 732 crore from Rs 3,037 crore in Q1FY27. Over the same sequential period, the non-core balance reduced by Rs 21 crore to Rs 170 crore, while real-estate loans declined by Rs 8 crore to Rs 809 crore.

New lending was primarily directed to bespoke loans. JM Financial reported disbursements of Rs 977 crore in Q2FY27, primarily in bespoke loans, and said this represented two-times year-on-year growth. Disbursements for the first half of financial year 2027 (H1FY27) were Rs 1,808 crore; these are lending flows, whereas the Rs 4,748 crore standard-loan figure is the period-end balance.

What does the non-core run-off mean for JM Financial?

JM Financial’s 9-12 month run-off expectation applies to the Rs 170 crore non-core loan book reported at Q2FY27. The balance was Rs 221 crore lower than the Rs 391 crore in Q2FY26 and Rs 21 crore below the Rs 191 crore reported in Q1FY27. The presentation identifies non-core loans as micro, small and medium enterprise (MSME) and financial institution financing (FIF) loans, without disclosing separate balances for the two categories.

The non-core decline has occurred alongside a lower real-estate loan balance and higher bespoke lending. Real-estate standard loans moved from Rs 1,097 crore in Q4FY26 to Rs 817 crore in Q1FY27 and Rs 809 crore in Q2FY27. Bespoke loans increased in each of those quarters, from Rs 2,685 crore in Q4FY26 to Rs 3,037 crore and then Rs 3,769 crore, indicating that standard-loan growth was concentrated in bespoke lending rather than spread across all categories.

How has JM Financial’s Private Markets balance sheet changed?

JM Financial’s Private Markets borrowings fell to Rs 5,314 crore at H1FY27 from Rs 12,741 crore in FY24, while gross debt-to-equity declined to 0.8x from 1.9x. Total assets decreased from Rs 19,350 crore to Rs 12,306 crore over the period, while net worth, including non-controlling interests, increased from Rs 6,538 crore to Rs 6,756 crore.

Borrowings were also below Rs 6,245 crore in FY26, when gross debt-to-equity was 0.9x. Standard loans rose from Rs 4,010 crore in FY26 to Rs 4,748 crore in H1FY27, but investments including distressed credit declined from Rs 8,593 crore to Rs 6,956 crore. Net non-performing assets, or net NPA, were Rs 120 crore in H1FY27, compared with Rs 130 crore in FY26 and Rs 279 crore in FY24.

What do JM Financial’s earnings, investments and loan yield show?

JM Financial’s Private Markets recorded revenue of Rs 850 crore, operating profit before tax of Rs 477 crore and operating profit after tax of Rs 305 crore in H1FY27. In Q2FY27, revenue was Rs 254 crore, compared with Rs 287 crore in Q2FY26, while operating profit before tax increased to Rs 107 crore from Rs 101 crore and operating profit after tax remained Rs 77 crore in both quarters.

The segment’s investment portfolio declined to Rs 6,956 crore in Q2FY27 from Rs 9,167 crore in Q2FY26. Distressed-credit investments were Rs 2,825 crore, down from Rs 3,604 crore, while cash, government securities and bonds decreased to Rs 1,691 crore from Rs 2,356 crore. Equity investments rose from Rs 908 crore to Rs 1,003 crore, and alternative investments increased from Rs 417 crore to Rs 694 crore.

JM Financial reported a loan-book and security-receipt yield of about 13% for Q2FY27, alongside the Rs 977 crore of quarterly disbursements. The company also said recovery efforts on stressed assets continue, but the presentation does not disclose a recovery target, expected timing or an expected value for those recoveries.

Distressed-credit investments related to security receipts were Rs 2,825 crore in Q2FY27, Rs 779 crore below the Rs 3,604 crore reported in Q2FY26. The share of security-receipt holders was Rs 236 crore at H1FY27, compared with Rs 408 crore at FY26. These balances are part of the segment’s investment and liability structure rather than the standard-loan book.

Conclusion

JM Financial’s disclosed figures show a Private Markets portfolio increasingly centred on bespoke lending, with that book rising to Rs 3,769 crore in Q2FY27 as non-core and real-estate balances fell to Rs 170 crore and Rs 809 crore, respectively. The shift has occurred alongside lower borrowings, a reduced gross debt-to-equity ratio and a smaller investment portfolio that includes distressed credit.

The next item to watch is management’s stated expectation that the Rs 170 crore non-core loan book will substantially run down within 9-12 months. Further indicators will include whether disbursements remain primarily in bespoke loans, progress in recovery efforts on stressed assets and changes in the Rs 2,825 crore distressed-credit investment balance.