JM Financial loan book rises while operating cash outflow widens

JM Financial Limited reported consolidated loans of Rs 11,854.41 crore, net of impairment loss allowance, at September 30, 2026, up from Rs 9,832.15 crore at March 31, 2026, while net cash used in operating activities widened to Rs 1,707.33 crore for the half year from Rs 317.83 crore a year earlier.

How much did JM Financial's consolidated loan book grow?

JM Financial's consolidated loans increased by Rs 2,022.26 crore in the six months to September 30, 2026. The balance was Rs 11,854.41 crore, net of impairment loss allowance, compared with Rs 9,832.15 crore at March 31, 2026. The increase occurred even as total financial assets declined by Rs 678.75 crore to Rs 24,388.07 crore.

The loan increase coincided with lower holdings in several other financial-asset categories. Investments fell by Rs 1,334.58 crore to Rs 4,874.87 crore, bank balances other than cash equivalents declined by Rs 442.29 crore to Rs 3,953.63 crore, and other financial assets fell by Rs 616.14 crore to Rs 2,110.42 crore between March 31 and September 30, 2026.

JM Financial also reported trade receivables of Rs 1,375.79 crore at September 30, 2026, down from Rs 1,430.55 crore at March 31, 2026. Total assets, including Rs 1,398.57 crore of non-financial assets, were Rs 25,786.64 crore, compared with Rs 26,537.22 crore six months earlier. The reported movement shows that the larger loan balance was accompanied by reductions in investments, bank balances and other financial assets.

What changed in JM Financial's balance sheet?

JM Financial's cash and cash equivalents fell by Rs 253.24 crore to Rs 218.95 crore at September 30, 2026 from Rs 472.19 crore at March 31, 2026. Total assets fell by Rs 750.58 crore over the same period, while inventories were nearly unchanged at Rs 127.21 crore against Rs 127.50 crore and property, plant and equipment declined to Rs 521.35 crore from Rs 539.71 crore.

JM Financial's total financial liabilities decreased by Rs 939.41 crore to Rs 13,854.02 crore at September 30, 2026. Debt securities declined by Rs 273.25 crore to Rs 8,557.28 crore, while borrowings other than debt securities increased by Rs 79.41 crore to Rs 2,770.74 crore. Trade payables due to creditors other than micro and small enterprises fell by Rs 793.56 crore to Rs 1,379.93 crore.

Total equity rose by Rs 200.46 crore to Rs 11,558.54 crore at September 30, 2026, from Rs 11,358.08 crore at March 31, 2026. Equity attributable to owners rose to Rs 11,045.64 crore from Rs 10,657.43 crore, while non-controlling interests of security receipt holders under the distressed credit business decreased to Rs 235.92 crore from Rs 407.73 crore.

The parent-company balance sheet was materially different from the consolidated position. JM Financial's standalone loans declined to Rs 550.81 crore at September 30, 2026 from Rs 614.61 crore at March 31, 2026, while standalone investments increased to Rs 4,273.62 crore from Rs 4,265.77 crore. The consolidated loan figure therefore reflects the Group's businesses rather than only the parent company's reported lending assets.

Why did JM Financial use more operating cash?

JM Financial used Rs 1,707.33 crore in operating activities in the half year ended September 30, 2026, compared with Rs 317.83 crore used in the half year ended September 30, 2025. The cash-flow statement recorded a Rs 1,971.96 crore increase in loans, net, within working-capital movements, linking the higher loan balance to the operating cash outflow.

Profit before tax was Rs 778.55 crore in the 2026 half year, down from Rs 936.95 crore in the comparable 2025 period. After adjustments including finance costs of Rs 505 crore, net gains on fair-value changes of Rs 420.69 crore and interest income of Rs 859.67 crore, operating profit before working-capital changes was Rs 10.84 crore, against Rs 51.96 crore a year earlier.

Other working-capital items also affected operating cash. Trade payables decreased by Rs 799.44 crore, other non-financial assets increased by Rs 16.99 crore, and other financial liabilities increased by Rs 64.39 crore in the half year ended September 30, 2026. Interest income received was Rs 802.30 crore, interest expense paid was Rs 553.52 crore, and direct taxes paid, net, were Rs 109.29 crore.

The operating cash outflow did not correspond to an accounting loss. JM Financial reported consolidated net profit of Rs 596.27 crore for the half year ended September 30, 2026, compared with Rs 711.51 crore a year earlier. The difference between profit and cash flow reflected the disclosed non-cash adjustments and working-capital movements, including the increase in net loans.

How did investing and financing flows affect JM Financial's cash?

JM Financial generated Rs 2,027.97 crore from investing activities in the half year ended September 30, 2026, compared with Rs 1,230.97 crore in the prior-year half year. The Group recorded Rs 668.36 crore of investment purchases and Rs 2,224.25 crore of proceeds from investment sales, while a Rs 442.29 crore decrease in other bank balances was included in investing cash flows.

JM Financial used Rs 573.88 crore in financing activities in the 2026 half year, compared with Rs 272.65 crore used a year earlier. The statement includes Rs 1,025.98 crore of proceeds from other borrowings, Rs 957.05 crore of repayment of other borrowings, net, and Rs 167.49 crore of dividend payments. Lease-liability repayments, including interest, were Rs 26.92 crore.

The combined operating, investing and financing flows reduced cash and cash equivalents by Rs 253.24 crore during the half year ended September 30, 2026. Cash and cash equivalents began the period at Rs 472.19 crore and ended at Rs 218.95 crore. In the comparable 2025 half year, cash and cash equivalents increased by Rs 640.49 crore to Rs 1,180.49 crore.

Conclusion

JM Financial's September 2026 consolidated statements show loan growth of Rs 2,022.26 crore alongside a Rs 1,707.33 crore operating cash outflow. Lower investments, other bank balances and other financial assets partly coincided with the larger loan balance, while total financial liabilities declined by Rs 939.41 crore and total equity increased by Rs 200.46 crore over the six-month period.

The next disclosed cash item to watch is JM Financial's interim dividend of Rs 1.65 per share, declared on November 4, 2026, which the company expects will result in a Rs 157.91 crore cash outflow in the quarter ending December 31, 2026. JM Financial also disclosed that tax demands related to Income Tax Appellate Tribunal orders involving JM Financial Services Limited cannot yet be quantified because the order giving effect remains pending and appeals are before the Bombay High Court.