Mumbai, January 28, 2025 – JM Financial Limited (NSE: JMFINANCIL, BSE: 523405) has announced its Q3 FY25 financial results, reporting a net profit of ₹70.47 crore, while revenue from operations stood at ₹210.82 crore. The company also disclosed updates regarding its ongoing regulatory matters with SEBI and its financial restructuring strategy.
Key Financial Highlights – Q3 FY25 (Standalone)
| Metric | Q3 FY25 | Q3 FY24 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹210.82 crore | ₹219.84 crore | -4.1% |
| Profit Before Tax (PBT) | ₹86.79 crore | ₹118.13 crore | -26.6% |
| Net Profit (PAT) | ₹70.47 crore | ₹89.82 crore | -21.6% |
| Total Comprehensive Income | ₹70.01 crore | ₹89.55 crore | -21.8% |
| Earnings Per Share (EPS) | ₹0.74 | ₹0.94 | -21.3% |
- Revenue: ₹780.77 crore (+24.3% YoY).
- Net Profit: ₹404.19 crore (+43.3% YoY).
Key Business Developments & Financial Strategy
1. SEBI Regulatory Compliance & Restrictions
- SEBI’s interim order (March 7, 2024) and confirmatory order (June 20, 2024) restricted JM Financial from acting as a lead manager for public issues of debt securities until March 31, 2025.
- The company stated that this matter does not impact its other business verticals, including equity capital markets, investment banking, and wealth management.
2. Investment & Financial Restructuring Updates
- The acquisition of 42.99% equity in JM Financials Limited (JMFCSL) for ₹1,282 crore is Credit Solutionawaiting final RBI approval.
- Sale of 71.79% stake in JM Financial Asset Reconstruction Company (JMFARC) for ₹856 crore—approved by CCI & RBI.
- ₹462.27 crore in MSME loans assigned during Q3 FY25 as part of balance sheet optimization.
3. Segment Performance
- Investment Banking & Securities Business: Revenue at ₹429.26 crore, down 11.9% YoY.
- Mortgage Lending: Revenue at ₹321.79 crore, down 3.8% YoY.
- Alternative & Distressed Credit: Revenue at ₹85.63 crore, reflecting slower recovery in the distressed asset segment.
Management Commentary
Vishal Kampani, Vice-Chairman & Managing Director, JM Financial, stated:"Our financial performance in Q3 FY25 demonstrates resilience amid regulatory challenges. While our debt capital markets business remains impacted, we strategically position ourselves for future growth through financial restructuring and expansion in the mortgage lending and wealth management sectors."
Strategic Outlook & Investor Implications
- Completion of the JMFCSL and JMFARC transactions will optimize capital structure.
- The debt capital markets business is expected to resume normal operations post-March 2025.
- Focus on strengthening investment banking, asset management, and digital wealth solutions.