JM Financial Q2 Profit Jumps 16% to ₹270 Crore Amid Revenue Dip

Introduction to JM Financial's Q2 Performance

JM Financial Ltd. announced its financial results for the second quarter of fiscal year 2026, ending September 30, 2025, revealing a mixed but overall positive performance. The diversified financial services group reported a consolidated profit after tax (PAT) of ₹270 crore, marking a 16% increase compared to the ₹232 crore earned in the same period last year. This growth in profitability was achieved despite a decline in the company's total income. Alongside the results, the board declared an interim dividend, signaling confidence in its financial health.

A Closer Look at the Financials

The company's consolidated total income for the July-September quarter stood at ₹1,044 crore, a decrease from the ₹1,211 crore reported in the corresponding quarter of the previous fiscal year. However, the key to the improved profitability was effective cost management. Total expenses saw a significant reduction, coming down to ₹670 crore from ₹1,058 crore year-on-year. This disciplined approach to expenditure allowed the company to enhance its bottom line even with lower top-line revenue. On a standalone basis, the company's net sales for September 2025 were ₹275.23 crore, an increase of 15.9% year-on-year, indicating strength in its core operations.

Strong Performance Across Business Verticals

Several of JM Financial's business segments demonstrated robust growth during the quarter. The company achieved its highest-ever quarterly fees and commission income, which reached ₹341 crore, a 20% increase year-on-year. The wealth management division is expanding steadily, with its sales and relationship manager headcount growing by 43% YoY to 1,015. The mutual fund arm also performed well, with its average assets under management (AUM) increasing by 30% YoY to ₹14,902 crore. Furthermore, the affordable home loans business saw its AUM grow by 28% YoY to ₹3,031 crore, with its customer base expanding by 39% to nearly 29,000.

Dominance in the Capital Markets

JM Financial solidified its leadership position in the investment banking space, particularly in initial public offerings (IPOs). During Q2FY26, the firm ranked number one in terms of IPO value, having closed 15 capital market transactions amounting to approximately ₹28,000 crore. The company's management noted that its pipeline for future transactions remains very strong, with 56 filed IPOs aggregating to around ₹1,20,000 crore, indicating sustained momentum in this high-margin business.

Management Commentary and Outlook

Vishal Kampani, Vice Chairman & Managing Director of JM Financial, expressed excitement over the quarter's strong performance. He highlighted the company's strategic execution in recruiting top talent, adding clients, and expanding its physical and digital infrastructure. "The pipeline of transactions in corporate advisory and capital markets is extremely robust," Kampani stated. He also pointed to crossing the milestone of 1,000 salespeople in the wealth management business and the expansion of the affordable home loans business to 134 branches as key achievements.

Key Financial Metrics Summary

To provide a clearer picture of the company's recent performance, the following table summarizes its consolidated quarterly results.

Stock Valuation and Shareholding Pattern

As of January 28, 2026, JM Financial has a market capitalization of ₹12,385 crore. The stock is trading at a trailing twelve months (TTM) price-to-earnings (PE) ratio of 10.85, which is considerably lower than the sector PE of 40.04, suggesting a reasonable valuation. The price-to-book (P/B) ratio stands at 1.21. A positive indicator for investors is the increase in promoter shareholding, which rose from 56.60% to 56.90% in the December 2025 quarter. However, a point of caution is the decrease in shareholding by Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) in the last quarter.

Dividend Announcement

Reflecting its strong financial position, the company's board declared an interim dividend of ₹1.50 per equity share for the financial year 2025-26. The record date for determining the eligibility of shareholders for this dividend has been set for November 14, 2025.

Conclusion

JM Financial's Q2FY26 results paint a picture of a company successfully navigating a challenging revenue environment through strategic cost control and strong performance in key growth areas like wealth management and capital markets. While the quarter-on-quarter revenue and profit show a decline, the year-on-year profit growth is a testament to its operational efficiency. With a robust transaction pipeline and continued expansion, the company appears well-positioned for future growth.