JM Financial H1 consolidated profit falls 27% as ROE reaches 9.8%

JM Financial reported H1 FY27 consolidated net profit of Rs 531 crore, down 26.6% from Rs 724 crore a year earlier, while annualised consolidated return on equity was 9.8%, versus 14.4%. Net revenue nevertheless rose 7.2% to Rs 1,595 crore, and net worth reached Rs 10,993 crore at September 30, 2026.

How did JM Financial's H1 FY27 earnings change?

JM Financial's H1 FY27 consolidated net profit declined even though net revenue and pre-provisioning profit increased. Net revenue rose to Rs 1,595 crore from Rs 1,488 crore in H1 FY26, while pre-provisioning profit, or PPoP, increased to Rs 777 crore from Rs 725 crore. Profit before tax, or PBT, declined 16.9% to Rs 779 crore from Rs 937 crore.

Profit after tax, or PAT, before minority interests was Rs 596 crore in H1 FY27, compared with Rs 713 crore in H1 FY26. Consolidated net profit was Rs 531 crore against Rs 724 crore, and earnings per share, or EPS, declined to Rs 5.5 from Rs 7.6. The impairment-on-financial-instruments line, which includes expected credit loss provisions, was Rs 2 crore in H1 FY27, compared with Rs 212 crore a year earlier.

How did JM Financial's Q2 FY27 compare with Q2 FY26?

JM Financial's Q2 FY27 net revenue was nearly unchanged year on year, while PPoP and consolidated net profit declined. Q2 net revenue was Rs 712 crore, up 0.5% from Rs 708 crore in Q2 FY26, but PPoP fell 8.6% to Rs 308 crore from Rs 336 crore. Employee cost increased 8.7% to Rs 294 crore and operating expenses rose 8.8% to Rs 110 crore.

JM Financial reported Q2 FY27 consolidated net profit of Rs 240 crore, down 11.3% from Rs 270 crore a year earlier. PBT declined 6.2% to Rs 323 crore, while PAT including the share in profit of associates was Rs 228 crore, compared with Rs 262 crore in Q2 FY26. Quarterly EPS was Rs 2.5, versus Rs 2.8 in the prior-year quarter.

Which JM Financial businesses contributed most in H1 FY27?

JM Financial's Private Markets business was the largest reported H1 FY27 operating-PAT contributor after non-controlling interests, at Rs 305 crore. Corporate Advisory and Capital Markets, or CACM, followed at Rs 158 crore. Wealth Management contributed Rs 49 crore and Affordable Home Loans contributed Rs 35 crore, while Asset Management recorded an operating-PAT loss of Rs 14 crore and Treasury and Others recorded a Rs 1 crore loss.

Private Markets also reported Rs 850 crore of H1 FY27 operating revenue, compared with Rs 445 crore for CACM and Rs 703 crore for Wealth Management. Total operating revenue after non-controlling interests was Rs 2,281 crore, while total operating PAT after non-controlling interests was Rs 531 crore. The presentation's segment figures compare a six-month H1 FY27 period with full-year FY26 data, including FY26 Private Markets operating PAT of Rs 543 crore.

Private Markets reported standard loans of Rs 4,748 crore in Q2 FY27, up 22% year on year, and disbursements of Rs 977 crore, primarily in its Bespoke vertical. Wealth and Asset Management reported recurring wealth assets under management, including loans, of Rs 39,596 crore, up 17% year on year. Affordable Home Loans reported assets under management of Rs 3,929 crore, up 30%, and disbursements of Rs 331 crore, up 48%.

How did JM Financial's capital and balance sheet change?

JM Financial's net worth increased to Rs 10,993 crore at September 30, 2026, from Rs 10,241 crore at September 30, 2025. Book value per share increased to Rs 114.9 from Rs 107.1 over the same dates. These increases were reported alongside the decline in annualised consolidated return on equity to 9.8% from 14.4%.

Total assets were Rs 25,734 crore at September 30, 2026, compared with Rs 25,794 crore at June 30, 2026 and Rs 24,531 crore a year earlier. Business assets were Rs 23,674 crore, borrowings were Rs 11,328 crore and capital employed was Rs 11,270 crore. Gross debt-to-equity was 1.0 times, unchanged from June 30, 2026 and below 1.1 times at September 30, 2025.

What operating indicators has JM Financial disclosed for future execution?

JM Financial disclosed 48 filed initial public offering transactions worth about Rs 1,30,000 crore in CACM, excluding the Jio Platforms Limited transaction. The business also closed 26 equity-capital-market transactions aggregating about Rs 83,000 crore in H1 FY27, ranked first by deal value in IPOs and qualified institutional placements, or QIPs, and had 370 companies under active research coverage.

Management's stated priorities include scaling the business, expanding CACM's client base and recruiting talent. In Private Markets, management listed syndication, co-investments, origination capability and risk management as priorities, while also stating that recovery efforts on stressed assets continue. JM Financial declared an interim dividend of Rs 1.65 per share and reported aggregate payouts of Rs 7.6 per share over the last six quarters.

Conclusion

JM Financial's H1 FY27 results combined 7.2% growth in net revenue to Rs 1,595 crore and higher net worth of Rs 10,993 crore with a 26.6% decline in consolidated net profit to Rs 531 crore. The lower EPS of Rs 5.5 and annualised consolidated ROE of 9.8% reflect the reported reduction in profit relative to H1 FY26, while Q2 revenue growth was limited to 0.5%.

The next reported measures to watch are execution against management's scaling plans, CACM's 48 filed IPO transactions worth about Rs 1,30,000 crore, and lending activity in Private Markets and Affordable Home Loans. The presentation also identifies ongoing recovery efforts on stressed assets in Private Markets, while disclosing no consolidated profit or ROE target for the next period.