JM Financial Q2 profit falls 13% as finance costs rise sharply

JM Financial Limited reported consolidated profit after associates of Rs 227.66 crore for the quarter ended 30 September 2026, down 13% from Rs 261.89 crore a year earlier, as finance costs rose 68% to Rs 258.44 crore while revenue from operations was broadly unchanged at Rs 1,032.22 crore.

Why did JM Financial's Q2 consolidated profit fall?

JM Financial's September-quarter consolidated profit fell because a Rs 104.22 crore year-on-year increase in finance costs exceeded the Rs 11.87 crore rise in total income. Profit before tax declined to Rs 323.01 crore for the quarter ended 30 September 2026 from Rs 344.39 crore a year earlier, while profit after tax and share of associates fell by Rs 34.23 crore to Rs 227.66 crore.

Finance costs rose to Rs 258.44 crore from Rs 154.22 crore, while total expenses increased to Rs 733.14 crore from Rs 699.89 crore. Tax expense increased to Rs 95.48 crore from Rs 89.46 crore, and the share of profit from associates was Rs 0.13 crore, compared with a Rs 6.96 crore share of profit in the prior-year quarter.

JM Financial's basic earnings per share was Rs 2.50 in the September 2026 quarter, compared with Rs 2.82 in the September 2025 quarter. Diluted earnings per share was also Rs 2.50 against Rs 2.82, and the company said quarterly earnings per share are not annualised.

How did JM Financial's revenue and expenses change in Q2?

JM Financial's operating revenue increased by Rs 0.94 crore year on year, but individual income lines moved substantially. Interest income was Rs 355.04 crore against Rs 354.87 crore, fees and commission income increased to Rs 186.61 crore from Rs 155.53 crore, and brokerage income fell to Rs 39.33 crore from Rs 181.36 crore.

Net gain on fair-value changes increased to Rs 177.77 crore from Rs 118.85 crore, while net gain on derecognition of financial instruments carried at amortised cost rose to Rs 23.28 crore from Rs 15.10 crore. Other operating income declined to Rs 13.60 crore from Rs 21.98 crore, while other income increased to Rs 23.93 crore from Rs 13 crore.

JM Financial's higher funding cost was partly offset by lower expenses in several other categories. Fees and commission expense declined to Rs 186.31 crore from Rs 195.09 crore, employee benefits expense fell to Rs 129.05 crore from Rs 135.87 crore, and other expenses decreased to Rs 127.09 crore from Rs 142.25 crore.

On a sequential basis, JM Financial's profit after associates fell from Rs 368.57 crore in the quarter ended 30 June 2026 to Rs 227.66 crore in the September quarter. Total income declined from Rs 1,223.66 crore to Rs 1,056.15 crore, while finance costs increased from Rs 246.56 crore to Rs 258.44 crore.

Which JM Financial segments generated profit in Q2?

JM Financial's Corporate Advisory and Capital Markets business generated the largest segment result before exceptional items and tax in the September 2026 quarter, at Rs 170.98 crore. Private Markets reported Rs 106.81 crore, Affordable Home Loans reported Rs 25.60 crore, and Wealth and Asset Management reported Rs 22.45 crore; Treasury and others recorded a Rs 2.83 crore loss.

Corporate Advisory and Capital Markets declined from Rs 186.95 crore in the September 2025 quarter, while Private Markets increased from Rs 101.09 crore. Wealth and Asset Management rose from Rs 19.53 crore and Affordable Home Loans increased from Rs 17.69 crore, resulting in a total segment result before exceptional items and tax of Rs 323.01 crore, versus Rs 344.39 crore a year earlier.

JM Financial defines Corporate Advisory and Capital Markets as including investment banking, institutional equities and research. Wealth and Asset Management includes wealth management, broking, portfolio management services, alternative investment funds and mutual funds, while Private Markets includes private credit and investments; Affordable Home Loans covers the affordable housing finance business.

The segment mix also changed from the June 2026 quarter, when Corporate Advisory and Capital Markets reported Rs 37.84 crore and Private Markets reported Rs 370.34 crore. JM Financial reported no exceptional item in either September 2026 or September 2025 quarter, whereas the year ended 31 March 2026 included a Rs 21.29 crore exceptional item relating to the statutory impact of new Labour Codes.

What do JM Financial's half-year results and balance sheet show?

JM Financial's profit after associates for the half year ended 30 September 2026 declined to Rs 596.23 crore from Rs 720.66 crore in the corresponding 2025 period. Revenue from operations rose to Rs 2,232.75 crore from Rs 2,142.62 crore, but finance costs increased to Rs 505 crore from Rs 343.27 crore and total expenses rose to Rs 1,502.26 crore from Rs 1,228.46 crore.

JM Financial's consolidated total assets were Rs 25,786.64 crore at 30 September 2026, compared with Rs 26,537.22 crore at 31 March 2026. Loans, net of impairment loss allowance, increased to Rs 11,854.41 crore from Rs 9,832.15 crore, while investments decreased to Rs 4,874.87 crore from Rs 6,209.45 crore and bank balances other than cash equivalents declined to Rs 3,953.63 crore from Rs 4,395.92 crore.

Debt securities declined to Rs 8,557.28 crore at 30 September 2026 from Rs 8,830.53 crore at 31 March 2026, while borrowings other than debt securities increased to Rs 2,770.74 crore from Rs 2,691.33 crore. Total equity rose to Rs 11,558.54 crore from Rs 11,358.08 crore, including other equity of Rs 10,949.94 crore compared with Rs 10,561.79 crore.

The consolidated results were unaudited, and the review report dated 4 November 2026 gave an unmodified conclusion. The statement included six subsidiaries whose financial information was not reviewed by their auditors, with combined assets of Rs 425.27 crore at 30 September 2026; management told the auditor that this information was not material to the group.

Conclusion

JM Financial's September-quarter performance shows that nearly flat operating revenue of Rs 1,032.22 crore did not absorb the rise in finance costs to Rs 258.44 crore. Corporate Advisory and Capital Markets remained the largest contributor to segment profit at Rs 170.98 crore, while Private Markets, Wealth and Asset Management, and Affordable Home Loans recorded year-on-year increases in segment results.

The filing does not provide an earnings target or guidance. The next reported period will show whether finance costs move in line with the Rs 11,854.41 crore loan balance at 30 September 2026 and whether the shift from Private Markets' Rs 370.34 crore June-quarter result to Corporate Advisory and Capital Markets' Rs 170.98 crore September-quarter result continues.