JM Financial H1FY27 profit drops 27% as net revenue rises

JM Financial reported H1FY27 consolidated net profit of Rs 531 crore, down 26.6% year on year, while net revenue increased 7.2% to Rs 1,595 crore. The half-year figures compare with Rs 724 crore of profit and Rs 1,488 crore of net revenue in H1FY26, while annualised consolidated return on equity fell to 9.8% from 14.4%.

Why did JM Financial’s H1FY27 profit fall despite revenue growth?

JM Financial reported lower H1FY27 profit despite higher net revenue, with consolidated net profit falling to Rs 531 crore from Rs 724 crore in H1FY26. Pre-provisioning profit increased 7.2% to Rs 777 crore from Rs 725 crore, but profit before tax declined 16.9% to Rs 779 crore from Rs 937 crore.

The presentation reports an impairment on financial instruments of Rs 2 crore in H1FY27, compared with Rs 212 crore in H1FY26, and defines the line as including expected credit loss provisions. Tax expense declined to Rs 182 crore from Rs 224 crore, while profit after tax before non-controlling interests was Rs 596 crore, compared with Rs 713 crore a year earlier.

JM Financial’s H1FY27 earnings per share were Rs 5.5, down from Rs 7.6 in H1FY26, while book value per share rose to Rs 114.9 from Rs 107.1. The company’s reported annualised consolidated return on equity was 9.8%, a decline of 4.6 percentage points from 14.4% in the preceding first half.

How did JM Financial perform in Q2FY27?

JM Financial’s Q2FY27 consolidated net profit was Rs 240 crore, down 11.3% from Rs 270 crore in Q2FY26, as net revenue was broadly unchanged at Rs 712 crore against Rs 708 crore. Quarterly earnings per share declined to Rs 2.5 from Rs 2.8.

Employee cost rose 8.7% year on year to Rs 294 crore in Q2FY27, while operating expenses increased 8.8% to Rs 110 crore. Pre-provisioning profit therefore declined 8.6% to Rs 308 crore from Rs 336 crore, despite the Rs 4 crore increase in net revenue.

Q2FY27 profit before tax was Rs 323 crore, versus Rs 344 crore in Q2FY26, and tax expense increased to Rs 95 crore from Rs 89 crore. The impairment on financial instruments line was Rs 15 crore in Q2FY27, compared with Rs 8 crore in the prior-year quarter.

Which JM Financial segments drove H1FY27 earnings?

JM Financial’s Private Markets business was the largest disclosed contributor to H1FY27 operating profit after tax, at Rs 305 crore, followed by Corporate Advisory and Capital Markets at Rs 158 crore. Wealth Management reported Rs 49 crore, Home Loans reported Rs 35 crore, Asset Management recorded a Rs 14 crore loss, and Treasury and Others reported a Rs 1 crore loss.

Private Markets reported Rs 850 crore of H1FY27 operating revenue, while its segment-parameter disclosure listed Rs 310 crore of profit after tax. Its standard loans stood at Rs 4,748 crore in Q2FY27, up 22% year on year, and quarterly disbursements were Rs 977 crore, primarily in the Bespoke vertical.

The FY26 operating profit after tax comparison for Private Markets includes a disclosed reversal of impairment provisions of Rs 258 crore before tax, or Rs 193 crore after tax. The segment’s FY26 operating profit after tax was Rs 543 crore, compared with Rs 305 crore in H1FY27, which is a six-month period rather than a full-year comparison.

Corporate Advisory and Capital Markets generated Rs 445 crore of H1FY27 revenue and Rs 158 crore of operating profit after tax. Its revenue increased from Rs 138 crore in Q1FY27 to Rs 307 crore in Q2FY27, while operating profit after tax increased from Rs 32 crore to Rs 127 crore over the same two quarters.

Wealth Management reported H1FY27 revenue of Rs 703 crore and loan book or assets under management of Rs 1,15,832 crore. Home Loans reported Rs 256 crore of revenue and Rs 3,929 crore of assets under management, with Q2FY27 disbursements of Rs 331 crore, up 48% year on year.

What did JM Financial’s September 2026 balance sheet show?

JM Financial reported total assets of Rs 25,734 crore at September 30, 2026, compared with Rs 25,794 crore at June 30, 2026 and Rs 24,531 crore at September 30, 2025. Business assets were Rs 23,674 crore, while treasury and other assets were Rs 2,060 crore.

Net worth was Rs 10,993 crore at September 30, 2026, up from Rs 10,241 crore a year earlier and Rs 10,899 crore at June 30, 2026. Capital employed increased to Rs 11,270 crore from Rs 10,534 crore at September 30, 2025.

Borrowings were Rs 11,328 crore at September 30, 2026, compared with Rs 10,882 crore at June 30, 2026 and Rs 11,245 crore a year earlier. Gross debt-to-equity was 1.0 times at both September 2026 and June 2026, compared with 1.1 times at September 2025.

What plans and operating indicators did JM Financial disclose?

JM Financial said Corporate Advisory and Capital Markets plans to expand the depth and breadth of its client base and recruit top-tier talent. The business was ranked first by deal value for initial public offerings and qualified institutional placements in H1FY27, and it had 48 filed initial public offering transactions worth about Rs 1,30,000 crore, excluding Jio Platforms Limited.

Corporate Advisory and Capital Markets closed 26 equity capital-market transactions worth about Rs 83,000 crore in Q2FY27 and had 370 companies under active research coverage. Its disclosed priorities also include expanding client relationships across promoters, corporates, ultra-high-net-worth individuals, government entities and private-equity financial sponsors.

Private Markets said it aims to build origination capability, attract large investors for syndicated trades and focus on co-investments, while continuing recovery efforts on stressed assets. Wealth and Asset Management reported the first close of its maiden pre-initial-public-offering fund with commitments of Rs 700 crore, alongside recurring wealth assets under management including loans of Rs 39,596 crore, up 17% year on year.

Conclusion

JM Financial’s H1FY27 results show that the 7.2% increase in net revenue to Rs 1,595 crore was accompanied by a 26.6% decline in consolidated net profit to Rs 531 crore and a lower annualised consolidated return on equity of 9.8%. Private Markets contributed Rs 305 crore of operating profit after tax and Corporate Advisory and Capital Markets contributed Rs 158 crore, while Asset Management remained loss-making at Rs 14 crore.

The next disclosures to watch are execution against the about Rs 1,30,000 crore pipeline of 48 filed initial public offering transactions, excluding Jio Platforms Limited, and Private Markets’ stated plans for syndication, co-investments and stressed-asset recoveries. Subsequent updates on Home Loans, which had Rs 3,929 crore of assets under management and 48% year-on-year Q2FY27 disbursement growth, will also indicate changes in the group’s operating mix.